Dris proposal for national licensing of the plumbing and gasfitting occupations

Attachment C – National licensing policy development process

Under the Intergovernmental Agreement for a National Licensing System for Specified Occupations, the COAG National Licensing Steering Committee (the steering committee) was given responsibility to oversee the implementation of national licensing in the interim period before the establishment of the National Occupational Licensing Authority (NOLA). Membership of the steering committee comprises central agency representatives from each jurisdiction. The steering committee reports on progress to the Business, Regulation and Competition Working Group (now the Business Advisory Forum Taskforce, following the cessation of BRCWG on 31 December 2012)

The Standing Council on Federal Financial Relations (SCFFR) has overall responsibility for this reform.

The steering committee’s primary source of advice for occupational regulations was the interim advisory committees (IACs) established for each of the occupational areas, each of which had an associated regulator working group. Members of the IAC represented a balance of expertise relevant to the occupational area across the fields of regulation, industry operations and practices (from both a union and employee perspective), safety, consumer advocacy, insurance (where relevant) and training. The regulator working group comprised regulator members from each relevant jurisdiction.

The Plumbing and Gasfitting IAC developed policy advice throughout 2010 and early 2011. The majority of advice provided by the IACs was incorporated into the steering committee policy advice for the drafting of the Occupational Licensing National Law Amendment Bill and regulations, and is considered in this Decision RIS for the plumbing and gasfitting occupations. There are, however, instances where, after having regard to the objectives and principles set out in the Intergovernmental Agreement, the steering committee formed a different view to that of the IAC. Such instances are noted in the following discussion.

Government representatives from all jurisdictions provided policy advice and contributed to the drafting instructions for the Amendment Bill and regulations, including representatives from Western Australia and the Australian Capital Territory, which have not yet enacted the National Law. Accordingly, the impact analysis and cost–benefit calculations take into account the current regulatory arrangements in all jurisdictions.

In considering policy issues, the steering committee and its IACs were bound by the objectives and principles in the Intergovernmental Agreement, including a requirement to comply with COAG’s principles of best practice regulation.

The objectives used in developing the licensing policy are taken from section 3 of the Occupational Licensing National Law Act 2010, as set out below:

The objectives of the national licensing system are as follows –

1. 
   to ensure that licences issued by the Licensing Authority allow licensees to operate in all participating jurisdictions;
   
2. 
   to ensure that licensing arrangements are effective and proportionate to ensure consumer protection and worker and public health and safety while ensuring economic efficiency and equity of access;
   
3. 
   to facilitate a consistent skill and knowledge base for licensed occupations;
   
4. 
   to ensure effective coordination exists between the Licensing Authority and jurisdictional regulators;
   
5. 
   to promote national consistency in –
   

1. 
   licensing structures and policy across comparable occupations; and
   
2. 
   regulation affecting the requirements relating to the conduct of licensees; and
   
3. 
   the approach to disciplinary arrangements for licensees;
   

6. 
   to provide flexibility to deal with issues specific to particular jurisdictions or occupations;
   
7. 
   to provide the public with access to information about licensees.
   

The principles set out in the Intergovernmental Agreement, which forms the basis for establishing national licensing, are that:

The system operates in a transparent, accountable, efficient, effective and fair manner.

Regulation intervention in the form of licensing is only contemplated where risks arising from market failure or risks to public health and safety warrant corrective action and, of all feasible options, licensing provides the greatest net public benefit.

Licensing arrangements do not duplicate legislative protections contained under other laws, in particular, competition law, consumer protection law or occupational health and safety law.

Licensing arrangements only include requirements needed to address identified consumer protection risks arising from market failure and/or worker and public health and safety risks, without imposing unnecessary costs on consumers and business or substantially lessening competition.

Licensing eligibility requirements are expressed in objective not subjective terms.

The system will not require the extension of licensing to sub-groups of a broad occupational group that are not currently licensed in particular jurisdictions.

Licensing arrangements are subject to an initial review five years after commencement and subsequently at a frequency no less than every ten years.

