VICTORIA's peak tourism body is calling on both major parties to commit to recommendations to grow tourism jobs in the state, as Melbourne Airport reports significant passenger growth for the past year.

Victoria Tourism Industry Council (VTIC) chief executive Dianne Smith said that with the appropriate policy, the tourism industry could create nearly 9,000 additional jobs for Victoria over the next two years.

Ms Smith’s comments come in the wake of Melbourne Airport reporting its total passenger numbers grew by 4 per cent during 2013/14 to 31 million passengers. International passengers increased by 9 per cent to 7.75 million; while domestic passengers grew by 2 per cent to 23.3 million.

"Both major parties must commit to our priorities if Victoria is to maximise the benefits of increased visitor numbers and drive further growth,” said Ms Smith.

VTIC recommendations include:

- Increase marketing efforts to attract more Asian visitors: targeted communications campaigns and funding to make Victoria’s key tourist attractions more appealing to this group are needed. 

- Commit funding to the expansion of the Melbourne Convention and Exhibition Centre: the centre is currently turning away around 17% of booking requests due to lack of capacity, so this is vital to ensuring Melbourne retains the significant economic benefit from being Australia’s business events capital. 

"VTIC strongly supports the Airport Rail Link project for the benefit it will bring to guests coming to Victoria for both recreational and business purposes and we hope this project progresses as a priority,” said Ms Smith.

“We echo Melbourne Airport CEO Chris Woodruff’s sentiments on the need to secure better outcomes for international air service agreements for Melbourne. We must also remember that Melbourne Airport’s curfew-free status gives Victoria a distinct advantage over other states and we must ensure that this is preserved well into the future.

“The airport experience is often an international visitor’s first impression of Melbourne, if not Australia, so the major works and improvements that Melbourne Airport outlined in their Annual Stakeholder Report are a great investment for Victorian tourism and the visitor experience.”

For more information on VTIC’s recommendations please visit www.vtic.com.au.

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IN a decision that has restored certainty to both Australian and non-Australian nationals working in the offshore resource industry, the Federal Court has today rejected a challenge by two maritime unions to the Commonwealth’s offshore skilled migration visa arrangements.

The MUA and AMOU’s unsuccessful legal challenge is the latest chapter of ongoing attempts by Australia’s maritime unions to gain control over offshore resources work that historically takes place outside the unions’ traditional coverage.

By targeting the very small proportion of non-Australian skilled workers who provide essential international technical expertise to local projects, the unions’ campaign has directly threatened thousands of Australian jobs created both directly and indirectly through flow-on effects.

“The Federal Court’s decision today is a sensible decision that has restored certainty to a critical part of Australia’s economy,” says Steve Knott, CEO of resource industry employer group AMMA (the Australian Mines and Metals Association - the resource industry’s employer group).

“The offshore resource sector uses a very small number of non-Australian specialists, but has created 70,000 jobs in Australia and injected $200 billion into our economy.

“This campaign is simply the maritime unions’ attempt to gain control over areas historically outside their legal reach and create a new source of membership revenue.

“It is well beyond time that some sensibility is restored in this area and Australia’s oil and gas operators can get on with creating jobs and economic value for our country.”

A separate challenge by a third maritime union, the AIMPE, was previously adjourned pending today’s decision. AMMA expects no material difference in the AIMPE’s case or the outcome.  

Background to this matter:

Today’s Federal Court decision is a significant development in a longstanding union campaign to have all offshore resources activities captured within Australia’s migration zone and thus within the reach of Australia’s workplace laws and union membership coverage.

The laws and regulations the unions are campaigning against have been in place in Australia since 1982 and are consistent with both international maritime law and resources work around the globe:

• No Australian jobs have ever been threatened by the longstanding work arrangements for offshore resources work taking place in waters deemed outside of Australia’s migration zone.
• The global vessel services originally targeted by the unions in this campaign use a small number of non-Australian specialist workers, and actually create many jobs for Australians.
• The small number of international specialist workers (mostly from Europe) travel globally and are paid in accordance with their national laws and with international maritime law.

