Jobs for the 21 st century: People, productivity and prosperity Queensland Election 2012 11 March 2012
Jobs for the 21 st century: people, productivity and prosperity Job creation is the number one priority for my government. In 2009, I took my plan to the people of Queensland to create 100,000 jobs and we have never wavered from that promise. This was always an ambitious target, and we are delivering. Our record investment in infrastructure and our support for new business investment has ensured that my government is on the cusp of achieving our 100,000 jobs target. We have created 90,000 jobs this term (with one month to go) and more than 740,000 jobs since coming to government. This hasn t happened by accident. In the face of global economic turmoil and local natural disasters, my government put in place a clear plan to create jobs and we have delivered on it, just as we said we would. With forecast growth of 5% next year and growth in private investment of a staggering 35%, we are running full tilt towards a new era of prosperity. Our economy is being fuelled by tens of billions of dollars in new opportunities flowing from projects within the private sector creating jobs and boosting activity across many different sectors. In fact, what is happening in Queensland is unparalleled in our history and represents lasting generational change. My government has ushered in this unprecedented growth and investment, and it is now paying off. At this moment, there are $73.5 billion in major projects under assessment for investment in Queensland, with the potential to deliver more than 44,000 construction jobs and more than 25,000 operational jobs across the state. But critically, the most important investment we can make is in our people. Queensland s future opportunities spread the length and breadth of our economy, and the key to our future economic success will to equip all Queenslanders with the skills to compete in the 21 st century economy. We are successfully turning the emerging technologies and ideas of today into the growth sectors and jobs of tomorrow. Our challenge is to meet the needs of tomorrow s markets and to build the smart jobs of the 21st century. That s why we will continue to support Queensland businesses to innovate; delivering increased productivity, more jobs and a strong economy. ANNA BLIGH PREMIER OF QUEENSLAND PAGE 2
What this policy means for our community A re elected Bligh Government will put jobs first, skilling people to deliver productivity and prosperity. ACTIONS Invest $81 million for a new Top and Tail Tradies Payment, that provides: all apprentices with a $1,500 bonus upon completion of their apprenticeships all employers with a $500 payment for taking on a new apprentice or out of trade apprentices Make permanent the 25% payroll tax rebate for apprentices and trainees a $51 million investment to incentivise more apprentices and more trainees. Provide $5 million from Skills Queensland per annum to boost mentoring support for apprentices. $6.5 million to establish the Smart Connect Initiative which will link researchers with businesses to help boost Queensland innovation. $3 million to foster budding Queensland entrepreneurs with a new pilot Business Young Guns program, providing grants of up $20,000 to help Queenslanders under 30 start and grow new businesses. $2 million to continue the What s Your Big Idea Queensland? innovation voucher program with grants of up to $100,000 for Queensland businesses. Invest 50% of all LNG royalties to establish the Queensland Education Trust from 1 July 2012 more than $2.5 billion over the next ten years alone. The Queensland Education Trust will deliver a massive funding injection for schools and skills, including: Tomorrow Scholarships that provide every high school student completing Year 12 and continuing on to post secondary education or training with $4,000, commencing with the graduating class of 2015. Today Grants to support strategic education investments now, building up to $60 million per annum in new grant funding for schools and skills each and every year. Our challenges Queensland has a strong economy, with record private sector investment, strong business confidence, and significant jobs growth. Private sector investment in Queensland in infrastructure and resources projects is generating unprecedented opportunities for supply by local manufacturers and service providers. PAGE 3
Mining is booming with employment growth of 30% over the past 12 months fuelling employment growth in related sectors such as mining services and infrastructure (roads, ports, rail and hospitals). Queensland is well placed to meet the challenges and take advantage of the opportunities the mining boom brings. The establishment of Skills Queensland provides a direct link between labour demand and labour supply. Queensland is also unique in its investment in labour market programs, supporting more than 24,000 jobseekers and low skilled workers each year to move into the labour force or higher skilled jobs. Importantly, small and medium businesses employ over 95% of all Queenslanders, and are the life blood of our state s economy. Innovation is vital to ensuring strong businesses OECD figures show that 62% of productivity gains are through innovation. At its most basic, innovation is all about using our smarts to produce products and services in new and better ways. Innovation extends from creating entirely new ideas and products to adopting new technologies, embracing operational best practice and enhancing products and services to access new markets. Innovation is the key to