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SKILLS AND WORKFORCE DEVELOPMENT REPORT

2014

QUEENSLAND ENERGY AND TELECOMMUNICATIONS INDUSTRY

PRODUCED BY ENERGY SKILLS QUEENSLAND

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Energy Skills Queensland (ESQ) is the Industry Skills Body leading energy industry and government engagement on

education and training, skills development and labour market issues. Energy Skills Queensland is at the forefront of

developing solutions to help industry plan and develop their workforce, and providing opportunities for organisations

and individuals to improve workforce skills by brokering training funding.

No part of this report may be reproduced by any means, or transmitted or translated into a machine language without

the permission of Energy Skills Queensland. For more information, contact Anthea Middleton, Workforce Planning

Manager – Energy Skills Queensland or email [email protected]

Energy Skills Queensland

70 Sylvan Road, Toowong Qld 4066

Phone: 07 3721 8800

www.energyskillsqld.com.au

Disclaimer:

Whilst all care and diligence has been exercised in the preparation of this report, Energy Skills Queensland does not warrant the

accuracy of the information contained within and accepts no liability for any loss or damage that may be suffered as result of

reliance on this information, whether or not there has been any error, omission or negligence on the part of Energy Skills

Queensland or their employees. Any projections used in the analysis can be affected by a number of unforeseen variables, and as

such no warranty is given that a particular set of results will be achieved.

mailto:[email protected]

http://www.energyskillsqld.com.au/

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CONTENTS

CEO ADDRESS ................................................................................................................... 5

EXECUTIVE SUMMARY ...................................................................................................... 6

QUEENSLAND INDUSTRY TRAINING PROFILE ..................................................................... 7

industry sector impacts and challenges ........................................................................... 10

Critical Workforce Issues ................................................................................................ 12 REGIONAL WORKFORCE REQUIREMENTS AND LABOUR MOBILITY ................................................... 12 COST OF TRAINING AND EDUCATION AND LENGTH OF TIME REQUIRED TO SKILL WORKERS FOR CRITICAL JOB ROLES ............................................................................................................................ 12 LOW COMMENCEMENT AND COMPLETION RATES FOR TRADE ROLES AND LOW ENROLMENT RATES FOR PROFESSIONAL ROLES ................................................................................................................. 12 TRAINING AND EDUCATION PROVIDER CAPABILITY AND CAPACITY ................................................. 13 ROBUST COMPETENCY ASSURANCE SYSTEMS AND PROCESSES FOR HIGH RISK WORKFORCE AREAS ............................................................................................................................................................ 14

Occupations and Skills in Demand ....................................................................................... 14

Key recommendations .................................................................................................... 19 FUNDING TO SUPPORT THE DEVELOPMENT OF ‘IN-DEMAND’ WORKERS......................................... 19 APPRENTICESHIP INCENTIVISATION SCHEMES IN THE RESOURCES SECTOR ..................................... 19 FUNDING TO SUPPORT EMPLOYMENT INITIATIVES FOR ABORIGINAL AND TORRES STRAIT ISLANDER PEOPLE IN REGIONAL AREAS IMPACTED BY MAJOR INDUSTRY ......................................................... 19 STANDARDISED COMPETENCY ASSURANCE MANAGEMENT SYSTEMS ............................................. 20

Energy Skills Queensland key achievements 2013/14 and 2014/15 action plan................ 20 INDUSTRY BASED WORKFORCE PLANNING AND RESEARCH PROJECTS ............................................. 20 INDUSTRY ENGAGEMENT ................................................................................................................... 21

Workforce profile ........................................................................................................... 23

Industry workforce outlook 2013/14 Changing workforce profiles ....................................... 23 APPRENTICESHIPS AND TRAINEESHIPS ............................................................................................... 24

Demographic Analysis ......................................................................................................... 30 AGEING POPULATION ......................................................................................................................... 30 MIGRATION ......................................................................................................................................... 32

Energy and telecommunications sector breakdown ........................................................ 34

ELECTRICITY AND ELECTRICAL SERVICES .......................................................................... 35

Electricity Generation .......................................................................................................... 36

Electricity TRANSMISSION ................................................................................................... 38

Electricity DISTRIBUTION AND Supply Industry .................................................................... 40

ELECTRIcity ReTAIL .............................................................................................................. 44

ELECTRICAL SERVICES AND ELECTROTECHNOLOGY ............................................................... 45

GAS (INCLUDING CSG, LNG and LPG) ............................................................................... 46

THE GAS INDUSTRY.............................................................................................................. 46

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Coal Seam Gas to Liquefied Natural Gas ............................................................................... 47

Telecommunications ...................................................................................................... 51

KEY WORKFORCE ISSUES FACING THE TELECOMMUNICATIONS SECTOR ............................... 51

TRAINING for tHE TELECOMMUNICATIONS INDUSTRY ......................................................... 52

Spotlight ON ENERGY AND TELECOMMUNICATIONS WORKERS IN THE MINING INDUSTRY53 ELECTRICAL TRADES WORKERS IN THE QUEENSLAND MINING INDUSTRY ........................................ 54 TECHNICIANS IN THE QUEENSLAND MINING INDUSTRY .................................................................... 55 ELECTRICAL ENGINEERS IN THE QUEENSLAND MINING INDUSTRY ................................................... 56

Major project update ..................................................................................................... 57 ELECTRICITY GENERATION .................................................................................................................. 57 ALL MAJOR ENERGY AND RESOURCES PROJECTS ............................................................................... 59

The ECONOMIC OUTLOOK ................................................................................................... 60

REFERENCES ........................................................................................................................ 61

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CEO ADDRESS

Energy Skills Queensland is proud to present the Queensland Energy and Telecommunications Industry Skills and Workforce Development Report. This important research is an annual evidence based workforce analysis report to determine the skills needs for the energy and telecommunications sectors in Queensland.

The energy and telecommunications industry continues to experience a broad range of business challenges, ranging from workforce mobility, to increasing productivity through multi and cross skilling workers, to meeting safety and competency assurance standards.

There are key areas of the industry sectors that continue to drive skills requirements. The coal seam gas to liquefied natural gas (CSG to LNG) sector is quickly moving into operations phase, with a clear shift in skills mix demand from construction skilled workers, to workers who will be required for the next 20 years to operate and maintain the gas fields and LNG plants. Industry sectors such as drilling, completions and well servicing will account for the highest employment in the sector and will continue to expand in the short and long term.

The National Broadband Network (NBN) will also be increasing the number of workers required to roll out the next phase of the NBN, although some uncertainty remains on when and where workers will be required. With the shift from fibre to the home to a multi modal delivery approach, the skills sets of workers required to roll out the network is likely to expand and broaden.

However, with some sectors remaining flat, for example the electrical contracting industry, there has been an easing of skills shortages in South East Queensland. The ongoing restructuring in the coal mining sector due to low commodity prices, has also seen an easing of skills shortages across the mining sector in Queensland and Australia.

Improving the productivity of the workforce will become increasingly important across all sectors

of the energy and telecommunications sectors as business conditions in Australia normalise.

With profit margins easing skilling initiatives will need to be directly linked to this important

outcome to be successful.

This research has been completed through consultation with industry, government, training and supporting organisations, and I would like to acknowledge and thank all who contributed to developing this report.

I also congratulate Energy Skills Queensland’s workforce planning team for producing this high quality research publication. Energy Skills Queensland looks forward to working with industry, government and key stakeholders to support the workforce development of the energy and telecommunication sectors, as well as the broader resources sectors in Queensland.

Glenn Porter

CEO, Energy Skills Queensland

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EXECUTIVE SUMMARY Energy Skills Queensland delivers specialised workforce planning and development services to meet the needs of Queensland’s energy and telecommunications industries. This report forms a comprehensive labour market overview of the workforce impacts and challenges of existing and potential future priority skills in the energy and telecommunications sectors in Queensland. To deliver this research, Energy Skills Queensland collaborates with industry, education and training organisations, and corporate groups across our industries, while engaging with other key stakeholders such as government, regulators, unions and other industry peak bodies.

A number of job roles continue to be in demand and are expected to remain as critical during the five year period to 2019:

Electrical Fitter/Mechanic Doggers and Riggers

Instrumentation Control and Automation Technicians

Assistant Drillers and Drillers

High Voltage Switching Electricians Well Servicing

Lineworkers, including Live Lineworkers Senior Well Engineer

Cable Jointers SCADA Professionals

Energy Auditing Cabler

Electrical Lead Hand/Supervisor Skills Telecommunications Cable Jointer

Estimators Telecommunications Lineworkers

Electrical Engineering Para-Professionals Telecommunications Network Planner

Electrical Engineer Automation Specialists

Specialised VET Trainers and RTO Capacity

The Queensland Government currently owns electricity assets worth about $8 billion in generation, more than $3.9 billion in transmission and more than $13 billion in distribution (Queensland Government, 2014). With an ongoing focus on debt reduction by both state and federal governments, it is anticipated that a number of these assets will be privatised during the forecast period to 2019. Privatisation is likely to impact predominantly the electricity supply and generation sectors.

The National Broadband Network (NBN) rollout will continue to impact skills requirements for the telecommunications profession. NBN Co has a revised Statement of Expectations from the Federal Government and a Strategic Review of the National Broadband Network has been completed, with the findings provided to the Government. The review’s recommendations will have implications for some workforce development activities.

Technology changes continue to drive changing skills requirements for workers in the energy and telecommunications sectors. In particular, advances in automation and mobile applications will continue to dominate the skills needed in a range of sectors and will also have the greatest impact on the training sector.

With a reduction in construction activities in all sectors, there has been an easing of skills shortages, particularly in the south east corner. Queensland is transitioning into an operations phase of a number of major projects which will continue to directly and indirectly contribute to the economic prosperity of the state. With the expectation of the first liquefied natural gas plant to commence operations in 2014, it heralds a change in the required workforce to meet the shifting demands from construction to operational roles.

There has been increasing focus on assuring the competency of workers within a number of sectors and it anticipated this will continue in the short term. Following from the success of the

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Australian Electricity Supply Industry Skills Passport, issued to workers in the electricity supply industry to support workforce portability and provide evidence of a person’s currency of refresher training and authorisations, there is a focus on other industry sectors to adopt similar competency assurance systems.

These issues and more will be explored in this report which aims to assist industry, government and training organisations to make training, education and employment decisions.

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QUEENSLAND INDUSTRY TRAINING PROFILE

During the past five years approximately 17,000 individuals have commenced energy and telecommunications apprenticeships and traineeships in Queensland, with almost to 10,000 completions of industry training programs.

Overall commencements of electrical, gas and communications apprentices and trainees in 2013/14, at all certificate levels, have remained similar to previous years with around 3,600 enrolments

The number of commencements in electrotechnology courses, however, continues to decline with 500 less enrolments (30 per cent) in 2013/14 from the previous year

When combined with a similarly low figure from 2012/13 a shortage of qualified electrical workers may occur during the next five years. This is an important industry training and workforce planning priority for Queensland.

The electrotechnology and telecommunications apprentice and trainee contract completion rate in 2011/12 for students who commenced in 2007/08 was approximately 52 per cent, while 55 per cent of students who commenced in 2008/09 completed training in 2012/13. This is a result of just over half of students who commenced training typically go on to receive their qualification.

The total number of completions for the first three quarters of 2013/14 (1,620) has decreased from the preceding five year average (1,700), however, this total remains significantly higher when compared to the same time-point in 2012/13 (by which time only 1,200 completions were recorded).

As of 13 May 2014, 9,545 individuals were participating in Queensland energy and telecommunications training programs.

Training age profiles differ between electrotechnology apprentices and telecommunications trainees. Mature age commencements are more common in telecommunications with 80 per cent of students above 25 years of age, compared to 30 per cent of electrotechnology students above 25 years of age.

There remains a critical shortage of technical trainers for the industry as training organisations are unable to compete with industry to recruit skilled tradespeople into training roles.

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Table 1: Apprenticeship and trainee data by industry for the Queensland energy and telecommunications industries (based on DETE data)

Apprenticeships and Trainees

2007/2008

2008/2009

2009/2010

2010/2011

2011/2012

2012/2013

2013/2014*

Commencements

Communications - General 900 600 100 100 200 900 1,600

Utilities - Electrotechnology 3,400 2,400 2,600 3,300 3,400 2,700 2,000

Utilities – Gas** 0 0 20 0 20 13 7

Utilities - General 200 100 100 100 100 100 50

Total 4,400 3,100 2,800 3,500 3,700 3,700 3,600

Cancellation/Withdrawal/Contract expiry

Communications - General 500 400 50 20 30 100 200


Utilities - Gas** 0 0 0 5 2 2 5


Total 1,700 1,700 1,200 1,200 1,300 1,300 1,300

Completions



Utilities - Gas** 0 0 2 3 10 18 0


Total 1,700 2,200 2,200 2,100 2,300 1,700 1,600

In-Training

As at 1-Jul-08 1-Jul-09 1-Jul-10 1-Jul-11 1-Jul-12

1-Jul-13 13-May-14



Utilities - Gas** 0 0 20 20 30 18 20


Total 9,200 8,400 7,900 8,100 8,200 8,800 9,500 *Numbers for 2013/14 are as at March 2014 ** Gas numbers are traditionally low in publicly funded training and are not rounded like other sectors. Note: Numbers above 100 rounded to the nearest 100, below 100 to the nearest 10, below 20 are not rounded

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INDUSTRY SECTOR IMPACTS AND CHALLENGES The energy and telecommunications sectors in Queensland each face their own unique workforce challenges. These challenges are driven by changing policy decisions at both state and federal government levels on asset ownership, technological changes impacting priority occupations, and economic factors which contribute to the energy supply and demand balance.

At a high level, the main issues facing each industry sector are listed below and further explored in this report. of the key impacts and challenges are listed below (Table 2).

