Dris proposal for national licensing of the plumbing and gasfitting occupations

Attachment H – References

Reports and presentations

ABS Population Clock, 30 April 2013

Allen Consulting Group 2008, Evaluation of COAG initiatives for full and effective mutual recognition, Department of Education, Employment and Workplace Relations, Canberra

Australian Bureau of Statistics 2009, ANZSCO – Australian and New Zealand Standard Classification of Occupations, cat.no.1221.0, ABS, Canberra

Australian Bureau of Statistics 2011, Australian National Accounts: national income, expenditure and product 2011, catalogue 5206.0, ABS, Canberra

Australian Bureau of Statistics 2011, Australian System of National Accounts 2010–11, catalogue 5204.0, ABS, Canberra

Australian Bureau of Statistics 2012, Australian System of National Accounts, Concepts, Sources and Methods, catalogue. 5216.0, ABS, Canberra

Australian Bureau of Statistics March 2012, Consumer Price Index, Australia, catalogue 6401.0, ABS, Canberra

Australian Bureau of Statistics 2011, Demographic Statistics, June quarter 2011 Catalogue 3101.0, ABS, Canberra

Australian Bureau of Statistics May 2010, Employee earnings and hours, catalogue 6306.0, ABS, Canberra

Australian Bureau of Statistics, Labour costs, Australia, 2002–03, catalogue 6348.0.55.001, ABS, Canberra

Australian Bureau of Statistics, Labour force, Australia (Labour force status by sex), March 2012, catalogue 6202, ABS, Canberra

Australian Bureau of Statistics, Labour mobility, February 2010, catalogue 6209.0, ABS, Canberra

Australian Government 2010, Best practice regulation handbook, Office of Best Practice and Regulation

Canberra Institute of Technology, Course details and fees

Charles Darwin University, Course details and fees 2011

Consumer and Business Affairs 2011, Fees for plumbers gas fitters and electricians.

Council of Australian Governments 2007, Best practice regulation – a guide for ministerial councils and national standard setting bodies.

Council of Australian Governments National Licensing Taskforce 2009, Decision Regulation Impact Statement for the national licensing system for specified occupations, Canberra,

Department of Education, Employment and Workplace Relations, Construction Trades, Labour Market Research and Analysis Branch, September 2011.

Department of Immigration and Citizenship, Skilled Occupation List 2012

Department of Treasury and Finance (Victoria) 2011, Victorian guide to regulation: Appendices, edition 2.1, Melbourne

Gold Coast TAFE, Course details and fees

IBISWorld 2012, Plumbing services in Australia, Industry Report E4231, April 2012

Industry Commission 1995, The growth and revenue impacts of Hilmer and related reforms: report to the Council of Australian Governments.

National Occupational Licensing System, Plumbing and gasfitting occupations, Licence Policy Development Paper, Policy Element #1 – Licence Structure and Scope, Attachment B

Northern Melbourne Institute of TAFE

Office of Gas Safety Victoria 2001, Report on gas safety incidents involving gas installations: review periods – 1997–8 to 2000–1, Melbourne

PayScale Australia 2011, Plumbing contractor industry wages, Individuals reporting: 336

PricewaterhouseCoopers 2009, National occupational licensing system: estimating financial impacts of the National Occupational Licensing System: final report

PricewaterhouseCoopers study (‘Private Security Regulations 2005: Regulation Impact Statement’, April 2005

Productivity Commission, Performance benchmarking of Australian business regulation: cost of business registrations, cost of registering a domestic builder

Productivity Commission 2003, Evaluation of the mutual recognition schemes: research report

Productivity Commission 2009, Research report: Review of mutual recognition schemes

Productivity Commission 2010, Impacts and benefits of COAG Reforms: reporting framework – research report, Canberra

Regulatory Impact Statement: Proposed Gas Safety (Gas Installation) Regulations 2008, prepared for Energy Safe Victoria by Milbur Consulting Ltd, 2008.

