Senator BOLKUS —My question is to the Minister for Aboriginal and Torres Strait Islander Affairs. I refer the minister to comments of the head of ATSIC, Mr Gatjil Djerrkura, who said recently:

Despite the gains in indigenous education in the past three decades, indigenous students lag behind other Australians by almost any measure of participation or attainment.

Why then is the government proceeding with changes to Abstudy, changes which will, one, result in more than $18 million being cut from the Abstudy budget and, two, significantly disadvantage more than 14,000 indigenous students in tertiary education?

Senator HERRON (Aboriginal and Torres Strait Islander Affairs) —I thank Senator Bolkus for the question because Abstudy is a very serious issue. But, unfortunately, the content of Senator Bolkus's question is incorrect. The ATSIC report contains a number of incorrect assumptions and has, in many cases, extrapolated too much from insufficient data. The breakdown of affected populations is inaccurate and the calculation of financial gain or loss resulting from the changes for certain student population groups is not correct.

Conclusions about financial impact—for example, that the Abstudy budget could be reduced in 2000 by as much as $18.1 million—are flawed largely because of the premise that all students currently enrolled in courses will continue into 2000 and a significant overestimation of the number of pensioner education supplement beneficiaries. Over 80 per cent of Abstudy beneficiaries should experience no or minimal change—and by that I mean less than 7c a week—to Abstudy benefits.

There are changes to Abstudy for 2000 to align benefits payable to indigenous students with those payments to non-indigenous students, unless the disadvantage addressed by the benefit is unique to or disproportionately concentrated upon indigenous students. Abstudy supplementary benefits have been retained. Abstudy students will have their pensioner education allowance aligned with those payable to non-indigenous students. Of those tertiary students who will experience a decrease in the Abstudy living allowance, up to 60 per cent may gain access for the first time to mainstream related entitlements such as rent assistance, remote area allowance and pharmaceutical allowance.

In recognition of their particular circumstances, tertiary Abstudy students of 21 years or older receive a higher rate of living allowance than Austudy recipients, can access mainstream related benefits which Austudy students cannot and retain access to supplementary Abstudy benefits which address specific advantages.

Senator BOLKUS —Madam President, I ask a supplementary question. I note that the ATSIC study was actually conducted by independent organisations, unlike the minister's answer. Minister, why is the government proceeding with these socially irresponsible cuts to an area which, on any consideration, really needs extra assistance rather than reduced assistance?

Senator HERRON (Aboriginal and Torres Strait Islander Affairs) —I do not think that Senator Bolkus listened to my answer. In the answer I gave, I said that the assumptions that he made in his question, and which were also made in the Abstudy paper, were based on false premises. I am happy to provide those. I think Senator Bolkus should await further developments.

Senator Bolkus —I ask the minister to table the document from which he was reading.