Mark Arbib (NSW, Australian Labor Party, Minister Assisting the Prime Minister for Government Service Delivery) Share this | Hansard source

I thank Senator Fifield and Senator Hanson-Young for their comments and also for their support in not opposing the amendments in the Social Security Amendment (Training Incentives) Bill 2009. This is something that the Rudd government and the Labor Party is passionate about. We all remember the 1990s and the hardship that young school leavers and many young people felt in unemployment and the disadvantage they experienced, and that takes years and years to overcome. As the new Minister for Employment Participation, I am passionate about helping young people through the difficulties of the global recession, but I am also 100 per cent committed to trying to ensure that young people who have fallen into long-term unemployment and who are disadvantaged are helped as much as possible during these times not just with training but with training that prepares young people and provides a pathway into employment and not just Work for the Dole schemes but real jobs which give them employment well into the future. You only need to talk to young people who are unemployed, looking for work or who have just found a job to understand how important it is to their self-esteem, how important it is to their confidence and how important it is to their livelihood. It is not just about financial security. It is about who they are as an individual, and these become the building blocks for us as a society and for families. This is something that the government and I will be focused on during the hardships of the global recession. I therefore thank the senators for their comments.

Moving into some of the detail of the amendments, the temporary training supplement will provide an extra $41.60 per fortnight to people who are among the most vulnerable to long-term unemployment, recipients of Newstart and parenting payment who have not completed year 12 or an equivalent qualification. The training supplement will be paid to around 50,000 eligible recipients who commence an approved course between 1 July 2009 and 30 June 2011. To qualify, eligible Newstart or parenting payment recipients will need to undertake an approved Certificate II to Certificate IV course that is included in their employment pathway plan. This is a plan between the job seeker and their employment service provider that outlines the activities that they will undertake to help them move into work.

In this economic climate it is crucial that retrenched workers can access income support, training incentives, training places and employment services. The targeted practical assistance that the training supplement will provide to help with study costs builds on the $1,158 training and learning bonus introduced by the government earlier this year. The training and learning bonus provides substantial financial support and study incentives for unemployed people who undertake approved training over the period 1 January 2009 to 30 June 2010. To be clear, people who receive the fortnightly training supplement may also receive the training and learning bonus. This combined assistance provides a substantial incentive for job seekers to undertake training to get the skills they need for sustainable, long-term employment.

In addition to these payments, the government is providing $4.9 billion over three years for Job Services Australia to help job seekers move into paid work. Some $300 million has also been committed to ensure recently retrenched workers get access to immediate intensive support with their employment services provider to find another job. The government has made it easier for retrenched workers to access immediate income support by relaxing the liquid assets waiting period so that people do not have to deplete nearly all of their savings before they can commence getting income support. Through the Productivity Places Program, job seekers have access to more training places to help them gain qualifications from Certificate II to Certificate IV level.

The second measure in this bill will introduce new participation requirements for young people without year 12 or the equivalent qualification in return for receiving youth allowance. This measure is about proactively addressing the risk of high and sustained youth unemployment in this economic downturn. The changes to youth allowance (other) in this bill will assess young people against new learn or earn participation requirements until they complete year 12 or an equivalent qualification. It is important for us to remember the lessons from the recession of the early nineties, which clearly demonstrated—and I did make this point—that early school leavers and young people with low skills are often the most disadvantaged during a downturn and subsequent recovery. Young people without year 12 or an equivalent qualification are particularly vulnerable to becoming unemployed or being on the long-term job queue.

The changes to youth allowance (other) in this bill will ensure that more young people remain in study or training until they complete at least year 12 or the equivalent—if they have the capacity of course. This measure is not about penalising unemployed young people. There will of course be safeguards for young people who have complex needs or who may have only a partial capacity because of work or parental responsibilities. Arrangements for young people will be flexible and young people with substantial barriers, such as homelessness or substance abuse, will be offered alternative ways to comply with their requirements.

These new arrangements are part of a coordinated strategy between the Australian government and other jurisdictions through the youth compact. Through the Council of Australian Governments, all states and territories have agreed to establish a compact with young Australians which will entitle every Australian under the age of 25 to an education or training place and encourage them to attain higher qualifications and to apply the skills necessary to play a productive role in Australia’s economic recovery. This strong and decisive leadership by the Rudd government has been welcomed by a range of stakeholders, including the National Welfare Rights Network, which has described the youth compact as having ‘the potential to save a generation of young people from a bleak future of long-term employment and poverty’.

The training incentives bill provides a much needed incentive for people to continue to train and learn during periods of downturn and to be skilled for the recovery ahead. The measures in this bill will provide timely and targeted assistance to improve long-term employment outcomes, protecting vulnerable Australians from the full effects of the global recession. The government is determined to position Australia to maximise the benefits of the economic recovery by investing in skills to equip income support recipients to actively participate in the workforce when the economy recovers. I commend the bill to this house and urge all senators to support the bill.

Question agreed to.

Bill read a second time.