"We still believe ACE plays an important role in drawing people back into the education system. But we have been forced by economic circumstances to prioritise our education spending into areas where it can get the best results.

"Investment in community education is being refocused towards our priorities of literacy, numeracy and foundation skills. We have retained funding in the Budget for these courses.

"Labour's nationwide petition announced today is based on false information. About $67 million is being reprioritised from ACE to other education initiatives over four years, not $152 million Labour has claimed.

"This comprises $6 million in 2009/10, $17 million in 2010/11, and $22 million in both 2011/12 and 2012/13.

"Keeping ACE funding at previous levels would have meant not funding some of the Government's other priorities such as special education, literacy and numeracy or skills training for the young unemployed.

"Labour, presumably, would just put the extra spending �on the credit card' like everything else it is promising. Labour left behind about $500 million of unfunded tertiary education commitments, which is one of the reasons we've had to reassess some existing funding.

"I challenge Maryan Street to show how she would fund ACE at current levels, meet other education priorities, and stay within Budget," Mr English says.