While the former Labor government took the unprecedented action of amending the laws to appease the maritime unions’ demands, the Federal Court has now upheld the Coalition Government’s steps to restore certainty to Australia’s offshore resource industry.

www.amma.org.au

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VECCI Chief Executive Mark Stone writes > OFFICIAL estimates suggest the national unemployment rate among 15-24 year olds is now 13.8 per cent and around 288,000 young people are now looking for work across Australia.

In Victoria, the youth unemployment rate is similar to the national average, although rates are higher in some regional areas.

The true picture of youth unemployment is likely to be much worse, when we consider that the official unemployment data excludes many youngsters who do not participate in the labour market at all.  A lack of employment opportunities and success in applying for positions can leave many job hunters demotivated to the point where they drop out of the job search market altogether. 

Once lower participation rates are taken into account, the real level of youth unemployment is likely to be at least one to two percentage points higher than the official estimates.

These are not just figures, they are real people.  As we know, there are major economic and social costs associated with having so many young people idle. 

Making matters worse is the fact that the consequences of youth unemployment can last for years.  Those who begin their careers without work are more likely to have lower wages and suffer joblessness again in later life. 

While undoubtedly a strong influence, not all youth unemployment can be explained by the current economic environment where consumer spending levels are well below what many employers require in order to justify taking on new workers.

Lack of qualifications can be a major barrier to youth employment.  In this case the candidate may be missing not only specialised skills and core competencies like literacy and numeracy, but more rudimentary ‘employability’ skills such as the ability to problem solve, initiative, self management and team work.

The tendency for young people to change jobs more frequently than their older counterparts also explains some youth unemployment, as they are classified as unemployed while searching for their next job.

High wages can also mute job prospects.  In Australia, the 3 per cent increase in the national minimum wage this year and the Fair Work Commission decision to increase award rates of pay for 20 year old retail workers may have been good news for existing job holders. However, as employers have to bear these higher costs, these decisions were arguably detrimental to new job seekers.

Realising that there are many influences on youth unemployment provides a guide as to where policy makers should focus their efforts.  VECCI’s Taking Care of Business 2014 State Election business agenda calls on both major parties to commit to a series of reforms that will help address youth unemployment in Victoria.

Among these is our recommendation to raise the payroll tax free threshold from $550,000 to $850,000.  This will lower business costs and create an incentive for employers to hire new staff, including youth.

We also want to see both sides of politics deliver the priority infrastructure projects Victoria needs to keep growing; maximising opportunities for apprentices and trainees.

Importantly, VECCI is calling for further reform of the education and training system. Reform is needed to support not only industries and workforces undergoing structural change, but the continued internationalisation and innovation characteristic of our high growth advanced manufacturing and service industries.

Recent State Government reforms to vocational education and training have sensibly sought to shift training funding towards specialised or skill shortage occupations. However as a consequence, funding for lower level qualifications that provide literacy, numeracy and work preparation skills for many young people has been reduced and both the workforce and employers have suffered.

VECCI’s recommended reforms alone will not solve youth unemployment, but they are needed as part of a coordinated response by state and federal governments to curb the prospect of a jobless generation.

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The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the peak body for employers in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

vecci.org.au  

VECCI Chief Executive Mark Stone said VECCI has consistently supported East West Link as it will create jobs and be a vital part of Victoria's transport network.

"Business confidence takes a hit when decisions made by government do not come to fruition," Mr Stone said.

"I will request a meeting with the Opposition Leader to better understand why they have changed their longstanding position on this project.

"There is overwhelming support for this project among Victoria's major business and motoring groups, including the RACV, and it is also supported by a number of key union organisations.

"It will be of great detriment to our state if it is abandoned."

For VECCI's full Taking Care of Business election agenda visit www.vecci.org.au/tcob

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