Karen McNamara (Dobell, Liberal Party) Share this | Hansard source

I rise to support the Trade Support Loans Bill 2014 and cognate bill. As the member for Dobell, I am committed to increasing local employment opportunities for our school leavers and job seekers, and to providing real support for apprentices on the Central Coast. Increasing the support offered to apprentices is crucial if we are to encourage more job seekers to take up, and, importantly, complete apprenticeships.

This government is committed to building a high-quality and nationally-consistent Australian apprenticeship system which responds to the needs of employers and the economy and which supports apprentices. Trade Support Loans have been developed to specifically address the needs of young job seekers wanting to undertake apprenticeships, and to reverse the trend of falling apprenticeship completion rates.

Unfortunately, apprentices have been let down by the former, Labor government, who failed to provide them with the necessary support to complete their apprenticeships. Over the past decade, only half of those who commenced an apprenticeship, attained their qualification. Measures introduced by the former, Labor government failed to address this damning statistic. This just is not good enough. Trade Support Loans provide real support for apprentices to complete their skills training and provide stronger incentives for young Australians to become apprentices.

The introduction of Trade Support Loans will see more apprentices in the Australian workforce, meaning there will be a greater capacity to fill the diverse and changing needs of our modern Australian economy. Specifically, Trade Support Loans are designed to assist apprentices with the costs of living and learning during their apprenticeships. For an individual, failing to complete an apprenticeship can be damaging to their self-esteem and often carries a financial burden. For businesses, a non-completion represents an unfulfilled investment, which, in trying economic times, can be a disincentive to providing opportunities to young people.

These factors shape our commitment to building a high-quality Australian apprenticeship system which supports apprentices and responds to the needs of employers and the economy. As a government, we acknowledge the need to support young job seekers commencing apprenticeships. Trade Support Loans will encourage a greater take up of apprenticeships and will provide ongoing support to apprentices. Analysis undertaken by the National Centre for Vocational Education Research indicates that the main cause of non-completion is low wages. This is particularly true in the early years of an apprenticeship, accounting for one quarter of all non-completions.

This government's Trade Support Loans specifically target the cause for low completion rates. Significantly, our Trade Support Loans are a hand up, not a handout. Trade Support Loans replace the former Labor government's unsustainable Tools For Your Trade, which failed to provide adequate support to apprentices. Trade Support Loans provide apprentices with the flexibility required to support their training and studies. Apprentices will have the discretion to use their trade support loans as an income supplement to purchase equipment and tools, to support their studies and to cover external course fees. An apprentice can also elect to use their Trade Support Loan to start up their own business at the completion of their apprenticeship.

In my maiden speech, I spoke of our duty and obligation to the young people of Dobell to plan for their future skills and employment. In Dobell, one in two students obtain Year 12 qualifications and only 14 per cent of people aged 17 to 22 years are engaged in tertiary education. As of April 2014, there were 8,534 people undertaking apprenticeships across the Central Coast and Hunter region. This figure represents approximately 16 per cent of all people undertaking apprenticeships in New South Wales. It is estimated that there are currently over 4,000 people seeking an apprenticeship or training on the Central Coast.

The former Labor government's economic mismanagement has resulted in a distinct lack of opportunity for apprentices on the Central Coast. Working with local businesses, we must actively encourage the employment of apprentices and support employers who provide such opportunities.

Karen Drinan, a small-business owner, believes Trade Support Loans would be beneficial to an apprenticeship as they would assist with the costs associated in completing an apprenticeship. Karen stated:

Unfortunately for many apprentices, wages are low until their third or fourth year. These Loans will assist apprentices with costs such as tools, TAFE fees, transport and everyday expenses—which will increase their ability to stay in an apprenticeship.

One of Karen Drinan's current apprentices, Mark Dumpleton, is due to complete his apprenticeship in October. Mark has welcomed Trade Support Loans, saying that if he had had access to the Loans at the commencement of his apprenticeship he would have used the Trade Support Loan to supplement his wages and living expenses, such as his car registration.

Trade Support Loans have also won support from group training organisations who specialise in matching young people with apprenticeship opportunities. Michael Bennett, Chief Executive Officer of HTN, a leading group training organisation in the hospitality industry, has welcomed the announcement of Trade Support Loans, saying: 'The Trade Support Loans will provide much needed support to young people completing an apprenticeship.' Greg Best, General Manager of Central Coast Group Training, has called Trade Support Loans 'one of the most significant and progressive policy initiatives in the past decade'.

The introduction of Trade Support Loans will offer the required level of assistance to apprentices and help reverse the trend of increasing non-completion rates. This is central to our commitment to build a high-quality Australian apprenticeship system that supports apprentices and responds to the needs of employers and the economy. Locally, our future productivity and competitiveness depend on a highly skilled and trained workforce.

I am personally committed to supporting our young job seekers as they undertake apprenticeships. I commend this legislation to the House.

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