This memorandum allocates Ministerial responsibility for the specific initiatives contained within the White Paper and identifies a reporting mechanism to ensure that there is a co-ordinated NSW approach to dealing with the Commonwealth.As indicated in my previous Memorandum No. 94-14, the Department of Industrial Relations, Employment, Training and Further Education established a Working Party of officers from relevant agencies to analyse the White Paper to outline the Commonwealth commitments contained within the paper and their likely impact and/or issues for NSW.The Working Party has now completed this process. The Working Group have indicated that, in most instances, the policy directions outlined in the White Paper are reasonably consistent with current NSW Government policy, subject to the provision of funds by the Commonwealth where necessary. As such, the overall thrust of the White Paper deserves continued support. However, there remain a number of issues that require further clarification, such as the training wage, role of NETTForce and public sector employment of trainees, and I intend to take these matters up with the Prime Minister. Meanwhile, I would invite your attention to the attached summary of the Working Party's report which outlines the White Paper initiatives of significance to NSW and the necessary action(s) required to be undertaken by relevant State Ministers. Such actions may involve negotiations with the relevant Commonwealth Minister and/or agencies to clarify the impact of the initiative on NSW and to ensure that NSW's interests are taken into consideration by the Commonwealth during the development and implementation of the particular initiative. In this regard, Ministers should ensure that they clearly identify any financial and/or legislative implications to the State associated with implementation.Ministers should report to me initially on a quarterly basis detailing the current status of those initiatives allocated to them and outlining issues of significance/concern to the State. The first report should be submitted at the end of September 1994.The issue of public sector agency involvement with the Commonwealth's expanded JobStart program, as announced in the White Paper, is currently being considered and contact will be made with Ministers on this matter in the near future.I should be pleased if you would ensure that this memorandum is brought to the attention of relevant officers within your administration.

John Fahey,Premier.

 

MINISTERS (AGENCIES) And ACTIONS

The Minister (portfolio agency) nominated in the third column of this schedule is generally responsible for service delivery in the area covered by the White Paper initiative. It may, also be necessary for consultation to occur with special interest policy agencies on the implications of relevant initiatives (such as potential impact on particular client groups).

 

Examples of policy agencies with special interests include:Offices under the Social Policy Directorate - Office on Ageing, Office on Disability, Office on Social Policy. Office of Aboriginal Affairs Ministry for the Status and Advancement of Women Ethnic Affairs Commission

 

ACTION KEY:

A. Negotiate with Commonwealth counterparts re Commonwealth/State consistency, responsibilities, and costs.

B. Determine cost to the State.

C. Monitor developments.

 

NSW AGENCY KEY:

BAndRD (Dept of) Business and Regional Development

DIRETFE Dept of Industrial Relations, Employment, Training and Further Education

AMES Adult Migrant English Service

MEQB Migrant Employment and Qualifications Board

OBVET Office of the Board of Vocational Education and Training

VETAB Vocational Education and Training Accreditation Board

DOCS Dept of Community ServicesDSE Dept of School Education

MEYA Ministry of Education and Youth Affairs

OYA Office of Youth Affairs

OED Office of Economic Development (Premier's Department)

PPD Personnel Policy Division (Premier's Department)

SPD Social Policy Directorate

TAFE Technical and Further Education Commission

Chapter 2. A Better Environment for Economic Growth

 

MINISTER/SINITIATIVES OF SIGNIFICANCE TO NSW ACTION (AGENCY)

2.1 Reduce business costs and simplify regulations through: C Premier

i) additional funding to improve local (OED) government development and building approvalprocesses and review of local government Small Business And business regulations; Regional

ii) expanding and improving review processes of Development the Office of Regulation Review; (B And RD)

iii) establishing Council of Business Representatives for input to coordinated program of regulation review;

iv) review of industry standards setting procedures; and

v) funding to develop existing Commonwealth/State Business Licence information System

 

2.2 Encourage more private sector investment in infrastructure by extending eligibility for C Premier infrastructure bonds to aviation facilities, (OED) electricity and gas transmission, water and sewerage, and other water infrastructure.

 

Chapter 3. Industry Development Policy

 

MINlSTER/S INITIATIVES OF SIGNIFICANCE TO NSW ACTION (AGENCY)

3.1 Delivery of government business assistance A Small Business And programs to be coordinated and rationalised

Regional under the unified marketing structure of Development AusIndustry (a new entity within DIST). (BAndRD)

3.2 $38m to create inter-firm networks under NIES A Small Business And to assist firms become internationally Regional competitive. Development (BAndRD)

3.3 $102m funding, via AusIndustry, to implement a A Small Business And major 'outreach program' to target Regional approximately 15,000 potential identified SME Development exporters. (BAndRD)

3.4 Change 150% taxation concession for research C Premier and development (RAndD) including: (OED)

i) reducing threshold for the full 150% concession to $20,000; Small Business And

ii) reducing threshold for syndicated RAndD from Regional $1m to $500,000; and Development

iii) Allowing up to 10% of RAndD project cost to be (BAndRD) incurred overseas.

