Martin Ferguson (Batman, Australian Labor Party, Shadow Minister for Primary Industries, Resources, Forestry and Tourism) Share this | Hansard source

I appreciate the opportunity to address the House on what I consider to be very important legislation. The Education Services for Overseas Students Legislation Amendment (2006 Measures No. 1) Bill 2006 and the Education Services for Overseas Students Legislation Amendment (2006 Measures No. 2) Bill 2006 go to our desire as a nation to further cement opportunities in education and to maintain our strong international reputation as a world-class provider of education to international students. It is important that we maintain this. Over the last 20 years, it is fair to say that, as we have sought to develop these export opportunities, we have had some failings on a number of occasions. I note that some of those occurred under the previous Labor government, with some English learning centres having difficulties in Australia.

It is therefore very important that we adopt a commonsense approach to this legislation. For that reason it is largely supported by the opposition with an amendment, to be moved by the member for Capricornia, which is aimed at strengthening the intent of the bill. This amendment on behalf of the opposition is to guarantee that, in consideration of this bill, the House properly focuses on the need to strengthen consumer protection. The consumer protection measures for individual overseas students are exceptionally important because they go to the very nature of their study in Australia. It is about providing consistency within the education services sector for the overseas students framework.

I think we all appreciate that Australia’s education services industry is our fourth largest export industry. Not only do we earn a lot of export dollars from it but it is also a key employer of Australians—more than ever in key regional and provincial centres of Australia. Think about the importance of the education industry in the context of export earnings. It is just behind coal, tourism and iron ore. Take that on board in the context of Australia’s export performance at the moment—the key economic achievements that are being made, for example, because of access to such important markets as China.

In 2000 there were more than 153,400 overseas students studying in Australia. Almost half of these were completing courses in higher education. We should also appreciate that in Australia in the 21st century, overseas students are important for the purposes of strengthening our university sector and they are also a key component of our migration program. The system has changed for those undertaking approved courses in Australia. They now earn points which enable them to gain easier access to Australia. That is a proper program, which is also about strengthening our skills base in Australia. The reputation of our overseas program is therefore important for the education sector and export earnings and, more than ever, it is central to the migration program which Australia is so proud of.

Over the past two decades we have seen a strong increase in the number of overseas students coming to Australia, to the point where the sector generated $3.7 billion for the Australian economy in 2000. The sector’s global reputation and integrity must be protected from issues arising from within the industry. These bills are about protecting the industry from itself because, on some occasions, the industry likes to take shortcuts for the purposes of getting the upper hand on some of the other competitors in the industry. Potential difficulties include the uncertain financial security of students who have prepaid course fees and the emergence of a small minority of unscrupulous providers—and I emphasise that it is a small number—who, if not tamed, can damage Australia’s reputation generally with respect to the education sector. It is also appropriately about inconsistent quality assurance.

We always have to be careful to maintain the highest possible education standards to ensure that we are not only attractive in terms of cost but also in terms of the international standing of the degrees that we offer overseas students. The last thing we want is to lower our educational standards for the purposes of attracting export dollars and then give those who should not be able to migrate here a backdoor entry to Australia. We have to be about the highest possible education standards whilst also ensuring that, in terms of protecting the consumers, the overseas students are guaranteed a proper consumer protection system in Australia. That is what this debate is about. The issues I have raised are appropriately addressed in the bills. We are hopeful, especially if the government takes on board our amendment, that the bill will ensure that the overseas students who come to Australia to study on student visas receive a quality education and training opportunities appropriate to the financial payments they make to the Australian tertiary education sector.

Since the early 1980s Australia’s reputation as a quality education provider has grown substantially alongside the economic growth experienced in many countries across Asia. Just think about the importance of maintaining this sector when you consider the huge increase in the number of students from places such as China and India. With further economic growth and development opportunities in those countries, there are going to be further opportunities for Australia on the overseas education front. To make sure that we have the best consumer protection system in place, we need to make sure that we protect a terrific employment opportunity for the purposes of providing overseas education services in Australia. That is about making an investment now, in a proper legislative framework, to guarantee our access to this market in the years to come. One needs to appreciate that is important, and I say that because Australia’s relatively isolated location globally sometimes presents additional challenges for the prosperity of this nation.

As the shadow minister for tourism, I know that Australia is regarded as a long-haul destination for international visitors from Europe and the USA, in particular. But our close proximity to Asia, especially South-East Asia, has enhanced our capacity as a nation to absorb many students from Malaysia, Hong Kong, Indonesia, Singapore and China, who might have otherwise studied in England or America if not for our international reputation, which is just so important. We should never allow that reputation to be tarnished. We must always err on the side of being especially cautious with respect to not only the quality of education offered by our tertiary institutions but also the guarantee that the consumers, the students, have protection in law with respect to their own entitlements and consumer opportunities.

Obviously, if one examines the facts, the majority of overseas students still originate from Asia, yet our reputation has appropriately spread far. We are now seeing an increasing number of international students from, interestingly, South America, including Colombia and Brazil, and Eastern Europe, including the Czech and Slovak republics.

It is this reputation for delivering quality education to international students that owes its genesis to the Hawke Labor government. It was this government’s initiative in the mid-1980s that ensured Australia was an early player in the educational export industry which directly linked trade and policy. This policy included a decision in 1986 to allow full-time fee paying international students into Australia’s education system. Overseas students then—and we should not forget this—made up only a small component of the student body; today they are part of almost every tertiary institution and make up 40 per cent of all long-term visitor arrivals and over four per cent of all short-term visitor arrivals.

