Page 474 - Week 02 - Tuesday, 21 February 2012
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Amendment, as amended, agreed to.
Proposed new clauses 7B to 7I agreed to.
Clause 8.
MS HUNTER (Ginninderra—Parliamentary Leader, ACT Greens) (10.57): I move amendment No 2 circulated on the yellow sheet in my name [see schedule 1 at page 551].
This clause may seem like a minor amendment. However, this is an amendment that can significantly impact on young people and young adults as they transition from out-of-home care in the ACT. The Greens were pleased that the government had followed our lead and included financial assistance in the bill. However, we were uncomfortable with the fact that the government had not addressed the issue of interest payable on any loans or financial assistance provided to young people or young adults.
It is concerning that the government would consider charging interest on this financial assistance. We are not talking about large amounts of money, and the bill provides for the director-general to set out the conditions on which loans may be made. We can all appreciate that many young people or adults need a hand at times and it is very common for parents to lend their children some money to help them get organised. Providing financial assistance to young adults is seen as an effective way of assisting young people to develop life skills and acquire items necessary to make their way through life. Many parents provide small loans and financial assistance to their children in the community and do not charge interest or any fees.
I am pleased that this bill has included the ability of the director-general to provide financial assistance that can be used to fund a range of different purposes. It is, however, disappointing to see that the government was not prepared to ensure that interest on such financial assistance could not be charged. The absence of such a limitation raises concerns about how interest could be calculated and what factors or risk assessment guidelines are to be used.
For all those reasons, the Greens do not believe interest should be charged on these loans and therefore have moved this amendment.
MS BURCH (Brindabella—Minister for Community Services, Minister for the Arts, Minister for Multicultural Affairs, Minister for Ageing, Minister for Women and Minister for Gaming and Racing) (10.59): I just want to put on record that the $200-odd million over a number of years for that support arrangement as young people transition is to enable the director-general to provide financial assistance to young people. This involves funding of one-off expenses not provided by other agencies. It has been noted here by a number of us who have spoken that young people when they transition into independence require some financial assistance, and that is what the government has already put in place, with no interest.
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