Senator SANDY MACDONALD —My question is directed to Senator Vanstone, the Minister for Employment, Education, Training and Youth Affairs. Minister, the House of Representatives Standing Committee on Employment, Education and Training recently produced a report entitled Youth employment: a working solution . Will you inform the Senate of the status of this report and give an indication of the government's likely response?

Senator VANSTONE —I thank Senator Macdonald for the question. I understand that the report was tabled in parliament yesterday. It followed a national inquiry into the employment of young people that I was very keen to see proceed. The government very much appreciates the work of committees such as this one because they make a very valuable contribution to the debate on such vitally important areas.

The government will take some time to digest the recommendations made and to provide an appropriate response, but it will be done as soon as possible. We very much welcome the strong case that is made by the majority members of the committee for the retention of age based junior rates. Obviously the majority members of the committee are aware of how irresponsible it would be to abolish age based junior rates.

These rates are absolutely essential for letting young Australians gain a foothold in the labour market. They give them a cost advantage. Far from disadvantaging junior employees, they actually assist them to get jobs. The current junior award arrangements that have been in place for the last 70 years or so should be retained within the scope of the awards system for the parties to establish skills based wage arrangements where this will not damage youth employment. At the same time, it is important that I indicate very clearly that this government will not be replacing existing junior traineeship and apprenticeship wages with a national youth wage.

The government is also committed to ensuring that young people are the winners with the government's new youth allowance. It is true: when you restructure, there are winners and losers. However, it is now less attractive to leave school early and not do any training. But young Australians will, in the end, be the winners.

The incentives have finally been rejigged away from remaining unskilled and toward the benefits of a good education and training. The youth allowance will provide students with much better financial support. It will remove financial incentives that have in the past seen young people choose to receive unemployment benefits rather than undertake further education and training. In addition to those matters, the government is delivering on its promise to increase genuine job opportunities for young Australians.

The new national apprenticeship system will provide trainees with world class skills, giving Australian businesses a competitive edge in the global economy. The federal government will provide a total of more than $1.3 billion for vocational education and training in 1997-98, which is an increase of $144 million or 12 per cent on funding provided in the last year of the Labor government. It includes $265 million for more than 100,000 new apprenticeships and traineeships in this financial year. The new apprenticeships and traineeships will be in high growth industries, such as technology, finance, tourism, hospitality and sport as well as the traditional trades.

In 1997-98, $415 million is being provided for the new national apprenticeship system. For the first time, there will be national recognition of skills and qualifications, thereby expanding job and career options. Employers will be able to choose who will deliver the off-the-job training of their apprentices and trainees. Hiring apprentices and trainees will be easier through one-stop shop arrangements. Students will now be able to earn while they learn by combining a paid new apprenticeship with their secondary education, and we will also be committing almost four times as much funding for VET in schools as the Labor Party provided over its last 13 years.