STANDING COMMITTEE ON ENVIRONMENT, COMMUNICATIONS AND THE ARTS - 24/02/2009 - ENVIRONMENT, WATER, HERITAGE AND THE ARTS PORTFOLIO

Senator «MILNE» -I just wanted to follow up on the issue of capacity. Of course, I welcome the retrofit of homes across Australia with ceiling insulation and solar hot water. However, my concern goes particularly to solar hot water and the capacity in certain parts of Australia for trained people-plumbers-with the skills to install. I take that from my own experience in Tasmania, where I had a solar hot water system sitting in my driveway for some months because (a) I just could not get a plumber to come and do a relatively small job in the scheme of things for them and (b) there are not that many with the skills or ability to do it. When I asked Treasury about whether they had modelled capacity across the country to do this, they said that their view was that there is aggregate capacity, but regional differences are very significant in terms of access to skilled tradespeople and training for skilled tradespeople to, maybe, do a short course for special expertise in some of these areas. So I just wondered what analysis you had done or what you are doing to make sure that there is the capacity to have this program delivered in as timely a manner as possible.

Mr Carter-We have certainly been also concerned about capacity issues with the program and have been having discussions with industry. Indeed, in his roundtables last year, the minister was talking to a range of industry stakeholders, including solar hot water rebate. We have had discussion with industry that has given anecdotal examples of where they have been looking at taking on new tradespeople who have been coming out of, for example, downturn mining areas and putting those people through short courses. We have been engaging with the coordinator general process to look at the capacity and training issues and how that might link to some of the government's funding programs. At this point, industry is indicating to us that they can increase to meet the capacity of it, but we are yet to get all the detailed analysis that would support that and there may need to be other things that we do to try to progress that in DEWHA. We have been talking to DEWHA about the funding that might be available in some of the green job streams.

Senator Wong-Actually, it is quite a valid point, Senator. I do not know where Mr Keefe and Mr Carter have got to with the Deputy Prime Minister's department, but certainly that aspect of trying to ensure that some of the skills programs support the programs which have been announced in other aspects of government in this space has been something that has been discussed. I do not have details, obviously. That department is not here today. However, we will see if we can provide any further information on that.

Senator «MILNE»-I would just follow that up by saying that now that we have managed to secure an increased commitment to reaching a six-star rating on residential buildings as soon as possible across the country, and no later than May next year, and also a commitment to energy-efficient design and energy-efficient features in the infrastructure package for schools, there is a huge, I would suspect, skills gap there and even a capacity gap in providing that kind of expertise quickly to the design of those schools to state governments and also housing authorities and so on. Is there any discussion going on with DEWHA about making the courses for energy auditors and courses in environmental design and implementation of six-star rating and so on permanent parts of TAFE training across the country rather than just auditor training for this particular package?

Mr Oxley-The framework under which training is currently developed and undertaken is quite complex in relation to a broad range of areas of energy efficiency training activities. The National Framework for Energy Efficiency, which is auspiced by the Ministerial Council on Energy, has a particular stream which is all about professional and trades training and accreditation, and under that stream work is being undertaken continuously on a whole range of identified areas where we need to improve the availability of skills in the workforce. I would have to take on notice the sort of activity being undertaken and would be happy to provide you with further information.

Separately to that, the questioning started around solar hot water installations. As part of the national hot water strategy, which was signed off by the Ministerial Council on Energy last year, under which electric-resistance hot water systems are being phased out progressively-the policy of this government and agreed by all governments-there is actually a training component being developed, and our department is in discussions at the moment with an independent service provider to provide training to get more plumbers skilled in the area of installing hot water systems. The department previously has invested under the broad banner of the Low Emissions Technology and Abatement program and the Solar Hot Water Rebate Program in the development of training materials for the plumbing sector in relation to solar hot water. All these things are done in some way in connection with the existing system of providing trades training for the industry skills councils and then delivered by TAFEs and by registered training organisations. So there is connectivity across that system. What we are seeing in response to the emerging uptake of these technologies is increasing focus by government on providing training in these areas.

Senator «MILNE» -The problem I have is that, whilst I welcome that trend that is going on, there is a disconnect in terms of speed. The government wants $20 billion or more worth of infrastructure with tenders let no later than the end of the year, and most of these major projects will be going up next year. That is a new building in every primary school or in a lot of primary schools, and 20,000 new affordable homes around the country. The training is not going to meet the need if we are to make sure that those buildings are designed for efficiency and have as many of the energy-efficiency components as possible. Is there any mechanism to transfer skills with training, given we have the financial crisis and a lot of people losing their jobs and also given the urgency because of the delivery of the infrastructure package? Are we capable of delivering to maximise the benefits of energy efficiency in the time frame and what can we do to accelerate that focus on training and getting people losing their jobs into this kind of employment?

Senator Wong-Senator, the officers at the table may be able to give you more detailed information on these programs. I think you made some comments somewhat critical of the coordination. I have to just say that these are very substantial and wide-ranging reforms and implementation does not just happen because you say it. You always have to work through in government.

Senator «MILNE» -No, I understand.

Senator Wong-But sometimes it seems, to be honest, that the view from there is that you would just say it and it happens. Implementation requires an enormous amount of work and an enormous amount of detail. We are seeking to progress an ambitious reform agenda in this space. The officers may be able to give you some further information. I can say to you, and I have just seen, that the Prime Minister and the Deputy Prime Minister have announced another just under $300,000 million investment in employment services for retrenched workers which include the implementation of additional places for training. We are very conscious of the need to provide services as an aspect of economic stimulus responding to the global financial crisis. We are aware of the need to try and integrate those training programs and to try and recognise the training that is required, bearing in mind the other aspects of the government's stimulus package. I do not have all the detail of what the Deputy Prime Minister is doing. As I said, to you, I am happy to try to provide further information or to arrange for them to have a discussion with you, if you wish. All I can say is that these are matters that we are aware of, and in a range of the areas in which investment is being made we are seeking to take account of them.