Senator ELLISON (Special Minister of State) (5:07 PM) —I move:

That this bill be now read a second time.

I seek leave to have the second reading speech incorporated in Hansard .

Leave granted.

The speech read as follows—

The bill amends the Australian National Training Authority Act 1992 to reflect the new Agreement between the Commonwealth, States and Territories on vocational education and training, setting out planning, accountability and funding arrangements for the three years 1998 to 2000.

By way of consequential amendments, the bill also amends the Vocational Education and Training Funding Act 1992 to incorporate into the general allocation the funding previously set aside specifically to support off-the-job training for traineeships and to supplement the amounts appropriated for 1998 and 1999 in accordance with real price movements reflected in Treasury indices.

The bill also rectifies an omission made in the original Australian National Training Authority Act by making it clear that the Australian National Training Authority (ANTA) is exempt from State and Territory taxes to which the Commonwealth is not subject.

The new ANTA Agreement reflected in the bill is founded on a recognition by both the Commonwealth and State and Territory Governments that vocational education and training is integral to the development of an Australian workforce with the range and depth of skills necessary to increase the productivity and competitiveness of Australian industry.

A key feature of the new Agreement is that it provides a stable basis for funding vocational education and training over the next three years.

The Commonwealth will maintain funding to the States and Territories in real terms over the period of the Agreement, and States and Territories have undertaken to achieve growth in their vocational education and training systems through efficiencies. For 1998, the States and Territories collectively have planned to deliver an extra 55,000 student places.

This is an excellent outcome, particularly for young Australians, who will benefit from additional vocational education and training places that will help them gain real jobs. It is also a win for taxpayers who can be assured that funds will be put to the best possible use.

It is evidence of this Government's commitment to the vocational education and training sector that over the next three years the Commonwealth will contribute more than $2.7 billion through the ANTA Agreement, and this is in addition to around $500 million annual funding for other Commonwealth vocational education and training programmes. Total Commonwealth funding for vocational education and training in 1998-99 will be $1.4 billion.

To ensure that the training provided will be responsive to the needs of businesses and of the economy, the new Agreement fosters a leadership role for industry in the peak decision making, planning and advisory processes for vocational education and training.

A key element of the new ANTA Agreement is the National Strategy for Vocational Education and Training for 1998 to 2003. This Strategy, which was endorsed in May this year by all the State and Territory Ministers for Vocational Education and Training, expresses a new spirit of co-operation and collaboration. It is a collective commitment by all Australian governments to work in partnership with industry to make our vocational education and training sector one of the world's best.

In setting out a vision for the development of the sector over the next five years, the Strategy expresses a commitment to ensure that the skills of the Australian labour force are sufficient to support internationally competitive commerce and industry as we compete in an increasingly global economy and, at the same time, ensure that the kind of training opportunities available allow individuals to optimise their potential.

The Government believes that Australian enterprises and citizens need, and deserve, no less.

A vital element of meeting this challenge will be to ensure that the training delivered is of the highest quality. The new ANTA Agreement ensures the quality of training by reinforcing the national framework for competency standards, recognition and qualifications.

The new National Training Framework comprises two major initiatives that provide streamlined arrangements for the recognition and regulation of vocational education and training products and services.

On 1 January 1998 new arrangements for the national recognition of vocational education and training came into effect. This is a major joint government initiative, known as the Australian Recognition Framework, which will ensure that training organisations meet high standards and that skills and qualifications are recognised across Australia. For the first time, we will have a truly national training system.

The other major initiative, Training Packages, links industry competency standards and assessment guidelines directly with national qualifications. This is not just a technical change. It is a whole new approach that creates the basis for moving away from cumbersome and rigid arrangements based on external course accreditation.

Industry endorsed standards now cover over 78 per cent of the work force. There are already 23 Training Packages available and another 70 are under development. It is most encouraging to see the widespread, active industry involvement in the development of Training Packages and the enthusiasm of so many for the new opportunities the packages create.

The new ANTA Agreement also provides a solid foundation for pursuing market reform, including increased competition, within the vocational education and training sector.

In recent years, States and Territories have increased the proportion of funding allocated to competitive activities, resulting in increased provision of publicly funded accredited training by private providers. This has included training places secured through open tendering, preferred supplier arrangements and strategic partnerships between providers.

States and Territories are also implementing User Choice for apprenticeships and traineeships, whereby funds flow to the training provider chosen by employers and apprentices or trainees.

A network of strong TAFE institutes, operating alongside, and in competition with quality private providers is an essential feature of an effective and responsive vocational education and training sector.

Increased competition is an important mechanism that can drive improvements in the training system to increase responsiveness, efficiency, quality and client choice.

For this reason, I strongly support the further development of a diverse vocational education and training market with a mix of public and private providers delivering high quality services.

The new ANTA Agreement provides a basis to encourage a stronger training culture in Australian enterprises and throughout the Australian community.

To complement this, the Government has introduced significant reforms to make apprenticeships and traineeships more accessible and responsive to industry needs.

In the past, many employers, particularly in small businesses, have been put off from recruiting apprentices by the complexity of the arrangements, the red tape and the need to deal with many organisations.

To assist in overcoming these barriers the Government has introduced improved apprenticeship and traineeship support services. From 1 May, employers, apprentices and trainees have had access to New Apprenticeship Centres which will help cut the red tape and provide a "one stop" integrated service. There are currently 60 organisations operating New Apprenticeship Centres in over 200 sites across Australia.

Apprenticeships themselves have been modernised and are now expanding real work-based training into new industries and occupations. In a flexible way they are delivering training which responds directly to the needs of businesses; and are opening up opportunities for many young Australians, in high growth industries as well as in traditional trades. Already New Apprenticeships are expanding into industries such as agriculture, telecommunications, and information technology where, for many occupations, there have been no nationally recognised training arrangements or qualifications.

The number of trainees and apprentices in training reached record levels at the end of June to over 186,500 people. This is an increase of 10.8 per cent on 1997 figures. If current trends continue, we expect that during 1998, people in New Apprenticeship training will exceed 200,000 for the first time.

To underpin the strong growth in training opportunities for young people, the Federal Government has allocated $433 million in the 1998-99 Budget to support the continued expansion of New Apprenticeships.

The Government's landmark reforms to vocational education and training embodied in the new ANTA Agreement will provide a sound basis for the Commonwealth, State and Territory Governments and industry in partnership to meet the training challenges that the economy and community will face as we move into the next century.

Madam President, I commend the bill to the Senate.

Pursuant to the order of the Senate of 28 September 1999, the Australian National Training Authority Amendment Bill 1998 and the Vocational Education and Training Funding Amendment Bill 1999 were taken together for their remaining stages.