1. The Hume Workforce Development Committee Hume Regional Development Australia Electricity, Gas, Water and Waste Services Labour Market Snapshot (Water Focus) Workforce Planning Australia | December 2012

2. Electricity, Gas, Water and Waste Services Industry (Water Focus) Source: DEEWR, Employment Outlook for Electricity, Gas, Water and Waste Services, 2011 Gas SupplyWater Supply `Waste Treatment, Disposal and Remediation Waste Collection Sewerage and Drainage On Selling Electricity/ Electricity Market Operation Electricity Distribution Electricity Generation Electricity Transmission The Electricity, Gas, Water and Waste Services Industry (ANZSIC) includes the following sectors: 2 |

3. Electricity, Gas, Water and Waste Services - Australia The Electricity, Gas, Water and Waste Services industry is the smallest of the 19 ANZSIC industry categories used by the Australian Bureau Statistics. In February 2012 approximately 156,000 persons were employed in the industry. Between 2005 and 2010 the industrys average annual growth rate was 5.7%, the second highest of all 19 industries. The sector is dominated by males working full time. There are more than 75% of male workers in the industry and more than 90% of workers are full time. The 2011 industry unemployment rate of 2.4% was more than half the average for all industries. DEEWR projects this industry will grow by 2.2% per annum to 2015/2016, which equates to 17,900 new jobs each year. Employment growth will be driven by population growth and increasing interest in green energy solutions and improved recycling services. (2) The top three employing segments in this industry are: Water Supply, Sewerage and Drainage Services Waste Collection Services Electricity Generation Source: DEEWR, Employment Outlook for Electricity, Gas, Water and Waste Services 2012, 3 |

4. National Industry Overview

5. Industry Employment Electricity, Gas, Water and Waste Services is the smallest employing industry in Australia. Between February 2010 and February 2012 total employment in the industry increased from 126,700 to 156,000 people. Source: ABS Labour Force Survey, February 2012 data. Industry Employment Level February 2012 5 |

6. Historical Employment Growth Source: ABS Labour Force Survey (trend data) cat no 6291.0.55.003, DEEWR, Australian Jobs, 2011 In 2012 employment in this industry was the highest since industry data was first collected. In the five years from 2007 to 2012 employment increased by more than 52,000 people, although employment dipped between 2009 and 2010. 6 |

7. Employment by segment Source: ABS Labour Force Survey (trend data) cat no 6291.0.55.003 (DEEWR Projections), DEEWR, Australian Jobs, 2011 The Water Supply, Sewerage and Drainage Services segment employs the highest number of people. More than 37,200 work in this segment, nearly double the number working in the next highest segment, which is Waste Collection Services. 7 |

8. Projected Employment Growth by segment Source: ABS Labour Force Survey (trend data) cat no 6291.0.55.003 (DEEWR Projections), DEEWR, Australian Jobs, 2011 All industry segments are expected to experience employment growth to 2016/2017 with the exception of Electricity Distribution and Electricity Transmission. The Water Supply, Sewerage, Drainage segment is projected to experience growth of 3.4% per annum exceeding the average expected growth for all industries. 8 |

9. Employment growth Source: ABS Labour Force Survey (trend data) cat no 6291.0.55.003 (DEEWR Projections), DEEWR, Australian Jobs, 2011 Between 2007 and 2012, the Waste Treatment Disposal and Remediation workforce increased by 9,200. In the water sector, The Water Supply and Sewerage, Drainage Services segment increased by 4,000 people 9 |

10. Main employing Occupations Source: ABS Labour Force Survey (trend data) cat no 6291.0.55.003, DEEWR, Australian Jobs, 2011 More than a quarter of the people working in this industry are employed as either truck drivers, electricians or electrical distribution trades Workers. 10 |

11. Employment growth by State Source: DEEWR, skillsinfo website cited August 2012 In the past five years (2007 – 2012) Victoria has had the highest rate of employment growth in the industry in Australia. In the past decade (2002 – 2012) Victoria has had the second highest employment growth in the industry in Australia, after Queensland. 11 |

12. The Water Sector

13. Water Sector - Australia The Water Segment of this industry is divided into 3 major segments: Water sourcing, treatment, supply and distribution Wastewater collection and treatment, stormwater and drainage wastewater and bio- solids re-use Groundwater recharge Water quality management, monitoring and measurement Approximately 44,000 people work in the water industry in Australia in a range of occupations. The Water sector is male dominated. Government Skills Australia reports less than 3% of students undertaking training in the water sector are female. Source: Government Skills Australia, 2012 Environmental Scan 13 |

