Alannah Mactiernan (Perth, Australian Labor Party) Share this | Hansard source

It is quite amazing that the program before us is being hailed as something that is going to encourage more people to enter the trades. The primary argument appears to be that it will encourage them to continue and complete their trade training. If we look at the package in the trade support loans bills that the Abbott government is delivering, we will see results very different to that. It almost beggars belief that they could claim that a government that is cutting $5,500 from each apprentice—without any electoral mandate whatsoever—is somehow adopting a stance that is likely to encourage more apprentices into training and encourage those apprentices who are training to stay in training. It is absolute nonsense.

We are supporting the legislation here tonight because this trade support loans program is really now all that is going to be on offer for apprentices and to stimulate trade training, but we have to say it is a vastly inferior package to that that was available under Labor. Labor positively encouraged apprenticeships. We had a meeting the other day in Perth of a group of young apprentices from a whole range of trades. There were about 15 young guys there from the Princess Margaret worksite. They were appalled by the statements that had been made by ministers of this government. The Minister for Industry said that the problem with the Tools For Your Trade program that had been offered under Labor was that they all raced off and got tattooed and were not spending it on their trade training. That is completely contemptuous of these young people who have embraced trade training. Indeed, it is treating these apprentices in a way that no government would ever deal with any business. The idea that these young people have signed up to apprenticeships understanding that they were going to get, over the course of their trade training, a tax-free benefit of $5,500—having signed up and committed themselves to take on jobs that are, it would be fair to say, very modestly paid—to then find the ground rules have changed is, I believe, unacceptable. It is a bad policy. To introduce this in such a way that those people who have already made a commitment to an apprenticeship—who have started their training and entered into financial commitments—then find the ground rules have changed is particularly unacceptable.

What we are seeing happen is apprentices are now being hit twice. Not only are they losing the Tools For Your Trade scheme, they are also facing the actions of state governments. In Western Australia, in particular, I know that with the deregulation of TAFE fees the cost of doing an apprenticeship has increased very dramatically, particularly for those young people who are working for smaller employers and have to cover their own fees. This is a huge liability. We have lots of people now in their second or third year of apprenticeship and suddenly all the ground rules have changed. Not only are they losing their Tools For Your Trade assistance scheme for the life of their apprenticeship, they are also being required to pay much higher apprenticeship fees.

I will quote a few people. Mercey contacted us. He is a young apprentice carpenter from Perth in his 20s. He has two jobs: he is an apprentice during the week and he works at the local supermarket each weekend to make ends meet. In total, working that seven days a week earns him the princely sum of $870. He works for a very small employer and has to cover the cost of his own fees which are now, he tells us, some $12,000 over three years. He is absolutely stunned that the government could unilaterally take away Tools For Your Trade, which had been very much a part of his decision-making on going into his apprenticeship. To suggest that taking out a loan for $20,000, that will have to be paid back, is in any way a better deal for him is just a complete and utter fantasy.

Danielle has contacted us. She is very concerned. Her partner has finished all the coursework for his adult apprenticeship in light vehicle mechanics and was due for his final payment not long after the cut-off date. Danielle and her partner have two children and the Tools For Your Trade payment was used to purchase all the extra tools he needs to do the job that an already tight budget could not stretch to. Here you have a young man, with a young family, seeking to obtain skills. Obviously, it is hard to manage with a family on the very modest pay of an apprentice. Now the Tools For Your Trade payments have been cut it will be so much more of a struggle. How is this going to encourage more people into apprenticeships? It is absurd.

We had Erica contact us. Erica is a hairdressing principal. She said:

I have just heard from my hard-working, low paid young hairdressing apprentices that the Tools For Your Trade payment has been cancelled from July. This is a great disadvantage to them, considering they pay their own TAFE fees and have to purchase all their tools while earning under $11 an hour for their first year. A set of straighteners for a professional can cost at least $2,000.

A whole $8.30 a week! We should be supporting apprentices.

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