INTRODUCTION

Tradesmen's Rights Regulation Repeal Bill 1999
CONTENT

CHAPTER 1

INTRODUCTION

Progress and referral of the bill

1.1 On 28 April 1999 the Senate referred the provisions of the Tradesmen's Rights Regulation Repeal Bill 1999 to the Senate Employment, Workplace Relations, Small Business and Education Legislation Committee. The bill was introduced to the House of Representatives on 31 March 1999 and passed the House without amendment on 12 May.

1.2 The bill was introduced to the Senate on 14 May 1999 and debate on the second reading of the bill was adjourned until the first day of sitting in the winter sitting. Debate did not resume, however, given the very tight legislative schedule during the final weeks of this period of sittings.

Provisions and objectives of the bill

1.3 The purpose of this bill is to repeal the Tradesmen's Rights Regulation Act 1946 (henceforth the TRR Act) and authorises the Governor-General to make Regulations to enable the implementation of procedures to deal with the remaining applications for skill assessments and to save and protect rights obtained under the Principal Act, in particular the retention of a register of certifications.

Background to the bill

1.4 The TRR Act had as its main purpose the task of resettling returning servicemen into the civilian workforce and reconstructing Australia's economy. The Act protected the position of enlistees who had been regarded as tradespersons before the war, and enabled the recognition of those civilian workers who had their skills upgraded during the war. It also helped ex-service personnel, who received trade training during the war, to gain civilian employment.

1.5 By 1951 the TRR Act was seen to have achieved its immediate post-war objectives and in 1952 was amended to provide for the formal recognition of trade skills of migrants in Australia. Since that time migrants have accounted for an increasing proportion of trade certificates issued under the Act.

1.6 The TRR Act has been the subject of a number of reviews in recent years. Mr B. H. Tregillis reviewed the Act in 1989, with a follow up review in 1991. The Tregillis reviews affirmed the importance of the Act in Australia's post-war reconstruction effort, contributing to better industrial relations and improvements in the Australian economy. In the 1991 review, it was noted that the development of industry competency standards would have implications for the Act but advised against changes to the assessment procedures until such time as it could be demonstrated that a more effective mechanism could be put in place. [1]

1.7 The TRR Act was subsequently identified for review under the Commonwealth Legislation Review Schedule. [2] The Report of the Legislation Review of the Tradesmen's Rights Regulation Act 1946, published in November 1998, noted that developments in the domestic training system, in particular the development of the Australian Recognition Framework (ARF), had removed the underlying rationale for the continuation of the Act and recommended that it be repealed. [3] The Minister for Employment, Workplace Relations and Small Business, the Hon. Peter Reith, MP, stated in the second reading debate on the bill that, `the conditions for repealing the act identified in the Tregillis review have been met by the development of training packages and the Australian Recognition Framework.' [4]

Skill Assessments under the Tradesmen's Rights Regulation Act

1.8 The TRR Act provides a mechanism for assessing and formally recognising the trade skills of eligible Australian residents, including migrants, who developed their trade skills informally; that is, through means other than the traditional apprenticeship system. Trades Recognition Australia (TRA), which resides within the Department of Employment, Workplace Relations and Small Business, has responsibility for administering the Act. TRA conducts assessments in 49 prescribed metal and electrical trades (TRR Act trades).

1.9 Given their experience in conducting trade skill assessments, TRA was also made a relevant Australian authority for migration assessments in 1993 under the regulations to the Migration Act 1958 to assist the Department of Immigration and Multicultural Affairs (DIMA) in the administration of the skilled stream of the migration program. [5] For migration purposes, TRA conducts assessments in the 49 TRR Act trades as well as a large number of other classifications (non-TRR Act trades). Until recently TRA did not undertake trade skills assessments in a handful of trades, such as the food and horticultural trades and hairdressing, in which they did not have experienced assessors. These were done by DIMA officials. Following changes to the Migration Regulations introduced on 1 July 1999, however, DIMA no longer has the power to undertake trade assessments and consequently TRA has been conducting all trade assessments since this time. [6]

1.10 Enabling TRA to conduct assessments for skilled migration purposes created a logical link between the TRR Act and the Migration Act in the area of trade assessments. It is important to note, however, that the authority for TRA to undertake skill assessments for migration purposes does not derive from the TRR Act. The legislative authority for TRA to do these assessments is established under the Migration Regulations and therefore the repeal of the TRR Act does not affect this role.

TRA assessment methods

1.11 For assessment purposes `all applicants must provide evidence that they are capable of performing the full range of trade duties normally undertaken by, and to the same level of skill as, a tradesperson in Australia.' [7] The methods of assessment vary slightly depending on whether the trade assessment is against a TRR Act trade and also on the country of origin of the applicant.

