Mr HARDGRAVE (Minister for Vocational and Technical Education and Minister Assisting the Prime Minister) (11:30 AM) —Thank you very much indeed to everybody who has spoken on the Social Security Amendment (Extension of Youth Allowance and Austudy Eligibility to New Apprentices) Bill 2005. I know that the honourable member for Paterson joins with the government in strong support for this bill. He has indicated his particular interest in this bill, but I thank everybody who contributed. While I do not necessarily agree with all the comments made on this bill, I appreciate the input of all members to the debate. The member for O’Connor, in his expansive contribution, made some very good sense and good points in what he was reflecting upon.

But we on this side are somewhat dismayed at the lack of understanding by those opposite of this area of vocational and technical education. Through their contributions to the debate they have shown that they do not really understand the basics. The Australian government does not fund, nor has ever funded, the technical and further education institutes—the TAFE institutes—around Australia. They are funded by the state governments of this country. We fund the states, though, and that money finds its way through the state governments into the individual TAFE institutions, although we are concerned that about a dollar out of every four dollars that we put into state governments disappears in the administration of the other three dollars. In fact, the situation could be so bad that one dollar in every three dollars does not actually get into the classrooms in the TAFE sector.

So when people talk about training opportunities we are very concerned that our money, put forward in record amounts now, is not being provided in good faith to those who should be making use of it. In fact, earlier today I introduced legislation that will put almost $5 billion over the next four years into the hands of the states if they will sign up to certain principles that we think are absolutely critical to getting a truly national training system responsive to the needs of business and the needs of students—the real world needs, not just the union inspired needs. This is possible.

It is duplicitous of those opposite to continue to accuse this government of failure in an area that is simply the responsibility of the states and territories. The Constitution enshrines the day-to-day running and the quality issues associated with vocational and technical education as the responsibility of the states and territories. Those opposite need to remember that. Further, there has been a failure by the states and territories—supported by the federal opposition—to deal with the key issues of industrial relations, licensing, regulation and an industry-led, competency based and responsive system. That signalled the end of the old National Training Authority arrangements. The Tools for your Trade initiative was raised by those opposite. This is an initiative that, along with the trade learning scholarship, the extension of Youth Allowance, Austudy and Abstudy to new apprentices—the purpose of this bill—and the creation of Australian government funded places, shows the Howard government’s recognition of the needs of entry level apprentices.

Finally, the establishment of Australian technical colleges was raised by those opposite. This is not directly associated with this bill but in the general area of discussion. These Australian technical colleges are essential to address deficiencies in the application of the states and territories of the vocational education and training programs in schools and their failure to introduce, in all jurisdictions except for Queensland, a comprehensive range of school based new apprentices in traditional trades.

There are absolutely no part-time school based apprenticeships in traditional trades in the state of New South Wales. The biggest state of Australia, New South Wales, continues to be the worst state in Australia in which to be an apprentice. The Social Security Amendment (Extension of Youth Allowance and Austudy Eligibility to New Apprentices) Bill will appropriate net outlays of $383.2 million over three years to assist new apprentices and trainees. This bill extends eligibility for Youth Allowance and Austudy payment to full-time new apprentices. The conditions of eligibility are consistent with those of full-time students in receipt of one of these allowances. New apprentices who qualify for assistance will be subject to personal, partner and parental means testing consistent with current arrangements under these allowances. New apprentices will also benefit from the income-free area currently available for student allowance recipients.

This bill also amends the Social Security Act 1991 to exempt from social security income testing the value of the Commonwealth trade learning scholarships and tools received under the Tools for your Trade initiative. This ensures that new apprentices receive the full benefit of all these measures in the initial years of their training. This bill provides, yet again, a further example of the commitment of this government to vocational and technical education as a means of building an even stronger Australia. We are introducing several measures that address skills needs in the Australian economy. This initiative will provide targeted assistance to new apprentices during the initial years of their training when their wages generally are at their lowest—enforced by industrial relations agreements.

By ensuring that new apprentices have the support they need to undertake their training, the bill further encourages people to participate in New Apprenticeships, showing that they build possibilities not only for life-long self employment but also for small business opportunities. This supports a more competitive and innovative economy. It acknowledges the importance of a strong vocational education and training sector for continued economic performance and growth.

This government already has a proud record when it comes to ensuring the vitality of the vocational and technical education sector, with benefits for all Australians of all ages. These measures, combined with other initiatives announced and currently being implemented by this government, represent a significant investment in the future growth of Australian industries and the entire vocational and technical education sector. I commend this bill to the House, but some tidying up measures have been brought to our attention since this legislation was introduced. I therefore forecast a government amendment once the House deals with the bill in detail.

The DEPUTY SPEAKER (Hon. AM Somlyay)—The question was that this bill be now read a second time. To this the Deputy Leader of the Opposition has moved an amendment that all words after ‘That’ be omitted with a view to substituting other words. The immediate question is that the words proposed to be omitted stand part of the question.

Question agreed to.

Original question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.