Critical Skills Investment Fund to Support Resources Sector Labour Demands

Chair of the National Resources Sector Employment Taskforce, Gary Gray MP today said the Rudd Government's new $200million Critical Skills Investment Fund would help ensure Australians made the most of growing demand for our non-renewable resources.

The Taskforce is examining ways of meeting the resources sector's increasing demand for skilled labour.

Mr Gray, who is also the Parliamentary Secretary for Northern and Western Australia, said the Government had drawn on preliminary information gathered by the Taskforce and used it to design the aims of the Fund.

"Although the Taskforce does not report until the end of June, we have already heard loud and clear what companies and communities are saying about labour and skills shortages - particularly as activity ramps up over the next few years," Mr Gray said.

"The Taskforce has heard from people right across Australia - we've received almost 100 submissions from a wide range of organisations. We have met with more than 300 people in locations around Australia, including most capital cities, and Gladstone, Mackay, Cairns and Karratha. I have also personally met with company CEOs, HR directors, mayors, and small business owners to hear their views and concerns.

"Many of them see tremendous opportunities over the next few years. We need to make sure the communities around projects such as Gorgon in my home State, but also the other 90 odd projects planned for WA, NT, Queensland, SA and NSW, benefit.

"The taskforce has been told about the importance of up-skilling as a retention strategy and we know some companies are already doing it. However, more could be done in this area as we know that 35% of workers in the mining sector and 40% in the construction sector don't have formal qualifications. The Critical Skills Investment Fund will support companies to provide employees with nationally recognised qualifications.

"Outside the resources sector organisations such as the Civil Contractors Federation and the Housing Industry Association are worried about losing workers to the resources industry. Given the number and scale of planned infrastructure projects such as road works and desalination plants, it will be important that we can quickly fill any jobs that become available. Employers in these non-resource sectors will be able to apply to the Critical Skills Investment Fund to train job seekers for their industries.

"The Taskforce has also heard some good examples about how companies in the resources sector have increased the numbers of women, mature-aged people, and Indigenous people in their workforces and we plan to highlight some of these in our final report. However the sector needs to do more - training through this Fund will be able to assist these groups."

The Taskforce has released a public discussion paper titled Resourcing the Future which will assist in generating discussion about ways to address the workforce needs of major resources projects in Australia over the next five years and beyond.

The Taskforce will report to the Government by mid 2010 with initiatives to address the resources sector's workforce needs.

For more information about NRSET or to download a copy of Resourcing the Future, visit www.deewr.gov.au/nrset.

Critical Skills Investment Fund - Fact Sheet

What is the Critical Skills Investment Fund?

This measure will be used to up-skill existing workers in the resources, construction, renewable energy and infrastructure sectors and to train unemployed job seekers who seek to work in those sectors.  The Fund will also be used to address skills gaps in other sectors impacted by a loss of workers to major projects. Over time, the fund will be used to address other emerging skills gaps.

What is the value of the Critical Skills Investment Fund and what will it achieve?

The Australian Government will contribute $200 million over four years to the Fund.

This funding will be available on a competitive basis to support any or a combination of the following:

• up-skilling eligible companies' existing workers;
• training for unemployed job seekers;
• training for mature age trades people at the Certificate IV or Diploma level to allow them to move into a role as a supervisor, workplace trainer/assessor or mentor to support young workers, including apprentices;
• other priorities following the report of the National Resources Sector Employment Taskforce.

Eligible organisations will submit proposals on the basis of a comprehensive workforce development plan. 

There are many different arrangements that could be proposed, involving partnerships between employers, training organisations and employment service providers.

For example:

• A mining company might submit a plan to up-skill existing employees who do not currently have nationally recognised qualifications, and to train job seekers in specific skills that are needed for entry level positions at a particular mine site.
• A Registered Training Organisation might submit a plan to provide training for mature age trades people at the diploma level to allow them to move into a role as a supervisor, workplace trainer/assessor or mentor for young workers, with an emphasis on supporting young apprentices.
• An industry association might apply for funding for a training program to provide a group of unemployed people with the skills required for available jobs.  Employers would be able to recruit people through Job Services Australia Providers.  Those job seekers selected would be trained and commence work.

Training supported by the Fund could include bridging and skill set training, as well as complete qualifications and skills recognition.

Successful proposals would be supported on a sliding scale, based on the co-investment principle that underpins the enterprise stream of the Productivity Places Program.  That is, the Government would fund 50 per cent of the cost of training places under successful proposals submitted by large organisations (200 or more employees), and up to 90 per cent of the costs of training places under proposals submitted by small businesses.

The number of training places supported will depend on the size of the companies that are approved for funding and the specific nature of their training proposals, including the type of training sought.  $200 million over four years could provide for up to 39,000 training places over four years.

The Fund will be overseen by an Advisory Board with industry, Skills Australia and State and Commonwealth Government expertise.

The Board will advise the Minister for Education (through the Minister for Employment Participation) including on how the Fund should be used to address the report to Government from the National Resources Sector Employment Taskforce, CSIF priorities, assessing applications and making funding recommendations.

The Minister for Education will determine which applications should be supported, taking account of the advice of the Board and the recommendations of the Minister for Employment Participation.

Who will benefit from the Critical Skills Investment Fund and how?

The Critical Skills Investment Fund will support the training requirements of individual companies, with an initial priority on the resources, renewable resources and construction sectors.

It will pay dividends for existing workers who want to upskill, including mature age workers.

It will also help unemployed job seekers to get a foothold in a growing industry with a long term future.

When will the Critical Skills Investment Fund be implemented?

The Board will be established in June 2010 and hold its first meeting in July 2010.

The Board's first order of business will be to consider how the Fund may be used to respond to report from the National Resources Sector Employment Taskforce, which is due to at the end of June 2010.

The Board will also as a matter of priority assist DEEWR to develop guidelines, which will be made available for public comment in August 2010.

The first funding round would be offered following the establishment of the guidelines.

How do I obtain more information?
Website: www.deewr.gov.au
Department enquiries: 1300 363 079