Page 1141 - Week 04 - Thursday, 29 March 1990
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secondly, for paying an entitlement before it is due. In these instances, the board has calculated an entitlement based on oral advice from the employer and made an early payment to enable an employee to coordinate bank transfers, holiday arrangements and matters like that. The Bill allows the board to calculate a worker's entitlement up to 14 days before leave is due and to prepay the entitlement up to seven days before the worker commences leave. These amendments will permit the board to calculate long service leave payments in a manner which is equitable to workers, will permit workers to make suitable banking arrangements before commencing leave, and will avoid future Audit Office criticism.
Mr Speaker, the second aspect of the Bill concerns the levy on employers imposed by the board to cover payments of long service leave and the board's administrative costs. The Australian Government Actuary is required, under section 24(1) of the Act, to investigate each three years the state and sufficiency of moneys held to meet potential liabilities for long service leave payments and report on whether any increase or reduction in the levy is necessary. In its report of 29 September 1988, the Australian Government Actuary recommended a reduction in the levy from 2.5 per cent to 2.25 per cent.
The board consulted with the ACT Trades and Labour Council and the various ACT building and construction industry employer bodies on this recommendation. All organisations agreed that the 2.5 per cent levy should continue to be collected and invested by the board and that an amount equal to the 0.25 per cent reduction should be allocated to industry training.
The amount collected would vary between $250,000 and $300,000 each year and, subject to ministerial approval, would be available for training purposes identified by the ACT Regional Building and Construction Industry Training Council and for other industry training projects, nominated by bodies such as the Vocational Training Authority, employers and union groups.
This redirection of industry resources to training will enable some immediate gaps in the industry's training requirements to be filled. The Government recognises that in the longer term, this approach may not be the most appropriate. It will review the arrangement in the light of developments in industry financed training as they emerge across all industry sectors.
The Vocational Training Authority has recommended to me that within the framework of the Commonwealth Government's training guarantee proposal, each industry examine the most suitable funding model for that industry and I am currently considering this recommendation.
The building and construction industry has proposed a model for the long term involving a levy, based on the contract
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