14. Water Sector Occupations Source: Government Skills Australia, 2012 Environmental Scan Main Water Sector Occupations Water and wastewater treatment operators Network maintenance personnel Hydrographers Environmental advisersWater quality officersInfrastructure and treatment system designers and managers Remote essential service operators Trade waste operatorsDam safety operators Water scientists The main water sector occupations are shown in the table below: 14 |

15. Victoria

16. Victoria Industry Snapshot Source: Deloitte Access Economics, Victorian Skill Needs in 2011: A summary of industry Intelligence, 31 March 2011 (Commissioned by Skills Victoria) (2) Vic Water Website www.vicwater.vic.gov.au In 2009, an estimated 31,510 people worked in the Electricity, Gas, Water and Waste industry in Victoria. The Water sector in Victoria is a major employer. There are 19 government owned water bodies in Victoria directly employing more than 4,000 people, more than half of them in regional Victoria. (2) Deloitte Access Economics estimated employment growth in Victoria the years 2012 and 2013 would be minimal at.2% and.3% respectively. Investment in water supply is expected to increase in the future to ensure water security for major populations centres. Major investment in Victorian water infrastructure has led to strong employment growth, particularly in the last part of the decade. These have included the Sugarloaf Pipelines, the Northern Victorian Irrigation Renewal Project, the Wimmera-Mallee pipelines, and the largest project, the Wonthaggi Desalination project. 16 |

17. Drivers of Workforce Change /Growth Workforce change / growth Population growth New Green Skills and jobs Government policies and Regulatory Change Weather/ Climate Change Resources Sector The diagram below shows the multiple drivers of workforce change / growth in the industry: 17 |

18. Source: Victorian Government, July 2010, The Hume Strategy for Sustainable Communities 2010- 2020 (1) Skills Australia, 2011, Energy Efficiency in Commercial and Residential Buildings: jobs and Skills Implications (2) Population Growth is driving demand for services Population growth increases demand for all types of utilities. Over the next 25 years, the population in the Hume region is projected to grow from 300,000 people to 400,000 people. (1) New green skills and jobs (2) More environmentally aware consumers and incentives to reduce energy expenditure are driving interest in energy efficiency initiatives, products and services. A 2011 Skills Australia report suggests energy efficiency initiatives are more commonly resulting in occupations requiring new skills, rather than new occupations, though some jobs are being created. (2) Key occupations requiring new skills as a consequence of energy efficient initiatives include: electricians, plumbers, and refrigeration and air conditioning mechanics. New skills required include: auditing and reporting, installation and maintenance of energy-efficient appliances to meet revised building standards, assessment of buildings against rating systems and skills in drawing up green leases. (2) Electricity, Gas, Water and Waste Services Drivers of Workforce Change /Growth 18 |

19. Source: Government Skills Australia 2012 Environmental Scan Electricity, Gas, Water and Waste Services Drivers of Workforce Change /Growth Government policies and regulatory National water standards are being raised through the national certification of operators of potable water treatment plants across Australia. The National Water Commission has contracted Government Skills Australia to develop a certification framework. There is concern the training of water operators involved in portable water will be cost prohibitive, particularly the smaller operators. Weather/Climate Change Regional water resources may reduce further affecting both water availability and quality. This could drive innovative approaches to water conservation, upgrades to irrigation infrastructure and use of alternative water sources. Resources sector The water sector has faced strong competition for staff from the resources sector, particularly for water operators and engineering roles. 19 |

20. Workforce Development Challenges Source: Government Skills Australia,2012 Environmental Scan Key Workforce Development Challenges for the Water Sector are: Few training providers The water sector has few training providers as it is perceived as a thin market. This has a greater impact on developing staff in rural and regional water organisations than metropolitan ones. Ageing Workforce A Government Skills Australia survey of water sector organisations found that projected exits due to retirements was one of five identified factors most likely to have an impact on the sector in the next five years. The other factors most likely to have an impact were: labour shortages, impact of new technologies, climate change and legislations/regulation. Working conditions Government Skills Australia report there is anecdotal evidence that people employed in the water sector, such as water operators, receive inequitable remuneration and conditions compared with recognised trade plumbers. Skills gaps and career pathways Sixty four percent of water sector organisations across Australia had difficulties recruiting for specific positions in the past year. One third of water organisations reported they were restructuring which would have an have influence the organisations future skill needs. Developing and articulating clear career pathways for existing staff as was well as potential staff is required. 20 |

