Senator COONAN —My question is directed to the Minister for Employment, Education, Training and Youth Affairs, Senator Vanstone. Particular groups of unemployed people face special problems in returning to employment. These groups can include the young, disabled persons and those with a combination of disadvantages. Can the minister outline how the government has taken into account the special circumstances of these groups in framing its reforms to labour market assistance?

Senator VANSTONE —I thank Senator Coonan for her question. She has taken a particular interest in the development of a much better delivery system of labour market services to unemployed Australians. She raises the case today of disadvantaged Australians. The government aims to assist disadvantaged groups through providing them with a much more flexible system than what was available before—much more choice and opportunity.

The labour system under the previous government relied on a very rigid and inflexible structure. The government's targeting of labour market assistance for disadvantaged groups recognises the special circumstances that these people face. For example, we will make assistance available through the community support program in helping people who are not ready for employment at this stage to access services designed directly to address their needs and difficulties.

For people on that program there will be a relaxation of the job search activity test while they are receiving this assistance. This will enable them to return to direct labour market assistance once their particular difficulties have been overcome. In working out the program details, we will work very closely with community groups who in fact raised this problem with us and with whom we have been consulting since the announcement of these changes.

There are people who face multiple barriers to employment. There are groups of unemployed persons who have a combination of difficulties in returning to employment but whose disadvantages do not preclude them getting and holding a job, provided we give them some assistance. The government has recognised the difficulties these people face as well by providing significantly greater incentives for the successful placement of people in this group into employment compared with other unemployed persons. There will also be an extension in the period of time available for case managers to assist people in this group, from a maximum of 18 months to two years.

Disabled Australians also face difficulties in returning to work. A disabled person unable to return to work on a full-time basis will be able to take advantage of the incentive structure facing contracted employment placement agencies. The full outcome fee will be paid to an employment placement enterprise for placing a disabled person into employment for the amount of hours per week that the person is assessed as being capable of working. That is, they do not need to return to full-time employment if they are not capable of it. But if they can be placed in the equivalent of what their capacity is, then the full outcome fee will be paid.

Young people, particularly because of the youth unemployment rate, face a particular problem in getting jobs. For that reason, the employment placement enterprises will receive the highest possible outcome fee for a young person returning to full-time education or training, which is the first foot in the door to getting a job or a better job.