AUSTRALIA’S banks are at the centre of a scandal over payments made to trainees on the railways to train them to drive cars and trucks, with one of the largest companies facing calls for it to be bailed out.
Banks have long used trainees to train for other jobs, including as cleaners, and the money paid has been used to buy cars and hire trucks for their own use.
But it is not clear how much money is being spent on the trains, and how much of the money is going to trainee fees.
The payments have been reported by the Victorian Government as having been made to a company called TrainMaster, and by the Federal Government as being to a subsidiary of BAC.
The Victorian Government says BAC is the parent company of the company and the Federal Treasurer says the payments to trainers should be made to TrainMaster.
But BAC, which has been criticised by Victorian and federal authorities, denies the payments are being made to the trainees.
The Treasurer says there is no evidence that TrainMaster is being used to make payments to the railway companies, and there is also no evidence the payments were made to any of the trainee companies.
He says the company is not the source of the payments.
“There is no relationship between the TrainMaster and the train companies.
There are no payments being made by the Trainmaster to the company that owns the company,” he said.”
We don’t believe there’s any evidence that any of that was done.”BAC did not respond to a request for comment.
BAC is also the parent of the parent subsidiary of train companies in Victoria, BAC Motor Transport, which is owned by a company controlled by BAC chief executive Andrew Wirrman.BAC Motor has been fined more than $6 million for paying trainees more than the average wage for the industry, and more than a million for making payments that were not legally binding.
The Government has been asking for the train company to be wound up.
But the Victorian Treasurer says Bac Motor has not been the source and has not breached the rules by making payments to its trainees that were illegal.
“The payment is not being made for the benefit of TrainMaster or BAC,” he told the ABC.
“It’s not being paid to BAC to use the train drivers to train with.”BAC has been paying TrainMaster’s trainees for the past 18 months, which they are not doing.
“Topics:bankers-and-finance,industry,federal—state-issues,education,education-industry-and‐training,bankers,vic,australiaFirst posted March 16, 2020 19:07:06Contact James FennellyMore stories from Western Australia