Mr Speaker, the shortage of skilled workers is one of the major challenges facing the ACT, and indeed Australia, as we look to our future needs as a society.

It has been of concern for some time in the ACT. The ACT has the dual pressure of competition for skilled workers interstate and overseas, and record low unemployment rates.

The rate of unemployment in the ACT has been steadily falling and stabilised at 2.7% in the first half of this year.

The question of skill shortages is not as simple as not being able to recruit or retain staff.

The skills shortage is defined by the Department of Education and Training as “a lack of people in the community with desired skills.”

The Commonwealth Government has said, “Skills shortages exist when employees are unable to fill, or have considerable difficulty in filling, vacancies for occupations or specialist skills needs within that occupation.”

The Committee noted, for instance, that the ACT has experienced a shortage of General Practitioners to meet the needs of our population for quite a while.

This is the experience across jurisdictions, that is, we are experiencing a true skills shortage.

However, the ACT has experienced a 7% drop in the number of GP’s between 1995/96 and 2006/07, with determined efforts by the medical profession and the ACT Government to address this issue.

Mr Speaker, the Standing Committee had resolved to undertake this inquiry in April 2006 and as you are aware, in 2006/07 the ACT Government announced the establishment of a Skills Commission.

Therefore, the Committee sought advice from the Commission to ensure that the inquiry’s focus could be further refined.

The Committee received 5 submissions, heard from 2 witnesses and visited the Queensland Health and Community Services Workforce Council and the Latham Primary School.

The latter was to examine the lessons to be learnt from early school based programs.

The Committee recommends a “demand led” response to skills shortages rather than a “supply driven” response.

Its notes the positive work being undertaken through business and industry working together, VET in schools, and through as flexible and innovative vocational education training in CIT.

The Committee also found that group training organisations provide security and flexibility for small and micro employers.

There are many challenges e.g.: a shortage of workplace placements for apprentices and retention difficulties in the community and ages care sectors, health workers and allied health workers.

The report recommended the investigation of options for funding a skills foundation project, like those undertaken as part of a national skills eco-system approach, particularly for the aged care and community sectors.

The Committee also recommends the ACT Government and the construction industry implement an industry led solution to the shortage of employee placements.

Career choices of our young people obviously have a real impact on our future workforce.

The Committee recommends a review of the career advisory capacity within our schools. Also, that our schools are able to access programs that enhance students knowledge and awareness of career pathways, particularly in relation to traineeships and apprenticeships.

Young people can often be guided, from quite and early age, by their parents most significantly, to take a course that leads them off an academic path.

Whilst obtaining academic qualifications as a first choice is often a great outcome for a young person, there are many opportunities for life long, well renumerated careers by following a trades path.

That is why the Committee sees that the answer to this issue is not just in the hands of Government, nor necessarily in the hands of industry or business. It is also in the hands of the community, we all need to address this challenge together.

I want to thank my fellow Committee members, Mr Gentleman and Mr Pratt, my Committee Secretary, Dr Lilburn and the Committee Office, for their support and commitment to this inquiry.

I would also like to thank all those who made submissions, appeared before the Committee or who made us welcome during our visits.

Mr Speaker I commend the report to the Assembly.