Marise Payne (NSW, Liberal Party, Shadow Minister for COAG) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Indigenous Employment and Economic Development, Minister Ludwig. Can the minister explain why the government has made changes to the Indigenous Employment Program when it is likely to result in the imminent closure of companies such as the Aboriginal Employment Strategy—which has placed over 10,000 Indigenous Australians into real jobs—and the Replay Group, which operates in Victoria, New South Wales, Queensland and the Northern Territory? How will these changes help the government reach the Closing the Gap target of halving the gap in employment outcomes between Indigenous and non-Indigenous Australians by 2018?

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

Mr President, I rise on a point of order—just a point of clarification. I am not sure that the senator's question was directed to the right minister. I think the representative minister is actually Senator Wong. It could be me, so I am just checking. I think it is Senator Wong, but I think the question was directed to Senator Ludwig. I wanted to clarify that.

Marise Payne (NSW, Liberal Party, Shadow Minister for COAG) Share this | Link to this | Hansard source

I understood that Senator Ludwig was the minister representing Minister Collins from the other place. If that is not the case—

John Hogg (President) Share this | Link to this | Hansard source

Senator Payne, I might help you. I was looking at my sheet as well, to see the representation. My sheet tells me that Senator Wong is the Minister representing the Minister for Indigenous Employment and Economic Development. The question has been heard.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

Thank you, Mr President. I do not reflect on Senator Payne's error, because, I have to say, I had to check that I was representing.

This is the more recent change. I do have some information about the Aboriginal Employment Strategy, which is a major recipient of IEP—the Indigenous Employment Program, which I am advised has nine current projects worth $29 million. I am also advised that all contracts have a start and end date, and any new contracts have to meet the guidelines and criteria of the Indigenous Employment Program. I am advised the government will continue to discuss these contracts prior to expiry with existing providers. That is the usual course.

Last month, the AES was successful in tendering to provide traineeships under the government's $50.7 million Indigenous Youth Career Pathways program. I understand that this was an open, independent public tender process for contracts which have a stated expiry date. The senator, given her interest in this area, would probably also be aware that the Aboriginal Employment Strategy is one of 18 successful organisations from a large quality field, selected under the tender to deliver the program across 13 regions nationally from the 2013 school year.

The quality of submissions for the IYCP—the Indigenous Youth Careers Pathway tender that I described earlier—was very high. Tender outcomes reflected the result of an open and competitive tender process which resulted in a number of organisations being considered suitable.

I understand that, previously, funding support for Indigenous students participating in school-based traineeships was provided through IEP and focused on providing funding directly to employers or through IEP panel members who acted as brokers. (Time expired)

Marise Payne (NSW, Liberal Party, Shadow Minister for COAG) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister advise why the government has failed to properly consult and engage with organisations about the changes to the IEP, particularly with contracts so close to expiring? Some organisations which have made significant inroads into ending the welfare and poverty cycle for many Indigenous Australians have indicated that they will have to close their doors as of 3 December this year because they have no certainty.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

In her question the senator referred to the importance and the imperative of ending the cycle of disadvantage. I do not think those were the words she used, but I think that was the intent of her question. I think that is a view shared by most if not all senators and I know it is something that she has a strong interest in.

I think the question really was in relation to an issue that I did address initially. I am advised the government will continue to discuss IEP contracts prior to the expiry of the existing providers. Given the date that she referenced, which I think was 3 December, if there is anything additional from the minister that I can obtain I will certainly do so and provide it to her.

Marise Payne (NSW, Liberal Party, Shadow Minister for COAG) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. I refer to that part of the minister's first answer concerning the Indigenous Youth Career Pathways program: as the government moves towards a jobs services agency model rather than an employer-driven model, which the minister described, has the government considered the implications for the operational providers who have acted under the current system and whether those providers will be able to continue to operate and, indeed, survive?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

As I said in the first answer, the government has committed just under $51 million to the programs to which the senator refers—the Indigenous Youth Career Pathways program. I am also advised that this program was subject to an independent public tender process under which the contracts have a stated expiry date, so I am not sure, in the context of the tender process, to what the senator is referring. In relation to the tender, as I said, the advice I have is that the quality of submissions for the tender was very high and the outcomes, as you would expect, reflected the result of a competitive and open tender process. It is the case that this is a new approach in relation to this program. I am advised that the previous supply program, the IEP program--(Time expired)