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ABC News Breakfast -

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(generated from captions) rate has been cut to 100%. As

Chris just said, Australia has

a new employment services

program, now, job services

Australia, Andrew Southcott is

the Opposition's employment

participation spokesman and he

joins us frou the ABC's

Adelaide news room. Good

morning. You've been a critic

of this sphrm the beginning.

What do you say will happen

now? Well , what will happen

Virginia is certainly for the

next six months, there will be

a lost period where this system

is not fully up and running.

That seems to be conceded by

providers, by the peak groups

and certainly I think the

Government has really underestimated the challenges

here of firstly tendering out

100% of business, moving to a

totally new model which was

designed for a period of full

employment, and then on top of

that, not really awarding the

contracts on the basis of past

performance, so I think we will

see a lot of teething problems

over the next six months for

the unemployed a jobless It

follows that there will be

teething problems with any new

system put in place and any government of any political

stripe has found that over the

years. In a Mr Substantial way,

do you say that if we see a

rise in unemployment, say, over

the next 1 # to 1le nafs that

is directly related to the implementation and the

construction of the job

services network? It certainly

will be. The Rudd Government

have really wramed the global

financial crisis on the rising unemployment on global

financial crisis. But what we

will see from today is any p

extra job lost or any increase

in unplom ep unploimed will be

due to decisionings that they

have made and a lot of these

decisions were unnecessary. We

will see today almost one in

two job seekers will be

changing their case workers,

changing their providers,

without their files following

them, losing that relationship,

that they had with their case

workers, and this dedeagree of churn was completely unnecessary. The job network

was a successful system. It

reduced unemployment, it was -

it happied to put people into

jobs, and to - it was actually

a mature system, it has been

going for 11 years. And we had

made improvements over the

better but really bedded it

down and the Government naively

I think went for a big bang

Chang in employment services,

and a large deagree of those

changeses were unnecessary and

they're not ready for the

types Year to Kwanfy then what

unemployment will be be under

the new job services

regime? No, I won't make any

forecasts. You just didment you said that unemployment will

rise and it will be directly as

a result of this new system. I

can't put a figure on it. I

will say that unemployment will

be higher than it otherwise

would have been because we will

have an employment services

system which will not be

operating at full capacity for

six months. And the role of

employment services is to make

sure you reduce frictional

unemployment at a time when

unemployment is rising, you

want to put jobless people in

contact with the jobs. We know

that it will not be working at

full capacity for six months,

that is a wasted six months at

a time when we are forecasting

there will be almost 1 million

Australians out of work within

the next two years. This is

light lit ou of your Bali wick

but I would like your response

morning on news we're hearing

about the AMWU, about to launch

a 4% pay increase push across

about is 300 agreements

apparently this on the first day of the new industrial

relations regime in Australia,

what's your response? Well it

didn't take very long. The

important thing has to be the

protection of jobs and the

creation of jobs. And it needs

to be related to the capacities

of businesses to pay. So, my

response to that would be essentially it is very

important that we never lose

sight of the fact that we need

to create the most positive

environment in which jobs can

be created and in which jobs

are not lost. Sadly,

historically in Australia, the

union movement have not kept

sight of this, of creating a

positive environment to create jobs. Andrew Southcott thank

you for your time today Thank

you rg Virginia We do need to

point out that we did invite

members of the Government on

the program this morning to

speak about at least the

beginning of the new industrial

relations landscape and regime,