1.12 In so called `criteria countries' [8], training qualifications equivalent to Australian qualifications have been identified for TRR Act trades. This means if an applicant holds a formal qualification in his or her country of origin this will be recognised as equivalent to an Australian qualification. For applicants who do not meet the equivalence criteria or who are from countries whose accreditation system is not recognised, a time-based approach to assessment is adopted. Thus, an applicant must have a minimum of 6 years experience for metal trades and 7 years for electrical trades performing the full range of work, and to the level of skill ordinarily done by an Australian tradesperson. Domestic applicants seeking recognition of trade skill developed informally are also assessed against the `6/7 year rules'.

1.13 The basic assessment methodology for non-TRR Act trades is very similar, utilising the formal training criteria where relevant and a time-based approach otherwise. The minimum time in these trades is 6 years.

Developments in the domestic training system

1.14 The methods described above for assessing trade qualifications have provided an effective and generally consistent process of trade recognition in the absence of a comprehensive national system of training and recognition. Progressive changes occurring in the domestic training system, in particular the development of the National Training Framework (NTF) since late 1996, have aimed at creating a more flexible and nationally consistent training framework. These changes have involved a move away from the traditional concepts of time-based learning to a competency-based system. The two main components of the NTF are training packages and the Australian Recognition Framework (ARF). Mr Glenn Newton from Australian Labour Market Services told the Committee at its public hearing in Melbourne that:

1.15 Training packages covering most industry sectors have been developed, or are in the process of being developed. They have been developed with input from industry to provide a consistent national system of vocational education and training and are based on combinations of competencies that have been aligned with the Australian Qualifications Framework. The national recognition of qualifications based on competencies is achieved under the ARF, which is delivered through Registered Training Organisations (RTOs).

1.16 The aim of this bill is therefore to repeal the TRR Act, as it is no longer consistent with the domestic training system. Not only is the formal training criteria based on outdated industry classifications that are not aligned with qualifications based on the training packages and competency standards; qualification by time serving is no longer the relevant benchmark by which to assess competency. It is proposed that with the repeal of the TRR Act, RTOs would take over from TRA in the field of domestic recognition and assessment services in accordance with the recommendation of the Legislation Review Committee.

1.17 Although not directly affected by the repeal of this legislation, it is similarly proposed, as was recommended by the Legislation Review Committee, that RTOs subsume TRA's role in the assessment of overseas skills for migration purposes. While this decision coincides with the decision to repeal the TRR Act it is not a consequence of it. The legislative authority to allow RTOs to do these assessments will be effected under the Migration Regulations.

The Committee's inquiry

1.18 In considering this legislation the Committee sought clarification on the following issues:

1.19 The Committee invited submissions from interested parties and initially received 11 submissions. A public hearing was also held into the inquiry at the Melbourne Town Hall on 20 July 1999. Supplementary submissions were also received after the public hearing from some of the witnesses who appeared. A list of submissions, and a list of witnesses who appeared before the Committee appear in appendices to this report.

 

Footnotes

[1] As quoted in: Tradesmen's Rights Regulation Repeal Bill 1999, Second Reading Speech, The Hon. Peter Reith MP, House of Representatives, Hansard, 31 March 1999, p. 4896-4897

[2] The legislation review schedule has been prepared in accordance with the requirements of the national competition policy, agreed between the Commonwealth and all State and Territory governments. The review schedule includes legislation which may be costly to business as well as legislation that restricts competition. 98 separate reviews are identified in the schedule.

[3] Report of the Legislation Review of the Tradesmen's Rights Regulation Act 1946, November 1998, p. x

[4] ibid., p. 4897

[5] Submission No. 10, Department of Employment, Workplace Relations and Small Business, vol.1, p. 102

[6] Submission No. 11, Department of Immigration and Multicultural Affairs, vol. 1, p. 121

[7] Report of the Legislation Review of the Tradesmen's Rights Regulation Act 1946, November 1998, p. 25

[8] Argentina, Austria, Belgium, Bolivia, Brazil, Brunei, Canada, Chile, Colombia, Czechoslovakia, Denmark, Equador, Ireland, Fiji, Finland, France, Germany, Greece, Hong-Kong, India, Italy, Japan, Korea, Malaysia, Malta, Netherlands, New Zealand, Norway, Paraguay, Peru, Philippines, Poland, Portugal, Singapore, Spain, Sri Lanka, Sweden, Switzerland, Turkey, United Kingdom, United States of America, Uruguay, Venezuela, Yugoslavia

[9] Mr Glenn Newton, Hansard, 20 July 1999, p. 16