a stronger, more competitive and more sustainable Queensland economy. That s why Labor s goal is to increase the proportion of Queensland businesses undertaking research and development or innovation by 50 per cent over the next 10 years. Already one in three Queensland businesses are innovating. Our challenge is to build on this strong foundation and ensure Queensland business and people to have a competitive edge in the global race for new ideas and new innovations. Our achievements Since March 2009, we have helped create almost 100,000 new jobs for Queensland with around 90,000 jobs delivered to date. This wasn t by accident: we took a clear plan to the people of Queensland at the last election to protect jobs and strengthen the Queensland economy. As promised during the 2009 election, over the last three years the Bligh Government has delivered jobs through our four point plan: 1. Build infrastructure keep our record building program going 2. Develop skills for the future ensure we are prepared for recovery 3. Support new and traditional industries enable industries and businesses to emerge, grow and transform 4. Develop new job creation programs like the Green Army, to assist unemployed Queenslanders to get back into work. During and after the Global Financial Crisis (GFC), the Bligh Government put jobs first. We have maintained an infrastructure program worth $15 billion per annum, supporting over 93,000 jobs. We continued to deliver a diverse and range of skills programs and initiatives to align the supply of skills and training with the demand required by industry for the future, and established Skills Queensland to deliver this industry led strategy. PAGE 4
We have invested more than $1.1 billion since 1998 to help more than 263,000 Queensland jobseekers find a job or gain new qualifications through job preparation courses, paid work placements, traineeships and accredited training. Breaking the Unemployment Cycle helped over 175,000 Queenslanders and created 124,000 jobs from 1998 to 2007 for an investment of $743.6 million. To maximise workforce participation and build skills to meet current future industry needs, in 2007 the government introduced Skilling Queenslanders for Work. The initiative has a $104.5 million commitment in the 2011 12 State Budget to help 24,000 Queenslanders gain job ready skills. More than 1700 jobs were created as part of the Green Army in 2010 11, bringing the overall total to more than 3000 jobs since this commitment was announced in 2009. In December 2008, the Queensland Government established a rapid response program to actively assist when there are significant job losses in any industry. These teams work with retrenched employees to transition them to new employment. As of late 2011, 1621 workers had registered with Rapid Response Teams from 15 industries, with a re employment rate of 79 per cent. As well, Labor has driven investment of more than $4.9 billion through innovation and the Smart State Strategy. This critical investment and focus has established Queensland as a world recognised innovation hot spot. The creation of biotechnology hubs, industry precincts and research clusters supported by excellence in Information and Communication Technology (ICT) research and development (R&D) are creating the jobs of the future. Our investment in R&D has resulted in support to 39 research institutes and more than 230 research scholarships and fellowships and grants to support groundbreaking research. In 1998 there were 8500 research jobs in Queensland; today there are more than 18,000. The number of scientists and researchers in Queensland per 1000 people is now greater than the OECD average. As well, our support for manufacturing innovation alone delivered more than $94 million in new sales revenue, efficiency savings and new investments for clients assisted through business improvement specialists, QMI Solutions, in the three years to June 2011. The government s Ulysses program is assisting leading Queensland businesses to integrate innovative design into all aspects of their business, with participating CEOs reporting exceptional results. The Queensland Government has also nurtured the establishment and growth of new knowledge intensive industries such as ICT, nanotechnology, biotechnology and micro electronics. Our investments are getting results, delivering: The number of businesses innovating has increased by 28% in last four years; A 380% increase in R&D expenditure by business to almost $2.4 billion since 1998; A 113% increase in the number of scientists in Queensland since 1998; PAGE 5
A thriving research community and impressive performance of Queensland s universities in the recent Excellence in Research (ERA) process; and Partnerships with leading research powerhouses, including the Chinese Ministry of Science and Technology and Chinese Academy of Sciences. Anna Bligh s plan to invest in people, productivity and prosperity 1. Skilling for the future: backing apprentices and traineeships Labor knows that apprentices and tradies are the backbone of our economy and that we must support and cultivate positive training environments to help Queenslanders get into trades. It is essential that we assist aspiring young apprentices when they need it most. By encouraging people to take up and finish apprenticeships we can create new wealth and give people the skills they need to have a job and contribute to the economy. Queensland is experiencing a record level of new investment across a range of sectors. This unprecedented growth will generate thousands of jobs for Queenslanders. The scale