Industry News

The Australian Workforce and Productivity Agency has released a discussion paper which examines skills and workforce development needs arising four different scenarios for Australia’s economic future.

The paper, Future Focus: Australia’s skills and workforce development needs, has been released as part of the AWPA’s process to develop a second National Workforce Development Strategy to be released late this year.

It sets out factors that are currently limiting Australia’s growth potential and presents modeling of the supply and demand for skills and qualifications based on the four scenarios.

The scenarios, described in full in a paper published with  the discussion paper, include:

• The Long Boom: sustained prosperity and a restructure economy;
• Smart Recovery: uncertainty to 2015 with low growth and knowledge-based recovery;
• Terms of Trade Shock: resource prices fall, a more balanced economy; and
• Ring of Fire: risky world, multiple shocks.

The paper predicts continued strong demand for high level skills and the need for continued investment by enterprises and government to build the future workforce necessary to sustain Australia's economic growth.

The modelling finds that the trend toward higher level skills will continue into the future. Currently, almost 60% of the Australian workforce has post school qualifications. In the future, the proportion holding post school qualifications could increase to be between 65% and 75% of those employed.

Demand for qualifications at Certificate III and above is projected to grow by 3% or above per year in all but one scenario.

Mr Philip Bullock, Chair of AWPA, said the paper reinforces the need for policies and approaches that will help to generate the skills needed for Australia to remain globally competitive.

"Our growth as a nation will be constrained unless we have the right settings over the medium term to produce sufficient supply of qualifications to meet continuing strong industry demand. The mining boom has focussed attention on one area of skills shortage, but over the longer term, shortages are possible in many jobs and industries unless we start now to plan for the future."

All the scenarios used in the paper show the demand for higher level skills increasing to 2025.

The higher skills base reflects a range of factors including the changing industry structure of the economy, higher expectations of consumers, the challenge to improve productivity, and the different skills required to participate in the "Asian Century".

Across all four scenarios, there is relatively strong growth in demand for services such as healthcare, due to the ageing population, and for agriculture, arising from demand in the Asian region. However trade-exposed industries such as manufacturing, tourism and education see substantially different outcomes across the scenarios.

One of the key challenges addressed in the paper is the need to lift productivity, which has been weak over the last decade, notwithstanding some recent improvement. Better use of the skills and abilities of the workforce is a key factor in improving Australia's productivity.

"The role of leadership and management is critical in unlocking our potential. We need better use of technology as well as increased innovation in the workplace and greater investment in research and development. The prime movers in transforming our economy have to be industry and enterprises, assisted by government," Mr Bullock said.

The paper also raises questions about employment participation. While Australia's unemployment rate is the envy of most western economies, participation is uneven across demographics and regions. Low skills are a major factor in the lower participation of many people.

Assisting individuals to be both physically and upwardly mobile will be critical if Australia is to avoid an over reliance on migration to meet its future skills needs.

The Discussion Paper can be viewed at: www.awpa.gov.au

Westpac has announced the appointment of John Harries as the company's new General Manager, Strategic Marketing in its Australian Financial Services (AFS) division.

Mr Harries brings 30 years of experience in financial services, covering brand marketing, segment marketing, operations and product management.

He is currently General Manager of Australia Operations for ANZ Banking Group. He has held a variety of roles with ANZ including Managing Director, Retail Products; Managing Director, Consumer Finance; Managing Director, Banking Products; and Head of Products & Marketing, Mortgages.

 “I am very pleased to be welcoming John Harries - an executive with broad and deep financial services experience and a strong record of achievement," Westpac’s Australian Financial Services Chief Executive, Peter Hanlon, said.

Mr Harries will start his new appointment in October and will report directly to incoming AFS Chief Executive Brian Hartzer.  

The Federal Government has released a discussion paper to best identify the childcare and early learning services needs for the country's most vulnerable families are met, now and in the future. 

Minister for Early Childhood and Child Care, Kate Ellis announced the Government consultation today, saying it will focus on funding to support child care and early learning services in urban, regional, remote and Indigenous communities under the Budget Based Funded (BBF) program. 

“With more children in early childhood services than ever before, it is critical that our children receive quality care and educational opportunities, regardless of their family background or where they live,” Ms Ellis said. 

“Importantly, the consultation I’ve announced today follows the Government's commitment of $59.4 million to improve the quality of centre-based BBF services, including ongoing funding to raise staff qualifications and support building maintenance.” 

