PM: It's good to be here with Rod Welford today from the Queensland Government here at this construction training centre here at Salisbury in Brisbane. What we've seen today and what I've certainly seen is practical examples of government and industry and unions working together to produce a first class skills set for the nation.
This is critical when you look at the challenges which Australia faces in the period ahead. Right now the core economic challenge which we face as the new government of Australia is fighting the fight against inflation. We have at present a big challenge on our hands and that is the inflation problem left to us by the Howard/Costello Government. Remember, twenty interest rate warning, twenty warnings in a row by the Reserve Bank on the problems of skills and infrastructure bottlenecks. Ten interest rate rises in a row, and the core problem of emerging inflation which confronts the economy now.
What do you do about this? Well our challenge, which we must grasp with both hands, is one - to maintain tight fiscal discipline, so that we ensure that the budget does what it can to restrain demand on the economy and the second - is to boost capacity in skills and in infrastructure. These two areas which resulted in considerable inflationary pressures on the economy in recent times.
Today I am here to talk about specifically what we can do on the skills front. This is core business for the new Australian Labor Government. We want to do this in partnership with our state Government friends as well as industry and unions. Today what I am announcing is the first tranche, the first set of additional training places which will be funded by the Commonwealth to assist in the skills challenge facing the nation.
In the pre-election period I committed to the Government, establishing over a ten year period an additional 820, 000 training places. Over the four years of the budget cycle, that would translate into 450, 000 additional training places. But because we face a skills challenge now, what I am announcing is the funding necessary to support an additional, immediate 20, 000 training places across the nation which will come on stream by April.
The reason this is necessary now is because there are huge demands for skills right across the economy now. With a tight labour market and with the inflation challenge we confront, this is a core piece of our overall armoury in fighting the fight against inflation. If you look at some of the numbers on the skills shortages which confront the Australian economy, they are significant. If you look at those which are in the manufacturing sector, the health and community services sector, construction, mining - these are significant numbers. Not just for the last year, but on average over the last three years. If I look at manufacturing for example, 15 000, average number of vacancies. In Construction 7000 to 8000. Mining, 4000 to 5000. That's just on average over the last three years, and a problem which has become more acute. So you can either just avoid this and hope that something sorts itself out, or you can have a National Government; in partnership with industry, in partnership with unions and in partnership with State and Territory Governments, rolling up our sleeves to do something practical about it.
So, upfront, now, funding for 20 000 additional Commonwealth funded training places across the nation, focussing on those industry sectors of real and immediate need across the economy. Our commitment remains for an additional 450 000 training places across the budget period of four years, and we remain committed to that long term commitment of an additional 820 000 training places across the decade. That is the first thing I would like to announce.
The second is this. In relation to how we bring about better national coordination of our skills and training effort across Australia. We've committed ourselves to the establishment of Skills Australia, a statutory advisory body. It will therefore be established under national statute within the earliest weeks of the parliament resuming in Canberra.
The reason is we need to take this national skills challenge seriously. We need to have a properly coordinated national approach to it, identifying long term skills needs across the economy, providing national funding in partnership with the states to ensure that we are getting the best high quality training positions available in the areas of industry and geographical concentration where they are needed. And to make sure therefore, we are helping industry effectively on the way through.
To conclude, we are engaged in a national war against inflation. That means a tight approach to budget management. It means a constructive approach when it comes to adding to investment in critical skills needs in the economy.
When I look at the work, for example, which is being undertaken at this construction training centre here in Brisbane, this is the sort of activity which we as a National Government - in partnership with State Governments - wish to get behind. And these additional training places which I have referred to today will be available of course, to the registered training organisations which currently operate within this centre here in Brisbane. But this is a national package.
I will turn to Rod for some further comments, then I am happy to take your questions.
ROD WELFORD: The announcement of the Prime Minister today is a breath of fresh air for skills in Queensland and for Australia. For the last half a dozen years, the Australian economy has been crying out for two yawning gaps in national responsibility to be fulfilled.
The first is in skills and the second is in infrastructure. The announcement today of an immediate 20 000 additional skills training places will help support the initiatives of our government in Queensland and State Governments around Australia to develop the workforce that we need, to meet the demands of our economy's future.
In Queensland we are under enormous pressure in terms of the delivery of infrastructure across a whole range of industries. Manufacturing, construction, civil construction, mining and the health sector.
These are all areas where there are critical skills shortages and the initiative of the Federal Government today will be a breath of fresh air for our initiatives in these fields.
I welcome the opportunity to be in partnership at last with a federal government, instead of the blame game we now have the opportunity to join together and address the critical skills shortages that are limiting the capacity of the Queensland economy to provide the services and the infrastructure that people need.
So as I say, this is a welcome announcement. I don't say that gratuitously. It is a very, very exciting opportunity for us to rebuild the national partnership that is fundamentally necessary between State and Federal Governments to attack this vital economic issue.
PM: Over to you folk for some questions.
JOURNALIST: How much is the 20,000 extra places costing?