21. Skills Shortages and Skills in Demand Source: Government Skills Australia 2012 Environmental Scan, Deloitte Access Economics, Victorian Skill Needs in 2011: A summary of industry intelligence The prevalence of skills gaps and skill shortages in the water sector is likely to be influenced by geographic location. There is variation in the three sources below that report on skills shortages and/or skills in demand The 2012 Government Skills Australia survey reported recruitment difficulties in the following occupations: Water industry trainers and assessors Water and waste water operators Engineers Electricians The 2011 Deloitte Access Economics paper reported the two occupations in demand according to the Victorian Water Industry Association were: Water distribution maintenance operators Water technicians In 2011 The Victorian Water Industry advised there were no shortages but reported two occupations as being in high demand. These were: Water distribution maintenance operators and Water technicians 21 |

22. Hume Region

23. The Water Sector in Hume Whats happening? The Hume Strategy acknowledges the importance Humes water resources on a national scale. As documented in the strategy: The headwaters of many of Victorias major rivers are located in the Hume region and river catchments contribute almost half the total inflows to the Murray-Darling basin; The riverine plains of the Murray, Goulburn and Ovens Rivers provide fertile land for dairy farms, horticulture and irrigated dry land agriculture production Local water resources provide water for both domestic and industrial use; Storages on the Murray, Goulburn and Mitta Rivers, including Lake Hume and the Dartmouth Dam, have recreational and environmental value as well as economic value for Hume. Reservoirs in the Hume region generate hydroelectricity The Hume Strategy reports that an economic challenge for the region is to achieve water efficiencies through renewal of water infrastructure. Future access to water will be determined by the Murray-Darling Basin Plan which will shift the balance between water for irrigation and environmental flows.(2) Commonwealth water buy back will also influence the number of delivery shares available to customers. (2) Victorian Government, July 2010, The Hume Strategy for Sustainable Communities 2010- 2020 (1) Goulburn Murray Water, Water Plan Draft 2012, Irrigation District Customers 23 |

24. Hume - Water Sector Water Sector – Major projects The $2 billion Northern Victoria Food Bowl Irrigation Modernisation project in the Goulburn Valley aims to save water and drive industry competitiveness. It is changing the irrigation supply system from a manually operated system to an automated system and connecting all properties to this major channel system. Between 2013/2014 and 2015/2016 an investment of $240 million to continue the modernisation of the irrigation system is planned under Water Plan 3 Source: Goulburn-Murray Water, Water Plan Draft 2012 24 |

25. Hume - Water Sector Employers Goulburn-Murray Water, Water Plan draft, 2012 Irrigation District Customers Main Water sector employers in Hume include: Goulburn-Murray Water Manages rural water supplies including 16 storages that harvest, store and supply water to irrigators, the environment and urban water suppliers (2) Is Australias largest water corporation Operates Australias largest irrigation delivery network From July 2012 the Northern Victorian Irrigation Renewal Project (NVIRP), set up in 2007, will be integrated with Goulburn-Murray Water. Manages boating and recreational activities across most of G-MV storages. Staff in irrigation districts have reduced from 330 to 260 and further reductions are expected when the modernisation of the NVIRP is completed in 2019. Goulburn Valley Water Manages urban water supplies Services 54 towns via 37 water treatment plants and 26 wastewater management facilities Employed 189 staff in the 2011/2011 financial year, the same number as the previous year. Has proposed $167million for capital works expenditure in it Water Plan 2013-2018. Planned projects include: replacement of ageing water mains, upgrading treatment plants, building new fluoride plants and rehabilitation of filters. $26million per year is proposed for additional water treatment plant operators and training to comply with the Department of Health regulations on operators skills and qualifications. Annual reports show 189 people EFT were employed in 2010/2011, the same number as the previous year. 25 |

26. Hume - Water Sector Employers Source: Goulburn-Murray Water, Water Plan draft, 2012 Irrigation District Customers North East Water Manages urban water supplies and sewerage services to 37 towns Provides water services to more than 115,000 people via 25 separate water supply systems and 34 water treatment sites across its region. In 2010/2011 employed 149(full time equivalents), a small increase from the 142 FTE employed in the 2009/2010. Its Water Plan (2013-14 to 2017-18) includes a forecast capital investment of $75million to renew and upgrade infrastructure Catchment Management Authorities Goulburn Broken CMA and North East Catchment Management Authority manage river health 26 |