A discussion paper entitled Quality Early Childhood Education and Care for Children in Regional, Remote and Indigenous Communities: A Review of the Budget Based Funding Program will be the focus for these conversations. 

The discussion paper and factsheets, including how to have your say and the consultation schedule, are available at www.deewr.gov.au/bbfreview

The South Australian Government has announced over 14,000 people living in Port Pirie, Whyalla and the Far North now have the opportunity to sign up for hundreds of fee free and funded courses under the State Government's Skills for All reforms.

State Employment, Higher Education and Skills Minister, Tom Kenyon, said the initative will help boost skill levels, lift workplace participation and increase productivity.

“If you’re just starting out, want training to help you get a job, or if you’re thinking about improving your skills to gain a promotion or changing your career, there are opportunities for you,” Mr Kenyon said.

“About 400 training courses on offer are free, including every Certificate I and Certificate II course, as well as accredited reading, writing, numeracy and computing courses and courses determined as priorities for the State.

“About 700 Certificate III and IV courses and 400 Diploma and Advanced Diploma courses are also being funded, including 600 courses never funded before.

“Students at Diploma level and above will be eligible to defer their course fee payments until they get a job and start earning under the VET Fee Help scheme,” Mr Kenyon said

More information can be found here

The Victorian Government has announced applications are now open for positions on the board of the Port of Melbourne Corporation.

State Minister for Ports, Dennis Napthine, said three positions are now available for the board. The announcements come as the $1.6 billion expansion to the port gathers pace.

"The Victorian Coalition Government is looking for three suitably qualified candidates who have the necessary skills and experience to contribute to an exciting period of growth and development at the Port of Melbourne," Dr Napthine said.

"The Port of Melbourne is a critical piece of Government-owned infrastructure that drives the Victorian economy and provides employment for tens of thousands of people across the state.

"The port is Australasia's busiest container and general cargo port and is continuing to grow with total trade increasing 9.1 per cent to 87 million revenue tonnes in 2011-12.

"We are looking for people with a mixture of experience and knowledge, including strategic planning, organisational governance and business and financial management, to guide the direction of the Port of Melbourne through this critical period," Dr Napthine said.

Dr Napthine said the three part-time appointments were for terms for up to three years with expressions of interest  to be received by 10 August 2012.

The Federal Government’s $70 million Coal Mining Abatement Technology Support Package has been launched, providing funding to accelerate the development of abatement technologies and processes for the Australian coal mining industry.

The package has three key areas of focus:

• Supporting research, development and demonstration of abatement technologies and processes;
• Funding measures that address safety and regulatory issues associated with the development and deployment of these technologies; and
• Support to small and medium-sized mines to prepare carbon emissions abatement strategies.
•  

The first round of funding for the Coal Mining Abatement Technology Support Package is currently open.

Additional information and application forms are available at http://www.ret.gov.au/energy/clean/ctap/cmatsp/.

Toby Marchant has announced his departure from paper merchant PaperlinX following the sale of its operations in Slovakia, Hungary, Slovenia and Serbia to the Heinzel Group for €19.6m

The sale forms part of PaperlinX’s strategic review of its operations that also involved the sale of its loss-making operations in South Africa to local managers for $6 million.

“After the sale of five smaller European businesses and the consistently loss-making South African business announced today, our remaining businesses all operate in sizable markets with significant market positions,” Mr Marchant said.

The sale of its assets in Europe and South Australia will bring the company’s strategic review to its conclusion.

Mr Marchant said the conclusion of the review provided him the prime opportunity to step down from his position.

We have reached a major turning point in the transformation of PaperlinX, and the Board and I have agreed that it is an opportune moment for me to step down as Chief Executive. I will therefore be leaving the Company at the end of July,” Mr Marchant said. 

The Australian Institute of Health and Welfare (AIHW) has published a report which shows that the number of Australians treated with dialysis or kidney transplantation for their end-stage kidney disease (ESKD) has almost tripled between 1991 and 2009.

ESKD is the most severe form for chronic kidney disease, where dialysis or kidney transplantation is considered necessary for the survival of the patient.

The Dialysis and kidney transplantation in Australia report states the reasons behind the boom in such treatment are myriad and complex and an increase in diabetes-related cases of ESKD is likely to play a large part. The report largely draws on data from the Australian and New Zealand Dialysis and Transplant (ANZDATA) registry.