PM: Well the immediate 20,000 - the allocation of funds will depend entirely upon the spread of certificate training places which are offered. And the funding for each of those will differ depending on the length of the course and the intensity of the course. What we have focussed on are those which are immediate certificate level based training places which can immediately plug skills gaps now. The funding quantum will depend entirely upon the spread of places which is taken up. But, each of those 20,000 places will be met.
JOURNALIST: How will they be spread around the country?
PM: Well look, the big growth states of Queensland and WA are facing huge skills shortages. But this is not just confined to those two great states. Everywhere I go in the country one form or another of skills shortage is being confronted. It is a sad thing that this has been ignored for so long at the National Government level. We're turning the corner on this, but the reason we are establishing ‘Skills Australia' is that we have an independent national advisory body to audit national skills needs across industry and across regions and to provide us advice about where future funding priorities should lie, when it comes to the allocation of skills training places. But, this 20,000 now will be available for bids, from registered training organisations across the country, but focussing on those industry sectors which are now most in need. Construction is up there, mining is up there, as well as health and community services as well.
If I could add on community services. Two days ago in Sydney I announced a package of $87 million to fund individual incentive payments to attract trained nurses back into the workforce. Those who have left the workforce already qualified as nurses trying to meet what is currently a projected shortage of nurses nationwide of some 19,000 by the year 2010. Today's announcement is part of a broader attack on the skills deficit of the economy, and I'm confident that we can make a big impression with this upfront payment. But more importantly, with what follows over the three to four years ahead.
JOURNALIST: You mentioned earlier that you've been left with a hangover from the former Government. Peter Costello today is saying that ‘don't fiddle with it, don't tinker with it - we left it in a pretty good shape' -
PM: The Howard/Costello Government has left Australia with a big inflation problem. Remember, 20 warnings in a row from the Reserve Bank about skills shortages and infrastructure bottlenecks creating inflationary pressures. Each of those 20 warnings from the Reserve Bank was ignored by the Howard/Costello Government. The result - 10 interest rate rises in a row. We face an inflation challenge right now in Australia which has been left to us by the Howard/Costello Government. We can either ignore that, or act. Two ways in which we propose to act. A tight approach to fiscal policy. And we intent to do that in our preparations for the upcoming Budget. And secondly, adding to the capacity needs of the Australian economy in skills and infrastructure.
Here are our twin strategies for responding to the inflation challenge left to us by the Howard/Costello Government.
JOURNALIST: But the Howard/Costello Government also left you with a $3 billion windfall (inaudible) spending. How does that help your razor gang?
PM: Well, part of the reason we have an inflation problem left to us by the Howard/Costello Government is that they have been profligate in spending. Therefore, I announced before the election - and I've established it since the election - a razor gang. That is, it will go through each Commonwealth Government department to remove unnecessary profligate spending. That task is underway and we intend to deliver on that so that we can produce a robust Budget surplus in the upcoming Federal Budget because that is absolutely critical to fighting an effective war against inflation. Let me just go back, just one other thing on inflation then I'll go to you for your follow up question. Inflation - and why we must fight a war against it - is the enemy of every working family in this country. Inflation is also the enemy of business in this country. It is core economic business to fight the fight against inflation and not to turn a blind eye to it as has happened in recent years. That's why we are absolutely hard line when it comes to fiscal policy. And that's why we are absolutely determined to invest productively in areas such as skills formation and infrastructure bottlenecks. You had a follow up.
JOURNALIST: (Inaudible)
PM: The challenge we have in terms of a respectable upcoming Budget surplus is considerably beyond that. But we are going through each Government department like a dose of salts at the moment, to make sure that any unnecessary expenditure is eliminated. And furthermore, the objective is to produce a tight fiscal policy outcome for the year in order to underpin the fight against inflation which is core business for us.
JOURNALIST: Mr Rudd, the Government has announced that they want to make $10 billion in savings. You've recently announced that you've found $3 billion that the previous Government didn't spend. So are you now chasing $7 billion, or back to the 10?
PM: Can I just say, I've sat on the initial meetings of the strategic Budget committee of the Cabinet. Can I say, the work has barely begun. And we're out to harvest as much money as possible. And the targets are substantial. But, this is not seeking cutbacks for the sake of cutbacks. The task is core business when it comes to inflation. I cannot overstate the importance of this Australian Government tackling with both hands the inflation challenge. We must do that. And that means a robust approach to expenditure, and it means also an intelligent approach to investing in capacity constraints in the economy.
JOURNALIST: In regards to the whaling issue, do you think it's time the Australian Government brought in the Navy (inaudible) threatening that they're going to move in themselves?
PM: Let's put this into context. Our approach from beginning has been, what do we need to do in terms of creating evidence for the construction of a possible legal case against Japan to bring a halt to commercial whaling. Japan has argued for some time that this is scientific whaling. I've said repeatedly in times past, I've said it since the election as well, this is commercial whaling. Therefore the practical challenge is how do we bring a stop to this long term? And what we foreshadowed is the possibility of an appropriate international legal case to do that. And the measures we've taken have been with the intention of accumulating sufficient evidence to underpin any such case. That's the core business. When it comes to the most recent events in the area where the Japanese whaling fleet is currently operating, as the Foreign Minister has said I think again in a press statement today, that it is important for all parties to exercise restraint when it comes to the possible danger to human life. We have urged restraint and cooperation between the Government of Japan on the one hand and through it, the Japanese whaling vessel. And on the other hand, through the Dutch registered vessel which is currently part of the Sea Shepherd operations. The objective being to see the safe and early return of the two individuals concerned. That remains our intention, that remains the focus of the Foreign Minister's efforts, and those efforts will continue.
