"The youth jobs plan, $4 an hour for interns, already described by some of your critics as 'the new slave trade'," Faine told the Prime Minister. Businesses will be offered an upfront $1000 payment for hosting an intern and a wage subsidy worth $6500-$10,000 if the person is then employed. Credit:Virginia Star "Jon, this is about ensuring that young people that are unemployed get a start. It ensures that they get the training they need to be job ready and then they get the opportunity to be an intern and get the experience of working in a workplace," Mr Turnbull said, offering that "time will tell" how effective the program will be. "This is very difficult area, it's easy to be a critic, it's easy to be very cynical as, frankly, you are being," the Prime Minister said. "No, I'm being sceptical. I'm doing my job," Faine fired back.

"Jon, you don't have to be so defensive. I'm just making the point that it is easy to criticise." "It's easy to be very cynical as, frankly, you are being": Prime Minister Malcolm Turnbull criticised ABC radio host Jon Faine on his description of the intern scheme. Credit:Andrew Meares The three-stage program kicks in from April next year and aims to get 30,000 young jobseekers into permanent employment. The first stage is three weeks' skills training, the second is internship placements between four and 12 weeks and the third is subsided employment. During the placement, interns will receive an extra $200 a fortnight on top of income support payments. Businesses will be offered an upfront $1000 payment for hosting an intern and a wage subsidy worth $6500-$10,000 if the person is then employed.

The ACTU said the program amounted to "taxpayer-funded exploitation of young people" and was in legally dubious territory. "We're very concerned about the direction this is taking. We're worried that internships will become like they are in America, where young people are forced to work for very little or nothing at all," ACTU president Ged Kearney said. "If there's a job, give them the dignity of paying them properly." They also want to know how the internships will be classified under the Fair Work Act and occupational health and safety laws. The Australian Council of Social Service has welcomed the policy and the shift in funding away from Work for the Dole.

"We are very pleased to see the new approach to helping young people into paid work," chief executive Dr Cassandra Goldie said. "This budget recognises the failure of work for the dole, and has instead provided an opportunity for young people to get work experience in real jobs with a wage subsidy, something we have urged for some time and should be used more widely." Work for the dole savings worth almost $500 million mean jobseekers will only be able to enter the scheme after 12 months' registration with Jobactive, instead of the current six months Follow Fergus Hunter on Facebook Follow us on Twitter