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Youth Allowance changes don’t fix the main problem: Drum

Thursday, 18 March 2010

Nationals MP for Northern Victoria, Damian Drum, said today that, despite a breakthrough in Youth Allowance negotiations, much still needed to be done to get regional students a fair deal.

Federal Minister for Education Julia Gillard had done a back-flip on some of her proposed changes to Youth Allowance, after coming under heavy pressure from the Senate and the Nationals, but still not resolved the central issue of equity for regional students required to leave home to study.

Mr Drum was also critical of the new system which will discriminate against some regional students under a bureaucratic definition of ‘rural’ and ‘remote’.

Damian Drum and other Nationals MPs have waged a dogged battle to get a fair deal for country students ever since Ms Gillard announced changes to the Youth Allowance system last year. The latest breakthrough is the second time the Federal Government had been forced to soften its anti-country plans.

“There has been a breakthrough for gap year students who attended Year 12 in 2008,” Mr Drum said.

“The Minister has finally agreed not to punish students who were on their gap year when the changes were announced. The new legislation won’t come into effect until July this year, which means these students will not be adversely affected by the changes.”

The government had also agreed to retain the original pathway to achieving Independent Youth Allowance for students living within defined boundaries – Outer Regional, Remote and Very Remote. Under that scheme, students can qualify for independence by working 15 hours per week over two years, or earning $19,532 over an 18 month period.

“But the devil is in the detail and there are too many winners and losers in this complex scheme. Arbitrary lines on maps will divide regional communities. Students in our regional cities will certainly miss out.

“Under the Labor Party’s legislation, most students in Northern Victoria will need to find 30 hours of work a week over two years to qualify for the Independent Youth Allowance. It is virtually impossible for young people in smaller regional centres to achieve that criteria and it remains a fundamental flaw in the government’s legislation.

“Some students in regional areas will get one deal, while others miss out. For example, students from Dunolly won’t get access to the allowance under this system, while Wedderburn students will. Rochester won’t, while Pyramid Hill will. And when it comes to Serpentine, it depends which side of the highway you live on.

“City Labor MPs don’t understand the economic challenges faced by rural and regional students. These are students who, by the nature of their location, have to move away from home to pursue their university dreams.

Media inquiries: Damian Drum: 5443-6277

 
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