Religious Instruction Subject in School - should the alternative be "Ethics"?

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Once a week or so, as part of the curriculum in Public Schools, students attend a session of religious education for the space of time equal in length to a regular subject. There is also an alternative for parents who do not wish their children to attend, for which a form must be filled out & signed at the beginning of the school year. Often, these students find themselves doing extra study in the library, for example, under teacher supervision. Is this also the case in your country? What I'd like to discuss is this: is there a better way for these students to spend their time? One suggestion has been to give these students a course in ethics. Today we see a society in moral decline compared to many years ago, although we are much more developed in science & technology. Others argue that this religious instruction should be abolished entirely in public schools in a country whose religion is only about 50% Christian & only be taught in homes or churches. Churches have always argued that people's faith should be integrated into their daily lives & there has been no shortage of volunteers from the local communities to meet this end. Another thought could be a lesson in culture which helps to integrate those who were not born here as well as educate those who were to give them a healthy respect for the national culture, the indigenous culture & other major cultures in the world today. What are your thoughts on the matter? This has been debated for some time at a State Government level here in Australia.