BUSINESS is urging the Gillard government to use the May budget to ease English language requirements for foreign workers on 457 visas, declaring the program is a crucial economic "shock absorber".
In a submission to be released today, the Australian Industry Group also calls for measures to lift the capability of school teachers, including by broadening ways to enter the profession.
The submission, obtained by The Australian, is the first by a major business group for the 2013-14 budget and comes as the business community becomes disillusioned with populist government policy.
As business reels from last weekend's crackdown on 457 visas, the AI Group submission warns that it would be counterproductive to make changes that restrict the program even further.
The group wants the migration planning level for 2013-14 lifted from 190,000 to 200,000 and for it to have a sharper focus on lifting the proportion of the program earmarked for skilled migration.
"Growth in 457 numbers should not be assumed to be a problem but instead an indicator of success," the submission says.
"It is our view that too much tightening of the program carries economic risks."
The comments are a further attack on the government's rhetoric around the 457 crackdown. Immigration Minister Brendan O'Connor has pointed to soaring numbers of 457 workers as part of a hard sell on the latest changes.
Mr O'Connor's move has been criticised by business leaders including Nimrod Resources chairman Keith de Lacy, former Western Mining Corporation chief Hugh Morgan, United Group chairman Trevor Rowe and Business Council of Australia chief executive Jennifer Westacott.
However, Construction Forestry Mining and Energy Union national secretary Dave Noonan said yesterday tightening the 457 scheme was a good first step.
He said there were many skilled local people being knocked back from jobs on resource projects.
"It is a giant con to say people won't fly in and fly out for these jobs or that the skills aren't there," Mr Noonan told the Maritime Union of Australia state conference in Perth yesterday.
"(There's) endemic unemployment in regional communities, including indigenous communities. Large redundancies happening in manufacturing, in towns such as Wollongong, Geelong, Newcastle and along the eastern seaboard and you tell me that we can't generate skilled labour for these projects."
Mr Noonan said the CFMEU would campaign this election year to make temporary labour, the impact of mining on communities and the manufacturing industry frontline issues.
He strongly denied his union's concerns about temporary foreign labour were racist.
AI Group fears the reforms could include a hike in fees for 457 applications but says these are already substantial and come on top of the average costs of $3000 to $6000 that companies face to recruit each 457 worker.
The group argues that the 457 visa program is an economic shock absorber because it has proved responsive to economic need, with numbers falling during the global financial crisis and growing again as the economy recovered.
On English language requirements, the group says the present level is too high for many applicants, especially those without university qualifications.
The government lifted the language requirements in 2009 after a review by industrial relations expert Barbara Deegan.
On schools, the group says employers are increasingly concerned about the literacy and numeracy levels of typical school leavers, as well as their skills in science, technology, engineering and mathematics.
"These skills are essential in the modern economy and this need will be heightened as we increasingly engage with both the challenges and opportunities of the Asian century and new technology," the submission says.
The approach of a singular way into the teaching profession is "no longer sustainable" and AI Group says it is concerning that the average ATAR score for Victorian undergraduate teaching courses has fallen to 67.53 from a peak of 75.26 in the past decade.
Allowing multiple entry points for being accepted into teaching would reflect "the modern workforce and the increasingly mobile labour force", the submission argues.
The group also calls for the implementation of the Gonski review measures.
The submission comes as tensions between business and government mount.
Business is frustrated that while Julia Gillard promised when she announced the election date that the process of governing would continue, instead there has been campaigning on populist issues.
On the government's move this month to cut the R&D tax incentive for the biggest companies, the submission blasts this as "discriminatory" and calls for it to be abandoned.
Industry is demanding the move be reversed, saying otherwise business will withdraw R&D spending .
On the fiscal outlook, the AI Group says that as the economy softens over the next few months and the global economic outlook is uncertain, the budget should be used to provide surplus through extra public sector investment or spending, as well as tax cuts to encourage private-sector investment or spending.
"With the benefit of hindsight, it now appears very likely that the substantial fiscal consolidation project in the 2012-13 budget is contributing to the slower than anticipated growth of the domestic economy," the submission says.
"These considerations suggest that a larger deficit should be tolerated for the 2013-14 year."
The group also wants the budget used to encourage: the recruitment services of mature-age employees; an economy-wide Productivity Commission inquiry into regulations that hinder the use of digital technologies; cuts to the company tax rate to 25 per cent; and the retention of promised financial assistance for industries hit by the carbon tax despite the government's broader push for savings measures.
