The Alliance was responding to a discussion paper, published by the Department of Education, Employment and Workforce Relations, on plans to expand the scope of the Commonwealth Scholarships Program and double the number of scholarships by 2012.

In welcoming the move Alliance chairperson, John Wakerman, asked for at least half the scholarships in the new categories to be awarded to students from rural and remote areas.

"Rural students are currently under-represented in tertiary institutions," Professor Wakerman said.

"Our brightest kids are keen to get a uni qualification and then contribute to the rural workforce and the local community, but they face particular cost and distance barriers in accessing tertiary education.

"The Alliance has a strong interest in education because of its impact on employability, financial capacity and social wellbeing - all significant determinants of health."

The Alliance wants the removal of the anomalies associated with State borders when determining eligibility for the new National Accommodation Scholarships, and an increase in the value of existing scholarships to take account of the real costs of studying away from home.

It believes eligibility for the scholarships should be based on the distance between the student's family home and the tertiary institution at which they are studying.

Meanwhile, Prime Minister Kevin Rudd today announced a special $100 million payment to the Queensland State Government to help it pay for additional medical training places.

Although traditionally a Federal funding area, the Queensland Government began funding additional places a couple of years ago in response to the State's chronic shortage of doctors.

* The Alliance's submission is available on its website: www.ruralhealth.org.au