Table 2: Workforce Impacts and Challenges by sector

Sector Workforce Impacts and Challenges

Electricity Supply Industry (ESI) and Electricity Generation

The Queensland Governments review of the Electricity sector was launched last year with the development of ‘The 30-year electricity strategy’ Directions and Discussion papers. The strategy relating to this policy is due for release in 2014, and is expected to address network efficiency, competition in the electricity market, and more effective use of government resources in these sectors. With the Federal government offering incentives to privatise government assets, there will be additional pressure on the Queensland Government to sell assets in these sectors. Short term impacts will likely be a reduced number of workers in these sectors in Queensland, with a skills mix change in the medium to long term as technological changes impact the skill sets technical workers in these sectors will need. Whilst it is expected that privatisation will mostly affect ‘support services’ roles i.e. non-technical roles, there will potentially be a downsizing of electrical workers in this sector. Expected increase in demand for base-load power generation resulting from the growth in the CSG/LNG industry will continue the reliance on coal generated power. However, with the increase of solar contribution to the state network, it is estimated there will not be a need to build another base-load power station until 2021.

Electrotechnology The depressed construction outlook continues to impact the slowdown of contracts and projects, temporarily easing skills shortage pressures in the south east corner. Regionally, the increase in need for electrotechnology workers remains steady with a number of critical skill sets in shortage, including instrumentation and control technicians, and electricians with energy auditing skills and experience.

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Coal Seam Gas(CSG) to Liquefied Natural Gas (LNG)

With first gas expected in late 2014, the operations and maintenance workforce is expected to increase sharply over the next five years. However, with construction due to complete in early 2016, it is likely that skills shortages for operational roles will ease in the short term. Regional centres, in particular Gladstone and the Surat Basin communities, will see the largest workforce growth across a number of critical job roles.

Drilling and Well Servicing

The 2013 CSG/LNG Industry Workforce plan has re-affirmed the drilling industry’s importance in Queensland over the next 20 years. Limited understanding of current workforce numbers in this industry continues to drive uncertainty due to the high risk nature of the work being undertaken. The last 12 months has seen an increasing focus on competency assurance of workers in this sector, and it is anticipated this will continue until the workforce develops in maturity.

Telecommunications Following the Strategic Review of the NBN by the Federal Government, NBN Co. will adopt a multi-technology model which would utilise a range of broadband technologies including Fibre to the Node (FTTN), Hybrid Fibre Coaxial (HFC) (i.e. the cable broadband network), alongside Fibre to the Premises (FTTP), fixed wireless and satellite. At this point in time a detailed rollout timetable and the impact of this on the workforce are not known, however the change in approach to the rollout will continue to increase the requirement for skilled telecommunications workers. It is anticipated that large workforce gaps are expected in regional areas.

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CRITICAL WORKFORCE ISSUES In 2013, Energy Skills Queensland reported a number of critical workforce issues which impact

skills requirements in priority areas. The last 12 months has continued to highlight these critical

issues as being long term concerns, which will continue to impact Queensland’s workforce

capability in the energy and telecommunications sectors. These critical workforce issues are:

REGIONAL WORKFORCE REQUIREMENTS AND LABOUR MOBILITY

As previously reported by Energy Skills Queensland, the impact of investment and major project

delivery e.g. the National Broadband Network (NBN) will be most keenly felt by regional areas

such as the Bowen Basin, Surat Basin, Galilee Basin, Gladstone and Mackay. Growth in these

regional areas continues to provide significant employment opportunities. It is important to

continue initiatives to ensure there are positive outcomes for local people and businesses.

The transition from the construction phase to an operational phase in coal seam gas to liquefied

natural gas (CSG/LNG) industry will continue to increase the demand for a skilled and mobile

workforce. Increasing employment opportunities in regional centres such as Miles, Chinchilla,

Dalby, Wandoan and across to Gladstone, need to be a key area of focus for training and

development initiatives.

There will also be increased requirements for support services such as water and waste

management, transport and logistics, and camp operations workers. These supporting services

are essential for a mobile workforce and further research is needed to understand the potential

workforce size and composition.

COST OF TRAINING AND EDUCATION AND LENGTH OF TIME REQUIRED TO

SKILL WORKERS FOR CRITICAL JOB ROLES

Cost pressures on individuals and organisations to skill workers in technical priority areas

continue to be a barrier to addressing skills shortages. The removal of funding programs such

as the Strategic Investment Fund (SIF) has decreased the number of workers up-skilling in

advanced diploma roles such as the instrumentation and control and automation. It is

anticipated this impact will be felt only short term, with the Department of Education, Training

and Employment soon to announce the ‘Industry Partnerships’ strategy, which will contribute to

the cost of skills development initiatives for high demand qualifications that do not meet the

Certificate III Guarantee program.

Alternative skill models also need to be investigated across a number of skills priority roles such

as drilling and well servicing. Embedding a structured apprenticeship model with nominal hours

allocated in each role prior to progression will assist the industry to meet the increasing demand

for skilled workers whilst ensuring the development of a safe and competent workforce.

LOW COMMENCEMENT AND COMPLETION RATES FOR TRADE ROLES AND

LOW ENROLMENT RATES FOR PROFESSIONAL ROLES

A critical role across the energy, resources and telecommunications sector in Queensland is the

Electrical workforce. The commencement numbers for electrical apprenticeships continues to

decline (Error! Not a valid bookmark self-reference.), causing ongoing concern about long

term shortages for this critical role. In the three quarters to March 2014, there were 1544

commencements, compared to 1628 at the same time last year.

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Figure 1: Electrical Apprenticeship Commencements (cumulative by month) 2007/08 to 2013/14 (based on DETE data). Note: Recent months are deflated due to 6 month lag between contract commencement and lodgement.

The low commencement numbers are likely to be caused by a number of factors with greater investigation needed to determine what initiatives are needed to address this downturn. Some of the potential drivers that have been identified through stakeholder engagement are the reduction in the apprenticeship intake of public utility providers, reduced activity in the construction sector impacting long term contracts, reduced confidence of employers to be able to retain apprentices, the increased minimum wage for electrical apprentices and overall consumer confidence in the market with the downturn in the economy.

TRAINING AND EDUCATION PROVIDER CAPABILITY AND CAPACITY The capability and capacity of skilled trainers and assessors in high growth industry sectors continues to drive skills shortages in a number of key areas. The capacity and capability of training providers is a potential problem for future development in the industry. Currently, shortfalls in both the public and private training systems, are being occupied interstate or by sending workers overseas for training. This is of particular concern especially for the CSG /LNG sector that requires technical training delivery that is currently not well resourced in Australia.

New technology also impacts the delivery capability and capacity of registered training organisations RTOs and TAFE. Feedback provided by industry indicates this is remains a topical issue, with the majority of the current training on new technologies being filled by equipment manufacturers and or learning on the job. One of the barriers of implementing new technology into the vocational education and training (VET) sector is the lack of qualified and experienced teaching staff to deliver and understand the content when new competencies are released for example, the SCADA unit of competency in the UEE training package. This has been available for more than six years, with only one RTO currently delivering the training in Queensland due to RTO and TAFE capabilities.

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Electrical Apprenticeship Commencements (cumulative)

'07/'08

'08/'09

'09/'10

'10/'11

'11/'12

'12/'13

13/'14

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ROBUST COMPETENCY ASSURANCE SYSTEMS AND PROCESSES FOR HIGH RISK WORKFORCE AREAS In addition to the critical workforce issues previously reported, a further driver was identified through stakeholder engagement; the need for robust competency assurance systems and processes for high risk workforce areas.

The increasing gap between ‘trained’ workers and ‘competent’ workers has become a common concern within the industry sectors Energy Skills Queensland represents. The need for competency assurance to control, in a logical and integrated manner, the cycle of high risk activities in order to assure competent and safe performance of duties is increasing in demand. By ensuring individuals and organisations understand the performance expected of them, through appropriate training, development, assessment and re-assessment, and by maintaining and improving their competence over time, there is a greatly reduced likelihood of serious OHSE incidents. This is becoming increasingly relevant to stakeholders such the major gas companies who employ contractor organisations in high risk areas such as CSG drilling, and continues to be critical to government departments like the Oil and Gas Inspectorate who monitor activity in this area.

OCCUPATIONS AND SKILLS IN DEMAND

There are number of identified critical occupations and skills that continue to be in demand for the energy and telecommunications industries. Criticality is driven by the key issues identified in the Critical Workforce Issues section of the report, determined through extensive consultation and research conducted by Energy Skills Queensland. There is little variation from the critical occupations and skills in demand as reported in 2013, with the addition of Senior Well Engineer and some amendments to the NBN critical roles (Table 3). It is expected these roles will continue to be in shortage during the next five years.

Table 3: Critical occupations in demand and their risks and barriers

Critical Skills Skill or Job Type Risk and Barriers

Electrical Fitter/Mechanic

Installs, tests, connects, commissions, maintains and modifies electrical equipment, wiring and control systems.

High risk due to gap created from low supply and high demand across a number of industries in Queensland, the eastern seaboard and Western Australia.

Instrumentation Control and Automation Technicians

Person competent in install, set up, test, fault find, repair and maintain systems and devices for measurement and recording of physical/chemical phenomenon and related process control.

Defined as critical due to the shortfall in number of electricians required who have these skills and the inadequate numbers currently in training. Currently there is a lack of funded up-skilling initiatives available to industry.

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High Voltage Switching Electricians

Electrical workers with skills to switch high voltage networks.

Defined as critical due to the shortfall in numbers of trained workers required to meet the demands of heavy industry, and has been particularly difficult to recruit in the construction phase of many projects. This skills requirement is starting to ease, but with the approval of new mining projects in the Galilee Basin, this role will continue to be in high demand over the next 5 years. Must be on-the-job training which makes it difficult for contractors who are trying to move into this area to obtain experience. The lack of on the job experience affects a company’s capability to successfully tender for work, predominantly impacting small/medium enterprises.

Lineworkers, including Live Lineworkers

Installs, maintains, repairs and patrols electrical sub-transmission and distribution systems.

Over the next five years there is an expected short fall of approx. 3,000 Lineworkers in Queensland. In the longer term to 2021, it is likely this trade will be affected by changes in control technology, and therefore it can be assumed that Lineworkers will need additional skills to perform their duties.

Cable Jointers Make and repair joins in insulated power supply and control cables installed in underground pipes, trenches and overhead systems. They also prepare cable terminations for electrical equipment and overhead lines, and install and maintain underground electrical cables used to transmit and distribute electricity in city and country areas, new housing estates and industrial centres.

High risk due to the decreasing numbers of workers holding a cable jointing licence as well as the lack of available training in Queensland. Currently, there are no training organisations offering a Cert III in Cable Jointing to the public in Queensland.

SCADA Professionals

Responsible for project engineering, installation, commissioning, service, maintenance and system support. SCADA stands for Supervisory Control and Data Acquisition.

SCADA is an additional skill set for engineers and IT professionals, and can also be obtained as a fee-for-service post trade qualification. High competition from a number of sectors including telecommunications, CSG/LNG and electricity supply industry, as well as the high cost of training are causing shortages in this critical skill area.

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Energy Auditing Inspects, surveys or analyses energy flows and consumption in a building, process or system, with the purpose to reduce the amount of energy use.

Increase of workers required driven by the introduction of Green Buildings legislation.

Cabler A worker who undertakes splicing, testing and commissioning activities on fibre optic cable, and performs street to “on-premises” cabling.

Critical due to workforce numbers required in regional and remote areas.

Telecommunications Cable Jointer

A worker who undertakes fibre optic cable splicing and copper jointing


Telecommunications Lineworkers

A worker who undertakes a range of activities in the field including hauling cable, constructing pits and ductwork, undertaking rod & roping.


Telecommunications Network Planner

A worker who performs network planning and design activities


Automation Specialists

Especially those with core skills in maintaining Autonomous Guided Vehicle Systems (AGVS)

Demand driven by a number of industry sectors uptake of AGVS technology due to safety and economic factors.

Electrical Lead Hand/Supervisor Skills

The common directive of this job-role is to coordinate day-to-day production requirements. The Lead Hand will accomplish this through directing the work flow and communicating with the other supervisors and staff to deliver the products/projects on time. Lead Hands need to respond with the appropriate urgency and provide solutions, be responsible to ensure safe work practices are followed, and will train employees in this regard as well.

Defined as critical due to the lack of formal development opportunities for workers at this level. A training program to address this skills area is being developed by the Joint Electrical Training Company (JETCO), and will be piloted in Q4 of 2013.

Estimators Estimators are responsible for scoping projects and proving a cost analysis of time, equipment and resources, based on which quotes and tenders are made.

Defined as critical due to the specialized nature of the role and the lack of formal development opportunities available. Currently there is a limited number of training courses suited to the electrical industry for the development of estimators. An estimator’s course for the building and construction industry could be adapted for use in the electrical industry.

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Electrical Engineering Para-Professionals

Designs, selects, installs, commissions, maintains and carries out repairs on electronic equipment and systems used in manufacturing, entertainment and defence situations. Equipment includes medical, analogue, digital and communications.

Roles are typically held by experienced ‘blue collar’ workers who have gained further education e.g. advanced diplomas or have progressed through workplace based opportunities. The development of this type of worker is reliant on a strong pipeline of experienced ‘middle career’ blue collar workers. It therefore can be assumed that recruiting and retaining these roles will become more difficult as competition increases.

Electrical Engineer Degree qualified in the application of electricity, including power, electronics, control systems, signal processing and telecommunications.

High risk due to gap created from low supply and high demand across a number of industries in Queensland, the eastern seaboard and Western Australia, as well as globally.

Specialised VET Trainers and RTO Capacity

Teacher of one or more subjects specific to the electrical trades at TAFE or other training institute, to tertiary students, for vocational education and training purposes.