3.5 Lower concessional tax rate from 25% to 15% for C Premier that part of the income of Pooled Development (OED) Funds (PDFs) relating to investment in small medium enterprises (SMEs). This is conditional on 65% of the funds raised by PDFs being invested in SMEs (total assets less than $50m) within 5 years. Remove requirement that PDFs may not invest more than 5% of investment capital in start-up ventures. Increase limits on investments by share holdings in PDFs from 20 to 30%.

3.6 Merge existing programs under the Competitive C Premier Grants for Research and Development Scheme. (OED)

3.7 Establish National Procurement Board to provide C Premier advice on purchasing policy and procedures. (OED) Industry and major purchasing agencies to be represented on the Board.

3.8 Change industry development objective ln A Premier Commonwealth Government purchasing (OED) from 'maximise competitive opportunities for ANZ suppliers' to 'maximising opportunities for Australian and New Zealand industry development'.

3.9 Require Commonwealth agencies to prepare C Premier industry impact statements for acquisitions over (OED) $10m or of strategic importance. Require tenderers to submit details of ANZ involvement in the tender.

3.10 Require all day to day purchases of industrial C Premier technology and major office machine purchases (OED) in common use/period contracts to be supplied through endorsed suppliers.

3.11 Invitation to industry to submit proposals for the A Premier implementation and operation of electronic (OED) trading system.

3.12 Initiation of a Supplier Development Program to C Premier help small to medium sized suppliers (OED) understand the Commonwealth market place and improve their skills in trading with the Commonwealth.

3.13 Measures to attract Regional Head Quarters A Premier (RHQs) to Australia include: (OED)

i) remove withholding taxes on certain dividends distributed through Australia

ii) allow tax deductibility of certain costs of relocating RHQs to Australia; and

iii) streamline immigration procedures.

 

Chapters 4. A Skilled Workforce

MINISTER/S INITIATIVES OF SIGNIFICANCE TO NSW ACTION (AGENCY)

4.1 Set up Australian Student Traineeship A Education, Training And Foundation. Youth Affairs(MEYA)Industrial Relations And Employment(DIRETFE/OBVET)

4.2 Conduct a national survey of the literacy of A Education, Training And students aged 7, 9 and 13. ($3.2m over 3 years). Youth Affairs(MEYA And DSE)

4.3 Expand entry level training places by 50,000 places. A Education, Training AndYouth Affairs(TAFE And MEYA)Industrial Relations And Employment(DIRETFE)

4.4 Based on a State share of 1/3 places (see table 4.1, A And B Industrial Relations And p 94) anticipated increase in commencements in Employment 1993/94 and 1995/96 in NSW are: (DIRETFE/OBVET) l Australian Student Trainees by 1,670l apprenticeships by 4,670; Education, Training Andl traineeships (including APS) by 5,330; Youth Affairsl labour market training for 15-24 year olds (TAFE) by 3,300;l pre-vocational training by 1,660*(Note: The above figures are based on current levels of operation, not projected levels.)*Working Nation indicates pre-vocational program places will increase from 10,000 (1993/94) to 15,000 (1995/96) nationally. NSW had previously been advised that this program was to be phased out at the end of June 1994. Therefore all pre-vocational places commencing after June 1994 are new commencements and Commonwealth funding should be provided accordingly.

4.5 Provide $1.1 billion in growth funds to ANTA, A Industrial Relations And much of the funding going to TAFE to support its Employmentchanging role.(OBVET) (This is partly a restatement of existing Education, Training And Commonwealth commitment of funds to ANTA Youth Affairs over the next triennium.) (TAFE)

4.6 Expansion of structured training to a wider range A Industrial Relations And of industries and occupations. Employment (DIRETFE/OBVET/VETAB)Education, Training Youth Affairs(TAFE)

4.7 Strengthen the training component of the A Industrial Relations And following labour market programs: Landcare and EmploymentEnvironmental Action Program, Accredited (DIRETFE) Training for Youth and Jobskills. Education, Training And Youth Affairs(TAFE)Youth Training Initiative:

4.8 Use of case management approach to provide A And B Industrial Relations And intensive help to young people to return to Employmentschool, enrol in TAFE or higher education, enter (DIRETFE/AMES) an apprenticeship or other structured training Education, Training Andplacement, or find a suitable job. Youth Affairs (TAFE/MEYA/OYA)

4.9 Provide a labour market program or special A Industrial Relations And vocational training placement to all those who Employmentremain unemployed, in spite of initiative 4.8. (DIRETFE) Education, Training And Youth Affairs(TAFE)