JOURNALIST: (Inaudible)
PM:& The Foreign Minister, Mr Smith, has been dealing with the Japanese Government extensively on this matter, and that will continue into the future until we have an immediate resolution of this matter concerning the two individuals.
JOURNALIST: (Inaudible)
PM: You know what the key challenge is, how do we bring about the end of commercial whaling, period, into the future. That's what I'm concerned about. And the reason I have foreshadowed for some time now the absolute importance of accumulating an evidence base which underpins a possible legal action has that as its single objective. This is not scientific whaling. This is commercial whaling. And we have a responsibility globally to act. And I note, very carefully, that when it came to the preparation of any such legal action in the past, the Government which preceded us did not do so. We must, therefore, be concerned obviously about what is happening in this whaling season, but my objective is to do what is necessary in terms of international diplomacy and appropriate international legal action, to bring a halt to commercial whaling, period.
JOURNALIST: Do you have concerns about the safety of the Australian on board?
RUDD: I have concerns about the safety of all people associated with this operation. There are particular laws which apply under international maritime law concerning responsibility of masters of vessels at sea, be they Japanese registered vessels or vessels registered in the kingdom of the Netherlands, as is the case with this Sea Shepherd operation. And those responsibilities go to the maximum preservation of human life and taking all necessary and responsible actions to that end. Therefore, I would again urge restraint on the parties and full cooperation on the part of those involved to ensure the safe return of those two individuals.
We had a question there, I think.
JOURNALIST: Prime Minister, story in Sydney today about Pat Farmer, decided to leave his Campbelltown electorate and live in Mosman (inaudible). Do you think that's important that) elected members need to be in touch with their local constituents?
RUDD: I think every individual Member of Parliament will make their own individual decisions on this and individual circumstances will differ. I actually know very little about Mr Farmer's circumstances. I've seen those reports in the Sydney newspapers. I'm sure he'll answer in his own away to his constituents at the next opportunity, that is, the next election.
JOURNALIST: (inaudible)
RUDD: The US President has a proposed meeting for Honolulu which is upcoming for the so-called major emitting economies. Australia will be represented at that meeting by the Minister for Climate Change, Senator Wong and we believe that all forms of global cooperation in dealing with the great challenge with climate change are necessary. That's why the first action of this national government was to ratify Kyoto and following that, our attendance at the Climate Change Conference of the parties in Bali which I also attended. And Senator Wong herself played an active role in those negotiations to bring about the declaration which was concluded at that conference. That is core business for us. Other forms of climate change cooperation, including the states who are still not party to the Kyoto Protocol like the United States, is also important. But would I reiterate what I have said elsewhere: I believe it's time for the Untied States to ratify Kyoto as well. We need America as part of the global climate change negotiation. America has been an overwhelming force for good in the world in so many areas. We need their voice at the table on climate change as well.
JOURNALIST: Excuse me sir, I think it would be great if we could have greater recognition of apprentices. Do you think we should have a National Apprentice Day?
RUDD: National Apprentice day. Well you know something? The more I travelled around Australia in the last six to 12 months, the more apprentices I met, the more I became absolutely convinced that a decent national apprenticeship and national traineeships scheme is what the nation desperately needs, and appropriate recognition for it. We've already had various awards operating across the states and territories to recognise apprentices of the year. Your proposal for national apprenticeship day, let me take it on board and we'll come back to you.
But can I say what you are doing as apprentices and trainees here, you're part of the fabric of building the nation and we, the national government, in partnership with the great efforts undertaken by Rod Welford and others at the state level, is so critical to getting the building blocks of the skills needs of this future economy in order. So on national apprenticeship day, let's come back to you on that. Thank you for the suggestion.
JOURNALIST: How is Ms Rein?
RUDD: I was with Therese last night. She has had her surgical procedure. She's doing fine. She's a bit sore and sorry but so are most people after they've had a procedure like that and I'm looking forward to having her home very soon. And as I indicated in a statement yesterday, that we pass our thanks very much to the nursing and medical staff at the Mater Private where she's had that procedure.
JOURNALIST: Will you use the word ‘sorry' for an indigenous apology?
RUDD: I've already said that, yes. Absolutely.
JOURNALIST: Mr Rudd, where are your sideburns?
RUDD: Well, mate what have you done with yours?
JOURNALIST: (inaudible).
RUDD: You know something? The good thing about that Christmas / New Year period is that you can also actually avoid going to the hairdresser as well but I'm sure it's an early sign of Therese's recovery when she suggested I head off to the hairdresser yesterday which is what happened. See you guys.
ends