New Australian Manufacturing Report recognises vital nature of skills

A report of the Senate Economics References Committee on The Australian Manufacturing Industry, was released this month. Ai Group made a submission to the review and is cited regularly in the report. While the report is broad in its discussion and recommendations, skills shortages and skills reform are included as a vital component of manufacturing in Australia moving forward.

Relevant skills recommendations include the fast tracking of reform of the VET sector nationally through a national action plan that prioritises Australian Qualifications Framework review recommendations; improves skills and training quality and delivery, responsiveness and collaboration with industry; addresses skills shortages; and ensures that VET courses, particularly in occupations with current or forecast skills shortages, are accessible and affordable.

The report also recommends the Australian Government address manufacturing skills shortages by considering the following initiatives:

• the creation of a minimum ratio of apprenticeships on all directly-government-funded projects, in consultation with employers, industry and unions
• higher wages for apprentices to encourage the take-up and completion of apprenticeships
• exploring the benefits of an employer wage subsidy to cover the first 18 months of costs associated with adult apprenticeships
• the provision of additional funding to higher education providers through the Research Training Program, to enable better support higher degree research students and
• collaboration with the university sector to encourage more industrial PhDs (inclusive of industry placements), including targeted additional assistance for employers engaging PhD interns and cadets.