ISSUES PAPERGAS IRC

1© Australian Industry Standards Ltd.

INDUSTRY AND TRAINING ISSUES PAPERGAS IRC – AUGUST 2016

The purpose of this paper is to provide industry stakeholders with a summary of the key industry and skills-related trends, domestically and internationally that have been identified by the Gas Industry Reference Committee (IRC). The contents of this paper are drawn from industry consultations and other research activities completed by the IRC this year. This information, along with feedback from stakeholders will be used by the IRC in the development of the four-year Workplan for the Gas Industry Training Package.

Australian Industry Standards has been tasked by the IRC to collect feedback from interested stakeholders about these issues on its behalf.

New arrangements for training product development commenced in January 2016, more information about the changes can be found in the background section at the end of this paper.

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KEY ISSUES AND DRIVERS AFFECTING SKILLS AND WORKFORCE DEVELOPMENT AGEING WORKFORCEThe percentage of utilities workers aged 45 and older has grown considerably in recent decades from just under 30 per cent of the workforce 30 years ago to 46 per cent today, a full seven percentage points higher than average1.

Though projected employment growth for the next five years is expected to be flat2, more than 8 per cent of the workforce will need to be replaced in that period to account for workers over 60 today.

Cost cutting by asset owners, particularly in the gas supply chain3, will require increased Government support to meet future training requirements.

TECHNOLOGY ADOPTIONAn aging workforce profile is not ideal when adopting new technology. While many new sophisticated technologies are entering the market, such as Gas Leakage survey detection drones4 and Directional Drilling5, new types of equipment are also replacing standardised equipment which has been in place for decades, e.g: Gas Valve Technology6.

As new technologies demand entirely new skills from the workforce, industry will need to overcome any reluctance it might have against adopting new technologies. Smart gas meters, for example, can offer gas retailers and their customers many of the benefits advanced meters have already provided to the electricity sector.

The technology provides more accurate information about daily consumption and also allows remote disconnection and meter reading, saving gas retailers time and money7.

Despite the obvious benefits and widespread implementation elsewhere8, there are no plans for major smart gas meter installations in Australia.

STRONG COMPETITION FOR SKILLED WORKERSEmployment in the Oil and Gas Extraction industry more than doubled in the last decade9 drawing many skilled Gas Supply workers into the mining industry. Employment in Extraction is expected to grow further by 12 per cent in the coming five years to more than 30,000 when it will be ten times the size of the Gas Supply industry. The age profile contrasts markedly against the Gas Supply industry with more than 30 per cent of the workforce under 3510.

The comparative size and growth of the industry and the ability to offer high wages is likely to put downward pressure on the Gas Supply workforce where it’s needed most, among young entrants.

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INCREASING REGULATORY BURDENThe National Gas Law and the National Gas Rules provide the legal framework for the economic regulation of gas distribution, and provide a framework for pricing. The industry also faces overlapping state regulations relating to every aspect of the industry - from handling and distribution to installation11. Industry reports describe this regulatory burden as heavy and steadily increasing12.

As one of the main factors cited by industry13 as a barrier to general business activities, it should come as no surprise that higher rates of government regulation are resulting in significant growth in the compliance workforce14.

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CONSULTATION QUESTIONS The following questions are provided to assist stakeholders with providing feedback about issues that may not have already been covered:

1. What are the key issues (existing or emerging) affecting skills and workforce development in your sector? What is driving these issues? Examples may include international and national trends in workplace design and/or job design and the impact on the skills required in the workforce such as automation, globalisation and/or digitalisation, increased use of technology, high staff turnover, high cost of training, difficulty attracting new workers, ageing workforce, lack of leadership skills, administrative burden, etc.

2. What are the main growth areas (opportunities) in your sector? What challenges or threats does this pose to your sector, particularly in terms of skill needs? Issues which could be relevant include: changes and developments in supply chains, growth in online shopping, workforce issues, demographic or regional factors, new systems of work based on changing technology, the impact of broader shifts in the economy, etc.

HOW TO PROVIDE FEEDBACK Stakeholders are invited to submit their comments on the key themes and issues outlined in this paper by close of business on Monday September 12th 2016.

It is acknowledged that the information provided about issues in this paper is deliberately brief. The purpose of this paper is to validate and confirm the advice the Gas IRC will provide to the Australian Industry Skills Committee (AISC).

In considering the key issues and themes identified in this paper, we are keen to have any feedback that either confirms your issue has been covered, or else raises an issue you feel should be addressed in the four-year Workplan for the Gas Industry Training Package to be submitted to the AISC on September 30th 2016.

Responses can be emailed to enquiries@australianindustrystandards.org.au

For further information please contact:

Jason Lazar Industry Manager P (03) 9604 7252 M 0417 903 566

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BACKGROUND INFORMATION INDUSTRY REFERENCE COMMITTEESNew arrangements for training product development commenced in January 2016. These arrangements consider the needs of employers of all sizes, across all industry sectors, and ensure the delivery of high quality Training Packages that are nationally endorsed and internationally regarded.

Industry References Committees (IRCs):

• Provide a forum for industry engagement.• Direct the review, development and implementation of training package content relevant to the

industry sectors they cover.• Act as a conduit for industry feedback to the Australian Industry and Skills Committee (AISC) and

governments on industry trends.

