Darren Chester (Gippsland, National Party, Deputy Leader of the House) Share this | Hansard source

And there will be more questions. I am going to answer some of the ones that I have got to in the last 10 or 15 minutes, Member for Chifley.

As the members are aware, the youth employment package was announced in the 2016-17 budget and is an investment in the order of $840 million, which will be implemented over four years to assist young people to develop their employability skills and provide them with the work experience they need to get a job. I thank the members opposite because I think they are very sincere in their enthusiasm for helping young Australians receive the job-ready skills they need which will enable them to obtain a foothold in the job market. It does build on other initiatives that the Turnbull government has implemented under the youth employment strategy, which will further boost young people's job prospects by making sure they are in a position to be better prepared to join the workplace.

Members asked questions as to: 'Why aren't the jobseekers undertaking internships paid at the minimum wage?' Under this program, placements do not constitute an employer-employee relationship and do not involve wages or salaries. The jobseekers continue to receive their income support as well as a $200 fortnightly supplement, which is paid by the Australian government. The program will provide those young jobseekers aged from 17 to 24 with an opportunity to show prospective employers what they can do in the workplace while gaining those valuable work skills and experience. I am sure members opposite would agree with me that quite often all a young person needs is a chance to get a foothold, to get their foot in their door, to demonstrate that they have the capacity to hold down employment. This internship program gives them a chance to prove their suitability for future employment.

In terms of the question about whether it complies with the Fair Work Act: the internship is not work; it is work experience, as members opposite would be aware. In relation to the need for such initiatives: it has been a matter of concern put to the government by organisations such as the Business Council of Australia and the Australian Chamber of Commerce and Industry, who have consistently stated that young people need to improve their employability skills and to have had recent work experience. The ABS data shows that more than 100,000 unemployed young people aged 15 to 24 have never worked before. That is an important consideration when we reflect on the position put by the government in relation to this legislation—100,000 young people aged 15 to 24 have never actually worked before. Giving them the opportunity to prove their abilities in the workplace is an endeavour worth pursuing.

In terms of protections to be put in place—and I acknowledge the questions raised by several speakers regarding protections to prevent employers from abusing the program, including the displacement effect, which I think some members referred to—employers who participate in the internship program must be able to show real prospects of ongoing work and there will be safeguards to ensure that existing workers are not displaced by the scheme. The program sets a maximum duration of 12 weeks, and the number of weekly hours worked in the placement will be 25 hours. The internships will be voluntary for both the businesses and the jobseekers and be co-designed by them to ensure that the placements meet both their needs. Again, that is an important consideration. For this to work, it has to be in the interests of the young person themselves and it also has to be seen to be of some benefit to the business sector, which will be passing on the opportunity for these young people to learn those skills with the on-the-job training provided through the internship program. It will be up to the government to ensure—and I take the caution in the spirit that it was meant—that the program is closely monitored to ensure that the employers who use the program are not exploiting and not, to use the vernacular, churning and burning young people by simply rotating them through. If they are seen to be exploiting young jobseekers they will be excluded from the program in the future.

I do want to acknowledge the contribution by members opposite, and I am sure there will be other questions that will be raised. But I would hasten to say that this is a comprehensive package that has targeted services and support for all unemployed young people. It is a well-designed package, with an evidenced-based pathway to help young Australians into the workplace. It offers, I think, a meaningful and rewarding opportunity for young jobseekers and employers a like to bridge the gap and to get young people working.

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