“Diabetes-related kidney damage was the leading cause of treated ESKD in 2009, accounting for 33% of new cases compared with 13% in 1991,” said AIHW spokesperson Dr Lynelle Moon.

Another factor is progressively greater numbers of older people are being treated for ESKD—the average age of people starting kidney replacement therapy (KRT) has risen from 44 years in 1991 to 61 years in 2009.

“Better survival for patients on KRT is a possible contributor,” said Dr Moon.

From 1991 to 2009, the number of transplants performed each year increased from 470 to 772, largely due to a rise in donations from living donors.

The full report can be found here

The Australian Payments Clearing Association (APCA) has released payments fraud statistics across all financial institutions, finding that the total value of check and payment card fraud in Australia for 2011 year had increased 11.4 cents to 16.2 cents in every $1,0000 transacted.

Comparing each of the major categories of fraud for calendar years 2010 and 2011 finds:

• Cheque fraud fell from 1.3 cents to 0.7 of a cent in every $1,000 transacted.  The incidence of cheque fraud remained low at less than 1 in every 300,000 transactions.
• Proprietary debit card fraud (PIN-only cards – POS and ATM transactions) fell from 7.9cents to 4.9 cents in every $1,000 transacted.  The incidence of debit card fraud dropped from 2.5 to 1.3 in every 100,000 transactions.
• Scheme credit, debit and charge card fraud (signature-permitted debit, credit and charge cards and card-not-present (CNP) transactions) increased from 67.2 cents to 96.0 cents in every $1,000 transacted.  The incidence of fraud on these cards increased from 38.4 to 51.7in every 100,000 transactions.

APCA found that skimming levels has fallen to below 2009 levels, reflecting the continued hard work by the industry and law enforcement to prevent and respond quickly to such fraud.

However, the APCA has remained concerned about the ongoing increase in CNP fraud, which now accounts for 71 per cent of fraud on Australian-issued scheme credit, debit and charge cards.

“Tackling CNP fraud requires effort from everyone, from the retailer, through financial institutions and card schemes, and in the end from the consumer,” said APCA CEO Chris Hamilton.  “We need Australians to know that tools to help protect against CNP fraud are readily available today.  If you are a retailer selling online or a consumer shopping online, you need to be using these tools as well as other practical measures to stay safe online.”

“Getting online provides great benefits for retailers and consumers. The borderless market of the digital economy means a larger customer base for retailers and more choice and great prices for Australian consumers.  However, as retailers and consumers move online, they need to be aware and take the appropriate measures to protect themselves against the risks,” said Mr Hamilton.

APCA’s fraud data collection is available at www.apca.com.au

More information on staying safe online is available at www.staysmartonline.gov.au

The number of Australian companies paying their bills on time has fallen markedly during the June quarter as they struggle to deal with reduced cash flow, according to the latest Dun & Bradstreet Trade Payments Analysis.

According to the analysis, the number of companies paying their bills within the standard 30-day term fell 16.5 per cent quarter-on-quarter.

Further underscoring the deteriorating conditions faced by businesses is the performance of small businesses, which recorded the biggest deterioration in payment terms of 2.2 days. Businesses with between one and five employees are now operating under an average term closer to that of larger firms, at 53.2 days. 

According to Dun & Bradstreet Director, Adam Siddique, cash flow issues within the small business sector will have a significant knock-on effect to the rest of the economy.

"It is particularly concerning that SMEs are waiting longer to be paid, and as a result are taking longer to pay their own bills. Trade credit constitutes a significant and critical portion of non-banking finance.  When this is delayed, it withholds millions of dollars from businesses and the wider economy," Mr Siddique said.

"Small business payment terms now more closely resemble those of a large corporation, however small operations are less equipped to manage for cash flow issues, particularly if they are waiting more than two months to be paid for goods and services."

Larger companies bucked the trend, with larger firms reducing payment terms in the June quarter by an a day on average, with businesses employing between 50 and 199 staff reducing their payment time by 1.6 days.

In addition, two-thirds (62%) of all trade payments were late during the second quarter. The number of severely delinquent payments (90+ days overdue) also rose noticeably during the last 12 months - up 13 per cent since the June quarter last year.

"The payment terms of Australian firms have been trending steadily upwards throughout 2012, the result of a conservative consumer and continued economic uncertainty impeding cash flow,” Mr Siddique said.

