Fiona Scott (Lindsay, Liberal Party) Share this | Hansard source

I rise tonight to speak in support of the Trade Support Loans (Consequential Amendments) Bill 2014. These loans are designed to invest in the skills of our workforce, enabling more young people to start and ultimately complete their trade training. The Australian government has an economic action strategy designed to build a stronger economy, create new jobs and bring Labor's debt and deficit disaster under control. Australia's productivity and competitiveness depends on a highly trained workforce. Trade support loans will help more apprentices complete their training and get the skills they need to fill the jobs that businesses want.

Today within the electorate of Lindsay some nearly 3,000 people are currently training as an apprentice. Having more apprentices in the Australian workforce means we can boost productivity and meet the changing needs of the diverse Australian economy. Therefore, it is important the federal government supports Australian apprentices. Unlike the previous Labor government, this responsible coalition government understands we can better support industry by providing a hand-up and not just a hand-out.

Despite promising employment prospects and earning potential, many young people find the first few years of an apprenticeship financially difficult. We know around 20 per cent of trade apprentices drop out by the end of their first year and, in fact, 30 per cent by the end of their second year. This is such an opportunity lost. Apprenticeships provide an opportunity to secure a career. It does not mean they will be in that career all their lives, but by dropping out they miss the opportunity of that first step towards employment and the long-term ability to earn a wage. I am particularly passionate about this concept of career development as in my own professional journey I pursued other training opportunities before gatewaying into university and eventually building my career. And let me assure the House, as I know from firsthand experience, training opportunities which come with a certificate III or IV are instrumental in shaping the long-term career of so many young Australians. It is that first step towards employment and the long-term ability to earn a wage. In my opinion, this strengthens the Australian workforce.

Trade Support Loans are concessional, income-contingent loans which function in a similar manner to FEE-HELP loans received by university students. The program provides for a loan of up to $20,000 over four years directly to apprentices undertaking an apprenticeship in a priority occupation or qualification. It is anticipated the loans will alleviate some of the financial pressures faced by young apprentices and will improve the completion rates I mentioned previously. Further, to encourage apprentices to complete their training, the loan amount received by an apprentice will be reduced by 20 per cent when they successfully complete their training. This is a wonderful inducement to ensure that people not only start their trades but finished them. Similar to FEE-HELP, loan repayments commence when the apprentice is receiving a sustainable income of around $50,000.

What is so appealing about this program is that it not only encourages young Australians to consider the impact of the decisions they make but to also show fiscal responsibility. Under the Tools For Your Trade scheme money was directly deposited into an apprentice's accounts but there was no incentive to encourage them to spend this money on their trade or to further their career prospects. Comparatively, the Trade Support Loans will encourage apprentices to spend the money responsibly because it does require a repayment. Further, through apprenticeship centres financial advice will be encouraged and ongoing by the apprentice being required to opt in every six months.

I can understand why those opposite would not support these measures, because if the last six years have taught us anything it is that they know very little about fiscal responsibility. The claims from all the members opposite about this government encouraging young Australians to be in debt is ridiculous. As mentioned previously, I did take out a HECS debt—I took out a FEE-HELP debt to complete my master's, a debt I am still repaying to this day. I believe that it is my responsibility to pay my own way. I do not believe it is the responsibility of the taxpayer to be solely responsible for my career development. I believe young apprentices will consider their Trade Support Loans in a similar light. Our Trade Support Loans are a responsible investment in the nation's future and the future of our tradespeople everywhere. I commend the bill to the House.

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