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Monday, 15 June 2009
Page: 6068

Mr Pyne asked the Minister for Education, in writing, on 12 May 2009:

In respect of the Building the Education Revolution Program, and the Government’s announcement on 3 February 2009 that its $42 billion Nation Building and Jobs Plan is to support up to 90,000 Australian jobs over the next two years: (a) from 2008-10, how many of those jobs will be (i) created, and (ii) supported, as a result of the program; and (b) does her department have specific performance indicators or expectations for these jobs; if so, what are the details.

Ms Gillard (Minister for Education, Minister for Employment and Workplace Relations and Minister for Social Inclusion) —The answer to the honourable member’s question is as follows:

The Nation Building and Jobs Plan is made up of a number of elements of which Building the Education Revolution is one.

The Government’s estimates of the impacts of stimulus measures assume that a stimulus of 1 per cent of GDP can be expected to increase GDP growth by between ½ and 1 percentage point. This is based on the assumption of a fiscal multiplier of between 0.5 and 1 (that is, each additional dollar of fiscal stimulus results in additional GDP of between fifty cents and one dollar). Estimates of the number of jobs supported by stimulus measures are derived using an employment elasticity of 0.75 (that is, each 1 percentage point increase in GDP growth is associated, on average, with a 0.75 percentage point increase in employment).

The Budget provided estimates of the combined impacts of the Government’s stimulus packages. The stimulus packages are expected to raise GDP by 2¾ per cent in 2009-10 and 1½ per cent in 2010-11, supporting up to 210,000 jobs.

The Building the Education Revolution program builds on the Government’s commitment to deliver a world-class education to all Australian schools. The funding provided will help to stimulate national and local economies through the scale and pace of construction work undertaken.

The Commonwealth has in place with each state and territory education authority a Bilateral Agreement on the Nation Building and Jobs Plan. This agreement includes a requirement for reporting and performance benchmarks. At the commencement of a project, state and territory education authorities are required to submit details of the estimated numbers of jobs to be supported by the project. This includes the numbers of Indigenous and non-Indigenous apprentices/trainees and other workers. The first monthly reporting is due to be submitted by education authorities to the Department of Education, Employment and Workplace Relations by 15 June 2009.

The key performance indicator for the Building the Education Revolution is the number of new or refurbished facilities, including libraries and multipurpose halls in primary schools and science and language laboratories in secondary schools.

The Commonwealth will measure this key performance indicator by measuring:

(i)   funding application rounds undertaken;

(ii)   construction milestones met and milestone payments made;

(iii)   completion of projects on time;

(iv)   amount of funding spent; and

(v)   number of jobs supported through Building the Education Revolution projects.