Skills Australia 2011, Employment growth projection in mining operations (less oil and gas), 2010–2016, Canberra

Victorian Plumbing Industry Commission 2008, Regulatory Impact Statement: Proposed Plumbing Regulations 2008, Department of Planning and Community Development

Victoria University

Watt, G 2004, Overseas and Australian statistics and benchmarks for customer gas safety incidents, Glenergy Services

Western Australia Police, National Police Certificates

World Health Organization and World Plumbing Council 2006, Health aspects of plumbing, World Health Organization and World Plumbing Council, Switzerland

Legislation

Building Act 1993 (Vic)

Building Act (NT)

Construction Occupations (Licensing) Act 2004 (ACT)

Corporations Act 2001

Dangerous Goods Act (NT)

Domestic Building Contracts Act 2000 (Qld)

Gas Safety Act 1997 (Vic)

Gas Standards Act 1972 (WA)

Home Building Act 1989 (NSW)

Mutual Recognition Act 1992

Occupational Licensing Act 2005 (Tas)

Occupational Licensing National Law Act 2010

Petroleum and Gas (Production and Safety) Act 2004 (Qld)

Plumbers and Drainers Licensing Act (NT)

Plumbers, Gas Fitters and Electricians Act 1995 (SA)

Plumbing and Drainage Act 2002 (Qld)

Queensland Building Services Authority Act 1991 (Qld)

Water Services Licensing Act 1995 (WA)

1The analysis does not account for changes in GST, payroll or other taxes. However, if it is reasonable to expect the community benefits to be consumed as expenditure, then there will be a flow through of GST revenue.

2ABS Population Clock 30 April 2013

3The analysis prorates for the plumbing and gasfitting sector the estimates associated with labour mobility prepared by the Productivity Commission as part of its 2009 Review of Mutual Recognition Schemes. For this estimate to be valid the specific assumptions made by the Productivity Commission would need to hold – namely that Australia is facing a 10 per cent increase in commodity prices above normal conditions and that these assumptions are also combined with an assumption for this analysis that mutual recognition is only 90 per cent effective in promoting labour mobility. These are strong assumptions and should be treated with caution but are nonetheless included to provide a ‘line in the sand’ estimate.

4Most of the benefits are estimated for licensees, such as less time spent filling out forms. However, business also benefits. For the purposes of this analysis the business benefit is assumed to be equal to one-third of the impact for licensees.

5The results of the economy-wide modelling reflect the magnitude of the impacts estimated in the cost–benefit analysis. Those impacts are assumption driven and as such the value of the economy-wide modelling is in terms of how it shows the relative implications for sectors of the economy.

6Based on the mapping exercise undertaken by the National Licensing Taskforce, which identified the differences between state and territory licensing requirements and the requirements proposed under national licensing.

7Based on the mapping exercise undertaken by the National Licensing Taskforce, which identified the differences between state and territory licensing requirements and the requirements proposed under national licensing.

8Australian Bureau of Statistics 2011, Australian System of National Accounts 2010–11, cat. no. 5204.0, ABS, Canberra.

9 NOLA costs are based on estimates agreed by SCFFR in April 2012. Further work is underway on establishing a budget for NOLA in the longer term.

10PayScale Australia 2011, Plumbing contractor industry wages, hourly wage rate by job. Individuals reporting: 336.

11Based on the mapping exercise undertaken by the COAG National Licensing Taskforce, which identified the differences between state and territory licensing requirements and the requirements proposed under national licensing. Queensland and South Australia have also advised that they do not impose any personal probity for (full) licence holders or registered tradespersons.

12Based on the mapping exercise undertaken by the National Licensing Taskforce, which identified the differences between state and territory licensing requirements and the requirements proposed under national licensing.

13Based on the mapping exercise undertaken by the National Licensing Taskforce, which identified the differences between state and territory licensing requirements and the requirements proposed under national licensing.

14PayScale Australia 2011, Plumbing contractor industry wages, hourly wage rate by job. Individuals reporting: 336.

15Based on the mapping exercise undertaken by the COAG National Licensing Taskforce, which identified the differences between state and territory licensing requirements and the requirements proposed under national licensing. South Australia and Queensland have also advised that they currently do not impose personal probity requirements and would therefore be impacted by this change.

The Australian Capital Territory does currently have a financial probity requirement for contractors and workers. However, this requirement is quite minimal and it is assumed for the purposes of this analysis that national licensing would impose slightly more onerous financial probity requirements on licensees.

16Australian Bureau of Statistics 2011, Australian System of National Accounts 2010–11, cat. no. 5204.0, Canberra.

17PricewaterhouseCoopers 2009, National occupational licensing system: estimating financial impacts: final report.

18Occupations assessed were building occupations, electrical, plumbing and gasfitting, refrigeration and air-conditioning mechanics, land transport (both passenger and dangerous goods), property and maritime.

19IBISWorld 2012, Plumbing services in Australia, Industry Report E4231.