Defined as critical due to the shortfall in numbers and age profile of the current cohort of qualified VET trainers. Current salaries offered are not competitive with on-the-tools occupations. While there are several non-financial benefits such as increased paid leave, this job role is not seen as an attractive career path for practicing electricians. As well as the shortage of VET trainers, there is also concern over RTO’s capacity to increase numbers of apprentices being trained. This is driven by the limited number of RTO’s offering the apprenticeship courses.

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Doggers and Riggers

Doggers - Role required for the CSG/LNG industry that are required to select or inspect lifting gear, safely sling a load, or direct a crane or hoist operator in the movement of a load when the load is out of the operator’s view. Riggers – Required to assemble and install rigging gear such as cables, ropes, pulleys and winches to lift, lower, move or position machinery, structural steel and other heavy objects.

The increase of well work brought about the by the CSG/LNG industry will increase the required numbers of trained doggers and riggers, especially across the Surat Basin.

Assistant Drillers and Drillers

Required to move and set up drilling rigs and related equipment, and assist drillers to drill holes for such things as oil, natural gas and water, building foundations, minerals exploration and site investigation.

The increase of Well work brought about by the CSG/LNG industry will increase the required numbers of trained and qualified Drillers, especially across the Surat Basin where it is expected there will be approximately 30,000 wells to be drilled over the next 20 years.

Well Servicing The maintenance procedures performed on an oil or gas well after the well has been completed and production from the reservoir has begun. Well service activities are generally conducted to maintain or enhance the well productivity, although some slickline and coiled tubing applications are performed to assess or monitor the performance of the well or reservoir. Slickline, coiled tubing, snubbing and workover rigs or rod units are routinely used in well service activities. Cementing is also a skill set required for this workforce.

The increase of Well work brought about by the CSG/LNG industry will continue to increase the required numbers of trained and qualified well servicing workers. This workforce are likely to be predominantly drive in drive out workers located across the Surat Basin.

Senior Well Engineer

Engineering role responsible for the planning and monitoring activities during execution for all areas of Completions and Well Interventions, including new completion installation, Workovers, Plug and Abandonments, Fracture Stimulation, and Well Integrity work.

There are not enough experienced well engineers in Queensland to meet the current demand for skilled workers.

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KEY RECOMMENDATIONS Energy Skills Queensland recommends consideration for a number of key initiatives to address skill priority areas.

FUNDING TO SUPPORT THE DEVELOPMENT OF ‘IN-DEMAND’ WORKERS There are a number of critical occupations requiring qualifications at a level other than Certificate III, for example senior drilling roles which require education at Certificate IV and above. Additionally, there are some skills sets in high demand e.g. high voltage electrical workers, which are currently not receive funding. To address these skills shortages and to continue to build a workforce driven by the demand of industry, Energy Skills Queensland recommends a training and workforce development fund to contribute to skills development activities to be established. Utilising a co-contribution model this fund would be used for qualifications that are identified as requiring strategic intervention to minimise the risk of severe skills shortages and the economic problems this can create.

APPRENTICESHIP INCENTIVISATION SCHEMES IN THE RESOURCES SECTOR The mining (oil and gas) sector requires apprenticeships to assist the industry perceive itself as responsible for fostering its own skills base. Currently:

The apprentice/master relationship is missing from oil and gas, which is impacting skills development at all levels.

Similar to other industries, the oil and gas sector has trade skills based occupations which require apprenticeships.

The industry has defined career paths which apprenticeships can foster.

FUNDING TO SUPPORT EMPLOYMENT INITIATIVES FOR ABORIGINAL AND TORRES STRAIT ISLANDER PEOPLE IN REGIONAL AREAS IMPACTED BY MAJOR INDUSTRY Aboriginal and Torres Strait Islander workforce development is critical for the energy and resources industry. Energy Skills Queensland has assisted energy and resource companies, Traditional Owner groups and the broader Aboriginal and Torres Strait Islander community to build workforce capacity through a number of workforce initiatives. Two key initiatives are the development of a Community Workforce Plan for the Western Downs Traditional Owner Groups, which was delivered on behalf of Arrow Energy, to identify and connect the pipeline of Aboriginal and Torres Strait Islander workers to the pathway to long-term and meaningful employment.

The ongoing delivery of employment and training projects focused on employment outcomes for Aboriginal and Torres Strait Islander people has also been a key success for Energy Skills Queensland. These projects have been supported by a range of stakeholders including a number of Traditional Owner Groups, local Aboriginal and Torres Strait Islander people, gas companies; Arrow Energy, Australia Pacific LNG, QGC and Santos GLNG and state and federal government. and More than 340 Aboriginal and Torres Strait Islander people have participated in Energy Skills Queensland’s Queensland Workforce Skilling Strategy (QWSS) programs since 2011, of which 64 per cent gained employment. These programs have also maintained excellent employment retention rates of program participants. In a recent random sample survey of past participants, more than 70 per cent had remained in employment after six months.

Energy Skills Queensland recommends these partnerships between Traditional Owners, industry and government be supported in the future. With flexible funding pools that extend to

20

support the obtainment of Certificate II in areas that link directly to employment outcomes, as well as the funding of skill sets and Certificate IV qualifications.

STANDARDISED COMPETENCY ASSURANCE MANAGEMENT SYSTEMS

A growing acceptance of the link between the competency of workers and their safety,

reinforced by the permit to work systems mandated in high risk industries has placed increased

pressure on employers to have in place effective competency assurance management systems.

An effective competency assurance management system will achieve the following outcomes

Provide proof that individual workers are competent by way of an auditable record of the management of competence at both the organisational level and the individual level.

Provide an inventory of performance standards in the form of competency units and competency matrix for each job role.

Measure performance in the workplace against prescribed competency units.

Determine suitable timeframes for re-assessment of safety critical and high risk competency units.

Record verification of competency of these units, and monitor on-going compliance with these units of competency.

Review performance, identify gaps, determine training needs to close gaps, provide an evidence guide for assessment, and manage substandard performance.

Following from industry feedback, Energy Skills Queensland is in the process of piloting SkillPASS, a system that enables all parties to accurately, and in real time, assess the competency of their workforce as well as supply chain contractors.

ENERGY SKILLS QUEENSLAND KEY ACHIEVEMENTS 2013/14 AND 2014/15 ACTION PLAN INDUSTRY BASED WORKFORCE PLANNING AND RESEARCH PROJECTS Energy Skills Queensland produced a number of quality research publications in 2013/14 in collaboration with industry and government. These included:

Queensland CSG to LNG Industry Workforce Plan Operations and Maintenance 2014 - 2034. This 20 year workforce plan continues to inform all stakeholders of the ongoing skills requirements across Queensland to service a flexible and prosperous CSG/LNG industry.

Heartbeat for the Mining Industry 2013 Queensland Workforce Report. This report benchmarked human resources data of 60 per cent of the mining workforce in Queensland.

Completion of the Whanu Binal Arrow Energy Community Workforce Planning Project for the Western Downs Traditional Owner Groups. This research was produced in collaboration with, and on behalf of, 11 Traditional Owner groups in Queensland and focused on the Western Downs and surrounding regions.

QGC and Bechtel – delivery of a comprehensive skills survey of Aboriginal and Torres Strait Islander people living in Bundaberg, Gladstone, Rockhampton and surrounding areas to inform employment decisions for the final construction phase of the LNG projects.

21

Energy Skills Queensland has continued to work with Joint Electrical Training Company (JETCO) to develop specialised training for Lead Hands, Foreman’s and Supervisors in the electrical industry. This is the first public training program of its kind and will enable electrical workers to gain formal training for early managerial roles. The ongoing support provided by Energy Skills Queensland is an example of moving an industry workforce plan into actionable outcomes that will benefit industry as a whole.

The workforce planning team continues to facilitate the Industry Skills Body Workforce Planning working group, collaborating with the other Queensland Industry Skills Body’s to build industry workforce planning capability.

In 2013/14 Energy Skills Queensland will work with the industry and government to provide workforce planning to all industry sectors in our reach.

INDUSTRY ENGAGEMENT Energy Skills Queensland’s engaged with industry through the facilitation of a number during

key events in 2013/14:

Hon. John-Paul Langbroek, Minister for Education, opening the Energy Skills Queensland 2013 Annual Conference. There were a number of industry leaders who presented, including a panel discussion with Saxon Rice MP, Assistant Minister for Technical and Further Education, Jody Schmidt, CEO Tafe Queensland, Michael Roche, CEO Queensland Resources Council, Peter Price, Chairman Energy Skills Queensland, Ben Vivekanandan, General Manager ACPET.

The Energy Industry Chairs lunch (13 March, 2014) was attended by Michael Roche, and Peter Price, as well as the Chairs of the Industry Leaders Groups and Training Committees. Presentation included an overview of the Energy & Telecommunications Industry, achievements for 2013 and action plans moving forward for 2014.

Trained to Win - Training on the sporting, battle and gas fields breakfast event. The breakfast brought together over 120 leaders from a range of industry sectors who are interested in the process of building a competent and constructive workforce.

In 2014 -15 Energy Skills Queensland will continue to engage directly with industry and government on critical workforce planning and development initiatives for the energy industry. Key topics will include Queensland’s new Vocational Education and Training (VET) plan and issues in moving from construction to operations in the CSG LNG industry.

WORKFORCE DEVELOPMENT

Energy Skills Queensland continues works with industry, government and training organisations to identify and develop strategies to improve the skills and productivity of the energy industry. One of Energy Skills Queensland’s key roles is to convene Industry Leaders Groups and Industry Training Groups so that industry can collaborate to implement projects that build a stronger and more productive workforce. During 2013/14 Energy Skills Queensland’s engagement and workforce development projects occurred across key sectors of the energy industry.

Drilling Industry During 2013/14 Energy Skills Queensland’s Drilling Industry Leader’s Group (DILG) was attended by stakeholders from industry, regulatory body and respective associations. The DILG facilitated development of the Well Servicing qualifications, suggested changes to the Drilling Competency Standards and formed a Drilling Industry Training Group (DITG) due to a large increase in RTOs offering drilling training in Queensland. Energy Skills Queensland also assisted the DILG to declare traineeships for well servicing,

Coal Seam Gas to Liquefied Natural Gas Energy Skills Queensland’s CSG to LNG Skills Taskforce includes representatives from Origin, Conoco Phillips, QGC, Santos and Arrow Energy. The CSG to LNG Skills Taskforce oversaw

22

development of the 2013 Workforce Plan for the Operations and Maintenance phase of the CSG to LNG industry. The group also shared information across the CSG to LNG projects on skills needs and potential collaborative solutions to meeting their workforce needs. Future projects include the development of apprenticeships for CSG and LNG plant operators.

Electrotechnology training development During 2013/14 Energy Skills Queensland worked in partnership with E-Oz Energy Skills Australia to provide technical consultation on the design of learning and assessment plans for a range of competency standard units, including:

Clean Energy and Other Skills Package: Energy System Retail

Driverless Trains and Mining Dump Trucks

Review of Delivery and Assessment Resources for Instrumentation

Post Trade Industrial Control and Automation

Queensland Workforce Skilling Strategy

In 2013/14 Energy Skills Queensland built on the relationships with its industry partners to

deliver more services for the energy industry. A key focus was employment, training and

capacity building for indigenous communities within the CSG LNG foot print as the construction

phase starts to decline and LNG shipments begin in 2014. These programs were delivered

under the Queensland Workforce Skilling Strategy. The QWSS projects are supported by

partnerships between industry, government and community.

Electronic Skills Passport – Electricity Supply Industry (ESI)

Energy Skills Queensland is leading development of a national skills passport for the Electricity

Supply Industry. All 19 contracting Network Operators across Australia have agreed to use the

passport which is a database accessed by a card with a QR code. During 2103/14 the ESI

passport was successfully piloted and will be rolled out across the industry.

SkillPASS In 2013/14 Energy Skills Queensland began piloting SkillPASS a secure web-based database that provides real time information on employee skills and qualifications, from high risk licences and company inductions to technical training and professional qualifications. The SkillPASS system will provide each worker with a SkillPASS card with a Quick Response (QR) code that is linked to the central database. Site supervisors, training managers and HR departments can access the information on SkillPASS to determine a worker’s competence to perform tasks and manage training programs. SkillPASS can be used nationally and is designed for any industry requiring specialist skills and operating in high risks environment. SkillPASS was piloted in CSG drilling industry. Energy Skills Queensland plans to roll out SkillPASS across the CSG to LNG industry in future years.

Generic Safety Induction (GI)

In 2013/2014 Energy Skills Queensland redeveloped the Generic Induction (GI) as the safety

induction designed for the mining industry with assistance from industry, RTO’s, the Mining

Inspectorate, CFMEU and contractors. The new GI is being delivered by RTO’s and will be

rolled out across the coal industry.

ApprenticeConnect Australia Advisors (ACAA) project

In 2012/13, Energy Skills Queensland, in partnership with Master Electricians Australia,

completed delivery of the ApprenticeConnect Australia Apprentice Advisors project to provide

career advice to people seeking to gain an apprenticeship in the energy and

telecommunications industries. Energy Skills Queensland’s established Careers in Energy

23

website and brand formed the basis of this strategy, with a range of promotional and social

media components targeting young people seeking to enter the industry. Apprentice Advisors

from Master Electricians Australia promoted energy careers through the Careers in Energy

website and at expos and school events across Queensland, New South Wales, Victoria and

South Australia.

WORKFORCE PROFILE

Industry workforce outlook 2013/14 CHANGING WORKFORCE PROFILES The Australian Bureau of Statistics Labour Market Survey (February quarter, ABS 2014) indicates the energy and telecommunications industries in Queensland currently employ 144,000 people and has grown by 8,000 workers since the same quarter in 2013 (ABS, 2013a). Despite seasonal variations, this rate of increase has been relatively consistent during this time (see Figure 2) and is predicted to continue growing at approximately 1.5 per cent per year during the next five year period. Nationally, a similar pattern of employment growth within the broader energy and telecommunications sectors is predicted (Figure 3). Although, with a slightly lower growth rate just below 1 per cent per year.

