Fed: Job Network will miss our strength Employment National

AAP General News (Australia)
12-10-1999
Fed: Job Network will miss our strength Employment National

CANBERRA, Dec 10 AAP - The federal government-funded jobs provider, Employment National,
says Australia's employment placement system, Job Network, will be less stable without
it.

Employment National was one of the big losers when new contracts to place job-seekers
were issued recently under the government's Job Network 2 scheme.

The government-funded placement agency saw its allocated share of work in the high-priced
"intensive assistance" field plunge from 40 per cent to just one per cent of the total.

Unions said as many as 1,000 workers, or about two-thirds of Employment National's
staff, might lose their jobs as a result.

Employment National chairman Don Swan said scurrilous attacks had been made on the
provider, particularly those that created an impression Employment National's retention
of $80 million in funds was in some way improper.

He said Employment National had anticipated its market share would shrink and decided
to retain some earnings for restructuring.

Mr Swan said that, as a government-funded body, the company's financial results were
public knowledge.

"Taxpayers of Australia know our financial results through our compliance procedures,
but little has been said about the spent or retained profits or funds of other providers,"

he said.

"To suggest that the $80 million has not been spent putting long-term unemployed into
jobs is simply scrurrilous."

Employment National had established a national network of 215 offices, 55 per cent
of them in regional Australia, bought new recruitment software, integrated its systems
and created a national marketing program.

"Indeed, the board believes that this investment and national network has underpinned
the development and success of the Job Network since its inception."

Mr Swan said Employment National had found work for more than 160,000 people since
it was established as a company in May, 1998 - as against 410,000 placed by the overall
Job Network scheme to the end of October this year.

"The company is being unfairly criticised by people unqualified to comment on its performance
which, in anyone's terms, has been significant over the past 18 months and should not
be discounted," he said.

AAP dep/sub

KEYWORD: JOBS (CARRIED EARLIER)

1999 AAP Information Services Pty Limited (AAP) or its Licensors.