Yes, correct Icarus on all counts there, however:
So is it at all possible that once this reality becomes apparent to the first few cadets in the system that the word will get around and fewer people will apply?
Future prospective cadets will need to be cunning to find out the information. BB stated quite clearly at the inquiry that the cadets would be earning AUD $67K - this is correct until they have the required 500 hours, then they will be shipped off to NZ. BB stated is NZ is where they want them to be. Then, the NZ $42K contract comes into play. So technically he is correct, over a short time scale.
Further, a real AUD contract can be plonked down in front of the future cadet, without telling him that this will be for the
first 500 hours only. Once the contract is signed, its too late.
There are very few genuine sources of information (PPRuNe is probably the only one) that would allow a future cadet to make an
informed decision. It is easy for us, as we understand the angles. Even sleuthing on PPRuNe would be a difficult slog to get to the bottom of this mess as it is highly convoluted, with so many gotchas. This is quite a sophisticated con.
edit: NBBS, just caught your post. I assume by "Initial cadets" you mean those already in the j* system? If this is the case,
it is already too late for them, they have signed on the dotted line. They are on the hook. As for saving your mates, the first rule is to save yourself before you help anyone else, they are already screwed. Hello servitude.