The company found that publically listed companies, usually amongst the slowest to pay their bills, reduced their average payment terms by 2.8 days to 54.6 days.

At an industry level, Finance and Retail businesses recorded the most notable quarter-on-quarter deterioration, with average payment days rising 2.7 and 1.7 days respectively. Both sectors now operate under a payment cycle among the highest in the country at almost three months.

The full report can be found here

The Exemplar Health consortium, lead by development giant Lend Lease, has been announced by Queensland Health as the successful proponent to deliver the new tertiary hospital at Kawana on the Sunshine Coast.

The pubic-private partnership with Queensland Health will see the consortium finance, design, construct and maintain the $2 billion project.

Upon completion, the new hospital will provide 738 beds, including 40 intensive care beds and 40 operating rooms. The hospital will also feature a Skills, Academic and Research Centre (SARC), incorporating academic and healthcare facilities.

"The Sunshine Coast University Hospital project complements our existing health sector portfolio perfectly and reinforces our strategy of being number one in the delivery of major health facilities in Australia,” Lend Leases’s Managing Director of project management and construction Murray Coleman said.

"Importantly, with the construction of the Gold Coast University Hospital due for completion at the end of this year, this selection also enables us to utilise our highly skilled workforce onto another exciting Queensland project.”

Construction is expected to commence late this year

The New South Wales Government has announced a ‘ground breaking’ strategy designed to overhaul pain management services across the state.

State Minister for Health, Jillian Skinner, announced the NSW Pain Management Plan, which will deliver an additional $26 million over the next four years to support the development of new pain  management services in regional areas, to enhance existing teaching hospital services and to support research into chronic pain.

“The investment and additional funding will improve services across NSW and provide support in regional areas where previously there has been no access to treatment,” Mrs Skinner said.

“Chronic pain costs the Australian economy an estimated $34 billion annually and is the nation’s third most costly health problem.”

The $26 million NSW Pain Management Plan includes:

• $2.1 million per year towards new, dedicated medical, nursing and allied health positions to meet service and training requirements of Tier 3 (tertiary care) services
• An additional $1.7 million per year to establish new Tier 2 pain management services at Tamworth, Orange, Port Macquarie and Port Kembla and to enhance the service at Lismore
• An additional $620,000 per year to enhance existing services at John Hunter, Royal Prince Alfred, Prince of Wales, Royal North Shore and The Children’s Hospital, Westmead to become support centres to new regional services
• $200,000 per year to enhance regional paediatric services at John Hunter Hospital
• $337,500 to integrate evidence-based clinical resources for pain management into primary health care information systems
• $300,000 per year to enable systematic collection and evaluation of data on key pain outcomes across all Tier 3 and Tier 2 services
• $70,000 to support the Concord Hospital early intervention trial for injured workers
• $745,000 per year to establish five new Pain Medicine Specialist training positions at John Hunter, Royal Prince Alfred, Prince of Wales, Royal North Shore and The Children’s Hospital, Westmead
• $735,000 in annual funding to support the role of the Pain Management Research Institute (PMRI) at Royal North Shore Hospital in providing leadership and coordination of pain research and training across NSW.

South Australia’s regions, accounting for 30 per cent of the state’s population, is responsible for over 40 per cent of the state’s exports according to new research released by the South Australian Centre for Economic Studies (SACES).

Commissioned by the South Australian Local Government Association, the research examined geography and population, economy and supportive indicators for the seven country regions of the state.

LGA President, Mayor Kym McHugh said the SACES profiles were part of a longer-term strategy of the LGA in which it was working with country Council regional associations on a discussion paper on future directions for SA regions.

The findings of the SACES's profiles, that South Australia's economic progress, social cohesion and the development of its natural resources depend entirely on the economic performance, social vitality and natural resource management of the regions, was "no surprise to people in the country," he said.

"The seven combined regions collectively account for 51.4 percent of the State's export flows and 51 percent of import flows with a combined gross regional product of 25 percent of the State's gross product," Mayor McHugh said.

The full report can be found here

Figures released by the Australian Bureau of Statistics (ABS) has released figures that confirm that residential building activity contracted in the March 2012 quarter, marking the fourth consecutive quarter of contraction.

“Today’s figures show that the total value of residential building work done fell by 1.9 per cent in the March quarter with new dwellings down by 1.2 per cent and renovations down by a sizeable 5.5 per cent,” Housing Industry Association’s Senior Economist Andrew Harvey said.

