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Legislative Assembly for the ACT: 2004 Week 03 Hansard (Wednesday, 10 March 2004) . . Page.. 1030 ..

A Year 12 school-leaver entering a traineeship would receive a weekly training wage of between $247 and $265 before tax. Year 10 and Year 11 school-leavers received between $157 and $219. A monthly ACTION bus pass costs $80.50.

Mr Speaker, the committee recognised the huge impost travel costs had on VET participants, and agreed that transportation costs can act as a barrier to the uptake of traineeships and apprenticeships.

Recommendation 9 of the committee’s Pathways to the Future: Report on the Inquiry into Vocational Education and Training in the ACT released last August stated:

The committee recommends that the Government investigate the implementation of a public transport subsidy for young apprentices and trainees, or better publicise any existing subsidies that apply to trainees and apprentices, including the consideration of extending the student concession to this group.

The committee was pleased that the ACT government agreed with this recommendation. The issue of public transport support for young apprentices and trainees had been examined in the past and, as a result, concession eligibility was extended in the year 2000 to people on low income who hold a Centrelink health care card. Previously, this group was not eligible for concessions, as members do not receive a financial benefit from the federal government. Eligibility for this type of health care card is based on their low income, currently set at $366 per week.

The ACT government’s main focus when including this group for concessions was that the majority of first and some second year apprentices would become eligible for public transport concessions. The funding for this concession is part of the general concession program administered by the Department of Disability, Housing and Community Services. While this is good news for ACT vocational education and training participants who use ACTION bus services, relieving the cost of transport, many still have difficulty paying other bills and meeting living costs. We all know that bills do not simply disappear, so how are students paying for their living costs? They borrow money, be it from financial institutions, lenders or family, or pay for bills and items on credit.

It is not just a small majority of students who are living this way. The Australian Vice-Chancellor’s Committee 2001 report revealed that 78.2 per cent of all university students in Australia are in budget deficit. And I am sure that figure has increased since 2001. There are a number of reasons why this is the case. Firstly, the cost of living has increased. Accommodation, food and clothing are all more expensive than they were 10 years ago. Textbooks and materials have also increased in cost. But a major reason for the blow-out in debt is the increase in university and course fees across Australia.

Mr Speaker, when HECS was introduced in 1989, all students were charged a flat rate irrespective of their course of study. In January 1997 the Howard government introduced a three-tiered system of charges to reflect the different cost structure of various courses and the different potential earning capacity of graduates. This year the HECS contribution levels are: $3,768 per annum for arts and humanities; justice, legal studies; social science and behavioural science; visual and performing arts; education; and nursing. The majority of these degrees and qualifications take three years to complete, so $3,768 times three equals $11,304.

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