Challenges for education skills and training in volatile economic times

Michael Roche

Chief Executive Queensland Resources Council

Current QLD coal mines are uncompetitive

2

Source: Port Jackson Partners (2012), Regaining our competitive edge in minerals resources. Minerals Council of Australia – Minerals Week presentation, 30 May 2012

Queensland has high effective tax rate

For non-coal (including gas) producers and developers: will the substantial increase in coal royalties in the recent state Budget impact investment decisions as a result of concern re sovereign risk and future changes to non-coal royalties?

13 (62%)

8 (38%)Yes

No

QRC CEOs survey

Full growth scenario outlook to 2020 (November 2011)

Source: 2020-21 estimates from QRC Growth Outlook Study (Nov 2011)

Economic contribution of the Queensland resources sector

www.queenslandeconomy.com.au

Directly and indirectly 2010-11:

• One in every $5 of the state’s economy• One in every 8 jobs

• $20.5 billion in purchases ($18.8b 2009-10)

• $4.7 billion in wages to 40,630 direct resource workers

Indirect or second round impacts:

Further supply chain purchases and associated workers spending incomes on domestic goods and services:

• $56b in 2010-11 (est.)

New projects – Nov 2011

Resources sector needs highly-skilled people

• Locals first priority

• Only seeking highly skilled workers

• More expensive to hire from overseas

• Visa conditions mean they are paid at local rates

A re-think on education and training

The skills taskforce has been seeking to:  • address issues with TAFE

• build on the strengths of our traditional trade training system

• achieve an industry-engaged and led VET system.

• come up with some innovative thinking about collaboration

A re-think on education and training

The skills taskforce recommends:  • an overhaul of the employment

arrangements for TAFE staff

• a major rationalisation of TAFE institutes and TAFE assets

• moving TAFE our of the department and bringing it under a lean TAFE Queensland parent entity.

QRC initiatives

The Queensland Minerals and Energy Academy (QMEA)

Women in Resources Action Plan

OresomeResources online learning website

Professional development program for teachers

4Girls2 careers awareness program

People for the Future careers website

Key points • Despite the current cycle and issues with costs and royalties, the

resources sector in Queensland is heading for a period of strong growth only the scale and timing is in question

• This will create increasing demand for skilled workers

• The business as usual model for education and training in Queensland will not be sufficient to keep pace with demand

• We need to put in place innovative measures, and quickly, to ensure that Queenslanders can reap maximum benefit from the coming growth cycle

• The Queensland resources sector will work with the Queensland government, and education and training providers to formulate and implement plans to address our training needs.

Questions

Michael Roche

Chief Executive Queensland Resources Council