http://www.theaustralian.com.au/index.asp?URL=/national/4386570.htm Read for dole fills in $14m cost hole By CATHERINE ARMITAGE 13feb99 THE Federal Government faced an unavoidable payout of $14 million on literacy and numeracy courses for the unemployed before it moved last month to make the courses compulsory. The Prime Minister said in his Federation Address last month that the Government would require people who lacked basic literacy and numeracy skills to undertake remedial training or lose the full dole. Last September, the Government awarded contracts worth $143 million to private sector organisations for the provision of 36,000 places over four years in literacy and numeracy courses for the unemployed. But there had been a drastic dearth of takers for the courses before the Prime Minister's announcement � now confirmed at just 108 takers for 12,000 places. Under the terms of its contracts with the 69 private sector providers, the Government guaranteed payment for 6000 places, or 50 per cent of the available places in the first year. Departmental officials confirmed at a Senate Estimates Committee hearing this week that the Government faced an "irrevocable" payment of $14 million as a result of the guarantee. This represents a cost to the taxpayer of about $130,000 for each of the individuals who have signed up for the courses so far. The actual cost of providing the place, reflected in the tender prices, was less than $4000 per head. Opposition education spokesman Michael Lee said: "The Government's claim that this was a new initiative to help young people with literacy problems is now exposed as a complete fraud. "It puts the Prime Minister's speech in a completely different light. It was more about solving the Government's embarrassment about the complete flop of its literacy programs." A spokeswoman for Education Minister David Kemp said the Government had so far paid only $650,000 out on the literacy and numeracy programs, and had approved payment of a further $850,000 to nine providers who had sought assistance with set-up costs. The $14 million worth of guaranteed payments did not fall due until the end of the financial year, the spokeswoman said. But it was now "fairly obvious that (the places) will be filled because of the tightening of the compliance (provisions)". Australian Council of Social Service president Michael Raper said it was "a shame the Government has forced young people to attend these courses simply because it hasn't managed to refer enough young people (to them)". He said the Government "should take the whip to Centrelink, not to unemployed people". Under the contract agreements, Centrelink was supposed to refer people it assessed as having literacy problems to the course providers. But course providers have complained they were not getting any referrals. "The Government needs to ensure Centrelink has sufficient resources to assess and refer in sufficient numbers," Mr Raper said. Leftlink - Australia's Broad Left Mailing List http://www.alexia.net.au/~www/mhutton/index.html
