10 Ideas for the NSW Budget to Kick-start Jobs in Western Sydney

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1 10 Ideas for the NSW Budget to Kick-start Jobs in Western Sydney 1. A mandated requirement for all large State Government infrastructure projects to have a 4:1 ratio for apprentices to tradespeople. 2. A targeted public sector graduate program for Western Sydney University graduates. 3. A 10% loading given to local businesses in the procurement of Government goods and services. 4. A target to increase the proportion of no-fee preschool places to 20%. 5. Uniform access to free wifi hotspots in Western Sydney Town Centres, including Parramatta, Blacktown, Liverpool and Campbelltown. 6. Office share hubs in Western Sydney town centres which utilise existing Local Council and State Government spaces. 7. Dedicated space and resources to develop industry and innovations hubs in Western Sydney. 8. A 20% discount on car registration for commuters who use daily public transport. 9. A flat rate for commutes within the Western Sydney region. 10. Appoint a Western Sydney Jobs Commissioner

2 Training and development 1. A mandated requirement for all large State Government infrastructure projects to have a 4:1 ratio for apprentices to tradespeople. Western Sydney is undergoing an infrastructure boom. This is the perfect opportunity for the State Government to invest in long lasting employment opportunities for young people in the area. The Government must set a minimum ratio of 4:1 for apprentices or trainees to tradespeople on large publicly funded infrastructure projects. There are currently no minimum standards for the number of apprentices and trainees employed on publicly funded infrastructure projects. The opportunity provided by largescale public infrastructure investment is being squandered. The $16.8 billion WestConnex project has only committed to providing 270 apprenticeships or trainees, representing only 5% of the total workforce on the project 1. There are a number of large Western Sydney infrastructure projects in the pipeline, which should include 4:1 minimums for apprentices and trainees: - Badgerys Creek Airport - Rail Link for Badgerys Creek Airport - WestConnex - Parramatta Light Rail - Parramatta Stadium 2. A targeted public sector graduate program for Western Sydney University graduates. Recent graduates from Western Sydney University have a significantly smaller chance of being in full time work four months after graduation and will also start with smaller median salaries when compared to their counterparts from large Sydney universities. The NSW Government offers a range of graduate programs at an agency and whole of Government level 2. The NSW Government should target young people living and studying in Western Sydney with graduate opportunities that are located in agencies and departments within the NSW Government. 1 NSW Government, Department of Planning and Environment, New M5 Project Overview, November NSW Government, Department of Planning and Environment, M4 East Project Overview, September NSW Government, Public Service Commission, NSW Government Graduate Program, 2015, 2

3 Proportion of graduates employed full time Western Sydney University Graduate outcomes ( ) 3 Macquarie University The University of Sydney University of New South Wales 62.6% 67.6% 67.1% 77.0% 70.7% University of Technology, Sydney Median Salary $50,000 $54,000 $55,000 $59,000 $52,000 Procurement 3. A 10% loading given to local businesses in the procurement of Government goods and services. The NSW Government procures a range of goods and services, from supplies for construction and infrastructure projects, to services like call centre operations. Ideally, Government services should remain in public hands, however, in situations where this is not possible, preference should be given to local businesses and suppliers. In the determination of procurement policies an additional 10% loading should be provided to local businesses and suppliers. Current NSW procurement guidelines require the procuring agency to take into account sustainability. However, this does not extend to promoting sustainable employment through a preference to local businesses or suppliers. Currently only non-metropolitan agencies are allowed to preference local suppliers, up to the value of $5,000. The NSW Government can play a crucial role in promoting local jobs and businesses by ensuring that goods and services provided to the NSW Government remain local. Childcare 4. A target to increase the proportion of no-fee preschool places to 20%. Pre-school is crucial to the learning and development of children, but also plays an important role in unlocking labour market opportunities for parents. 3 Graduate Careers Australia, Graduate Destinations Survey,

