The Federal Government has accepted 14 of the 16 recommendations put forward by the External Reference Group (ERG) in its report which focused largely on improving the administration and resourcing of the temporary skilled migration program.

The report covers six broad areas; notably long term planning, streamlining application and approval processes, eliminating duplication and unnecessary administration, remaining competitive, and branding of the program.

Recommendations from the report are:

Recommendation 1

The ERG recommends that the Australian Government develop a long term strategy to respond to aggregate labour market and skill needs and population trends, with specific reference to the role of temporary and permanent migration in responding to structural changes in the composition of the population and labour force.

Recommendation 2

The ERG recommends that the department expands its front-end support to employers and industry, through its industry and regional outreach programs, with a focus on developing guidelines and training to help industry increase the proportion of ‘decision-ready’ applications.

Recommendation 3

The ERG recommends that relevant government agencies (DIAC, DEEWR) strengthen their backoffice processing for temporary skilled migration visas and Labour Agreements to improve speed and effectiveness of processing. To support this measure the government agencies should establish:

• dedicated specialised teams on an industry / sector basis to facilitate and process applications
• ‘Centres of Excellence’ for temporary skilled migration visa processing.

The ERG recommends that additional resources be allocated on a temporary basis to eliminate the backlog of applications currently on hand within the temporary skilled migration program by end 2008 (at the latest).

Recommendation 4

The ERG recommends that DIAC and DEEWR establish a system of accreditation for employers who exhibit a set of low-risk characteristics, including an exemplary record of compliance with immigration and industrial relations laws. Accredited employers would have applications fast-tracked.

Recommendation 5

The ERG recommends that the department consider providing applicants with alternative mechanisms for taking the English language tests by increasing competition between providers to improve effectiveness and efficiency of the English language testing service.

Recommendation 6

The ERG recommends that the department develop and implement a comprehensive staff training program for all staff contributing to the temporary skilled migration program (with particular regard to the improved risk-management procedures proposed in recommendation 9) to improve efficiency and effectiveness of the program and deliver improved long term capacity and capability.

Recommendation 7

The ERG recommends that resource requirements to support the 457 program be reviewed, taking into account expectations regarding improved processing standards.

The potential need for additional resourcing, including any up front investment to improve processes and training, needs to be balanced against increased productivity and efficiency gains (see for example recommendation 8) and the negotiation of suitable Key Performance Indicators (KPIs). Resourcing requirements are to be agreed in conjunction with the Department of Treasury and Finance with a view to improving measured performance.

Recommendation 8

The ERG recommends that the department eliminate elements of duplication that exist in the visa processing system (including addressing potentially unnecessary steps such as the nomination process) with a view to improving processing times.

Recommendation 9

The ERG recommends that the department develop a risk management approach to visa processing based on an agreed matrix of risk characteristics to facilitate improved processing while also allowing for resources to be better targeted to higher risk applications.

Recommendation 10

The ERG recommends that mechanisms be developed to provide employers and workers with more information as to their rights and responsibilities under the system.

The ERG recommends increasing the flexibility of movement of workers between sponsors.

Recommendation 11

The ERG recommends that Labour Agreements be promoted as a tool to manage the temporary entry of overseas workers to meet the range of labour needs for large projects that are in the national interest and have significant economic benefit to Australia. Steps to this end could include:

• the development and provision of improved information regarding relevant criteria and procedures
• the allocation of dedicated teams to facilitate applications.

The ERG recommends that to encourage community acceptance of the wider use of Labour Agreements, the process be made more transparent ensuring:

• consultation does not convey a power of veto over the proposed agreement
• applications remain Commercial-in-Confidence during negotiations.

Recommendation 12

The ERG recommends that DIAC and DEEWR investigate processes to improve the flexibility of the temporary skilled migration program in meeting the needs of small business and infrequent users. Such improvements could include review of areas such as:

• difficulties in meeting the training requirement of the current visa process, and scope for more flexible training options (considering the potential use of a training levy or other mechanisms to support government training programs). Noting however, that care needs to be taken that there is no disincentive in this process for firms meeting their current training obligations.
• developing opportunities for small and medium size businesses to take advantage of economies of scale (for example, by allowing on-hire firms or industry representative bodies to meet all relevant sponsorship requirements).

Recommendation 13 – For further consideration

The ERG is of the view that the Visa Subclass 457 visa is not suitable to meet market requirements for semi-skilled and unskilled labour except through Labour Agreements for semi-skilled. Hence, the ERG recommends, in addition to the broader utilisation of Labour Agreements proposed in recommendation 11, that the Australian Government pilot other approaches to the provision of a range of labour in specific industries.

Recommendation 14

The ERG recommends that the department regularly review and benchmark its practices against comparable countries to ensure Australia’s competitiveness in the international labour market.

Recommendation 15

The ERG recommends that an evaluation of the recommendations implemented from this review should be undertaken two years following their introduction.

Recommendation 16 – For further consideration

The ERG recommends that the Visa Subclass 457 be renamed the Temporary Skilled Migration (TSM) visa to improve market recognition of the visa and its applicability in the labour market.

For further information, contact CCI Migration Services (MARN 0318589) on (08) 9365 7521 or email visas@cciwa.com