Cunningham MP Sharon Bird's promotion to Minister for Higher Education and Skills has been welcomed by Universities Australia, the peak body representing Australia's 39 universities.
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Chief executive of Universities Australia Belinda Robinson said Ms Bird had proven a hard-working parliamentary secretary.
"We have been particularly impressed with how she has grasped the importance of universities in transforming industry and fuelling innovation - whether that be in the Illawarra or around the country," Ms Robinson said.
"Her experience in the Illawarra, which has gone through significant industrial change, will stand her in great stead for the portfolio.
"Sharon's close relationship with the University of Wollongong means she has a very strong understanding of the importance of universities to local economies like the Illawarra."
Interim chief executive of the Illawarra Business Chamber (IBC) Mike Halloran said Ms Bird's appointment was "a great outcome for the region" and reflected Ms Bird's hard work and experience in skills and education, both in her pre-political life as a TAFE and secondary school teacher, and more recently as parliamentary secretary.
Mr Halloran said key skills-based initiatives Ms Bird and the IBC had worked on together included the KickStart project, which placed over 700 apprentices with local employers in the wake of the global financial crisis.
Shellharbour MP Anna Watson congratulated Ms Bird on being the first female minister to be appointed from the Illawarra region.
Liberal Gilmore MP Joanna Gash also personally congratulated Ms Bird on her promotion.
"However, on the whole I am very disappointed at losing ministers like Martin Ferguson and of course Simon Crean, who I helped support on his visit to Gilmore," Mrs Gash said.
Mrs Gash said the events of the past week were unprecedented in her 17 years of Parliament.