Sharon Bird (Cunningham, Australian Labor Party, Shadow Minister for Vocational Education) Share this | Link to this | Hansard source

My question is to the Prime Minister. I refer the Prime Minister to page 172 of Budget Paper No. 2 that states the government's trade support loans will attract interest. I also refer to the industry minister's statement in question time on 15 May 2014 that trade support loans are interest free. Prime Minister, which is right: the budget paper or the industry minister?

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

I am delighted to answer this question. There is no doubt that the loans are interest free. It gives me an opportunity to highlight the great regard and delight from industry in relation to the trade support loans. The loans, as the shadow minister knows, are indexed annually with CPI. These loans will offer apprentices the opportunity to receive, over four years, $20,000 which they can use for whatever purpose they like.

Sharon Bird (Cunningham, Australian Labor Party, Shadow Minister for Vocational Education) Share this | Link to this | Hansard source

Madam Speaker, I rise on a point of order: relevance. I point the industry minister to the words in the budget paper, which say 'concessional interest rate'.

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

There is no point of order. The member will resume her seat.

Ian Macfarlane (Groom, Liberal Party, Minister for Industry) Share this | Link to 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.