In a submission to be released today, the Australian Industry Group also calls for measures to lift the capability of school teachers, including by broadening ways to enter the profession.
The submission, obtained by The Australian, is the first by a major business group for the 2013-14 budget and comes as the business community becomes disillusioned with populist government policy.
As business reels from last weekend's crackdown on 457 visas, the AI Group submission warns that it would be counterproductive to make changes that restrict the program even further.
The group wants the migration planning level for 2013-14 lifted from 190,000 to 200,000 and for it to have a sharper focus on lifting the proportion of the program earmarked for skilled migration.
"Growth in 457 numbers should not be assumed to be a problem but instead an indicator of success," the submission says.
"It is our view that too much tightening of the program carries economic risks."
The comments are a further attack on the government's rhetoric around the 457 crackdown. Immigration Minister Brendan O'Connor has pointed to soaring numbers of 457 workers as part of a hard sell on the latest changes.
Mr O'Connor's move has been criticised by business leaders including Nimrod Resources chairman Keith de Lacy, former Western Mining Corporation chief Hugh Morgan, United Group chairman Trevor Rowe and Business Council of Australia chief executive Jennifer Westacott.
However, Construction Forestry Mining and Energy Union national secretary Dave Noonan said yesterday tightening the 457 scheme was a good first step.
He said there were many skilled local people being knocked back from jobs on resource projects.
"It is a giant con to say people won't fly in and fly out for these jobs or that the skills aren't there," Mr Noonan told the Maritime Union of Australia state conference in Perth yesterday.
"(There's) endemic unemployment in regional communities, including indigenous communities. Large redundancies happening in manufacturing, in towns such as Wollongong, Geelong, Newcastle and along the eastern seaboard and you tell me that we can't generate skilled labour for these projects."
Mr Noonan said the CFMEU would campaign this election year to make temporary labour, the impact of mining on communities and the manufacturing industry frontline issues.
He strongly denied his union's concerns about temporary foreign labour were racist.
AI Group fears the reforms could include a hike in fees for 457 applications but says these are already substantial and come on top of the average costs of $3000 to $6000 that companies face to recruit each 457 worker.
The group argues that the 457 visa program is an economic shock absorber because it has proved responsive to economic need, with numbers falling during the global financial crisis and growing again as the economy recovered.
On English language requirements, the group says the present level is too high for many applicants, especially those without university qualifications.
The government lifted the language requirements in 2009 after a review by industrial relations expert Barbara Deegan.
On schools, the group says employers are increasingly concerned about the literacy and numeracy levels of typical school leavers, as well as their skills in science, technology, engineering and mathematics.
"These skills are essential in the modern economy and this need will be heightened as we increasingly engage with both the challenges and opportunities of the Asian century and new technology," the submission says.
The approach of a singular way into the teaching profession is "no longer sustainable" and AI Group says it is concerning that the average ATAR score for Victorian undergraduate teaching courses has fallen to 67.53 from a peak of 75.26 in the past decade.
Allowing multiple entry points for being accepted into teaching would reflect "the modern workforce and the increasingly mobile labour force", the submission argues.
The group also calls for the implementation of the Gonski review measures.
The submission comes as tensions between business and government mount.
Business is frustrated that while Julia Gillard promised when she announced the election date that the process of governing would continue, instead there has been campaigning on populist issues.
On the government's move this month to cut the R&D tax incentive for the biggest companies, the submission blasts this as "discriminatory" and calls for it to be abandoned.
Industry is demanding the move be reversed, saying otherwise business will withdraw R&D spending .
On the fiscal outlook, the AI Group says that as the economy softens over the next few months and the global economic outlook is uncertain, the budget should be used to provide surplus through extra public sector investment or spending, as well as tax cuts to encourage private-sector investment or spending.
"With the benefit of hindsight, it now appears very likely that the substantial fiscal consolidation project in the 2012-13 budget is contributing to the slower than anticipated growth of the domestic economy," the submission says.
"These considerations suggest that a larger deficit should be tolerated for the 2013-14 year."
The group also wants the budget used to encourage: the recruitment services of mature-age employees; an economy-wide Productivity Commission inquiry into regulations that hinder the use of digital technologies; cuts to the company tax rate to 25 per cent; and the retention of promised financial assistance for industries hit by the carbon tax despite the government's broader push for savings measures.
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