of these investments, and the demand for skilled labour, means there is a need act now to ensure Queenslanders are ready to share in these tremendous opportunities. In Queensland, where economic growth is forecast to exceed national growth and the unemployment rate is lower than many other states, we are facing the real prospect of skills shortages as the economy surges ahead. The Bligh Government is committed to preparing Queenslanders for jobs in our growing economy. To do this, we must raise the skill level of our workforce to make sure that people have the skills they need to capitalise on the job opportunities of the future. That s why a re elected Bligh Government will continue to invest in training and skills. We will support 55,000 new apprenticeship commencements and 150,000 new traineeship commencements over the next three years To back this commitment, we will invest $81 million to deliver a new Top and Tail Tradies Payment, which will provide: All apprentices with a $1,500 bonus upon completion of their apprenticeships All employers with a $500 payment for taking on a new apprentice or out of trade apprentices The Top and Tail Tradies Payment will complement the Federal Government Tools for your Trade initiative, providing an even bigger boost for apprentices. It will help encourage more Queenslanders to consider an apprenticeship and will help encourage more employers to support more apprenticeships. PAGE 6
A re elected Bligh Government will also make the 25% payroll tax rebate for apprentices and trainees permanent a $51 million investment over the next three years to incentivise more apprentices and more trainees. The wages of apprentices and trainees are exempt from payroll tax, and in July 2009 the government introduced a temporary 25% payroll tax rebate on the wages of each apprentice and trainee employed. This rebate is offset against the tax payable on the wages of other employees, and is estimated to apply to 19,500 apprentices and trainees this financial year. The success of this temporary rebate means we will make it permanent, encouraging more business to employ more apprentices and trainees. It is a key part of our plan to continue generating jobs in the Queensland economy, just like we said we would. HOW DOES THE 25% PAYROLL TAX REBATE WORK? Apprentices and trainees are already exempt from payroll tax. In addition, 25% of the value of apprentice and trainee wages can be deducted from total payroll tax payable. For an employer who pays $50,000 in exempt apprentice/trainee wages for a periodic return, this means: Initial payroll tax periodic liability (on all taxable wages) $10,000.00 Less incentive rebate ($50,000 x 25%) x 4.75% payroll tax $ 593.75 These commitments build on Labor s strong record of Revised payroll tax liability after rebate $ 9,406.25 supporting apprentices and The rebate reduces this employer's periodic liability by $593.75. trainees. Over the last decade Queensland has grown our annual intake of apprentices by nearly 73% and trainees by nearly 34%. A re elected Bligh Government will also invest $5 million per annum in mentoring and case management of apprentices at risk, to increase the likelihood of completion and improve the training/skilling experience. This will help ensure apprentices stay motivated and are given the support they need throughout their training. These initiatives are targeted at helping to further boost Queensland s apprentice completion rate and encouraging more Queenslanders to consider a trade. TABLE: Trade apprenticeship completion rates 2009/10 Qld Vic NSW SA WA National 58.1% 51.7% 55.5% 59.1% 64.2% 56.4% PAGE 7
ACTIONS Invest $81 million for a new Top and Tail Tradies Payment, that provides: all apprentices with a $1,500 bonus upon completion of their apprenticeships all employers with a $500 payment for taking on a new apprentice or out of trade apprentices Make permanent the 25% payroll tax rebate for apprentices and trainees a $51 million investment to incentivise more apprentices and more trainees. Provide $5 million from Skills Queensland per annum to boost mentoring support for apprentices. 2. Stronger links between universities and local businesses Labor has invested heavily in the bricks and brains of our economy, investing millions of dollars to support new research and build new research institutes. That s why the number of scientists and researchers in Queensland per 1,000 people is now greater than the OECD average and has increased at a rate 1.6 times that of the United Kingdom and 1.8 times the rest of Australia. Now we have a plan to see this research infrastructure deliver even more outcomes for business and more smart jobs. A re elected Bligh Government will invest up to $6.5 million to pilot the Smart Connect Initiative, a new university business partnership. The Smart Connect Initiative will embed Honours students, Masters students and PhD candidates in small and medium businesses where they will work with the business to undertake agreed research projects that are central to the business strategic development. This provides participating businesses with access to highly qualified experts to develop innovative solutions that help the business grow. To facilitate this collaboration, the Smart Connect Initiative will provide up to $100,000 per business towards the cost of the project. It is anticipated that businesses will match these resources either by financial contribution or in kind. Projects will typically take place over 12 to 36 months, with the university partner providing its expertise and jointly supervising the project together with a representative of the company. ACTION $6.5 million to establish the Smart Connect Initiative which will link researchers with businesses to help boost Queensland innovation. PAGE 8
