Ian Macfarlane (Groom, Liberal Party, Minister for Industry) Share this | Hansard source

Perhaps, for the shadow minister, I need to repeat: the loans are adjusted with CPI. She may view that as an interest adjustment. Actually, what is happening is the loans are maintaining their real value year-on-year. It does not detract from the fact—

Honourable members interjecting—

That is exactly right. The reality is that, on CPI, the indexation will be, on current Reserve Bank estimates, between 2½ and three per cent. Those over there, who we know have no understanding of money and finance, may like to equate that to an interest-rate. If they do, it is still more than half the interest-rate for other loans. The reality is that the value of trade support loans in the hands of the apprentice, where they finish their four years, is estimated to be in excess of $12,500, more than double the tools for the trade.

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