In Queensland, a comparison of these two sectors indicates that employment is higher within the energy sector (119,000 workers) compared to telecommunications (25,000 workers). Employment growth is also predicted to be stronger within the energy industry than telecommunications. An important caveat relevant to telecommunications however, it that occupational demand could change quickly depending on the roll-out intensity and scale of NBN.

Within the energy sector, core occupational growth is forecast for electrical trade’s workers i.e. electricians, with a predicted 10,000 new positions emerging by 2019. In the same period, more than 3,000 roles for engineering professionals (which include electrical and electronic engineers) are also expected. These strong increases are attributed to the continued expansion of mining and gas operational activities across the state.

-

50,000

100,000

150,000

200,000

250,000

Queensland Employment - Energy and Telecommunications

Total Telecommunications Sector Energy Sector Forecasted

24

Figure 2: Employed persons for the Energy and Telecommunications Industry for Queensland (based on

ABS data 2014)

Figure 3: Employed persons for the Energy and Telecommunications Industry for Australia (based on ABS

data 2014)

Many of these predictions are similar to those identified recently in the Queensland Ministerial Industry Commission report, produced by Deloitte Access Economics (MIC, 2014). Most importantly, from an energy and telecommunications workforce planning perspective, is the discussion regarding the “cross industry skill demand” for electrical trades workers in Queensland’s mining, construction and utilities industries. Within these areas, a consistent shortage of workers was reported by industry leaders and stakeholders. This is a major workforce planning and development issue currently faced by the energy industry.

In a context where an additional 10,000 electrical workers may be required by 2019, the scale of this issue is likely to increase. Previous analyses by Energy Skills Queensland (2013a) have shown a declining trend in the number of electrical apprentice commencements and completions undertaken in Queensland. Together, this mismatch between the high demand for and low supply of electrical workers is a key workforce issue for the sector. It is expected this demand and supply gap may expand further during the coming years and as identified by the MIC (2014), electricians are therefore a priority area for future skills development and training.

APPRENTICESHIPS AND TRAINEESHIPS

Training the next generation of Queensland’s energy and telecommunications professionals is an important and detailed process Table 4 represents key information regarding apprentice and trainee activities in this area for the 2013/14 financial year to date and compares this information to the six previous years. Moreover, this data is divided into the four metrics essential to the training profile; commencements, cancellations, completions and the total currently in-training.

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

Australia Employment - Energy and Telecommunications

Total Telecommunications Sector Energy Sector Forecasted

25

Table 4 Apprenticeship and trainee data by industry for the Queensland energy and telecommunications industries (based on DETE data)

Apprenticeships and Trainees

2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014*

Commencements



Utilities – Gas

** 0 0 20 0 20 13 7


Total 4,400 3,100 2,800 3,500 3,700 3,700 3,600




Utilities - Gas

** 0 0 0 5 2 2 5


Total 1,700 1,700 1,200 1,200 1,300 1,300 1,300

Completions



Utilities - Gas

** 0 0 2 3 10 18 0


Total 1,700 2,200 2,200 2,100 2,300 1,700 1,600

In-Training

As at 1-Jul-08 1-Jul-09 1-Jul-10 1-Jul-11 1-Jul-12 1-Jul-13 13-May-14



Utilities - Gas

** 0 0 20 20 30 18 20


Total 9,200 8,400 7,900 8,100 8,200 8,800 9,500 *Numbers for 2013/14 are as at March 2014 and are subject to a six month lag ** Gas numbers are traditionally low in publicly funded training and are not rounded like other sectors. Note: Numbers above 100 rounded to the nearest 100, below 100 to the nearest 10, below 20 are not rounded

During the past five years more than 17,000 students have commenced training in Queensland’s energy and telecommunications industries. Of these commencements around 7,000 have cancelled or left these programs and almost 10,000 have completed. Moreover, at any one time approximately 9,500 students are in-training. Growth in generalist communication traineeships is strong, and electrotechnology commencements continue to decline.

The total number of energy and telecommunications related commencements in 2013/14 in Queensland is around 3,600 students. Major growth has occurred in telecommunications qualifications which have almost doubled to 1,600 since the previous financial year. This continues the sharp increase which began in 2012/13 when telecommunications increased from only 200 enrolments to a significant 898 in 12 months. Despite the promise of this sharp rise, this growth obscures the much larger workforce planning and development issue of decreasing electrotechnology apprenticeship commencements.

In line with previous years, the 2013/14 period experienced a further decrease in electrotechnology commencements by around 500 students (or nearly 30 per cent). Although this number may increase during the remainder of the financial year, the issue of decreasing

26

electrical apprentices remains a significant and ongoing workforce skilling priority for Queensland. Creating targeted strategies to recruit apprentices and boost commencements and completions in this area is recommended.

From a data accuracy perspective, there is a lag in commencement data provided formally by RTOs to the Department of Education, Training and Employment (DETE) and full numbers are reported to the department on a six-monthly basis (December and June). Therefore, all commencements reported for January, February and March in April are not final commencement figures. However, comparisons of the complete data from 2011/12 to 2012/13 suggest a significantly lower number of electrical apprentice commencements, with around 20 per cent or 700 fewer positions reported under the same conditions.

The 2013/14 figure of 3,600 enrolments is in line with preceding years. Although this is significantly lower than the 4,400 enrolments recorded in 2007/08, it appears to be a stabilising trend. During the past five years, approximately 17,000 individuals have begun energy and telecommunications apprenticeships and traineeships in Queensland, at an average of around 3,500 annually. Critically, these commencements are offset each year by a competing cancellation rate. Depending on the year, from one third to almost half of students may not complete their appointed program. In 2013/14 (to March), various cancellations, withdrawals and contract expiries have contributed to the unplanned departure of almost 1,300 students. This figure is 500 more cancellations than that recorded for the same period last year, indicating the relatively stable cancellation rates seen during the past seven years may be changing.

The annual completion rate is determined by those who continue on in their programs through to graduation. To date, in 2013/14 a total of 1,620 completions have been registered, with telecommunications accounting for the largest growth since 2012/13 (from 70 to 305).

The number of individuals currently in-training within these sectors as at 13 May 2014 was 9,454. Interestingly, this is the highest total recorded since July 2008 (9,200) and is an increase by almost 10 per cent since the previous year. Again, the majority of this increase is accounted for by students within the general telecommunications stream which has increased by more than 50 per cent since 2012/13 from 903 to 1,984. This is largely driven by the NBN rollout nationally.

Regional data can further be used to construct Queensland’s energy and telecommunications workforce outlook. Figure 4 divides Queensland into seven key training regions and compares those in-training since July 2007 and Figure 5 maps these regions

Geographically, the Brisbane Metropolitan area continues to be Queensland’s main training hub for energy and telecommunications followed by South East Queensland. Both of these areas, in combination with the Darling Downs have grown since 2007.

27

Figure 4 : Apprentices and trainees in training in Queensland by region (based on DETE data). Note: Recent months are deflated due to 6 month lag between contract commencement and lodgement.

Figure 5: Department of Education and Training regions as referred to in table 4 and 5 (DETE, 2011) Note: The metropolitan region only has one institute delivering technician and trade related programs. There are a number of

private training organisations delivering programs within the energy and telecommunications industries.

The associated decrease in regional training figures for Central Queensland and the North Coast and the low uptake of training in Far North Queensland are concerning in relation to workforce planning and development. These trends are also seen in commencements and completions, with Figure 4 reporting a similar trend. Although the majority of this trend can be explained by smaller training capability in rural and semi-rural locations, an associated skilling issue for the state deserves consideration.

0

500

1000

1500

2000

2500

3000

3500

4000

Apprentices and Trainees In-Training Queensland Energy and Telecommunications Industries

Metropolitan

North Coast

NorthQueenslandSouth East

CentralQueenslandDarling DownsSouth WestFar NorthQueensland

28

Importantly, Queensland appears to operate within a patchwork training network, providing a skilling surplus in coastal cities and the South East corner though a shortage of training in regional growth Central Queensland and the Surat Basin. As commercial growth and investment increases in these regional areas, a key workforce planning priority is the investment in initiatives that encourage worker mobility and training opportunities for local workers.

29

Table 5: Apprenticeship and trainee data by region for the Queensland energy and telecommunications

industries (based on DETE data)

Apprenticeship and trainees

2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014*

Commencements

Central Queensland 500 400 400 500 600 500 400

Darling Downs South West

200 200 200 200 200 200 300

Far North Queensland 300 200 200 200 200 200 200

Metropolitan 1,400 900 900 1,100 1,200 1,400 1,300

North Coast 600 500 400 500 400 400 300

North Queensland 400 300 200 300 300 300 200

South East 1,100 700 500 700 700 700 900

Total 4,400 3,100 2,800 3,500 3,700 3,700 3,600




0 100 100 100 100 70 80


Metropolitan 500 500 300 400 400 300 400

North Coast 300 300 200 200 200 200 200


South East 500 500 300 300 300 300 300

Total 1,700 1,700 1,200 1,200 1,300 1,300 1,300

Completions



100 100 100 100 100 90 80


Metropolitan 600 700 700 700 800 600 600

North Coast 200 300 200 200 300 200 200


South East 400 500 400 400 400 300 300

Total 1,700 2,200 2,200 2,100 2,300 1,700 1,600

In-Training

As at: 1-Jul-08 1-Jul-09 1-Jul-10 1-Jul-11 1-Jul-12 1-July-13 13- May -

14

Central Queensland 1,300 1,300 1,200 1,200 1,300 1,300 1,300


500 400 500 400 500 500 600


Metropolitan 3,000 2,800 2,600 2,700 2,700 3,100 3,400

North Coast 1,100 1,000 1,000 1,000 1,000 1,00 800


South East 1,900 1,600 1,400 1,500 1,500 1,600 2,000

Total 9,200 8,400 7,900 8,100 8,200 8,800 9,500

*Numbers for 2013/14 are as at March 2014 and are subject to a six month lag

Note: Numbers above 100 rounded to the nearest 100, below 100 to the nearest 10, below 20 are not rounded

30

DEMOGRAPHIC ANALYSIS Figure 6 below represents the age distribution of apprentices in Queensland for the

electrotechnology sector and compares this across two year intervals from 2007 onward. The

2013 data is similar to preceding years with the majority of apprentices (70 per cent)

commencing before the age of 25. Interestingly, mature age apprentices continue to increase

gradually overtime. These figures indicate mature age apprenticeship pathways remain a viable

option for employees wanting to make a career change into this sector and the related

industries. A qualitative assessment suggests that most mature age apprentices enter into

lineworker or cable jointer trades.

Figure 6: Queensland apprentice and trainee age profile 2007 to 2013 (based on DETE data)

This trend toward mature age commencements and training is substantially more common in the telecommunications sector. Here, the age distribution profile has a substantially higher representation of older workers with up to 45 per cent of new enrolments by individuals older than 35 years of age and only 3 per cent of enrolments by those under 25 years of age. Furthermore, 6 per cent of commencements are for those 55 years or above. A qualitative review of the qualifications pursued at this level indicates that a Certificate III in Telecommunications is the most common qualification.

AGEING POPULATION

Individuals aged 65 years and over are Australia’s fastest growing age group (ABS, 2013b) and

Queensland’s population reflects this trend. This trend is driven by a sustained low fertility rate

(despite a recent increase in births), increasing life expectancy and the subsequent movement

of the baby boomer generation into older age brackets (QGSO, 2014). As a result, the age

structure of the Queensland population is projected to change significantly during the next 50

years. This change will be represented by increasing numbers of people in all age groups

(Figure 7) and importantly, ageing of the population (Figure 8).

0%

10%

20%

30%

40%

50%

60%

<20 20-<25 25-<35 35-<45 45-<55 55+

Apprentice age profile (age at time of commencement)

2007

2009

2011

2013

31

Figure 7: Projected population by age group and sex in Queensland, mid-range series, 2011 and 2061

(QGSO, 2013 p.2)

Figure 8: Projected population change by broad age groups in Queensland, mid-range series, decades

ending 2021 to 2061 (QGSO, 2013 p.2)

*Please note, there is misprint in the original publication where age bracket ‘45-46’ should read ‘45-64’.

According to mid-range predictions, the median age of the population is expected to increase from the current 36 years to 38 years by 2021, reaching 43 years by 2056 (OESR, 2011). All local government areas across the state are forecast to experience this median age increase. Almost one-third (32 per cent) of the projected increase in population to 2031 will be in the 65 years and older category, almost three times that recorded in the past 25 years. By 2031, approximately one in every five Queenslanders (20 per cent) will be aged 65 years or older and Brisbane will experience the greatest increase of those 65 of age and above (99,000 people).

From a workforce outlook perspective, this demographic shift is likely to impact Queensland’s energy and telecommunications sectors. As the mean age of workers increases and larger proportions of the workforce approach retirement and semi-retirement, high replacement demand for these highly skilled occupations is probable. With the voluntary retirement age on average, lower for physical occupations, it is possible that many older and more experienced workers will choose to withdraw from these industries during the coming years.

Finding a suitable supply and recruitment pipeline of skilled workers to match this replacement demand and avoid the potential implications this could have on sector wide productivity and growth is a significant workforce issue for the energy and telecommunications sectors. As an

32

indication of this issue, Figure 9 illustrates the ageing profile of the 53,000 electrical workers registered in Queensland (ESO, 2014) and compares this to the state’s working-age profile. As can be seen, a large proportion of the electrical workforce is approaching retirement age and a higher percentage of electrical workers are present in each of the older age brackets when compared to the Queensland average. Comparatively, around 50 per cent of electrical workers are above 45 years of age, while the wider Queensland workforce this is substantially lower at 40 per cent.

