Senator CARR(4.04 p.m.) —by leave—I move:

That the Senate take note of the document.

This Auditor's report could not have come at a worse time for the government in so far as it indicates to one and all just how important ESRA is—ESRA being the Employment Services Regulatory Authority. ESRA was established some two years ago as part of the Working Nation package. The Working Nation package has seen expenditure in this year of some $2.3 billion and over the life of the program considerably more—some $9 billion dollars in total.

What we have seen through the Working Nation package is quite substantial real improvements in the levels of job opportunities, particularly for those who are long-term unemployed. In the last few years the figures that I have at my disposal—up to August 1995—show that long-term unemployment fell by some 23.2 per cent or 231,000.

Of course, any figure like that is unacceptable, but the fact that the level of long-term unemployment fell by that figure suggests to me that substantial achievements have been made. Working Nation programs were aimed at providing access to job placements through the job compact, at providing access to labour market places for those who fall outside the job compact and at providing individual assessments and early assistance to reduce the risk of long-term unemployment.

The whole model of case management, which stands at the core of the operations of the Employment Services Regulatory Authority, is an innovative approach which we have not seen in many places throughout the world. It provided an opportunity for individual attention to be paid to people in our society who have become long-term unemployed.

In my judgment, it also allows an opportunity for state to become directly involved in fulfilling its responsibilities to ensure that there is the lowest possible level of unemployment in the country as a whole. One of the most important roles that the Department of Employment, Education, Training and Youth Affairs could have would be to prevent and to reduce the levels of long-term unemployment in our society.

ESRA was one part of a package of measures that went to Nettforce, that went to government programs, that went to a whole range of issues to do with the training agenda. These measures involved the way in which the Labor government approached matters in terms of TAFE training, schools, universities and other educational institutions.

It did stand very much as an important part of that overall package. The Auditor-General has pointed to the fact that ESRA has worked very well. The report indicates at page 8 that ESRA was able to be measured clearly against quite objective criteria and, when measured against those criteria, performed extremely well. Since the establishment of ESRA in July 1994, there have been some 3,257 case managers set in place. In that period, those case managers have been able to assist some 691,000 clients and provide quite substantial levels of assistance to the long-term unemployed in this country.

When the program was established, it was set down that there should be quite specific targets to see that the number of long-term unemployed were dealt with individually and were provided with individual attention, rather than be dealt with by an inhuman and at times distant bureaucracy. Case management now accounts for some 37 per cent of persons who are eligible for assistance. That is a significant movement in such a short period of time.

The Auditor-General pointed out that ESRA was able to fulfil the substantive objectives set down for it. The report states clearly at page 5 that ESRA was able to demonstrate that it was following a corporate plan, which set out its values, directions and strategies for the next three years; that it was able to fulfil an appropriate performance level and was able to provide a proper process of review and accountability; that it was able to establish effective means of fraud control and fraud risk assessments; and that it was able to put in place a management strategy that ensured money was well spent. It seems to me that that is an appropriate measure by which one can assess whether or not agencies such as this are performing well. That is what the Auditor-General essentially has indicated.

This report could not come at a worse time for the government because day after day we read of this government's determination to slash labour market programs, to undermine the rights of workers in this country, to turn the clock back to a period in our history when workers could not rely upon effective, individual and appropriate levels of assistance from the government and to leave people to their own devices. They are precisely the sorts of policies that this government has been pursuing. It has been saying that this is an indulgence, that labour market programs of this type are inappropriate and that we are spending too much money on assisting the long-term unemployed in this country. In my judgment, the government has a very inhuman approach to the questions of employment and unemployment.

What have we seen since this government has come to office? We have seen an attempt to denigrate the efforts of the former government. What they cannot hide is the fact that there have been such prolonged periods of employment growth which have led to substantial reductions in the numbers of long-term unemployed at a time when there have been increasing levels of participation and the rights of people to participate in the work force have been exercised, a right being recognised by increasing numbers of Australians. It is appropriate that they should recognise that right.

What do we see from this government? We see constant attacks upon the unemployed, attacks upon labour market programs and constant speculation about the levels of cuts to the Department of Employment, Education, Training and Youth Affairs. There has been the suggestion that some 22 per cent of the budget targeted cuts should come from this department and that, in particular, some $400 million should come from labour market programs.

In those circumstances, the Auditor-General's report is quite timely. It highlights that it is not appropriate to attack bodies such as this that are doing a good job, that are ensuring that people's rights to participate in our society are implemented and not undermined by the government itself. In my judgment such discussion and speculation about removing support for such important agencies as this is inappropriate .

In terms of the government's overall program, one can only be led to the conclusion that the effects on economic growth of the proposed cuts of some $8 billion will be a reduction in economic growth. There will be an increase in the levels of unemployment. There will a greater need for agencies such as this. This is the great irony. The government is undermining any objectives it might have about improving the levels of employment in this country. In my judgment it is undermining the democratic nature of this country. One of the most fundamental democratic rights has to be the right to participate. The right to participate at work has to be central to that.

It seems to me that this is a very timely report. I welcome it. It needs to be carefully considered by the parliament. I look forward to being proved wrong in the coming budget session. I trust that the government will not proceed with its inhuman, callous disregard for the rights of Australia's long-term unemployed and that it will sustain programs such as this, which have obviously been performing very well.