4.10 Replace the Job Search Allowance with a Youth A Education, Training And Training Allowance. Youth Affairs(MEYA/OYA)

4.11 Improve the quality of training. (Funding of A Industrial Relations And $34.8m over 4 years to improve the quality of the Employmentcurriculum, support for professional (DIRETFE/OBVET) development of teachers and trainers and the Education, Training And continuation of AVCTS pilots.) Youth Affairs(TAFE)

4.12 Increased industry control of the vocational A Industrial Relations And education and training system through: Employment

i) negotiating with States and Territories on (DIRETFE/OBVET/ principles to underpin the establishment of the VETAB) AVCTS to ensure that industry owns and Education, Training And operates the system and to limit the role of Youth Affairs Government;(MEYA)

ii) encouraging an increased commitment to training and industry through the establishment of a National Employment and Training Taskforce (NETTFORCE);

iii) increasing industry representation on the National Training Board;iv) expanding the Enterprise Stream developedby the Business Council of Australia, including the introduction of a small business stream to theAVCTS.

4.13 Increase incentive to employers to participate in A, B Industrial Relations And training delivery and management through: Employment

i) introducing a training wage; (DIRETFE)

ii) providing additional incentive payment of $1,000 per trainee to Group Training Companies to encourage the recruitment of additional trainees;

iii) employer incentives (revision of payments provided to employers for providing young people with training places)

iv) suspending the Training Guarantee Levy; and

v) supporting training initiatives for small and medium sized enterprises

4.14 Provide additional funding of $68.2m to ANTA A And B Industrial Relations And for the off-the-job training component for Employment trainees. (DIRETFE/OBVET)Education, Training And Youth Affairs(TAFE )

Chapter 5. Reform of Labour Market AssistanceMINISTER/SINITIATIVES OF SIGNIFICANCE TO NSW ACTION (AGENCY)

5.1 Reform labour market assistance for long term A Industrial Relations And unemployed people (LTU) through a Job Employment Compact including:(DIRETFE)

i) intensive case management for people Premier unemployed for 18 months; (PPD)

ii) expansion of Jobstart (to include the Public Community Services Sector) with revised subsidy arrangements and (SPD) the introduction of a National Training Wage option (with subsidies for those employers offering approved training);

iii) expansion work experience and training placements under existing commonwealth employment programs;

iv) introduction of New Work Opportunities with a regional focus; and

v) reciprocal obligation between Job Compact participants and the Commonwealth with increased penalties for failure to accept a job offer.

5.2 Change delivery of labour market assistance A Industrial Relations And involving: Employment

i) intensive case management for LTU under the (DIRETFE) Job Compact and jobseekers assessed at high risk Community Services of becoming LTU and YTI; (SPD)

ii) job search assistance to those not assessed to be at risk of becoming LTU; and

iii) greater involvement of community and private sector agencies in the provision of case management.

5.3 Provide extra assistance for special groups A Industrial Relations And involving: Employment

i) Expansion of Aboriginal Community(DIRETFE/AMES/ Employment Development Projects and MEQB) Community Enterprise Incentive Scheme; Community Services

ii) Development of a network of migrant liaison (SPD) officers;

iii) Expansion of Disability Services Program and Commonwealth Rehabilitation Service;

iv) Targeting place numbers for Aborigines and people with disabilities in mainstream employment programs.

5.4 Establish a National Training Wage award to A Industrial Relations And cover employees participating in accredited Employment training recognised by State training authorities (DIRETFE) or where interim approval from NETTFORCE.

 

Chapter 6. Income Support Incentives

MINlSTER/SINITIATIVES OF SIGNIFICANCE TO NSW ACTION (AGENCY)

6.1 Introduce individualentitlement to income B Community Services support,allowing both partners to qualify in their (DOCS) own right, and liberalise the income test.

6.2 Phase out Wife Pensions from 1/7/95. B Community Services (DOCS)

6.3 Extend Health Care Card (HCC) concessions to B Community Services new recipients of the Parenting Allowance (DOCS) receiving more than $30.

6.4 Increased range of activities for people under the A Community Services JSA/NSA including volunteer work, community (DOCS) activities.

6.5 Create new work opportunities in organisations A Community Services providing local human services similar to HACC (DOCS/SPD) and age related services.

 

Chapter 7. Regional Development Strategy

INITIATIVES OF SIGNIFICANCE TO NSW ACTION AGENCY

7.1 Regional Best Practises Program ($80m). A Small Business And Elements include a Regional Demonstration Regional Project providing grants for projects aiding Development regional development that can provide a model(BAndRD) for other regions. Assistance to be given to Community Services establish region-wide development organisations (SPD) (RDOs) which would develop 'action plans' for future development.

7.2 Local Infrastructure ($70m). A Regional Strategic Infrastructure Fund will be established to assist regions with particular infrastructure needs and will establish models of 'best practice' for future development projects.

7.3 National Transport Infrastructure - development C Small Business And of Badgery's Creek Airport ($73m) Regional Development(BAndRD)