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Legislative Assembly for the ACT: 2004 Week 04 Hansard (Thursday, 1 April 2004) . . Page.. 1523 ..

The skills shortage currently facing a number of ACT industries and the role of government in encouraging and supporting ACT business to take on trainees and apprentices.

MS DUNDAS (3.40): This matter of public importance relates to businesses and to the problems that they are experiencing as a result of skills shortages. It applies also to trainees and apprentices and to the roles that they play in ACT industry. How does this affect young people in the territory who access those traineeships and apprenticeships? As was mentioned earlier, this week is Youth Week. We should be doing everything we can to ensure that issues affecting young people are on the agenda. The general unemployment rate in the ACT is considerably lower in comparison to other jurisdictions but our youth unemployment rate is unacceptably high—about 20 per cent—and it is no better than the national average.

As is the case in relation to a number of social indicators, wellbeing in the ACT community is better than the Australian average, but it is no better for our most disadvantaged groups. The majority of ACT school leavers either do not qualify for a university place or do not wish to go to university. It is vital that we provide options for our school leavers so they do not join the unemployment queues. Early unemployment has a major impact on the lifelong employment status of a young person and that, in turn, affects his or her lifelong health status, so it is a critical time for young people.

I raised this matter of public importance because I believe that the ACT government could reduce youth unemployment by better promoting and supporting new apprenticeships. At the same time it would strengthen the ACT business sector and broaden the economy—a win-win situation all round. New apprenticeships are an inexpensive option for the ACT government. The bulk of the cost of the new apprenticeship is borne by the employer who pays the training wage. Employers can usually also access some incentives from the federal government.

Some of the costs of vocational training are borne by the trainee, who pays $250 to a registered training organisation. The remaining costs are paid by the Commonwealth government through grants to ACT training and adult education. Those costs are then passed on to the RTOs. I do not believe that increasing the number of trainee or apprenticeship places would impose a significant financial burden on the ACT government. It would generate all the positive spin-offs that come from a reduction in youth unemployment.

The economic white paper, which is part of the Canberra Plan, refers not only to the importance of training for young people; it refers also to lifelong training, capitalising on the great institutions that we have in the territory and helping institutions to help those who are seeking to broaden their employment opportunities.

I am aware of two barriers to expanding the number of traineeships and apprenticeships: first, the amazing administrative burden that is placed on employers and, second, the lack of awareness of the support that is available to employers to simplify the process of engaging and managing trainees and apprentices. I believe that those two issues are quite closely linked. Many territory businesses are willing and able to employee trainees and

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