Kevin Rudd’s Labor Government wants to tighten the Youth Allowance eligibility criteria so young people would have to work an average of 30 hours a week for 18 months to qualify for the student welfare benefit.

The legislation has been stalled in the Senate for months, with the Opposition, and Family First senator Steve Fielding arguing the plan will hurt rural and regional students.

Mr Coulton, whose electorate covers a vast portion of regional NSW, has been campaigning long and hard against the proposed changes and welcomed the talks between federal education minister Julia Gillard and the Opposition.

“For the sake of students from the Parkes electorate, and throughout regional Australia, I hope this matter is resolved as quickly as possible,” he said.

“Last week tens of thousands of Australian students started university not knowing if they will ever receive Commonwealth scholarships.

“Our education spokesperson Christopher Pyne has had a number of meetings with Ms Gillard in recent days and it is looking hopeful that the Government will adopt a Coalition amendment that will grant more generous concessions to regional students. It could all be over next week if that happens.”