Minister claims credit for Howard government apprentice program

TRAINING Minister Brendan O'Connor has incorrectly claimed credit for a Coalition policy.

Tradesman

TRAINING Minister Brendan O'Connor has incorrectly claimed credit for a Coalition policy, saying Labor has already introduced the loans for apprentices that Tony Abbott promised last weekend.

Mr O'Connor told Adelaide radio station 5AA that apprentices could already access HECS-like loans.

"We introduced that some time ago," he said. "It's an imitation of our policy."

In fact, the loans are not available to apprentices and were introduced by the Howard government.

When asked to explain Mr O'Connor's claims, his office instead highlighted a grant scheme for apprentices that was also brought in by the Howard government.

Mr Abbott has pledged to curb apprentice dropout rates by offering interest-free $20,000 loans. Like HECS for university students, apprentices would not have to repay the money until their incomes exceeded $50,000 a year.

The idea is an extension of the VET FEE-HELP loans introduced in the Howard government's last budget. These loans were only available to students of top-level training courses including diplomas, advanced diplomas, graduate certificates and graduate diplomas.

Almost all apprentices undertake lower-level certificate III courses, which are not eligible for the loans. Labor has relaxed some restrictions and abolished administrative fees for some of the loans, but apprentices remain ineligible.

Mr O'Connor is a former high-ranking union official and was immigration Minister for five months under Julia Gillard. He has held the skills and training portfolio for two months.

Asked to explain his claims, Mr O'Connor's spokeswoman highlighted a scheme that provides apprentices $5500 to buy tools. "While federal Labor is helping apprentices with the cost of getting their ticket, Mr Abbott wants to weigh them down with long-term debt," she said.

The grant scheme, known as Tools for Your Trade, was introduced by the Coalition in 2004.

Danny Bielik, a private college CEO and former adviser to NSW Education Minister Adrian Piccoli, said Mr O'Connor was not across his brief.

Mr Bielik said apprenticeships were in "free fall" and the subject of widespread concern.

"This sort of factual inaccuracy introduces more doubt into the equation," he said.