Page 1642 - Week 06 - Thursday, 20 May 1993
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The period of apprenticeships will now be recognised as service for the purpose of calculating long service leave benefits. Previously, apprentices were disadvantaged by not having their apprenticeship period of employment recognised until at least five years' employment in the construction industry had been worked following the completion of the apprenticeship. All workers in the construction industry will now be treated similarly. So it is not only a government of action; it is a government of fairness.
The Bill will also allow contributions through the board levy for training purposes to be recognised for the purposes of the Commonwealth Training Guarantee (Administration) Act. The retrospective application of the change to 1 July 1990 will redress difficulties caused by the wording of the current legislation and ensure that employers' contributions through the board's levy are recognised as a legitimate contribution to industry training. The Australian Taxation Office has confirmed that the difficulties with ACT legislation which currently exist will be resolved by the amendments proposed. The scheme will be extended to cover part-time workers. The Bill will also increase from $100,000 to $250,000 the monetary limit of contracts which the board may enter into without prior ministerial approval. The new ceiling is appropriate, considering the significant property investments managed by the board, and is consistent with arrangements which exist in similar schemes in other States.
The Act currently provides for the payment of penalty interest of 2.5 per cent for each month or part of a month during which any levy amount remains unpaid. The Bill provides for a minimum penalty interest of $50 per month to be payable. This change will bring the ACT into line with the provisions of other long service leave schemes. The board will be empowered to write off debts and overpayments which are irrecoverable or uneconomical to recover or refund. Apart from amounts that relate to liquidated or bankrupt employers, individual amounts proposed to be written off are of small value and will not financially disadvantage the operations of the board. The Bill will also change the methods of calculation of payments for long service leave credits for contractors, to ensure that payments are calculated more equitably. Gender-specific references in the legislation will be removed. In addition, a number of minor and technical amendments are to be made.
As you can see, Madam Speaker, some of the amendments proposed are significant. They have the effect of tidying up the long service leave entitlements of workers in the construction industry. At the same time, they provide some relief for employers by eliminating the levy on apprentices and ensuring that contributions allocated for industry training are claimable under the Commonwealth Training Guarantee (Administration) Act. These changes can be effected without affecting the financial viability of the long service leave scheme.
There has been considerable consultation, consistent with this Government's overall approach to consultation, which has been demonstrated over and over again. We have consulted with employee and employer organisations through the Building and Construction Industry Long Service Leave Board, and there is general support from all parties for the amendments proposed in the Bill. I commend the Bill to the Assembly and present the explanatory memorandum to the Bill.
Debate (on motion by Mr De Domenico) adjourned.
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