“New residential building work done has now fallen for four consecutive quarters, while renovations work done has fallen  for three consecutive quarters. Combined with leading indicators  which show further weakness ahead, there is no doubt that the Australian  home building industry is in recession.”

“As the residential building industry continues to contract, we are seeing real consequences for jobs, small businesss, the supply of new housing and rental costs. Governments can no longer ignore the negative impacts on employment, housing stress and Australia’s economy,” added Mr Harvey.

Comparing the March 2012 quarter with the March 2011 quarter,  new housing work done is down by 8.7 per cent while renovations (alterations and additions) activity is down by 5.5 per cent.

Australia has slipped below the OECD average for broadband and wireless distribution, with the country recording 24 subscribers per 100 inhabitants, finishing at 21^st out of 34.

Switzerland topped the rankings, recording 39.9 subscribers per 100 inhabitants, closely followed by the Netherlands (39.1) and Denmark (37.9), where the OECD average is 25.6.

Fixed wired broadband subscriptions reached 314 million in the OECD area at the end of 2011, although growth slowed to 1.8% in the second half. Year-on-year subscriptions rose by 4.1%. Greece, Poland and Chile experienced the highest growth, of 5%, to reach 21.8, 15.0 and 11.7 respectively.

The OECD found that the overall share of DSL subscriptions continues to decrease, while cable continues to make inroads in the market, with fibre-to-the-home subscriptions now representing 13.7 per cent of the total number of fixed broadband subscriptions.

Federal Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy, said the figures reinforces the need for the rollout of the National Broadband Network.

“The Gillard Government’s investment in the NBN will ensure Australia is not left behind other developed and emerging economies in the years ahead. It will foster innovation and drive productivity gains, bringing significant benefits to the wider economy,” Senator Conroy said.

“The NBN’s fast, affordable and reliable broadband will help Australia rise up the OECD broadband rankings, even as other OECD countries develop their own super-fast broadband capabilities.

“The rollout of the NBN is gathering pace, with work expected to be underway or completed for over 750,000 premises by the end of the year and 3.5 million homes, businesses, schools and hospitals by 2015,” Senator Conroy said.

More information can be found here

The South Australian Government has announced immediate action will start to implement reforms recommended in Dr Mark Monaghan’s report on Emergency Department care.

The Government’s first move will be to appoint a clinical leader to oversee state-wide reforn, while leaders will also be nominated by staff at the state’s major hospitals to redesign access to emergency care where necessary.

SA Health accepted all 52 recommendations in principle contained within Dr Monaghan’s review of hospital performance, with State Minister for Health John Hill saying the report provides a clear action plan that will make a major difference for staff and patients within months.

“Dr Monaghan recommends that the clinical staff and management at FMC can use the whole hospital’s capacity more effectively, stating that ‘..there appear to be fundamental process issues rather anoverall deficit of available bed stock,’ Mr Hill said.

“Dr Monaghan is clear in his report that there are site-specific changes that can - and must - be made to improve the transfer of patients all the way from admission to discharge.

“We will consult with doctors, nurses, ambulance officers and their union on turning these recommendations into action and I urge everyone to read this report, consider how it applies to their discipline and work together in the best interests of patients,” Mr Hill said.

The Victorian Government has proposed the Barwon area as the launch site for the National Disability Insurance Scheme (NDIS) from the middle of next year.

State Minister for Community Services Mary Wooldridge said the launch area, consisting of the City of Greater Geelong, the Surf Coast Shire, the Borough of Queenscliffe and the Colac-Otway Shire, is well placed to build on and use existing services and supports to launch the NDIS in Victoria.

"It meets all the criteria for launch sites. It is a geographically discrete area with a good mix of population, both metropolitan and regional locations and a highly developed service sector,” Ms Wooldridge said.

"Geelong also has real expertise in implementing insurance schemes, being home to the Transport Accident Commission.”

Ms Wooldridge said that Victoria has more than 16 years experience delivering self-directed disability supports and services - such asIndividual Support Packages - that are consistent with the NDIS.

"This knowledge, and the many benefits of the Geelong region, provides a strong foundation for Victoria to be included in the launch of the NDIS," Ms Wooldridge said.

The Victorian Government has announced sweeping reform to the state’s planning zones in a bid to return certainty to councils, residents and the development industry.