27. Hume - Water Sector Employers Source: The Hume Strategy for Sustainable communities, 2010 The Hume Strategy for Regional Communities (Hume Strategy) includes two directions related to the Electricity, Gas, Water and Waste Services industry under its Environment theme. The two key directions are: Key Direction Two: Managing our water resources sustainably and Key Direction Four: Harnessing renewable energy sources, reducing greenhouse gas emissions and pursuing innovative waste management approaches. The Hume Strategy proposes that the region must become smarter in its use of water, to reflect the limited availability of this precious resource. The identified strategies are: 2.1 A water view for the region 2.2 Water Management through innovation 2.3 Water guiding planning outcomes 2.4 Valuing ecosystem services of rivers, streams and wetlands. The Hume strategy proposes that attracting investment for renewable energy projects within the Hume region will position it as a region of excellence for alternative energy technologies. It also proposes that opportunities for re-use and diversion of waste from landfill will continue to expand through initiatives such as the conversion of organic wastes into stable and reusable organic material, advocated in Regional Waste Management Plans. Priority strategies are: 4.1 Regional energy planning 4.2 Energy and innovation 4.3 Regional energy action 4.4 Waste management and innovation 27 |

28. Employment in Electricity, Gas, Water and Waste Services Assistance by LGA 2006 vs. 2011 Census Data Towong 41 (2006) Wodonga 96 (2006) Alpine 89 (2006) Mansfield 18 (2006) Hume Region Boundary Sub-region Boundary Local Government Area (LGA) Boundary Indigo 31 (2006) Murrindindi 77 (2006) Mitchell 116 (2006) Strathbogie 20 (2006) G Shepparton Moira 115 (2006) Wangaratta 73 (2006) Benalla 53 (2006) 495 (2006) 72 (2011) 106 (2011) 28 (2011) 116 (2011) 43 (2011) 75 (2011) 31 (2011) 94(2011) 579 (2011) 171 (2011) 36 (2011) 68(2011) Total Industry 1,224 (2006) 1,419 (2011) Source: ABS Census Data 2006 16% 28 |

29. Employment in Water Supply, Sewerage and Drainage Services Assistance by LGA 2006 vs. 2011 Census Data Towong 9 (2006) Wodonga 26 (2006) Alpine 8 (2006) Mansfield 6 (2006) Hume Region Boundary Sub-region Boundary Local Government Area (LGA) Boundary Indigo 13 (2006) Murrindindi 23 (2006) Mitchell 29 (2006) Strathbogie 11 (2006) G Shepparton Moira 79 (2006) Wangaratta 21 (2006) Benalla 7 (2006) 371 (2006) 5 (2011) 78 (2011) 7 (2011) 26 (2011) 14 (2011) 16 (2011) 6 (2011) 5 (2011) 450 (2011) 34 (2011) 18 (2011) 26 (2011) Total Industry Water Supply etc 603 (2006) 685 (2011) Source: ABS Census Data 2006 13.6% 29 |

30. Employment growth Projection in Hume (000 persons) According to Monash COPS data, employment in this industry in Hume will decline between 2012-3 and 2017-18 Usage is restricted to the Department of Education & Early Childhood Development and third parties undertaking work on behalf of Skills Victoria. Source: Monash Centre of Policy Studies, 2011 (Hume Employment: by ANZSCO occupation, '000 persons, 2010-1 to 2017-8) 30 |

31. Occupational Growth – Hume (000 persons) The top three occupations employed in the Utilities sector in Hume are: Stationary Plant Operators, Truck Drivers and Engineering Professionals. Usage is restricted to the Department of Education & Early Childhood Development and third parties undertaking work on behalf of Skills Victoria. Source: Monash Centre of Policy Studies, 2011 (Hume Employment: by ANZSCO occupation, '000 persons, 2010-1 to 2017-8) 31 |

32. Utilities Education Data Electrical Linesworker Wastewater or Water Plant Operator Recycling or Rubbish Collector

33. Utilities Education Data VET Enrolments Age Profile Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria. Between 2008 and 2011 enrolments increased for all aged groups with the exception of 35-39 year olds. Student enrolments are highest among 20 to 29 year olds, followed by 45-49 year olds. 33 |

34. VET Course Level and Diversity Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria. The vast majority of students are studying qualifications at the Certificate II and Certificate III levels. Enrolment in Certificate III courses more than doubled between 2008 and 2011. Enrolments in Certificate II courses halved between 2008 and 2011. Enrolments among indigenous people with people with disabilities and people from CALD backgrounds is low. While the actual numbers would be low, the number of enrolments for indigenous people and people from CALD backgrounds doubled between 2008 and 2011. 34 |

