Federal Budget

The Hon. K.J. MAHER (15:22): My question is to the Minister for Employment, Higher Education and Skills. Can the minister advise the chamber about the impacts of the Liberal government's budget on funding for apprenticeships, vocational training and higher education in South Australia?

The Hon. G.E. GAGO (Minister for Employment, Higher Education and Skills, Minister for Science and Information Economy, Minister for the Status of Women, Minister for Business Services and Consumers) (15:22): The federal Liberal government's budget has certainly ripped the heart out of ordinary South Australians. With this budget, these cuts will have severe and immediate negative effects. Not only have we seen unprecedented cuts to education and health funding, we have also seen the federal government rip out around $400 million over four years for apprenticeships, vocational training and higher education—$400 million over four years for apprentices, vocational training and higher education. This includes a more than $145 million, or roundabout, reduction in VET services in South Australia.

This is an astonishing and unbelievable cut—astonishing and unbelievable when you consider how integral vocational education and training are to the South Australian economy. These reductions in vocational education programs would mean around 20,000 fewer places for training—roundabout 20,000 fewer training places throughout South Australia. That is what these cuts mean and also they obviously thrust greater economic pressure on our families and individuals.

Our regions will also suffer a shocking blow. Approximately 5,000 of those vocational training positions may be lost to regional areas, so that is about 5,000 out of that 20,000. Not only are the Liberals intent on cutting vocational education programs but they are also imposing a cruel impost of debt on people looking to further their skills. From 1 July young apprentices, who have previously been given a grant to help purchase their tools of trade—we are talking about apprentices' tools of trade here—will now be incurring a debt. So, if they want to purchase their tools they will have to take out a loan, a debt to the commonwealth.

I was speaking to a young 19 year old in his third year of a plumbing apprenticeship, and when he was asked about the impact of the tool allowance being ripped away, he said, 'I already have a mortgage. I have had to take out a mortgage for a car because I need a car to be able to get to my work. I've already got a mortgage; I can't afford to take out further mortgages.' He was a third-year apprentice. What are they expected to do in future—take out loans?

Many of these students are trying to balance other work-related costs, such as a car loan to enable them to travel to work. Scrapping the Tools For Your Trade payment will place an unnecessary burden on our young apprentices. It does not stop there. The federal Liberal government is ceasing support to numerous other programs that support apprentices and their employers, such as no new applications to the Accelerated Australian Apprenticeship Program, the Australian Apprenticeships Mentoring Program, the Alternative Pathway Program, the Australian Apprenticeship Access Program, and the Apprenticeship to Business Owner Program—they will all have the guts ripped out of them.

It is clear from these cuts that the Abbott government has forgotten that the apprenticeship and training programs are key to opening opportunities and job prospects for many South Australian young adults. The government's budget will force South Australian young adults into debt to pay for their training and education. It is not only young people, but a lot of older South Australians who have been retrenched or redeployed and want to retrain or upskill come back and use these courses to try to find new employment and re-employment. They are gone—10 skill and training programs are gone—$400 million across four years, $145 million just from the VET sector.

As I said, it is forcing debt on to people who often cannot afford it, and it would be a burden that is just too great for many individuals to take on. Many will not pursue that option of paying through debt. This is unacceptable to the state Labor government, and we will campaign against this. We will stand up for apprentices and trainees. We will stand up for those South Australians who have been redeployed or retrenched and want to retrain, reskill and find employment. This Jay Weatherill government will stand up for these South Australians. We do not accept this budget.

We warned South Australians about what would happen. We warned them earlier this year. We warned them that this was the real agenda of a Liberal government, federal or state. This is the real sort of agenda. We will not stand by and let a federal government withdraw funding to vital services and expect the South Australian government to pick up the pieces. We do not accept this federal government, and we will fight it.