3. Business Young Guns supporting the entrepreneurs of the future Entrepreneurs drive economic growth. When new businesses are successful the whole state benefits through new jobs and increased economic activity. By encouraging entrepreneurship among young Queenslanders we can create new wealth and jobs for Queenslanders that will continue for many decades. Importantly, many aspiring young business owners often struggle to get early stage finance and may lack early stage business skills. A re elected Bligh Government will provide critical support early to help our future entrepreneurs get started. We will provide $3 million over three years to establish a new Business Young Guns program to support start up businesses run by entrepreneurs under 30. This pilot grants program will provide up to $20,000 per entrepreneur to assist with business establishment, capital acquisitions, professional services and access to mentoring and business skills development and will: Run on a competitive rounds based program with two rounds per annum. Provide preferential access to other DEEDI business services such as mentoring, incubators, productivity hubs and commercialisation services through third parties such as QMI Solutions. Include places for up to five entrepreneurs per year to attend intensive business skills development training at a top tier business school. ACTION $3 million to foster budding Queensland entrepreneurs with a new pilot Business Young Guns program, providing grants of up $20,000 to help Queenslanders under 30 start and grow new businesses. 4. Supporting and nurturing innovation in business Innovation is crucial to business success and jobs growth, but for many small and medium enterprises it can be challenging to find the time to invest in innovation and new product development. Many businesses already have great ideas, but need help to see them become a reality. Our successful Queensland Innovation Coaches initiative provides intensive coaching to help eligible businesses and industry to innovate, with 635 companies from across the state receiving support. To build on our achievements, a re elected Bligh Government will invest an additional $2.6 million over 3 years to expand the successful Queensland Innovation Coaches. PAGE 9
We have also partnered with the Australian Industry Group to pilot the successful innovation voucher program What s Your Big Idea Queensland? which supports Queensland local businesses with prizes of up to $50,000 to fund the development of innovative new products, services and processes. Since the pilot commenced in 2010, there have been two rounds with more over 900 applications received, and 53 winners receiving grants to further develop their innovation ideas. Given this strong interest, a re elected Bligh Government will invest a further $2 million to make What s Your Big Idea Queensland? a permanent and ongoing initiative. We will also increase the maximum prize that can be awarded to businesses from $50,000 to $100,000. ACTIONS $2 million to continue the What s Your Big Idea Queensland? innovation voucher program with grants of up to $100,000 for Queensland businesses. 5. Queensland Education Trust At the heart of Labor s plan to transform the Queensland economy and invest in people, productivity and prosperity is the Queensland Education Trust. A re elected Bligh Government will establish the Queensland Education Trust from 1 July 2012 with 50% of all royalties from our new export gas industry dedicated to enhancing education and training. The Queensland Education Trust will be one of the most significant economic and educational reforms for Queensland in a generation, taking the wealth from our mines and transferring it to the minds of our children. It will deliver lasting benefits for all Queenslanders, and will create the platform for long term sustainable prosperity in the 21 st century. The Queensland Education Trust will have two components aimed at investing in Queenslanders: Tomorrow Scholarships, which will provide every high school student completing Year 12 and continuing on to post secondary education or training with $4,000, commencing with the graduating class of 2015. Today Grants to support strategic education investments now, with up to $60 million in new grant funding for schools and skills each and every year. Between now and 2021/22, Labor will invest a cumulative total of 50% of LNG royalties received across this ten year period in the Trust. This is projected to be a total investment of more than $2.5 billion over this period. Thereafter, 50% of annual LNG royalties will be invested. PAGE 10
ACTIONS The Queensland Education Trust will deliver a massive funding injection for schools and skills, including: Tomorrow Scholarships that provide every high school student completing Year 12 and continuing on to post secondary education or training with $4,000, commencing with the graduating class of 2015. Today Grants to support strategic education investments now, building up to $60 million per annum in new grant funding for schools and skills each and every year. PAGE 11
For further information: For further information about this or any other of Anna Bligh s policies: www.anna4qlders.com.au info@qld.alp.org.au www.twitter.com/theqldpremier www.youtube.com/premierannabligh www.facebook.com/premier.anna.bligh Authorised and printed by A Chisholm 16 Peel Street South Brisbane 4101 PAGE 12