SA Labor says previous governments wasted taxpayer money on wrong traineeships

South Australian taxpayers have forked out millions of dollars on unnecessary trainee programs, government ministers claim.

South Australian taxpayers wrongly subsidised millions of dollars on unnecessary trainee programs because authorities failed to target desperate industries facing critical worker shortages, government ministers claim.

In a blistering attack, the Labor state government has criticised previous South Australian and federal Liberal authorities for “wasteful” spending on the wrong apprentices during the pandemic.

Those administrations “focused disproportionately” on Tafe SA and private traineeships in retail, business and leadership or management courses instead of plugging shortages in constructions, building or hospitality.

While some industry leaders and union chiefs backed the criticism amid claims certain fast food and retail companies exploited skills programs, the Liberal Opposition condemned Labor’s “bizarre” obsession with talking down traineeships.

Latest data shows the top three traineeships from the commonwealth’s Covid-19 employer wage subsidy program included more than 4300 people enrolled in a Certificate III in retail, 3775 studying a similar business certificate and almost 1700 students a Certificate IV in Leadership and Management.

The National Centre for Vocational Education Research data, between October 2020 and June 2022, showed these enrolments exceed the next seven most popular courses studied at TAFE combined.

Education Minister Blair Boyer says the skills priorities were wrong ahead of an imminent overhaul in official skills policy. Picture: NCA NewsWire / Kelly Barnes

Speaking ahead of an imminent overhaul in official skills policy, Education Minister Blair Boyer said the priorities were wrong.

“Australia has faced a national skills crisis despite billions being thrown at wage subsidies during Covid,” Mr Boyer said.

“We know that is because too many students were sent down the pathway of enrolling in courses that aren’t best attuned to where we need to build a skilled workforce.

“It’s not a criticism of business – who wouldn’t take up these subsidies – but they need to align with state priorities to build the skills needed for the state and ensure we’re being diligent with (taxpayer) spending.”

However, the Opposition highlighted official data published online, which showed the courses in strong demand included retail management and administration such as general clerks.

Liberal spokesman, former education minister John Gardner, accused Labor of making bizarre decisions.

“Every single South Australian in a traineeship or an apprenticeship is gaining a skill that our state’s industries need - otherwise businesses wouldn’t be willing to pay their salary,” Mr Gardner said.

“It is a win-win-win - the student gets a paid job and a skill, and our workforce needs are met. Labor’s obsession with talking down traineeships and apprenticeships is bizarre.

“(It) points to their preference for a one-size-fits-all approach to training - where everyone who wants certification must turn up according to TAFE’s timetable and do their training before going out to look for a job.”

Liberal spokesman, former education minister John Gardner has accused Labor of making bizarre decisions on skills priorities. Picture: Dean Martin

Masters Builders Association’s chief executive Will Frogley said apprenticeships should match demand.

“We need to be steering them towards high-paying, high-skilled, high demand careers in areas that are critical to the success and prosperity of the state, like building and construction, Defence and health,” Mr Frogley said.

“That’s the big difference here. The ‘splash the cash with no strategy’ approach landed some money where it was needed but much of it got exploited. Ultimately, it left us with gaping skills gaps in our most critical sectors.”

Master Builders SA chief executive Will Frogley says apprenticeships should match demand. Image / Russell Millard

SA Unions secretary Dale Beasley said the Tafe system was “practically on life-support”.

“The corporatisation and privatisation of vocational education and training hasn’t worked for South Australians,” Mr Beasley said.

“Our skills and training system wasn’t geared towards meeting our state’s future economic or industrial needs, it was funnelling money into company profits.”