These principles include a requirement to establish a case for action; to consider and cost a range of response options, including non-regulatory approaches; and to ensure that the response selected provides the greatest net benefit to the community as a whole. Key stakeholders must be consulted and government action must be ‘effective and proportional’ to the issue being addressed.

It should be noted that policy development for mechanical services plumbing was undertaken by the Refrigeration and Air-conditioning IAC due to the significant overlaps with that occupational area. The scope of work of the mechanical services plumber covers the installation, operation and maintenance of building mechanical services plant and equipment used for heating, cooling and ventilating systems. Close communications concerning relevant policy discussions on mechanical services were maintained between the two groups on an ongoing basis. The steering committee, in March 2011, made the decision that mechanical services should sit with the plumbing and gasfitting occupational area.

Membership of the Plumbing and Gasfitting Occupations IAC, the Plumbing and Gasfitting Occupations Regulator Working Group and the COAG National Licensing Steering Committee is provided below.

As part of the NOLA communications strategy, following each meeting, communiqués outlining the progress of work were made available on www.nola.gov.au.

Table C.1: Membership of the Plumbing and Gasfitting Occupations Interim Advisory Committee

Name	Organisation
Dr David Cousins – Chair	Member of the national licensing Expert Working Group
Mr John Furbank	Consumers’ Federation of Australia
Mr Doug McClusky	Plumbers Union Australian Council of Trade Unions
Mr Earl Setches	Plumbers Union Australian Council of Trade Unions
Mr Steve Reynolds	LPG Australia
Mr Ken Gardner	Master Plumbers and Mechanical Services Association of Australia
Mr Paul Naylor JP, MAICD	Master Plumbers Association of NSW
Mr Stephen Movley Hon. FIPA MAHSCA	The Institute of Plumbing Australia
Mr Peter Day	SA Water
Mr Alan Humphreys	TAS – Department of Justice
Mr Shayne La Combre	VIC – Plumbing Industry Commission
Mr Stephen Matheson	QLD – Department of Natural Resources and Mines
Mr David Magee	Construction and Property Services Industry Skills Council
Ms Carmel Coates (observer)	National Fire Industry Association

Table C.2: Membership of the Plumbing and Gasfitting Occupations Regulator Working Group

Name	Organisation
Dr David Cousins – Chair
Ms Regina Haertsch	National Reforms, NSW Fair Trading Department of Finance and Services
Mr Shayne La Combre	VIC – Plumbing Industry Commission
Mr Chris Boyle	Queensland Building Services Authority
Mr Chris Harris	QLD Building Codes
Mr Stephen Matheson	QLD– Department of Natural Resources and Mines
Mr Phil Payne	Plumbers Licensing Board, WA
Mr David Allan	Energy Safety Division Department of Commerce, WA
Mr Ian Johnston	Consumer and Business Service Division Attorney General’s Department
Mr Alan Humphreys	TAS – Department of Justice
Mr David Middlemiss	ACT Environment and Sustainable Development Directorate
Mr Armando Padovan	Department of Lands and Planning NT

Table C.3: Membership of the COAG National Licensing Steering Committee

Jurisdiction	Member	Department
Commonwealth	Mr Robert Griew – Chair	Department of Innovation, Industry, Science, Research and Tertiary Education
NSW – joint	Dr Meg Montgomery	Department of Premier and Cabinet
	Mr Scott Wheeler	Department of New South Wales Treasury
VIC	Mr Anthony Rossiter	Department of Treasury and Finance
QLD	Ms Katrina Martin	Queensland Treasury
WA	Mr Nigel Parkes	Department of Treasury and Finance
SA	Mr Peter Maynard	Department of the Premier and Cabinet
TAS	Ms Kerrie Crowder	Department of Justice
ACT	Mr Brett Wilesmith	ACT Treasury
NT	Mr Ian Prince	Department of Business

Table C.4: Membership of the National Occupational Licensing Authority Board

Chair
Ms Elizabeth Crouch
Board members
Mrs Wendy Machin
Mr Graham Anderson
Mr Albert Koenig
Mr John Sutton
Ms Miranda Douglas-Crane
Mr Tony Arnel
Mr David Ford