PRIME Minister Scott Morrison has flagged a review into industrial relations and vocational training (VET) as part of a new scheme aimed at rebuilding the economy in the wake of COVID-19.
In an address to the National Press Club, Mr Morrison announced the Federal Government’s new JobMaker plan, which aims to address the “clunky and unresponsive” skill demand system.
The Prime Minister outlined changes in vocational education and training, including greater consistency between jurisdictions and between VET and universities, increasing funding and performance monitoring and a stronger coordination of subsidies and loans.
Mr Morrison said the current funding system was marred by inconsistencies, with little accountability to back results.
He said the average time to develop or update training products was 18 months, with a third taking more than two years to update.
“For prospective students, the large number of choices they face for qualifications can be bewildering and overwhelming,” he said.
“Compounded by a lack of visibility over the quality of training providers and the employment outcomes for those courses.”
Mr Morrison said substantial variation in vocational training fees had resulted in potential students defaulting to the university system even if their career could be best enhanced through vocational education.
He said the government had established three pilots in human services, digital technologies and mining, designed to give industry the opportunity to shape the training system to be more responsive to skill needs.
“All comes back to money,” Mr Morrison said.
“The current National Agreement for Skills and Workforce Development between the states and the Commonwealth is fundamentally flawed and it has to change.
“By law, the Commonwealth must hand over to the states and territories $1.5b every year in untied funding every year – with no end date and no questions asked.
“The agreement has also been ineffective in maintaining state investment in these schemes.
“So it’s time to make some changes.”
Mr Morrison said the industrial relations component of JobMaker would aim to address award simplification, enterprise agreements, casuals and fixed term employees and compliance and enforcement.
He said the government would address five working groups and bring together employers, industry groups, employee representatives and government to chart the reform agenda.
