The Australian Government has established the National Resource Sector Employment Taskforce to look at employment, skills and training issues in the resources sector. It is apparent that many of the skills shortage issues that faced the resources sector during the last boom have not been addressed, and it appears we are on the verge of another boom. Particularly in the gas industry, the Government is concerned that the Australian economy is not as well poised to take advantage of this boom as it could be.
The taskforce has been asking companies and industry associations for forecasts of future workforce requirements, and what key issues need to be addressed. This brings us to an interesting question – what are the future workforce requirements for the pipeline industry, both in construction and operations? And how are these calculated at a time when:
* Domestic demand for gas is forecast to double on the east coast in the next 20 years;
* Gas-fired power generation is forecast to increase tenfold in the same timeframe;
* Multiple LNG projects are going ahead in Queensland; and,
* There is an increase in demand for water infrastructure, including pipelines for irrigation and desalination plants.
We don’t even know what the current workforce requirements for the pipeline industry are with a great degree of certainty. We can look at government figures, but they tend to deal with the broader “˜gas supply’ industry.
The Australian Bureau of Agriculture and Resource Economics (ABARE), states in its Energy in Australia 09 publication, that 2,000 people were employed in the gas supply sector during 2006-07. In this case the gas supply sector excludes those involved in gas extraction. ABARE uses numbers published by the Australian Bureau of Statistics (ABS).
In 2009, the ABS published a paper entitled Alternative View of Electricity and Gas Supply Activity in which the ABS indicated that 4,062 people were employed in the gas transmission and gas distribution sector during 2007-08.
In APIA’s opinion, the number presented by the ABS report is closer to reality, but still falls short for a number of reasons.
When looking at the definitions the ABS uses in its Australian and New Zealand Standard Industry Classification (ANZSIC) Code to make its assessments, it is apparent that both the relevant codes – 3620 Gas Supply and 6501 Pipeline Transport – are inadequate to assess total employment in the gas supply sector.
The 3620 Gas Supply class consists of units mainly engaged in the manufacture of town gas from coal and/or petroleum or in the distribution of manufactured town gas, natural gas LPG through a system of mains, including pipelines operated on own account.
The code is focused on gas distribution, and whilst not mentioned specifically, is concerned with the operation of gas distribution systems. It is also worth noting that town gas has not been in widespread use in Australia for over 40 years.
The 6501 Pipeline Transport class consists of units mainly engaged in operating pipelines for the transportation of oil, gas, water or other materials on a contract or fee basis. 6501 Pipeline Transport is focused on the long distance transmission industry, which is dominated by gas transmission but also features water. It is explicitly concerned with the operation of transmission systems.
There is no specific classification relating to pipeline construction, despite this being a significant, specific employment type. The closest ANZSIC Code is 4122 Non-Building Construction not elsewhere classified. This class consists of units mainly engaged in the construction of railway lines, dams, irrigation systems, harbour or river works, water or gas supply systems, oil refineries (except buildings), pipelines or construction projects not elsewhere classified, in the onsite assembly of boilers, furnaces or heavy electrical machinery from prefabricated components, or in the general repair of such structures, machinery or equipment.
This code covers a very wide range of employment opportunities and skills sets, and leaves a significant part of the pipeline workforce not specifically classified as pipeline or gas supply workers.
Through APIA’s Pipeliner Passport program, APIA has issued 2,800 passports to pipeline construction companies since December 2008. Given the short timeframe these passports have been issued in, it is reasonable to expect that the number of passports issued represents close to 2,800 unique employees in pipeline construction. That’s a lot of workers in the pipeline industry that aren’t counted toward total employment numbers – and the passports have not reached every member of the industry.
The better we can identify the number of workers in the pipeline industry, the better we can make our case for government funded training programs, and for our contribution to the economy. On official numbers we look like a smaller industry than we are.
APIA will be working on methods to better identify the pipeline industry’s current workforce in the coming months.
If anyone is interested in participating, contact Steve Davies via email sdavies@apia.asn.au