20The challenge for the analysis is that it is difficult to estimate the allocative efficiency impacts that may arise from changes to labour mobility. While the Monash Multi-Region Forecasting Model can be used to estimate these impacts, this is a complex exercise that is beyond the scope of this study. Rather, the modelling draws on prior work undertaken by the Productivity Commission relating to allocative efficiency gains arising from mutual recognition – this is discussed in more detail in the cost–benefit analysis. The economy-wide gains in the commission’s modelling have been translated into an input into the current CGE modelling exercise. This input takes the form of a shock to labour efficiency and is prorated for the size of national occupational reforms for plumbing and gasfitting occupations.

21For example, the Industry Commission conducted a review of Hilmer Competition reforms in 1995 that estimated the growth and revenue implications of reform using a CGE modelling approach. See Industry Commission 1995, The growth and revenue impacts of Hilmer and related reforms: report to the Council of Australian Governments.

22Such as the modelling of various carbon tax and emissions trading scenarios conducted by the Commonwealth Treasury. The Monash model, which is used in this RIS, was also used to model the impacts of emissions trading for the Garnaut Review.

23As conducted as part of the following commissioned research study – Productivity Commission 2010, Impacts and benefits of COAG Reforms: reporting framework – research report, Canberra.

24All results are presented in 2011 dollars.

25The results under three tier, sub-option 1 are in line with the results for two tier and three tier, sub-option 2; however, they are too small to be shown in this graph.

26Australian Government Office of Best Practice Regulation 2010, Best practice regulation handbook, Canberra.

27IBISWorld 2012, Plumbing services in Australia, Industry Report E4231.

28IBISWorld 2012, Plumbing services in Australia, Industry Report E4231.

29Skills Australia, Employment growth projection in mining operations (less oil and gas), 2010–2016, p. 4.

30World Health Organization and World Plumbing Council 2006, Health aspects of plumbing, World Health Organization and World Plumbing Council, Switzerland, p. 7.

31ibid., p. 4.

32Regulatory Impact Statement: Proposed Gas Safety (Gas Installation) Regulations 2008, prepared for Energy Safe Victoria by Milbur Consulting Ltd, 2008.

33ibid.

34National Occupational Licensing System, Plumbing and gasfitting occupations, Licence Policy Development Paper, Policy Element #1 – Licence Structure and Scope, Attachment B.

35 NOLA costs are based on estimates agreed by SCFFR in April 2012. Further work is underway on establishing a budget for NOLA in the longer term.

36For example, households maximise utility subject to a budget constraint, while industries minimise costs subject to production functions.

37For example, in assessing the impact of a policy change, dynamic general equilibrium models produce two alternative projections – the ‘base case’, that is, the growth path of the economy without the policy change; and the ‘policy run’, that is, the growth path of the economy in the policy change. The base case serves as the counterfactual or the control path from which deviations are measured when assessing the effects of the policy change. Creating a base case is a substantial undertaking as the modeller is required to develop a view of what the economy may look like over the projection period and impose that on the model.

38IBISWorld 2012, Plumbing services in Australia, Industry Report, April.

39It is possible that this is not the case – that is, some hours saved could add to leisure time rather than increase productive hours of work. While an increase in leisure time would be expected to increase welfare, this would not be picked up in MMRF since it only considers market impacts.

40The amount paid to government is based on the ABS 2005–06 input–output table. The total fee has been inflated to 2011 dollars as the cost saved under the cost–benefit analysis is in 2011 dollars.

41The amount consumed by each of the state and territory governments of public services is based on the ABS 2005–06 input–output tables and inflated to 2011 dollars.

42Australian Government 2010, Best practice regulation handbook, p. 66.

43ibid.

44Phase 1 of national licensing includes the following occupations: electrical, plumbing and gasfitting, property, and air-conditioning and refrigeration mechanics.

45Australian Bureau of Statistics 2010, Employee earnings and hours, catalogue 6306.0, May, viewed 26 April 2012.

46Australian Bureau of Statistics, ANZSCO – Australian and New Zealand Standard Classification of Occupations, 1st edn, revision 1, viewed 26 April 2012.

47Australian Bureau of Statistics, Employee earnings and hours, catalogue 6306.0, May, viewed 26 April 2012.

48The ‘electricity, gas and water supply’ industry is the closest available proxy available for the plumbing and gasfitting occupations.

49Australian Bureau of Statistics, Labour costs, Australia, 2002–03, catalogue 6348.0.55.001, viewed 26 April 2012.

50Department of Treasury and Finance (Victoria) 2011, Victorian guide to regulation: Appendices, edition 2.1.

51March 2010 is the closest figure available to May 2010.

52 NOLA costs are based on estimates agreed by SCFFR in April 2012. Further work is underway on establishing a budget for NOLA in the longer term.