"Planning zones are the greatest indicator of the style of development for any area. The Coalition Government's sweeping zones reform package aims to give certainty for areas that deserve protection and those identified as growth nodes,” State Planning Minister Matthew Guy said.

The proposed reform will see the formation of three new residential zoning areas.

• General residential zone will allow modest housing growth
• Neighbourhood residential zone to restrict housing growth while preferencing single dwellings and some dual occupancy
• Residential growth zone to encourage new mediaum density housing growth

The Municipal Association of Victoria (MAV) has welcomed the proposed reforms.

Cr Bill McArthur, President of the MAV, said that the announcements made by the Victorian Government responded to the needs of local communities.

“The proposed residential zones will at last make it easier to implement local policy through clear planning controls that specify where certain types of development can occur and what height limits apply,” Cr McArthur said.

“Council and community advocacy made new residential zones a priority of the former Government back in 2008 but local government was left frustrated after the reforms stalled. We’re really pleased that Minister Guy has moved to address these matters and offer greater protection for neighbourhood amenity.”

“Councils will finally be able to send clear market signals to the development industry, which should reduce conflict in planning. We’re optimistic about the proposed zones and hope their implementation is kept simple.

Cr McArthur said the Minister for Planning has also acted to address calls by rural councils about prohibited uses and minimum lot sizes within the farming zone.

“Rural councils have been calling for changes to the Farm Zone to remove restrictions affecting farm diversification, a problem confirmed in a 2010 MAV survey.

“The proposed rural zone reforms will allow councils flexibility to adapt the zones to suit local circumstances.

“Despite the current ability to vary minimum lot sizes, many councils found the time and cost to amend schemes was prohibitive. Removal of the one-size-fits-all approach is a welcome step in the right direction.

The Northern Territory Government has announced the formation of a new nine-member taskforce responsible for the implementation of the 32 recommendations outlined in the recently released Deloitte Shire Sustainability Review.

The Taskforce will be co-chaired by Mr Tony Jack, Mayor of the Roper Gulf Shire Council and Ms Barb Shaw, President of the Barkly Shire Council.  Other members include:

• Mr Damien Ryan, President, Local Government Association of the Northern Territory
• Ms Olga Havnen, NT Coordinator General for Remote Services
• Mr Brian Gleeson, Australian Government Coordinator General for Remote Indigenous Services
• Ms Margaret Reynolds, Chair Australian Centre for Excellence in Local Government
• Mr Ronald Lami Lami, local board member from Minjilang
• Ms Roslyn Frith, local board member from Kalkarindji
• Mr Ken Davies, Chief Executive, Department Housing, Local Government, Regional Services

The Taskforce will meet monthly and provide advice to the Minister for Local Government on the emerging issues facing shire councils.

“There’s a lot to get through so over the next six months the Taskforce’s immediate job is to focus on the urgent remedial actions followed by a longer timeframe on the less urgent recommendations,” Ms McCarthy said.

“To achieve effective and efficient delivery of local government services in a financially sustainable way a coordinated and collaborative approach by all governments is required.”

Minister McCarthy also released a discussion paper, Strong Local Boards, Strong Shire Councils,calling for public feedback on strengthening Local Boards and their roles in shire councils.

For more information and to view the discussion paper seeking public feedback visitwww.localgovernment.nt.gov.au

Federal Member for Newcastle Sharon Grierson has announced she will not re-contest her seat at the 2013 Federal election, citing family and personal reasons behind her decision to retire from Federal politics.

Ms Grierson described her announcement as a difficult decision, and that she has enjoyed no greater privilege or honour to represent Newcastle in the Australian Parliament.

“But it is time for me to plan for the future at the personal and the political level. As I have explained to the electorate my aged parents are confronting mesothelioma - an asbestos related cancer - and my children would benefit from more of my attention. They have given me their selfless support. It is time for me to repay their sacrifice,” Ms Grierson said in a statement.

Prime Minister Julia Gillard paid tribute to Ms Grierson, personally thanking her for her 12 year service as Member for Newcastle.

“She has worked hard to secure jobs and investment, including more than $2 billion worth of Commonwealth funding for facilities and infrastructure – an outstanding record,” Ms Gillard said.

“As a former teacher and school principal, Sharon has worked tirelessly to ensure every child in our nation receives a great education, no matter what their circumstances or background.”