Figure 9: The Queensland age profile, comparison between Queensland’s working average and the Queensland electrical worker, February 2014 (based on ESO data)

As these workers commence retirement, it is essential strategies are developed to attract and retain apprentices in order to address future skills shortages. It is similarly important the industry attempts to retain older and highly skilled workers by creating rewarding training, teaching and mentoring roles. In combination, skilled migration programs (discussed in the following section) should also be considered as an additional source of skilled workers.

MIGRATION

ANNUAL UPDATE OF SKILLED OCCUPATION LIST

Australia’s Skilled Occupation List (SOL) outlines which occupations are eligible for independent and family sponsored migration. The SOL reflects the Australian Government’s commitment to maintaining a skilled migration program that delivers skills in need nationally. Official changes are made to the SOL each year and the current round of updates will be released on 1 July 2014. More than 30 occupations have been identified for review for their inclusion or exclusion on this updated SOL (AWPA, 2013). Of those identified, the possible removal of Electronics Engineer is worth noting in the context of this industry workforce outlook.

0%

5%

10%

15%

20%

25%

30%

<25 25-<35 35-<45 45-<55 55-<65 65+

Queensland workforce age profiles

The Queenslandaverage (ABS)

The QueenslandElectrical Worker

33

Drawing upon the current SOL (DIBP, 2013), 18 of the 186 occupations (9.6 per cent) most relevant to the energy and telecommunications industries are listed below. As only one occupation is flagged for possible exclusion, the 2014 list is expected to be similar:

Electrical Engineer

Electronics Engineer

Telecommunications Engineer

Telecommunications Network Engineer

Electrical Engineering Draftsperson

Electrical Engineering Technician

Telecommunications Field Engineer

Telecommunications Network Planner

Telecommunications Technical Officer or Technologist

Electrician (General)

Electrician (Special Class)

Lift Mechanic

Air-conditioning and Refrigeration Mechanic

Electrical Lineworker

Technical Cable Jointer

Electronic Equipment Trades Worker

Electronic Instrument Trades Worker (General)

Electronic Instrument Trades Worker (Special Class)

QUEENSLAND 457 VISA TRENDS TO DECEMBER 2013 The 457 visa migration program is the most frequently used process for employers to sponsor skilled migrants to temporarily work in Australia. These visa applications are processed by the Department of Immigration and Border Protection (DIBP). For Queensland, the most recent report released by DIBP for the quarter ending 31 December 2013 indicates the number of 457 visas granted for skilled workers. Error! Reference source not found. indicates the number of 457 visas issued for Queensland’s electricity, gas, water and waste services industry has increased by around 10% over the last yearly period from December 2012 to 2013 (DIBP, 2014). Despite this growth, the total number of 457 visas in the industry has decreased from previous years, for example, in March 2013 a total of 210 visas were processed (DIAC, 2013).

Table 6: Number of primary applications granted in 2013-14 to December 2013 by Electricity, Gas, Water and Waste Services Industry, Queensland (DIBP, 2014)

Table 7 further details the top 15 occupations for which 457 visas were processed in Queensland of which none of the occupations in the energy and telecommunications industries are listed. The usage of 457 visas within these sectors indicates that 457 visas are being issued for electrical trade’s workers, technicians and electrical engineers in Queensland’s mining sector (Energy Skills Queensland, 2013c). A total of 0.44 per cent of electrical trades workers, 0.35 per cent of technicians and 3.2 per cent electrical engineers in 2013 were employed under 457 visa arrangements. However, when compared to other occupations (e.g. geoscientists) and as a percentage of the Queensland’s total mining workforce these figures are low.

2012-13 to 31/12/2012

2013-14 to 31/12/2013

% Change from 2012-13

2013-14 as % of Total

Electricity, Gas, Water and Waste Services

150 170 10.6 4.1

34

Table 7: Top 15 nominated occupations for primary applications granted in 2013-14 to 31 December 2013, Queensland (DIBP, 2014)

ANZSCO Description 2011-12 to 31/03/2011

2012-13 to 31/03/2012

% Change from 2011-12

2013-14 as % of Total

351411 Cook 340 300 -10.4% 7.4%

141111 Café or Restaurant Manager 150 260 71.5% 6.3%

312512 Mechanical Engineering Technician

130 150 15.7% 3.6%

149212 Customer Service Manager 110 120 2.7% 2.8%

253111 General Medical Practitioner 170 100 -42.2% 2.4%

321211 Motor Mechanic (General) 90 100 3.3% 2.3%

351311 Chef 90 90 -1.1% 2.2%

242111 University Lecturer 110 90 -22.0% 2.1%

712211 Driller 60 70 23.3% 2.1%

225113 Marketing Specialist 70 70 0.0% 1.7%

133211 Engineering Manager 50 60 18.5% 1.6%

131112 Sales and Marketing Manager 70 60 -10.4% 1.5%

331212 Carpenter 40 60 50.0% 1.5%

511112 Program or Project Administrator 170 60 -65.7% 1.4%

No code provided

Skilled Meat Worker 310 60 -81.8% 1.4%

Other Occupations

4070 2470 -39.5% 60.1%

Total 6040 4100 -32.1% 100.0%

ENERGY AND TELECOMMUNICATIONS SECTOR BREAKDOWN Energy Skills Queensland the Industry Skills Body leading energy industry and government engagement on education and training, skills development and labour market issues.

The following section of the report provides a breakdown of each of the following industry sectors in which Energy Skills Queensland represents:

Electricity and Electrical Services o Electricity Generation o Electricity Transmission o Sustainable and renewable energy o Electricity Supply Industry o Electrical Services (Retail) o Electrotechnology

Gas o Gas Transmission and Distribution o Coal Seam Gas (CSG) to Liquefied Natural Gas (LNG)

Telecommunications

35

Of the total electricity consumption in Queensland, residential and commercial consumption accounted for 50 per cent (Figure 10). The electricity is generated from a number of sources including coal fired generation, gas fired generation, solar, wind and hydro-electricity.

Figure 10 : Electricity consumption of end users in Queensland (2010-11) (DEWS, 2012 p2)

ELECTRICITY AND ELECTRICAL SERVICES The electricity industry is made up of four distinct yet interconnected sectors involved in producing electricity and delivering it to homes and businesses i.e. electricity generation, electricity transmission, electricity distribution and retail (Figure 11). The Queensland electricity generation sector has a mixture of public and private ownership. The monopoly transmission and distribution assets are owned and operated by government-owned corporations, while the retail sector is entirely privately owned.

The Queensland Government owns electricity assets worth around $8 billion in generation, more than $3.9 billion in transmission and more than $13 billion in distribution (QG, 2014). In addition, significant capital investment is being committed to transmission infrastructure (Powerlink) and distribution networks (Energex and Ergon Energy) during the next five years.

Residential 26%

Other 10%

Mining 10%

Natural resource processing

28%

Commercial 26%

36

Figure 11: Snapshot of the Queensland electricity sector – key components along the supply chain (DEWS, 2012 p.9)

The Queensland Governments review of the electricity sector was launched last year with the development of ‘The 30-year electricity strategy’ directions and discussion papers. The strategy relating to this policy is due for release in 2014 and is expected to address network efficiency, competition in the electricity market and more effective use of government resources in these sectors. This is explored further in the in the following sections.

ELECTRICITY GENERATION

Australia’s electricity generation industry is divided into three sub-sectors; fossil fuel, hydro and wind and other electricity generation. These combined industries are expected to generate revenue of $15 billion in 2013/14 and has reported an annual grown rate of 8.3 per cent since 2009. Although capital-intensive, these industries will employ almost 11,500 people nationally throughout 2013/14.

The fossil fuel generation industry is the largest sub-sector with revenue for 2013/14 expected to reach $12 billion (IBISWorld, 2014a). Due to regulation and policy distortions, however, this is a substantially lower growth rate than previous years. The introduction of the carbon tax led to a 63 per cent increase in revenue in 2012/13 as industry operators passed on their increased costs. As electricity demand slowed in 2013/14, the market has contracted and is predicted to continue to recede by 2.8 per cent in 2013/14.

Looking forward, similar uncertainties surrounding the policy and political climate have led to a highly volatile outlook, resulting in a five year predicted revenue decrease of 8.5 per cent during the period to 2018/19. This prediction will also be influenced by key policy decisions surrounding the Renewable Energy Target, Carbon Tax and the privatisation of major government-owned electricity assets.

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Certain countervailing forces may further complicate this prediction, namely, the Abbott government’s decision to repeal both the carbon tax and Renewable Energy Target, or the privatisation of major government-owned electricity assets.

Although Australia’s electricity mix is mainly generated by fossil-fuel activities, renewable generation from hydro-electricity generation and wind continue to expand. In 2013/14, the hydro-electricity generation sector is expected to yield $2.1 billion revenue via annual growth rate of 3.8 per cent (IBISWorld, 2014b). During the same period, wind and other renewable electricity generating activities are forecast to produce revenue of $705 million but grow at a more rapid rate of 17.3 per cent (IBISWorld, 2014c). Again, these predictions will be highly sensitive to regulatory change and revision of the Renewable Energy Target (RET) and other clean energy policies.

During the next three decades government and industry anticipate a shift toward a more diversified generation mix. The timing and nature of that change remains unclear, although modelling undertaken by CSIRO, as shown in Figure 12 indicates that the likely generation mix, wholesale prices and emissions by 2050 are highly dependent on a number of key policy, investment and technology developments in the medium term (DEWS, 2013).

Figure 12: CSIRO modelling of future electricity generation outcomes (DEWS, 2013 p. 18)

QUEENSLAND

Queensland, along with New South Wales and Victoria lead the Australia’s fossil fuel electricity generation yield (IBISWorld, 2014a). Approximately 30 per cent of Australia’s fossil fuel electricity is produced in Queensland and alongside these large coal and gas-fired generators; Queensland has a small but increasing proportion of renewable energy generating sources (DEWS, 2013). This equates to a total generation capacity of more than 14,500 MW (1,000 MW up from 2012).

The Queensland electricity generation and supply sector includes a mix of public and private ownership. Government-owned generation corporations Stanwell and CS Energy together control around 63 per cent of the generation capacity in Queensland, but the numbers of partially or fully privately owned power stations are increasing. The most significant private generators in Queensland are InterGen (13 per cent) and Origin Energy (8 per cent) (AER,

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2013). In addition, the private sector has supplied all new capacity in the state since 2007 and the Queensland Government plans to reduce the share of the aggregate capacity the state owns or operates in Queensland to around 50 per cent.

In the recent 30-year Electricity Strategy Discussion Paper (DEWS, 2013), the Queensland Government outlined two key electricity generation challenges for the state:

1. Facilitating the deployment of cost-effective new generation alternatives 2. Attracting investment in generation

To address these challenges, the Government has proposed the nature and timing of future investment in generation and new generation technologies should be determined by the market (DEWS, 2013). Moreover, minimal future public investment in new electricity generation is expected, as long as the market continues to efficiently provide capacity to support reliable supply (DEWS, 2013).

In response, the private sector continues to increase its share of generation capacity and signals a strong intention to invest to meet future needs through a number of projects at varying stages of planning and development (more detail on these projects can be viewed in Table 18).

Finally, concerning the state’s Commission of Audit report, the Queensland Government is also exploring the benefits and risks of privatising its two key government-owned electricity generating corporations, Stanwell and CS Energy (DEWS, 2013). However, no sale will be finalised without a mandate from the Queensland public.

ELECTRICITY TRANSMISSION

The electricity transmission industry operates Australia's high-voltage electricity network, a crucial link in the transport of electricity between generators and final markets (IBISWorld, 2014d). The industry is responsible for the bulk transfer of electrical power at high voltages (110 kilovolts or above) from a generator to substations near a populated area or to individual large electricity consumers. Due to its importance to the overall economy, regulation of the electricity transmission industry is heavy and the Australian Energy Regulator (AER) sets the revenue and price that shapes short and long-term industry performance. These revenue frameworks are typically in place for a five-year period (AER, 2013).

Revenue growth for the electricity transmission industry in 2013/14 is expected to be $4.5 billion, an increase from $4.3 billion in the previous year (4.1 per cent) (IBISWorld, 2014d). This increase, however, obscures a larger contraction predicted for the sector over the longer term, due primarily to the AER entering a new five-year price determination cycle from 2013/14 onwards. This new revenue framework is forecast to limit industry expansion and favour moderate capital expansion plans, required to adapt to the lowering nationwide demand for end use electricity. The five year outlook to 2019 predicts an annual growth rate of only 2.1 per cent compared to 6.0 per cent in the preceding five year period (IBISWorld, 2014d). Although this is a significant overall reduction, employment in the sector is likely to stabilise at the current level of 4,100 people, remunerated $457.4 million in annual wages.

In the electricity transmission sector, market concentration is high with only 10 major companies in operation. Figure 13 illustrates the ownership mix with the Queensland, New South Wales and Tasmanian networks government-owned, the ACT distribution network having joint government and private ownership (not pictured), all transmission networks in Victoria and South Australia and the three interconnectors being privately owned (AER, 2013).

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Figure 13 : Electricity transmission networks by line length, capacity, revenue and ownership (AER, 2013 p. 62)

QUEENSLAND Powerlink Queensland manages the transmission of electricity in Queensland (Figure 13) and the Queensland Government owned company is the largest in the electricity transmission organisation by line length, current period revenue and asset base. Similarly, IBISWorld (2014d) identified Powerlink as the major player in the industry with 23.4 per cent market share.

Powerlink employs around 1,000 people and is licenced to operate more than 14,000 kilometres of Queensland’s high-voltage transmission network, transporting electricity from the generators to the distribution networks, and directly to large customers such as aluminium smelters (Powerlink, 2013).

