Scott Morrison has, in principle, answered the long-running calls from business for reform of skills education through simplification and the removal of funding distortions.
Business Council of Australia boss Jennifer Westacott, a long-term advocate, said the changes announced by the Prime Minister on Tuesday should help remove the cultural bias in Australia against VET colleges and set the country up for lifetime skills training.
Centre for Policy Development chief Terry Moran welcomed the move to activity-based funding, which is based on a hospitals model, so an activity like nursing would have common funding.
The next step, Moran said, is for the Feds to take policy control of the system to help drive reform.
The moves are part of the recovery model reforms recommended by Neville Power’s National COVID-19 Co-ordination Commission.
In his speech at the National Press Club on Tuesday, Mr Morrison focused on industrial relations reform, but noted the government’s commitment to deregulation, tax reform, energy and federation issues.
Some of these are due to be unveiled in October’s budget, if not before.
Skills training is akin to motherhood in national reform circles but as much as the business lobby groups have banged the drum and the politicians said “great idea”, little has happened.
Morrison’s commitment to reform is step one but actual implementation remains to be achieved and this will be the test of the reforms.
Some have criticised the reform agenda as being recycled ideas. The fact is that until maybe now they haven’t been implemented and Morrison, while saddled with debt totalling 30 per cent of GDP, has the chance to actually fulfil the commitments.
The national economy is on its knees, global trade is down by one third and this is the ideal setting for major policy reforms, because not only are the stakeholders receptive to change they reforms will have no negative impact on an already battered economy.
Morrison rightly points to skills training as being complex, with no clear information about what skills are needed, and distorted funding.
By way of example, in Victoria there is no financial support for anyone in the blinds and awning trade unless they are doing it through an apprenticeship. In Queensland the training is supported to the tune of $3,726 a year and in NSW by $9,630.
Nursing is another standout, receiving $19,963 a year in support in Western Australia and just $8,210 in Queensland.
The move to a digital economy has increased during the lockdown, which should fast-forward Australia’s productivity push, so long as the government follows through with promised deregulation.
The push also means few people entering the workforce can expect to survive without updates to their skills, which is best achieved by a flexible model best provided by the VET system.
This too is another reason to commend the Prime Minister’s initiative.
Why that Valentine’s Day gift might head back to the shop
Australians returned more than $11m in gifts, or 88,600 items, in the fortnight after Christmas and it could be down to people cashing in what they can to make ends meet, a data collector says.
ASX treads water before US jobs data; CBA and Westpac hit highs
ASX ends flat as markets await key US jobs numbers. CBA and Westpac hit record highs and NAB an 18-year high. Domino's jumps 21 per cent, as Collins Foods and Nick Scali also gain. Amazon falls after earnings disappoint.