Interference in Employment National

Date: 04 May 2000

Responses to Questions on Notice to Finance Minister, John Fahey, reveal what can only be described as political interference in the operations of Employment National, Shadow Minister for Employment and Training, Cheryl Kernot, said today.

Ms Kernot said Mr Fahey has effectively admitted to unprofessional interference in the running of Employment National during the Job Network 2 tender round.

"In his responses, Mr Fahey indicates that he directed Employment National to hand back their existing intensive assistance contracts to other Job Network providers," Ms Kernot said.

"The contracts were for 79,000 clients and were valued at $8-12 million. This decision put at jeopardy the entirety of Employment National's operations.

"Mr Fahey admits he made this decision without seeking a detailed assessment of its financial impact and without consulting the Employment National board or Employment National's General manager, Rod Halstead.

"This is a damning admission by Mr Fahey and shows that Employment National's decision to hand back contracts was driven by a Government determined to emasculate our only Government Job Network provider and determined to prop up other non-Government providers.

"When asked whether the responsible portfolio Minister, Tony Abbott, was involved in or aware of this decision, Mr Fahey replied, 'not to my knowledge'.

"The missing Minister, Tony Abbott, must now reveal to the Australian public his role in all of this. Labor will seek answers from Mr Abbott, Mr Fahey and others involved in this process of interference.

"Retrenched Employment National staff and the many suburban and regional centres now bearing the brunt of Employment National office closures deserve to know the truth.

"Research shows that there will always be areas of unmet need that a public provider will need to fill, because private providers will not find it profitable to do so."

Media contact: Andrew Beaumont, 02 62774328, 0419562456

For further information

Contact:	Kim Beazley
Union:	ALP Federal
WWW:	http://www.alp.org.au

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