Powerlink Queensland efficiently transports about 50,000 gig watt hours of energy per year throughout Queensland. Powerlink also transports electricity to New South Wales via the Queensland/New South Wales Interconnector (QNI) transmission line. Electricity distributors Energex, Ergon Energy and Essential Energy take the high voltage electricity from Powerlink’s substations and distribute it to more than two million residential and commercial customers throughout Queensland and parts of northern New South Wales.

The 2012/13 financial year was the first year of Powerlink’s operations under the AER’s regulatory determination for the five years from 1 July 2012 to 30 June 2017 (delivered in April 2012). Over this period, Powerlink performed positively against the AER network performance

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targets. Powerlink is also undertaking several projects to provide transmission services to the Surat Basin, a major natural mineral and energy resource zone in South West Queensland. A number of these projects are non-regulated customer connection projects, the cost of which is fully paid for by the customer via commercial charges (Powerlink, 2013).

ELECTRICITY DISTRIBUTION AND SUPPLY INDUSTRY

This industry plays a specific role within the movement of electricity, providing distribution networks to transport electricity from high-volume transmission points to low voltage households and businesses for final consumption. Companies in this industry therefore operate low voltage electricity distribution systems, including lines, poles, meters and wiring, (IBISWorld 2014e). During the past five years, network operators have amended and extended their networks substantially to meet rises in potential peak electricity demand.

At a national level, this industry is expected to generate revenue of approximately $27.5 billion in 2013/14, with an annual growth of around 7.7 per cent and employment of 25,500 people. During the next five years to 2019, however, regulatory change, privatisation, productivity issues and changes to where, how and when electricity is generated are expected to challenge industry operators (IBISWorld 2014e). This is predicted to reduce annual revenue growth to around 5.8 per cent though to 2018/19.

The technology used for generating electricity is a key change, with renewable energy such as wind and solar showing fast growth in new installations. This increase may challenge the traditional business network model and require new services to be developed which integrate both large distribution networks and small scale generation. Barriers to the further privatisation of the industry, in states with government-owned assets, continue to be explored. The recent Electricity Network Regulatory Frameworks report (PC, 2014) provided a strong rationale for privatisation. The commission's most notable findings were apparent efficiency gaps between government-owned and privately owned assets, and a clear recommendation that state-owned electricity networks should be privatised.

QUEENSLAND Queensland distribution and supply network provides electricity to more than 1.9 million domestic, commercial and industrial consumers. These services are provided primarily by Energex (in South-East Queensland) and Ergon Energy (rural and regional Queensland), which together employ more than 8,000 people. Both of these service providers are government-owned.

Queensland's electricity distribution networks are extensive, with a total line length of about 200,000 kilometres. Energex has a distribution area of 25,000 square kilometres, which includes:

More than 50,000 kilometres of power lines

More than 600,000 power poles

43,000 transformers

Approximately 300,000 streetlights

Ergon Energy's network consists of more than 150,000 kilometres of power lines and 1 million power poles and covers an area 6 times the size of Victoria (QC, 2014).

DEMAND MANAGEMENT A key challenge for Queensland’s electricity distribution industry was also flagged in the 30-year Electricity Strategy Discussion Paper (DEWS, 2013). This was the development of a state-wide demand management and energy efficiency strategy. Demand management involves changing how and when customers use electricity, and also helps reduce peak demand pressures, investment in low-utilisation infrastructure and rising electricity prices. Effective demand management can therefore result in lower costs and more efficient use of transmission and

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distribution networks. Thus, the Queensland Government will develop a strategy which includes:

Working through the national reform process to implement the recommendations of the AEMC’s Power of Choice review into demand-side participation.

Reforming tariffs to improve price signals and energy management options.

Supporting a customer-driven rollout of advanced metering to enable provision of improved tariffs and other energy management products.

This approach is aimed at deferring the need for additional network capacity and achieving greater use of existing assets. It will also provide customers with additional options they may use to manage their electricity use and reduce cost pressures. Given the complexity of demand management implementation, professionals and skilled technicians in this area will be essential for the energy sector in future.

ELECTRICITY SUPPLY INDUSTRY (ESI) PASSPORT DESCRIPTION OF WORKFORCE In September 2010, the ESI Passport was launched to support workforce portability, easier internal migration of skilled workers and a record of industry authorisations and inductions. It also assists in the standardisation of ESI training with more than 15 companies currently using the system nationally (Table 8).

Table 8: Companies which use the ESI Passport system (Energy Skills Queensland – ESI Passport database)

ActewAGL Horizon Power Aurora Energy Jemena Ausgrid Power and Water CitiPower Powerlink ElectraNet SP AusNet Endeavour Energy Transend Networks Energex TransGrid Ergon United Energy Essential Energy Western Energy SA Power Networks

Promisingly, as of 31 April 2014, more than 38,731 passports have been issued with a growth

of around 12 per cent (or 4,517 Passports) since May 2013. A breakdown of the workforce

registered by category is detailed in Table 9. The top four categories account for more than 50

per cent of current ESI registrations, and passports issued to workers under the Lineworker

Distribution category are the most common at 17 per cent.

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Table 9: The ESI Worker Profile 2014 (April)

Worker Category Name Description

% of total

Lineworker Distribution Lineworker engaged in working on distribution and sub transmission assets up to 66kV.

17%

Support Worker OHS Coordinator, Trainer, Managers, Auditor 16%

Technical Worker Includes all types of design, Scada Tech, Telecommunications, Technician

10%

Electrician Electricians working on ESI network infrastructure, including work in distribution, transmission, zone substation or terminal stations, and a generation environment.

9%

Team Leader / Supervisor

Team Leader / Supervisor not actively engaged in field work. 6%

Apprentice A person in training to become a qualified tradesperson in the ESI sector.

6%

Electricity Supply Worker - Non Trade

A person with no electrical qualification working on ESI infrastructure e.g., cable layer, Plant Operator, meter reader, Rigger, civil workers.

6%

Vegetation Worker Engaged in vegetation control work for ESI network infrastructure – elevated or on ground.

5%

Non Electrical Worker A person with no electrical qualifications who works in an ESI environment. e.g., Cleaner, maintenance workers, fire services technician, labourer, gardener, stores person, and driver.

5%

Engineer All streams i.e., Civil, electrical working in the ESI. 4%

Live Line Maintenance of electrical equipment, often operating at high voltage, while the equipment is energised.

4%

Trade Worker Tradespersons working in a non-electrical area, e.g., painter, plumber, concreters, carpenter, mechanic etc.

3%

Meter Technician Engaged in the installation of direct, C/T and/or HV metering installations.

3%

Tester, Protection, Control & Cables

Includes testing protection and control circuits associated with Transmission & Distribution and stations. Includes field protection devices & cables.

2%

Cable Jointer Jointing & laying HV &/or LV cables. 2% Asset Inspector Engaged in asset inspection, pole testing and data capture. 1% Lineworker Transmission

Lineworker engaged in working on transmission assets above 66kV.

1%

Electrical Inspector Engaged in compliance inspections of customers HV and/or LV installations.

1%

Switching Operator

Describes a person whose duties are primarily operating networks even though they may be qualified in other areas. Includes all operating to be defined by the authority in the passport, Transmission, Distribution, Stations

1%

Total

100%

(Source: Energy Skills Queensland – ESI Passport database)

Table 10 and Figure 14 compare ESI registrations by state and territory. Victoria continues to issue the highest proportion of passports with around a third of total registrations (12,537 in 2014). Since May 2013, New South Wales recorded the fastest growth with 2,299 new registrations. Queensland, Western Australia and Victoria have also increased though at a slower rate and Queensland, in particular, has added an additional 59 passports during this period. The Australian Capital Territory and the Northern Territory have also increased marginally by less than 30 registrations in total.

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Table 10: Persons signed up to ESI Passport as of 2014

VIC NSW TAS WA QLD SA ACT NT Total

2014 (April)

12,537 10,590 4,877 4,413 4,057 1,451 509 297 38,731

2013 (May)

11,061 8,291 4,371 4,389 3,998 1,320 489 295 34,214

2012 (May)

7,167 5 1,810 1,295 3,565 958 355 - 15,155

(Source: Energy Skills Queensland – ESI Passport database)

Figure 14: Persons signed up to the ESI Passport by State (Energy Skills Queensland ESI Passport database)

As the ESI Passport system continues to grow across Australia, a number of key benefits for the industry are expected. Most centrally, as the demand for ESI workers intensifies the passport system allows ‘portability without pain’. That is, the time consuming process of re-verifying training, licences and qualifications is reduced and the process required to access ESI assets is simplified. The passport may lead to easier internal migration of skilled workers and help match the shifting regional, rural and urban demand profiles of the industry.

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

ESI Passport users

VIC

NSW

TAS

WA

QLD

SA

ACT

NT

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ELECTRICITY RETAIL

The electricity retail industry comprises the fourth and final sector involved in the provision of energy. Retail services operate in the competitive market of selling and delivering electricity to households and private businesses.

Electricity retail constitutes a revenue pool of $29.7 billion for 2013/14 and requires a national workforce of around 5,100 workers. The industry deals directly with end users of electricity, so considerable numbers of employees are involved in areas like customer relations or billing. Expected annual growth over the period to 2018/19 is forecast at 2.1 per cent (IBISWorld, 2014f). This lower growth in revenue, relative to the past five years, is due to moderating purchase costs and uncertain operating conditions.

Similar to all electricity provision industries, there continues to be uncertainty around regulation and policy. Industry performance is heavily sensitive to changes at this level. Specifically, it is estimated that the industry is the largest direct market for producers who qualify for participation in the RET scheme (IBISWorld, 2014e). Therefore, political decision-making on the RET and the carbon tax throughout 2014/15will play a major role in the future operating conditions of this area.

QUEENSLAND Due to unsustainable electricity prices occurring in recent years, reforming and improving Queensland’s electricity retail market is a key area of the 30-year Electricity Strategy (DEWS, 2013). These price shocks are categorised by the State government as being symptomatic of an electricity system that is unable to cope with the changing needs of Queensland’s communities and businesses.

In May 2012, the newly elected Queensland established the Interdepartmental Committee (IDC) on Electricity Sector Reform to examine all aspects of the sector that impact on the cost of electricity. The IDC found the Queensland electricity system is facing a number of immediate challenges and has worked with the Queensland Government to develop a suite of immediate reform measures. These comprise a central part of the 30-year Electricity Strategy (DEWS, 2013) and are summarised in Table 11.

Table 11: Immediate challenges and proposed reforms to the Queensland electricity retail market (adapted from DEWS, 2013)

Challenge Reform Proposal for Government

1. Improve competition in retail markets

Move to price monitoring in South East Queensland’s retail electricity market

Improve retail electricity markets in regional Queensland

2. Strengthen customer protections

Aim to implement the National Energy Customer Framework (NECF) in 2014 with modifications particular to the state, to protect Queensland customers.

An industry/customer working group will also be established to examine options to further enhance the way Queensland customers are protected and engaged.

3. Improve customer engagement

Establish a working group comprising industry and electricity customer representatives to help develop a strategy to increase levels of customer engagement with the market.

This approach will create a more customer-focused retail sector by increasing competition, lowering prices and improving products and

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services.

The engagement strategy will commence in 2014.

4. Review electricity rebates and customer assistance

Review the eligibility criteria and structure of the Electricity Rebate to better target assistance to those most in need as part of developing a holistic hardship framework.

5. Reform tariffs to address costs and provide greater customer control

facilitate the development of a long-term electricity tariff strategy by July 2015.

The implementation of new tariffs will be supported by consumer education and engagement, and protections for vulnerable consumers.

ELECTRICAL SERVICES AND ELECTROTECHNOLOGY

Electrical services and electrotechnology consists of contractors that install, repair and maintain electrical wiring or fittings in buildings or other construction projects (IBISWorld, 2014e). In 2013/14 this industry is predicted to generate revenue totalling $18.3 billion and employ a substantially larger workforce (140,000 workers) compared to preceding industries in the electricity product chain. Growth is expected to continue at an annual rate of 2.3 per cent through to 2018/19 (IBISWorld, 2014e).

This industry is the largest of the building and construction contracting trades, accounting for about one-seventh of the gross product, revenue and employment in the construction trade services sector. Industry activities span across all building, infrastructure and industrial markets. Notably, the industry’s medium to long term performance has been boosted by work resulting from the emergence of new technologies, particularly broadband communication networking. However, the industry has contended with rising wages and a lack of skilled electrical workers since the late 2000s (Energy Skills Queensland, 2013a).

QUEENSLAND The Queensland electrical contractors’ workforce includes the domestic, commercial and industrial sectors of the industry. Seventy eight per cent of Queensland contractors operate in more than one of these sectors, with 39 per cent of contractors operating in all three sectors (Energy Skills Queensland, 2013a).

For electricity services and electrotechnology, Queensland accounts for 20.9 per cent of the total national industry and 21.4 per cent of the employment. This reflects the high level of resource and infrastructure development in the state in recent years and the wider dispersal of population settlement, favouring more enterprises. Queensland’s share of industry contractors has also been boosted by a recent spike in residential construction activity, which, as an indication, grew by up to 6.8 per cent in the September quarter in 2013 (Commsec, 2014).

Promisingly also, new dwelling commencements in urban areas has recently increased 8.8 per cent since last year (Commsec, 2014). It is unknown if this positive residential growth will influence the wider sector, and the depressed construction outlook at an overall level continues to impact the slowdown of larger contracts and projects.

Similar to Western Australia and the Northern Territory, Queensland also has a significant demand for specialised electrical services dispersed across wide regional markets servicing the mining, commercial construction, gas and energy industries. As mentioned previously in this report, workforce planning and development initiatives that attract, train and retain electrical service and electrotechnology employees in these growth areas and non-urban locations are a

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priority. Regionally, the increase in demand for electrotechnology workers remains high with a number of critical skill sets in shortage, including instrumentation and control technicians.

