Critical Skills Investment Fund

Off the back of the Government’s formation of the National Resources Sector Employment Taskforce, we’re starting to see a number of initiatives being planned and/or launched which are aimed to address the skills gap and to make training more accessible to existing employees and those seeking an entry level opportunity.

The Australian Government has just announced the Critical Skills Investment Fund (CSIF) which will be used to up-skill existing workers in the resources, construction, renewable energy and infrastructure sectors and to train unemployed job seekers who seek to work in those sectors. The fund will also be used to address skills gaps in other sectors impacted by a loss of workers to major projects. Over time, the fund will be used to address other emerging skills gaps.

The Government will contribute $200.2 million over four years to the fund. This funding will be available on a competitive basis to support any, or a combination of, the following:

• up-skilling eligible companies’ existing workers;
• training for unemployed job seekers;
• training for mature age trades people at the Certificate IV or diploma level to allow them to move into a role as a supervisor, workplace trainer/assessor or mentor to support young workers, including apprentices;
• other priorities following the report of the National Resources Sector Employment Taskforce.

Eligible organisations will submit proposals on the basis of a comprehensive workforce development plan.

There are many different arrangements that could be proposed, involving partnerships between employers, training organisations and employment service providers.

For example:

• A mining company might submit a plan to up-skill existing employees who do not currently have nationally recognised qualifications, and to train job seekers in specific skills that are needed for entry level positions at a particular mine site.
• A registered training organisation might submit a plan to provide training for mature-age trades people at the diploma level to allow them to move into a role as a supervisor, workplace trainer/ assessor or mentor for young workers, with an emphasis on supporting young apprentices.
• An industry association might apply for funding for a training program to provide a group of unemployed people with the skills required for available jobs.

Employers would be able to recruit people through Job Services Australia providers. Those job seekers selected would be trained and commence work.

Training supported by the fund could include bridging and skill-set training, as well as complete qualifications and skills recognition.

The number of training places supported will depend on the size of the companies that are approved for funding and the specific nature of their training proposals, including the type of training sought.

Over four years $200 million could provide for up to 39,000 training places with industry contributions. The fund will be overseen by an advisory board with industry, Skills Australia and state and federal government expertise. The board will advise the Minister for Education (through the Minister for Employment Participation), including on how the fund should be used to address the report to Government from the National Resources Sector Employment Taskforce, CSIF priorities, assessing applications and making funding recommendations.

The Minister for Education will determine which applications should be supported, taking account of the advice of the board and the recommendations of the Minister for Employment Participation.

Who will benefit from the Critical Skills Investment Fund and how?

The Critical Skills Investment Fund will support the training requirements of individual companies, with an initial priority on the resources, renewable resources and construction sectors.

It will pay dividends for existing workers who want to up-skill, including mature-age workers. It will also help unemployed job seekers to get a foothold in a growing industry with a long‑term future.

When will the Critical Skills Investment Fund be implemented?

The board will be established in June 2010 and hold its first meeting in July 2010. The board’s first order of business will be to consider how the fund may be used to respond to the report from the National Resources Sector Employment Taskforce, which is due at the end of June 2010.

The board will also, as a matter of priority, assist the Department of Education, Employment and Workplace Relations to develop guidelines, which will be made available for public comment in August 2010.

The first funding round would be offered following the establishment of the guidelines.

How do I obtain more information?

Website: www.deewr.gov.au
Department enquiries: 1300 363 079