The Rudd Government should forget about its flawed Emissions Trading Scheme and sort out the youth allowance mess as the new University year commences, according to The Nationals Senator for New South Wales John Williams.

Senator Williams said Minister Gillard's proposed charges to the youth allowance are a disaster for regional Australia, and this stand-off in the Senate needs to be resolved as soon as Parliament resumes early next month.

"There are no University scholarships as of today, despite the Coalition offering to pass them if the Government was prepared to introduce them as separate legislation.

The Rudd education revolution is proving to be a disaster, and Minister Gillard must realise her proposed changes to the youth allowance would drastically reduce the opportunity for people in regional areas to undertake tertiary education.

Fifty-five percent of students in urban areas who complete Year 12 go on to University studies, but this figure drops to just thirty-three percent for those in regional areas.

The Rudd Government should be looking to negotiate a solution to the youth allowance wrangle to remove the uncertainty students face as they plan for the commencement of their tertiary studies", Senator Williams said.