Another area of growth in this sector is energy auditing. Energy audits evaluate the impact a system (for example a business or domestic property) has on the environment, by examining energy consumption. Energy audits commence the process of establishing environmental consciousness, as well as providing an opportunity to save money and comply with legislation. Electricians with energy auditing skills and experience will be highly valued across the sector, particularly in the previously mentioned regional areas of highest demand.

Importantly, in terms of future skilling priorities, a final large trend identified across the entire electrotechnology sector is a shortage of Electrical Trades workers. As reported in the Queensland MIC (2014) report, a number of industries including mining, construction and utilities all identified this shortage. Specifically, more than 3,000 of these workers are expected to be required in each of these industries by 2018/19.

GAS (INCLUDING CSG, LNG AND LPG) Gas is an essential commodity for Queensland's industrial and manufacturing sectors and will be a significant role in the state's continued economic and regional development. It is also increasingly used in electricity generation throughout Queensland, and is a major new export industry, based on the production of liquefied natural gas (LNG) from Queensland's gas resources. Understanding and developing the skilled workforce required to capitalise on this sector is paramount.

In 2012, Queensland's domestic gas demand was approximately 240 petajoules (PJ). Queensland's gas customer base is dominated by large industrial and mining operations (around 88 per cent of Queensland demand). There are approximately 172,000 residential customers in Queensland who use gas primarily for cooking and heating hot water.

Conventional natural gas is often found and produced with other petroleum products such as oil. Unconventional Coal Seam Gas (CSG) is found and produced from the cleats and fractures of coal seams. While the location and production method is different, natural gas produced from conventional gas fields and CSG gas fields is the same product. Commercial quantities of natural gas are produced from both conventional and CSG fields in Queensland.

THE GAS INDUSTRY

The national gas supply industry is forecast to generate revenue of $11.4 billion in 2013/14, up from $10.4 billion in 2008/09. This equates to compound annual growth of 1.9 per cent during the five-year period. Industry revenue is predicted to increase by 5.2 per cent in 2013/14, reflecting higher gas prices and a moderate increase in the volume of gas consumed. The gas supply industry is highly capital-intensive and relies heavily on assets such as pipelines, and in this context workforce numbers are relatively low, at 2,129 workers in 2013/14 (IBISWorld, 2014g). Growth during the period to 2018/19 is predicted to be around 5 per cent per year.

Notably, international trade is excluded from this industry, although, Australia does export LNG. That trade is accounted for in the wider context of the Oil and Gas Extraction industry, which generated significantly larger revenue in 2013/14 of $48.2 billion. Given the growing investment in developing LNG export capacity and the associated international agreements on long-term trade, this area is expected to grow at a remarkable 16 per cent per year till 2018/19 (IBISWorld, 2014h). The national workforce required to service this demand will need to expand from the current 25,000 to close to 50,000 by 2018/19 (IBISWorld, 2014h).

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QUEENSLAND Until 31 December 2013, Queensland’s gas industry was arranged via the Queensland Gas Scheme (QGS). This scheme aimed to diversify the state's energy mix towards the greater use of gas by ensuring Queensland electricity retailers and other liable parties were required to source a prescribed percentage (currently 15 per cent) of their electricity from gas-fired generation. Due to the Australian Government's carbon pricing mechanism largely duplicating the scheme’s role of encouraging gas-fired power, the QGS was closed at the end of 2013.

The Queensland Government, however, remains committed to ensuring adequate gas is available to service demand from both domestic users and the state's developing liquefied natural gas (LNG) export industry. The Queensland gas market was reviewed in 2010, 2011 and 2012 to inform decision-making on security of domestic gas supply, more effective resource management and the development of a more competitive Queensland gas market.

COAL SEAM GAS TO LIQUEFIED NATURAL GAS

Liquefied natural gas (LNG) production in Australia is set to rival that of major international producers. Combined with export volumes from the west coast, Australia will emerge as one of the largest worldwide exporters of LNG second only to Qatar. Queensland is therefore positioned to contribute substantially to, and benefit from, this export demand.

In 2014, the construction of processing facilities and infrastructure that will convert Coal Seam Gas (CSG) into LNG on Curtis Island in Gladstone has progressed, with three LNG trains nearing completion. In combination, the unconventional gas reserves of the Surat Basin region are approaching the extraction and transportation phase. Table 12 highlights the four major projects being undertaken, their parent companies and estimations of production and capacity. Notably, three are forecast to be operational by 2015.

A major uncertainty over the forecast period is the prospects for Arrow Energy’s LNG plant. Arrow, a joint venture between Shell and PetroChina, has been cautious in recent months about the prospects of developing their own LNG plant (a Final Investment Decision was pushed back again in January 2014). The company may consider selling into existing LNG projects in the future rather than developing their own processing facilities (BREE, 2014).

Table 12: The four main CSG to LNG projects

Project Company Estimated Year

of Gas production

Estimated New Capacity (PJ)

Queensland Curtis LNG project

BG Group 2014 450

Gladstone LNG Santos / Petronas /

Total / Kogas 2015 410

Australia Pacific LNG Origin / ConocoPhillips /

Sinopec 2015 480

sub-total 1,340

Arrow LNG Plant* Shell / Petro China 2017+ 420

Total 1,760

Despite Arrow Energy’s decision, the enterprise remains highly relevant from both a workforce planning and development perspective. Energy Skills Queensland’s publication ‘Queensland CSG to LNG 20 Year Industry Workforce Plan: Operations and Maintenance 2014-2034 report’

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outlined the extensive scope and complexity of the ongoing workforce requirements for the CSG to LNG industry (Energy Skills Queensland, 2013b). The report identified the future demand for skilled workers over a 20 year forecast period, with the workforce expected to peak at around 14,900 workers in 2024. This was substantially higher than previous forecasts and used industry-specific information to more accurately identify and integrate two key drivers into the CSG to LNG workforce growth projections, (1) the number of LNG trains in operation and, (2) the number of wells required to deliver gas into the pipeline.

NUMBER OF LNG TRAINS The first driver of the CSG to LNG forecast was the number of LNG trains that will be built by the gas companies on Curtis Island. To ensure the LNG train component of the workforce was not being understated, the impact of increasing the number of trains was considered. The number of workers needed for each additional train increases only slightly as economies of scale are found. Table 13 shows an example increase of one LNG train to two LNG trains.

Table 13: Example workforce numbers for one and two LNG trains (Energy Skills Queensland, 2013b)

As the impact on the Operations workforce of building additional trains is minimal, forecasting a six and eight train scenario ascertains an accurate picture of the projected CSG to LNG workforce. These 6 train and 8 train scenarios were used for the overall workforce requirements, as well as the downstream component of the project. Using this number of trains was also confirmed via consultation with industry leaders.

NUMBER OF WELLS The second driver for the CSG to LNG workforce projection was the variability in the number of wells that will be drilled throughout Queensland over the life of the current projects (30+ years). The number of wells that will be drilled is determined by the volume of gas each well produces, and is not dependent on the number of LNG trains that will be constructed. As displayed in Table 14 the Gas Field and Pipeline component of the project (named upstream) is divided into three scenarios

Table 14: Three scenarios used, base level, 15% increase and 30% increase in number of wells (Energy Skills Queensland, 2013b)

*Via stakeholder engagement and research it was determined that the 45,000 scenario was the most plausible

Figure 15 illustrates the key finding of the report and shows the projected total workforce for six LNG trains across each of the three well scenarios. Based on this 20 year forecast period, the operations and maintenance workforce is expected to peak at approximately 14,900 workers at the mid-range (15% increase, 45,000 wells) scenario. This workforce peak could increase further to 17,000 workers under on the high-range (30% increase, 59,000 wells) scenario. Alternatively, at base level the workforce is forecast to peak at 14,000. Finally, across these scenarios the workforce will consist of approximately 35% direct employees of the gas

LNG trains

1 2

Maintenance 30 40

Operations 20 30

Administration 30 35

Total on site 80 105

Rate of increase Number of wells

Scenario 1 Base level 39,000

Scenario 2 15% 45,000*

Scenario 3 30% 59,000

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companies, and 65% representing the contracted workforce employed by supply chain operators.

Figure 15: Projected total workforce for the CSG to LNG industry in Queensland 2014 to 2034 (six LNG trains) (Energy Skills Queensland, 2013b)

CRITICAL SKILLS AND OCCUPATIONS

The skill sets and critical occupations that will be in high demand throughout this forecast period were also identified via this research. Identification of these skills and occupations was made through consultation with key stakeholders from all participating gas companies and many of these roles will be required during peak demand periods across the industry, and are likely to be difficult to recruit or train. These areas were grouped by upstream (gas fields) and downstream (LNG plant) to determine what actions need to be implemented at a regional level to address any potential skill gaps.

Table 15 below lists the occupations most relevant to the upstream component of these projects. Upstream here refers to CSG field facilities including drilling, plant and pipeline branches of the industry. The upstream workforce will require the largest workforce numbers and is anticipated to consist of approximately 35 per cent direct employees of gas companies, with the majority of workers (65 per cent) to be a contracted workforce supplied though supply chain contractors.

Table 15: Critical skills and occupations for the upstream CSG to LNG operations and maintenance phase (Energy Skills Queensland 2013b)

Upstream

Lease Hand SCADA Professional (Supervisory Control and Data Acquisition)

Floor Hand Health, Safety and Environment Officer

Motorman Specialist Trainers and Assessors (oil and gas)

Derrick Hand Project Manager

Assistant Driller CSG Technical Trainer

Driller Engineer

Tool Pusher Geologist

Rig Manager Geophysicist

Electrical Fitter/Mechanic

Cable Jointer

High Voltage Switching Electrician

Telecommunication Technician

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Figure 16 then details how the broader occupational grouping will most likely be required during the 20 year forecast period with a combined total of around 14,100 workers.

Figure 16: Projected workforce upstream for the CSG to LNG industry in Queensland 2014 to 2034 (Energy Skills Queensland, 2013b)

In addition to this upstream activity, Table 16 lists the occupations most relevant to the downstream project component, and refers to processes occurring at the LNG processing facilities. This downstream operations component of the workforce is predicted to peak at

around 800 workers under a six LNG train scenario in 2015 (see Figure 17).

Table 16 : Critical skills and occupations for the downstream CSG to LNG operations and maintenance phase

As well as the core operational workforce, approximately 600 workers (per LNG train) will be required to perform scheduled maintenance shutdowns periodically. Minor shutdowns will occur more frequently and will require staff of approximately 40 to 60 workers. It is unlikely that more than one LNG train will be shutdown at any one time across all of the plants on Curtis Island.

The maintenance workforce is likely to be required for only part of the year and only in the years when shutdown occurs, therefore have not been included in the overall workforce requirements. Taken together, ensuring a supply of skilled workers to fill these roles will be critical for a high functioning and flexible CSG to LNG industry in Queensland.

Downstream

Field Technician and Operations Technician Procurement Manager

LNG Plant Operators and Superintendents Project Manager

Electrical Fitter/Mechanic LNG Technical Trainer

Instrumentation and Control Technician Engineer

Telecommunication Technician Specialist Trainers and Assessors (oil and gas)

Health, Safety and Environment Officer Operations Technicians

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Figure 17: Project workforce downstream for the CSG to LNG industry in Queensland 2014 to 2034 (Energy Skills Queensland, 2013b)

TELECOMMUNICATIONS An increase in connectivity has embedded telecommunications as a vital part of the day-to-day functioning of Australian businesses and has changed the way Australians interact. Demand for and use of telecommunications services has increased during the past five years, but intense intra-industry and intra-subdivision competition has created a fiercely competitive environment. This means that growth in demand has been achieved at the expense of other, more profitable telecommunications services.

In particular, the Wireless Telecommunications Carriers industry has been booming due to wired-to-wireless substitution. The Wired Telecommunications Network Operation industry has suffered a downfall in access lines and usage during the past five years. Total revenue has been strongly affected by the decline in wired revenue, and is forecast to record annualised growth of 1.2 per cent in 2013/14, to reach $43.7 billion (IBISWorld, 2014i). Furthermore, the industry is predicted to contract at a rate of -0.5 per cent per year till 2018/19. However, the workforce is likely to remain stable over this period at around 53,000 workers.

KEY WORKFORCE ISSUES FACING THE TELECOMMUNICATIONS SECTOR

The roll-out of the National Broadband Network (NBN) continues to dominate the skills and labour requirements for telecommunications workers in Queensland. The NBN Co has a revised Statement of Expectations from the Federal Government and a Strategic Review of the National Broadband Network has been completed, with the findings provided to the Government. The review’s recommendations will have implications for some workforce development activities, which are anticipated to be determined in 2014.

One of the outcomes of the Strategic Review, to adopt a multi-technology model, will utilise a

range of broadband technologies including Fibre to the Node (FTTN), Hybrid Fibre Coaxial

(HFC) (i.e. the cable broadband network), alongside Fibre to the Premises (FTTP), fixed

wireless and satellite. At this point, in time a detailed rollout timetable and the impact of this on

the workforce are not known. However, it is clear that different technologies will be utilised on

an area-by-area basis, with the design of the multi-technology mix to be guided by download

rates while prioritising identified poorly served areas.

It is identified that the skilled workforce will be required nationally, they will need to be multi-

skilled and regionally responsive and predominantly a sub-contractor workforce with skills sets

generally in the Certificate II or III. Tasks identified in this model will need jointing and slicing

52

skills for copper, coaxial, fibre, as well as refrigeration, electrical and line skills for Cabinets at

the node. It is also predicted a 12- 18 month ramp up will be required with an important initial

skills set identified in the Network Design and Planning areas.