IRCs are composed of individuals and industry members with the experience, skills and knowledge of their particular industry sector. IRCs are supported by independent and professional Skills Service Organisations (SSO) to develop and review Training Packages, and to inform Training Package development priorities.

IRCs have a direct relationship with the AISC, and are charged with identifying industry’s skills needs, developing business cases setting out the case for change, and providing the sign off on training products before they go to the AISC for consideration.

Each IRC will perform the following functions;

• Gather intelligence for their industry sectors to inform advice on Training Package development and review.

• Direct the work of its SSO in the development of industry proposals, business cases and cases for endorsement.

• Oversight the development and review of Training Packages in line with the requirements of the AISC.

• Provide sign off for industry proposals, business cases, cases for endorsement and other submis-sions for consideration by the AISC.

• Direct the work of the SSO in preparing the support materials where funding for additional activities is provided.

• Report to the AISC on progress of its work.• Promote the use of Vocational Education and Training (VET) in the sectors they represent.

 

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GAS INDUSTRY REFERENCE COMMITTEEThe Gas Industry Reference Committee has been assigned responsibility for the Gas Industry Training Package.

The UEG11 Gas Industry Training Package provides the only Vocational Education and Training (VET) qualifications for occupations involved in the manufacture and distribution of town gas through a system of mains and pipelines.

The membership of the Gas Industry Reference Committee (IRC) is currently being reviewed by the Australian Industry and Skills Committee (AISC). More information on the IRC review process is available at the AISC website: https://www.aisc.net.au/ircs

http://www.australianindustrystandards.org.au/committee/gas-industry-reference-committee/

FOUR-YEAR WORKPLANSThe Four-Year Workplans focus on the prioritisation of the skill needs of the industry sectors each IRC has responsibility for. They are developed and reviewed annually in consultation with industry stakeholders, and submitted on behalf of the Industry Reference Committee to the Australian Industry and Skills Committee (AISC) for approval.

Workplans submitted to the AISC inform the development of a four-year rolling National Schedule for Training Package development and review work. More information on the National Schedule can be found at: www.aisc.net.au/content/national-schedule

AUSTRALIAN INDUSTRY STANDARDSAustralian Industry Standards (AIS) provides high-quality, professional secretariat services to the Gas Industry Reference Committee, in our role as a Skills Service Organisation. AIS provide services to 11 allocated IRCs which cover the Gas, Electricity, Electrotechnology, Corrections, Public Safety (including Police, Fire Services, Defence), Water, Aviation, Rail and Maritime industries. AIS supports these important industry sectors using our world class in-house capability and capacity in technical writing, quality assurance, project management and industry engagement in the production of training packages.

AIS was established in early 2016, 20 years after its predecessor the Transport and Logistics Industry Skills Council (TLISC) was established in 1996. More information about AIS can be found at www.australianindustrystandards.org.au

• We support industry growth and productivity through our modern innovative approach to estab-lishing skills standards.

• We provide high-quality, professional secretariat services to help our allocated industry reference committees develop the skills that industry needs.

• We partner with industry to shape the workforce of the future.

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REFERENCES1 ABS. Employed persons by Age and Industry division of main job (ANZSIC).

2 Labour Market Information Portal. Industry Projections five years to 2020.

3 Supply Management. Cost cutting ‘top priority’ for oil and gas sector. http://www.cips.org/supply-management/news/2016/february/cost-cutting-top-priority-for-oil-and-gas-sector/

4 GasandOil.com.au. Monitoring Fugitive Methane Emissions Utilizing Advanced, Small Unmanned, Aerial Sensor, Technology – Drone. http://gasandoil.com.au/methane-gas-monitoring-drone/

5 Utility Magazine. What is the current capability of the HDD industry, and where is it heading in the future? http://www.utilitymagazine.com.au/what-is-the-current-capability-of-the-hdd-industry-and-where-is-it-heading-in-the-future/

6 Valve Magazine. Modular Gas Valves: An Insiders’ Guide to Technology Breakthroughs http://www.valvemagazine.com/web-only/categories/technical-topics/5162-modular-gas-valves-an-insiders-guide-to-technology-breakthroughs.html

7 Australian Energy Regulator. Multinet Network Asset Management Plan. https://www.aer.gov.au/system/files/D-1%20Network%20AMP%20for%20AER%2018072012%20-%20Tables%205-5%20and%205-11%20blacked%20out.pdf

8 Department of Energy and Climate Change UK. Smart Meters Quarterly Report. https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/533060/2016_Q1_Smart_Meters_Report.pdf

9 IBISWorld. B0700 Oil and Gas Extraction in Australia Industry Report. OD5529 Coal Seam Gas Extraction in Australia Industry Report

10 Census 2011 Employment Income and Unpaid Work. Oil and Gas Extraction

11 Gas Technical Regulators Committee. Gas Regulations and Standards. http://www.gtrc.gov.au/gas-regulations/

12 IBISWorld Gas Supply in Australia Industry Report - D2700

13 Source: ABS (2015) Business Characteristics Survey

14 Deloitte. Rules eat up $250 billion a year in profit and productivity http://www2.deloitte.com/au/en/pages/media-releases/articles/rules-eat-up-250-billion-a-year-271014.html

Australian Industry Standards acknowledges the financial support received by the Commonwealth to operate as a Skills Service Organisation.