35. Electrical Linesworker

36. VET Enrolments Age Profile Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria. Between 2008 and 2011 enrolments increased significantly in all aged groups. The largest number of enrolments are among people in the 20-24 aged group and 45-49 aged group. 36 |

37. VET Course and Diversity Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria. In 2011 enrolments in qualifications for this occupation were at the Certificate II and III level. Between 2008 and 2011 there was a five- fold increase in the number of people studying ESI – Distribution. This course had the highest enrolments The course with the second highest enrolments was a new Certificate III in ESI- Cable jointing. Enrolments by indigenous people and people from CALD backgrounds in low. Enrolments by people with disabilities dropped from 4% in 2008 to zero in 2011. 37 |

38. Waste Water or Water Plant Operator

39. VET Enrolments Age Profile Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria. Overall course enrolments dropped sharply between 2008 and 2011. In 2011 course enrolments are highest among the 25-29 year olds followed by the 45-49 year olds. 39 |

40. VET Courses Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria. A Certificate II, III or IV in Water Operations are the qualifications offered in this field. Approximately 80 people in the Hume region were enrolled in a Water Operations certificate in 2011. In 2011 approximately half of all enrolments were at the Certificate II level. 40 |

41. VET Course Diversity Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria. There are low numbers (2%) of people with disabilities enrolled in water operations certificate courses and this number fell between 2008 and 2011. Similarly there are few indigenous people enrolled in courses. In 2011 there were no people from CALD backgrounds enrolled according to Skills Victoria data. 41 |

42. Recycling or Rubbish Collector

43. VET Enrolments Age Profile Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria. In 2011 a total of 35 people were enrolled in a waste management qualification in Hume. Approximately two thirds of these people were aged between 40 and 64 years old. 43 |

44. Recycling or rubbish collector VET Course and Diversity Source: Data prepared 9 March 2012, Market Analysis team, Skills Victoria. More than 8% of people enrolled in the Certificate III in Asset Maintenance (Waste Management) have a disability. A similar number have a CALD background. The number of indigenous people enrolled in this course is low, less than 3 %. 44 |

45. Future direction

46. What this means Electricity, Gas, Water and Waster Services industry is a small industry, employing an estimated 154,000 nationally and 31,700 in Victoria. It has experienced strong employment growth over the last decade. The water sector is the largest employing segment of the Electricity, Gas, Water and Waster Services industry and between 2007 and 2012 Victorias water sector experienced the highest employment growth across all states and territories. However, many of the large water projects that have driven the jump in employment have been completed or are nearing completion. Water resources in Hume are of national significance and managing these resources is a priority in the Hume Strategy 2010-2020. Under The National Victorian Irrigation Renewal Project (NVIRP) $240m will be invested to continue modernising the irrigation system in the region between 2013/2014 – 2015/2016. ABS Census data shows employment in the Electricity, Gas, Water and Waster Services industry in Hume increased by 16% between 2006 and 2011. ABS Census data shows employment in the Water sector increased by 13.6% between 2006 and 2011. After years of growth employment in the water sector in Hume is expected to decline between 2012-2013 and 2017-18 according to Monash projections. Enrolments in utility-related courses doubled between 2008 and 2011. Course enrolments for electrical linesworker and recycling/rubbish collectors showed the strongest enrolments. 46 |

47. Data Quality and Limitations The data challenges included: 1. Different definitions of industries / occupations between ABS, Industry Skills Councils and Monash. 2. Different Time periods used by different sources 3. Old Data - ABS Census is now 6 years old. 2011 ABS Census data has been used where available. 4. Lack of HUME region industry data particularly for industries where employers are predominantly private sector (e.g. Retail, manufacturing and Transport and Logistics) 5. Lack of regional Skills Shortage Data – DEEWR lists are at the State level 6. Changes in name and level of VET qualifications (training packages) 7. Poor sourcing of data – The data source and date were unclear for some data sources. Limitation of Liability This Labour Market Snapshot has been compiled using data which, to the best of Workforce Planning Australias knowledge, was current and correct at the time of printing. WPA gives no warranty as to the accuracy of the information contained herein nor its applicability to any specific circumstances. It is intended as a guide only and Workforce Planning Australia will not be liable to any person as a result of any actual or perceived inaccuracy contained in this report. 47 |