ECONOMIC DEVELOPMENT COMMITTEE FINAL REPORT Inquiry into the Economic Contribution of Victoria’s Culturally Diverse Population ORDERED TO BE PRINTED September 2004 by Authority. Government Printer for the State of Victoria No. 83 - Session 2003-04 Parliament of Victoria Economic Development Committee Report into Economic Contribution of Victoria’s Culturally Diverse Population ISBN 0-9751357-1-6 ECONOMIC DEVELOPMENT COMMITTEE Membership of the 55th Parliament Mr. Tony Robinson, M.P (Chairman) Hon. Bruce Atkinson, M.L.C. (Deputy Chairman) Hon. Ron Bowden, M.L.C. Mr. Hugh Delahunty, M.P. Mr. Brendan Jenkins, M.P. Ms Maxine Morand, M.P. Hon. Noel Pullen, M.L.C. Staff Mr. Richard Willis, Executive Officer (to 2 July 2004) Dr. Russell Solomon, (from 26 August 2004) Ms Frances Essaber, Editorial Assistant Ms. Kirsten Newitt, Research Officer Ms Andrea Agosta, Office Manager The Committee’s Address is: Level 8, 35 Spring Street MELBOURNE 3000 Telephone: (03) 9651-3592 Facsimile: (03) 9651-3691 Website: http://www.parliament.vic.gov.au/edevc i ECONOMIC DEVELOPMENT COMMITTEE FUNCTIONS OF THE ECONOMIC DEVELOPMENT COMMITTEE The Economic Development Committee is an all-party, Joint Investigatory Committee of the Parliament of Victoria established under section 5(b) of the Parliamentary Committees Act 2003. The Committee consists of seven Members of Parliament, three from the Legislative Council and four from the Legislative Assembly. The Committee carries out investigations and reports to Parliament on matters associated with economic development or industrial affairs. Section 8 of the Parliamentary Committees Act 2003 prescribes the Committee’s functions as follows: to inquire into, consider and report to the Parliament on any proposal, matter or thing connected with economic development or industrial affairs, if the Committee is required or permitted so to do by or under the Act. ii Contents Members and Staff of the Economic Development Committee............................ i Functions of the Committee.................................................................................... ii Terms of Reference.................................................................................................. v Acronyms ................................................................................................................ vi Chairman’s Foreword ............................................................................................ vii Executive Summary................................................................................................ ix Recommendations ................................................................................................. xv Chapter 1 Introduction ...........................................................................................1 1.1 Background to the Inquiry........................................................................1 1.2 Process for Gathering Information ...........................................................2 1.3 Scope of the Inquiry..................................................................................3 Chapter 2 Cultural Diversity in Victoria ................................................................5 2.1 History of Cultural Diversity....................................................................5 2.2 Victoria Today..........................................................................................7 2.3 State Administration ...............................................................................13 Chapter 3 Economic Considerations..................................................................15 3.1 Productivity.............................................................................................16 3.2 Industry Specialisation............................................................................18 3.3 Export Market Opportunities..................................................................22 3.4 The Economic Benefits of Migration .....................................................24 3.4.1 Employment .............................................................................25 3.4.2 Budgetary .................................................................................26 3.4.3 Skills Base ................................................................................27 3.4.4 Second Generation Education Outcomes .................................29 3.4.5 Impact of Migration on Age Profile .........................................30 3.4.6 Overseas Students.....................................................................31 3.4.7 Tourism/Backpackers/Working Holiday Makers.....................31 3.4.8 Immigration Research..............................................................33 3.5 Government Support Services ................................................................34 Chapter 4 Regional Communities .......................................................................39 4.1 Introduction – A Regional Profile ..........................................................39 4.2 Paths to Migrant Settlement in Regional Victoria..................................39 4.3 Regional Labour Shortages.....................................................................42 4.4 Humanitarian Settlement and the Points of Arrival................................47 4.5 Support Services.....................................................................................51 4.6 Regional Housing...................................................................................52 4.7 Protection of Workers.............................................................................54 4.8 Health Services.......................................................................................55 4.9 Working Holiday Makers .......................................................................56 Chapter 5 Skills and Training Utilisation............................................................59 5.1 English Language Instruction.................................................................65 Chapter 6 Overseas Students..............................................................................69 iii Appendices Appendix 1 List of Submissions Received 77 Appendix 2 List of Informal Meetings 79 Appendix 3 List of Public Hearing Witnesses 85 Appendix 4 Victorian Multicultural Commission Consultation 87 Appendix 5 Shepparton – Prosperity through Diversity 97 Appendix 6 Out of Africa 99 Appendix 7 Skilled Occupations List 101 Appendix 8 Migration Occupations in Demand List 115 iv Parliamentary Committees Act 1968* TERMS OF REFERENCE FOR THE ECONOMIC DEVELOPMENT COMMITTEE Economic Contribution of Victoria’s Culturally Diverse Population Pursuant to section 4F of the Parliamentary Committees Act 1968, the Economic Development Committee is required to inquire into, consider and report on the actual and potential contribution to the economy of Victoria’s culturally diverse population including new arrivals, with particular emphasis on the importance of Victoria’s cultural diversity in improving productivity, increasing exports, attracting foreign investment and creating competitive advantage in the Australian and international markets; and in respect of the above: a) identify industry sectors/businesses that are actual or potential beneficiaries of cultural diversity, particularly in terms of investment and productivity improvement; b) whether there are particular issues for industry and business in rural and regional areas and how these regions may benefit from cultural diversity in Victoria including by addressing labour market shortages through new or recent arrivals from overseas; c) identify ways to take advantage of cultural diversity in the economy to increase Victoria’s productivity and export markets; d) the appropriate role of Government in facilitating maximum use of Victoria’s cultural diversity to promote productivity and export markets; and e) identify ways of measuring the benefits of cultural diversity including new arrivals to the Victorian economy. The Committee is required to report to Parliament by 30 September 2004. By resolution of the Legislative Assembly Dated: 3 June 2003 *The Parliamentary Committees Act 1968 was repealed and replaced by the Parliamentary Committees Act 2003 which became operative in December 2003. v Acronyms AMES Adult Multicultural Education Services ANU Australian National University ASCO Australian Standard Classification of Occupations CALD Culturally and Linguistically Diverse DIMIA Department of Immigration and Multicultural and Indigenous Affairs DIIRD Department of Innovation, Industry and Regional Development ELLA English Language and Literacy Assessment ESL English as a Second Language MODL Migration Occupations in Demand List NESB Non-English Speaking Background NOOSR National Office of Overseas Recognition SECV State Electricity Commission of Victoria SOL Skilled Occupations List TPVs Temporary Protection Visas VMC Victorian Multicultural Commission VOMA Victorian Office of Multicultural Affairs VORRS Victorian Overseas Trained Doctor Rural Recruitment Scheme WRAC Warrnambool Resettlement Advisory Committee vi Chairman’s Foreword The Report delivered today to the Parliament by the Economic Development Committee is the outcome of more than a year of close investigation. To begin with I would like to express my thanks to all members of the Committee who have participated fully in the Inquiry. At the same time the Committee has been well served by former Executive Officer,