4 The NSW Government is responsible for funding preschools and has the lowest access rate in the country with only 77% of preschool aged children attending preschool 4. One factor contributing to the low rates of access to preschool is cost. NSW has the most expensive preschool fees in the country, with a median fee of $3.60 an hour after subsidies. Only 3% of parents have access to fee-free preschool education for their children, which is by far the lowest proportion in the country. New housing developments increasingly targeted to young families have flourished in Western Sydney. Accessible pre-school place provides flexibility to parents, enabling them to participate in the labour market and would have significant social and economic benefits. Distribution of Hourly Fees for Children Enrolled in Early Childhood Education programs in NSW(%) VIC(%) QLD(%) SA(%) WA(%) TAS(%) NT*(%) ACT(%) Australia(%) No fee $1-$4 per hour $5 or more per hour * fees for 3% of enrolled children in NT were unknown Physical Infrastructure 5. Uniform access to free wifi hotspots in Western Sydney Town Centres, including Parramatta, Blacktown, Liverpool and Campbelltown. A number of councils currently offer access to free wifi in their public squares and libraries. However access is fragmented and varies from council to council. There are often different time and size limits, additional paid packages, and varying limitations on whether it s for local council residents or everyone. The NSW Government should streamline access to wifi hotspots in key Business districts across Western Sydney. A consistent service would help people know exactly how, where and under what conditions they can access free wifi. Free wifi should be available to everyone in designated Western Sydney centres. There would be a uniform 24 hour download cap to discourage intensive download or streaming. 4 Audit Office of New South Wales, Early Childhood Education Report, May Audit Office of New South Wales, Early Childhood Education Report, May

5 Access to streamlined wifi across Western Sydney town centres would encourage visitors, shoppers and tourists to the area. It would also provide a boost to micro business and workers not working in traditional office spaces. 6. Office share hubs in Western Sydney town centres which utilise existing Local Council and State Government spaces. Throughout the Sydney CBD there is an emergence of office hubs, where artists, entrepreneurs, micro businesses, and remote based office workers can rent a workspace by the hour, week or day. Hub based offices generate a sense of community among workers, artists and entrepreneurs and can provide a great launching pad for new ideas and businesses. This new approach to office space isn t being adopted to the same extent in Western Sydney. In order to encourage a diverse range of worker, artists and business to get their start in Western Sydney, the State Government should invest in setting up office hub spaces in four Western Sydney business districts. These office space hubs would provide internet, printing, access to meeting rooms and individual desk spaces, which could be rented out by the hour, day or week. Discounted rent would be provided to residents of the local council area, encouraging people who live in Western Sydney to work in Western Sydney. Office hubs could be set up in spaces already owned by local councils or the State Government. If run efficiently, these spaces could be cost neutral to the Government. 7. Dedicated space and resources to develop industry and innovations hubs in Western Sydney The State Government needs to invest space and resources into developing industry and innovations hubs in Western Sydney. These could be used to invigorate niche manufacturing industries and harbour new technologies by assisting companies build capacity to tender and win large and more complex projects. Industry hubs are geographic clusters of businesses from the same industry and provide an environment to harbour competition and collaboration. Successful international examples include Silicon Valley, Hollywood and Midjutland in Denmark. Key industry areas for consideration include new and emerging technology sectors and sectors experiencing cyclical growth where integrated industry clusters can be established through building networks of companies in order for them to prosper. 5

6 Transport 8. A 20% discount on car registration for commuters who use daily public transport. Road congestion is a significant cost to productivity in Sydney. Commuters, who use public transport to get to and from work on a regular basis should by being provided with a discount on car registration, thus providing an incentive to use public transport and reduce road congestion. The introduction of an integrated ticketing system in transport has brought with it the opportunity to track the use of transport and reward regular users. Under this model, a person s Opal card would be presented when paying a registration bill, if the weekly commuting threshold was met, that person would receive a 20% discount on their Bill. 9. A flat rate for commutes within the Western Sydney region. The NSW Government should encourage Western Sydney residents to work in Western Sydney by providing a flat fare for all commutes within Western Sydney. The wheel and spoke nature of Sydney s transport system, means often the easiest and cheapest place to commute to is the Sydney CBD. To commute within the Western suburbs of Sydney, passengers are often required to combine multiple forms of transport. In order to encourage people to commute within Western Sydney, a flat daily rate should apply for commuters travelling within the Western Sydney, regardless of how many modes of transport they are required to use. An integrated approach 10. Appoint a Western Sydney Jobs Commissioner Promoting long-term employment growth in Western Sydney is a multi-faceted challenge. The Government should appoint a Western Sydney Jobs Commissioner, with the aim of creating 100,000 new jobs in Western Sydney in the next 5 years. The Jobs Commission would work across Government and with education providers, industry bodies, unions and research bodies. The Commissioner would work with these groups to identify opportunities for industry and employment growth, facilitate industry hubs, and ensure NSW has the right policies and education opportunities to ensure workers have the skills and experience to meet these future work needs. 6