THERE are fears some organisations helping indigenous people get jobs will have to close at the end of the year because of funding uncertainty.
During Senate question time on Tuesday, Liberal senator Marise Payne asked the federal government to justify changes to the indigenous employment program that could see some job service providers close.
Senator Payne warned the changes could result in the imminent closure of the Aboriginal Employment Strategy, which has placed 10,000 indigenous people into jobs, and of the Replay Group, which operates in Victoria, NSW, Queensland and the Northern Territory.
"Some organisations have indicated they will have to close their doors from December 1 this year because they have no certainty," Senator Payne said.
She asked whether providers under the current system would be able to survive.
The federal government is moving towards a jobs services agency model rather than an employer-driven model, the Senate was told.
There was confusion over which Labor frontbencher was responsible for the area.
Finance Minister Penny Wong told the chamber she had to check she was the representative for Indigenous Employment Minister Julie Collins in the Senate.
"I'm advised the government will continue to discuss these contracts, prior to expiry with existing providers," she said, reading off a brief.
She said last month the AES successfully tendered to provide traineeships under the $50.7 million indigenous youth career pathway program.
Senator Wong said an independent public tender process had taken place.
Aboriginal Employment Strategy chief executive Danny Lester told AAP the job providers weren't asking for additional money.
He said there had been a moratorium placed on contracts for the indigenous employment program.
Mr Lester said there was $9 million left out of a $24 million contract that had not yet been spent.
The 4000 job placements had nearly been achieved, but the leftover money could go towards additional placements, he said.
That money could tide his organisation over until June 2013, because from December 31 their funding would dry up.
The organisation wants to work with the government on a new model next year.
AES has been in talks with both the prime minister's and Minister Collins' offices and hopes to know its fate by the end of November, Mr Lester said.
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