The following occupations represent likely imbalances in the demand for and supply of skills in the medium-to-long term:

Telecommunications Linesworker: performing in-street cabling activities (ANZSCO 342413)

Cabler (Data and Telecommunications): performing street to “on-premises” cabling (ANZSCO 342411)

Telecommunications Cable Jointer: performing fibre optic cable splicing and copper jointing (ANZSCO 342412)

Telecommunications Network Planner: performing network planning and design activities (ANZSCO 313213)

Potential changes to network technologies used in the rollout of the National Broadband Network may alter the combination of occupations that NBN Co requires.

TRAINING FOR THE TELECOMMUNICATIONS INDUSTRY

As seen in Table 17, the number of commencements in Certificate II telecommunications traineeships has decreased substantially since 2012/13. However, a much stronger countervailing increase has occurred for Certificate III traineeships which doubled over the same period, from 836 commencements in 2012/13 to 1,597 in 2013/14. This has been driven directly by the ICT 30210 certification which is the preferred qualification for the NBN roll-out. This certification enables individuals to work across three key NBN roles of Installers, Linesworkers and Splicers. This increase is a positive indication that the future workforce is being planned, trained and developed to meet the demands of this national network, although, other imbalances between high demand and low supply of other NBN workforce requirements remain.

Table 17 : Student commencement numbers for the telecommunication sector (based on DETE data)

Telecommunications Commencements

2007/ 2008

2008/ 2009

2009/ 2010

2010/ 2011

2011/ 2012

2012/ 2013

2013/ 2014*

Telecommunications – Certificate II

ICT20202 - Telecommunications 58 44 1

ICT20208 - Telecommunications 4 52 24

ICT20210 - Telecommunications 16 56 46 11

ICT20310 - Telecommunications (Cabling)

2 4 1

ICT20410 - Telecommunications Digital Reception Technology

1 1

Sub Total 58 48 53 40 58 51 13

Telecommunications – Certificate III

ICT30202 - Telecommunications 47 50

ICT30208 - Telecommunications 2 10 21 1

ICT30210 - Telecommunications 27 103 836 1,597

ICT30410 – Telecommunications Digital Reception Technology

6 4 3

Sub Total 47 52 10 48 110 840 1,600

Grand Total 105 100 63 88 168 891 1,613 * Numbers for 2013/14 are as at March 2014 and are subject to a six month lag Note: Numbers are not rounded

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SPOTLIGHT ON ENERGY AND TELECOMMUNICATIONS WORKERS IN THE MINING INDUSTRY Energy Skills Queensland (2013c) recently published the Heartbeat Report for the Queensland Mining Industry. This research was the fourth in a series of workforce analysis reports, and examines detailed human resources data provided by industry. Its purpose was to inform the mining industry on trends and significant workforce issues impacting the sector. The report represented a sample of 30,398 non-identifiable employees and was collected on a twelve month period from June 2012 to May 2013.

This type of research is crucial as the Mining sector in Queensland has grown significantly in the past decade, and in February 2014 makes up 3.4 per cent of the Queensland workforce population (ABS, 2014). Specifically, the Heartbeat Report assisted companies, stakeholders, governments and educators to plan future skilling strategies, allow for the setting of appropriate staffing targets, effective evaluation of initiatives and identification of priority workforce issues. This has been achieved by providing a compelling evidence base for strategic discussions between industry, educators and the broader community.

The Heartbeat Report categorises human resources data into 21 job skill groupings, which then allows a deeper and more refined analysis to be conducted. It is from this data that a detailed set of information can be extracted regarding the energy and telecommunications workers within the Queensland mining industry. Here, a number of specific job skills categories within the Heartbeat Report are directly relevant to the broader energy and telecommunications sector, including electrical trades, electrical engineers, technicians, as well as apprentices, trainees and graduate program participants, referred to as the internal talent pipeline.

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ELECTRICAL TRADES WORKERS IN THE QUEENSLAND MINING INDUSTRY

A total of 531 Electrical Trades workers were identified

and this was 2.1% of the entire sample.

This has increased since 2011 when there were 445

workers.

Full-time workers are the most common (93.6%) followed

by contractors (5.2%)

In addition, 121 electrical apprentices were part of the

Internal Talent Pipeline.

Electrical apprentices therefore comprised 18.6% of the

combined Electrical Trades and apprentices workforce of

652. Electrical apprentices also formed 32.2% of all

apprentices across the pipeline.

Electrical Trades workers continue to have a high length of service of 6.1 years down slightly since 2011.

The recruitment rate for these workers has increased rapidly to 22.4%, up from 3.8% in 2009 and has more than double the 10.3% in 2011.

Turnover has decreased since 2011 from 14.8% to 10.7%, and almost a quarter of this turnover occurs within the first 12 months of employment

The resignation rate is 7% and has decreased by 4.7% since 2011.

21.8% of current employees are over 50 years of age, and 4.7% of those are over 60 years of age. This signals high potential separation risks and helps to contextualise and support earlier discussions in this report regarding the ageing workforce issue in Queensland’s energy industry.

However, a related finding that the proportion of Electrical Trades workers in mining is under the age of 30 and has grown rapidly to 24.8% up almost 20% since 2009 my help offset these separation risks.

The female proportion of the Electrical Trades workforce has doubled to 4.1% in 2013 data, and remains higher than the 2% female participation rate in energy and telecommunications sector reported by FCS (2013).

59.0% are resident workers (well above the sample average), living within 100km of their place of work. However, this has decreased by 16.3% since 2009.

A related growth in the FIFO workforce of 15.2% helps explain this shift and is a major change in travel patterns and behaviour.

Electrical Trades workers are employed across the State, with 48.5% working in the North West region, and the majority of the rest in Mackay (26.5%) and Fitzroy (21.1%).

The representation of Aboriginal and Torres Strait Islander workers was below 1% of all qualified electrical trade workers

Workers under 457 visa arrangements comprised 0.44% of all electrical workers

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TECHNICIANS IN THE QUEENSLAND MINING INDUSTRY

Across the sample there were 1,560 Technicians which

comprised 6.2% of the sample, this is a decrease from

2011 (2,326) but an increase since 2009 (473).

Full-time employment was the most common (98.6%)

followed by casual staff (0.5%) then contractors (0.3%)

The average length of service of these Technicians was

7 years - which has almost doubled since 2009

10 trainees were identified and constitute less than 1%

of Technicians. This is a far lower in-training percentage

when compared to apprentice Electrical Trades workers

The representation of Aboriginal and Torres Strait

Islanders workers was relatively high (6.7%), almost

three times the sample average (2.7%) and much higher

than Electrical Trades workers (0.66%)

The proportion of female workers is high and remains

stable at 7.4%.

Female Technicians are almost twice as common as

female Electrical Workers in the mining sector, and are

also significantly higher than the 2% female participation

rate in wider energy and telecommunications sector

(FCS, 2013).

The Technician recruitment rate has dropped from 11%

in 2009 to 7.6% in 2013

More than a quarter of employees were above the age of

50, again suggesting high separation risk due to an

ageing workforce.

Similar to Electrical Trades though, the proportion of

workers below 30 is increasing and has more than

doubled since 2009 to 16.6%. This may help meet

replacement and succession demand and reduce the

effect of an ageing workforce in this occupation.

Turnover rates remain consistent with the 2009 result but

are higher than the 2011 figure of 8.3% to 12.4%,

however, less than 10% depart after the first year.

The resignation rate is 4.8% and, like Electrical workers,

has decreased substantially since 2011

57% are non-resident workers, which represents a

15.8% increase since 2011 with the main proportion

being FIFO workers at 27.3%. This is higher than the

sample average (46%) and Electrical workers (41%)

Workers under 457 visa arrangements comprised 0.35% of all Technicians

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ELECTRICAL ENGINEERS IN THE QUEENSLAND MINING INDUSTRY

The following information regarding electrical engineers has been derived from the Heartbeat data; however, it was not a stand-alone category like Electrical Workers and Technicians. Instead it was a sub category combined into the broader job skills category of Engineers, and has been re-analysed for this report to provide specific industry intelligence regarding Electrical Engineers in the mining sector. The key findings are:

9.5 per cent of the Engineers pool were Electrical Engineers

83 of these were male and 10 female, representing a 12 per cent female participation rate. This was lower than the 14 per cent sample average but higher than both Electrical Workers (4.1 per cent) and Technicians (7.4 per cent)

The average length of service is 4.5 years, marginally higher than the broader profile of Engineers

The average age was 35 and is in line with the Engineers sample and well below the sector average of 40.1 years

46.2 per cent were under the age of 30 and only 16.1 per cent over the age of 50, suggesting low age based separation and retirement risk

91.4 per cent of the electrical engineers worked full-time

Just over half are resident workers with 30.1 per cent of the balance identified as FIFO and traveling more than 300 kilometres to their place of work, this differs significantly from the Engineering profile at 64.2 per cent resident workers

22.6 per cent had been hired within the past year and 20.4 per cent had left their organisation in the same period, half of those separations nominated resignation as their reason for departure

Workers under 457 visa arrangements comprised 3.2 per cent well above the whole of Engineering, Electrical Worker and Technician profiles, and three times the overall rate for mining as a whole

57

MAJOR PROJECT UPDATE

ELECTRICITY GENERATION

QUEENSLAND’S COMMITTED PROJECTS

This section provides a brief nationwide update of the major renewable and non-renewable electricity generation projects as reported by BREE (2013a; 2014). Previously, projects were reported in one of two phases, ‘advanced’ or ‘less advanced’, but are now grouped into four stages: (1) Publicly Announced; (2) Feasibility Stage; (3) Committed; and (4) Completed.

Figure 18 below provides a snapshot of Australian’s 22 committed electricity generation projects as of September 2013. This Committed Stage means a project has obtained a final investment decision and has either begun, or is about to commence, construction (BREE, 2013a). For Queensland, no additional project commitments have been reached since the previous reporting period of 2013. Thus, a total of two projects remained Committed in Queensland, the Diamantina Power Station new Mt Isa (242MW non-renewable) and the Kogan Creek Solar Boost Project (44MW renewable) near Chinchilla.

Figure 18: Locations of Committed Stage electricity generation projects as of September 2013 (BREE, 2013a p27)

58

QUEENSLAND PROJECTS IN THE PUBLICLY ANNOUNCED AND FEASIBILITY STAGES

There are significantly more projects in Queensland in the first two developmental stages of Publicly Announced and Feasibility, than Committed. BREE (2013a) has identified seven projects in the Publicly Announced stage for Queensland and a total of 37 nationwide. Of these Queensland projects, five are renewable and two non-renewable. Fifteen projects in Queensland are currently in the Feasibility Stage, in the context of 100 projects nationally. Of the 15 Queensland projects, eleven are renewable and four are non-renewable. Table 18 outlines each of the three aforementioned stages at both a Queensland and Australian level, and indicates the number of renewable projects is higher than non-renewable, and also that many more projects are in the early phases of planning and development than Commitment.

Table 18: List of electricity generation projects at each development stage at both the Queensland and Australian level (adapted from BREE, 2013a)

Queensland Australia

Projects in the Publicly Announced Stage

Renewable Non-renewable Total

5 28

2 9

7 37

Projects in the Feasibility Stage


11 71

4 18

15 100

Projects in the Committed Stage


1 18

1 4

2 22

Projects Total


17 117

7 31

24 148

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ALL MAJOR ENERGY AND RESOURCES PROJECTS

QUEENSLAND’S COMMITTED PROJECTS

The following sections provides a broader perspective of the overall major energy and resources projects in Queensland and Australia (as of October 2013), and includes all mining, infrastructure and processing facilities projects that increase, extend or improve the output of mineral and energy commodities. Figure 19 displays Queensland’s 19 committed energy and resources projects, of which 7 are coal projects and 5 are infrastructure. Across Australia there are 63 major projects in total.

Figure 19: Locations of projects at the Committed Stage as of October 2013 (BREE, 2013b p19)

QUEENSLAND PROJECTS IN THE PUBLICLY ANNOUNCED AND FEASIBILITY STAGES Figure 20 outlines Queensland project position across the Publicly Announced and Feasibility stages and compares these to other states and territories. The figure also includes the later Committed and Completed project information. It can be seen that there are 24 publicly announced projects in Queensland. Notably, MacMines Austasia’s Project China Stone coal mine in the northern Galilee Basin is the highest value coal project at the Publicly Announced stage across Australia and could increase Queensland’s production of black coal by around 45 Mt per year, if it is developed (BREE, 2013b). There are currently 64 projects in Queensland at the Feasibility stage, again lead by coal (37) and infrastructure (10) projects.

60

Figure 20: Resources and energy projects by stage and region (BREE, 2013 p24)

THE ECONOMIC OUTLOOK

According to the Queensland Mid-Year Fiscal and Economic Review (QTT, 2013/14) the state’s economy grew by 3.6 per cent in 2012/13. Growth occurred primarily on the strength of business investment in the resources sector and exports. This is the second consecutive year that economic growth in Queensland was higher than that nationally, and follows three years where Queensland growth was lower than the national level. The Queensland economy is forecast to grow by 3 per cent in both 2013/14 and 2014/15, rising to 6 per cent in 2015/16.

Based on the latest state publications available as of 17 December 2013, Queensland is expected to have the fastest growing state economy in 2014/15, and the second fastest in 2013-14 after Western Australia. While the recovery in dwelling investment in Queensland is expected to be stronger than forecast in the 2013-14 Budget, household consumption growth is now likely to be softer. The outlook for coal and tourism exports has improved.

Consistent with the outlook in the 2013/14 Budget, the resources sector is moving from an investment phase towards an export phase. For three years, business investment has been boosted by capital investment in liquefied natural gas projects, which is expected to total more than $60 billion. With investment expected to peak in 2013, other sectors of the economy, especially exports, will increasingly contribute to growth.

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ENERGY SKILLS QUEENSLAND

70 Sylvan Road, Toowong Queensland 4066PO Box 607, Toowong Queensland 4066

Phone: 07 3721 8800 Fax: 07 3870 9291Email: [email protected]

www.energyskillsqld.com.au

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