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Legislative Assembly for the ACT: 1996 Week 10 Hansard (5 September) . . Page.. 3113 ..

MR DE DOMENICO (continuing):

at 30 June 1995, derived by subtracting total liabilities of $14.59m from total assets of $33.45m. The implementation of these amendments will increase the amount of money transferred to the Construction Industry Training Fund from approximately $90,000 in a full year to approximately $360,000 in a full year - that is, an increase of approximately $270,000. At the current surplus of $18m, a small additional diversion to training of $270,000 in a full year is entirely manageable.

Mr Speaker, this brings me to the third element of this set of amendments, which is the sunset clause. The Government has decided that, while it is prepared to use the existing mechanism to provide money for industry training as a short-term measure, this source of funding is not appropriate in the long term. The diversion of long service leave money to training was already regarded as a stopgap measure until a more appropriate alternative source of funding was developed. Other more equitable and inclusive mechanisms for funding the industry's training needs are available.

I am pleased to indicate to the Assembly that consensus on an alternative funding mechanism appears to be emerging, according to advice received from the ACT Regional Building and Construction Industry Training Council, and more recently from advice provided to me and the Minister for Education and Training by representatives of the major industry organisations. In this context it is appropriate that the Government signals to employers in the building and construction industry that their long service leave contributions will in future not be diverted to training. Mr Speaker, the Government considers that the timing of the repeal, that is, at the end of 1997, of the division in the principal Act which establishes the Construction Industry Training Fund provides sufficient time for the industry to develop an alternative funding mechanism for industry training and for Cabinet approval.

I expect to receive the triennial actuarial report on the Long Service Leave Board's operations in September or October this year. The passage of this legislation will enable me and the Government, armed with advice from the actuary, to set the long-term employer long service leave contribution rate at a level determined solely on the basis of the scheme meeting its long service leave liabilities without the need to account for a diversion of money to training. I expect, in the foreseeable future, to be able to reduce the employer contribution rate, thereby further reducing labour costs in the building and construction industry without in any way compromising the benefits to be enjoyed by employees and contractors in the industry with respect to long service leave entitlements. Mr Speaker, the inclusion of a sunset clause provides certainty to all interested parties and gives adequate notice to those charged with responsibility for ensuring there is in place a long-term sustainable source of funding for industry training.

The additional money for training to be generated by passage of the Bill will provide a significant fillip to employment and training opportunities, particularly for our youth, in the building and construction industry. The Government, in partnership with the industry, is currently developing a package of employment and training proposals which will be supported by the additional money in the Construction Industry Training Fund available as a result of the passage of this Bill. The employment and training package is being developed in a coordinated way so that it has wide support from the key industry stakeholders, and will require their direct involvement in management and implementation.

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