I can think of the importance of this education opportunity by way of my own involvement in recent times with the Melbourne campus of the Central Queensland University where there were some difficulties with Indian students. Because of some complaints as to the operation of that Melbourne campus there was the need to make sure that not only were their education opportunities protected but also the quality of their education was protected. I am pleased to say that it seems that those difficulties are now resolved; the reputation of the institution has been maintained and the students themselves understand not only their responsibilities but also their rights as students paying a significant amount of money in Australia for a quality educational opportunity. That is the key to the debate.

We are a large provider per head of population. Interestingly, we are the third-largest English-speaking provider of international education services—behind only the US and the United Kingdom—with seven per cent of the market. And that is why we have to have debates about proposals such as this because you maintain your market share by making sure it is a quality product at a reasonable price and giving the students proper consumer protections. This represents the outcome of a decision by the Hawke-Keating Labor governments to not only get in early to actually pursue these international market opportunities but also focus on quality in delivering education export services as part of our early entry into the market.

Australia, as we all appreciate, has become more broadly recognised in the arena of international education and is appropriately regarded as a safe study destination that offers high-quality courses in a friendly environment. This influx of international students has been highly beneficial to Australia and has resulted in flow-on effects to Australian communities and industries. We are a highly successful multicultural nation and the education services sector of our Australian economy has added to the strength to the benefit of Australia at large. I say that because not only do overseas students continue to be a major source of revenue for Australian education institutions but also they contribute to the overall Australian economy and the social and cultural make-up of Australia. In 1994, overseas student fees amassed $883 million; in 2000, this figure more than doubled to reach $1.8 billion. In that same year, overseas students outlaid a total of $1.9 billion on goods and services whilst in Australia. This is of assistance to the tourism industry, for example, because it encourages family members and friends to also make a visit to Australia.

Obviously there are many post-study benefits to a healthy education export industry, such as the contribution the international student program now makes to our migration program. I take the House to a report released in 2000 by the Australian Bureau of Statistics which indicates that international students continue to have an important influence on Australia’s skilled migration and tourism industries well after they have finished their studies in Australia. We all understand that having a positive experience studying here is likely to encourage overseas students to not only think about migrating to Australia but also maintain those social networks to visit Australia. Experience shows that these connections have also been important in facilitating trade opportunity access for Australia in a range of countries around the world. There is also an increased likelihood that family, relatives and friends, as I have touched on, will visit these students in Australia, bringing further opportunities for Australia on the export earnings front.

These are all wins for Australia and they further stress the need to safeguard the integrity of our education export industry. I say that because tourism is one of the world’s fastest growing industries with world tourism forecast to grow from 714 million international passenger arrivals in 2002 up to 1.6 billion in 2020. Australia’s tourism industry must step up to the mark if it wants to maintain itself as a key player in this highly competitive global market because it is also about making sure that we can compete in a tough global market not only on the education services front but also with respect to tourism. Every opportunity therefore to enhance our reputation as the destination of choice must be seized and the education export industry is part of that desire by Australia to seize those opportunities.

As well as adding to our cultural diversity, overseas students add to our skill supply by often becoming permanent residents after completing their study. In a survey conducted in 1992 on overseas students in higher education, 47 per cent said that they planned to migrate to Australia at a later time. One of the main reasons they gave was their high-quality experience of studying in Australia. There is also the added bonus for former overseas students wishing to migrate to Australia that they have Australian qualifications. In 1999-2000, 14 per cent of permanent residence grants made in Australia were to holders of student visas, and in 2000-01, around 50 per cent of applicants for skilled migration were former overseas students. These students are generally in their early 20s and from all corners of the world and while studying here have increased their desire to remain in Australia.

When you think about it, for a nation facing a major skills shortage because of a lack of government commitment to the education of Australians, this represents a huge potential skilled workforce that should not be overlooked. Importing skilled labour is always a difficult issue; it must never be at the cost of Australian workers. We should be doing everything possible to not only train Australians but also create a welcoming education opportunity for overseas students. I also remind the House today that in addition to encouraging and strengthening the education services sector for international students we also have to pay more regard to investing in the skilling of Australia, and especially our apprentices and mature age workers who can add to our skill requirements at this difficult point in the economic cycle.

Therefore, this is obviously an important debate. It is for those reasons that so many Labor representatives have sought to contribute to this debate. The failure of the government to participate in the debate is a damning indictment of its arrogance and its lack of commitment to parliamentary processes. All too often, if you go through the Notice Paper and consider the bills which are debated on a regular basis not only in the House but in the Main Committee, you find a raft of opposition speakers trying to contribute to improving the legislative process, yet very few representatives of the government, despite it having a significant majority, are willing to come in here and participate in debates in the House and Main Committee and also, more than ever, in the proceedings of those important institutions of the House—our policy committees, the various standing committees of the House and joint standing committees of the House and the Senate.

I raise these issues because I think it is about time that the government moved away from the hubris which now exists on the other side of the House and got serious about debating legislation and contributing to a better legislative framework in Australia in order to secure not only our education opportunities in the future but also our export opportunities as a nation in the 21st century. We must have such debates, and this debate is one of them. I say that because there is an urgent need to consider some of these pressing issues not only in the education sector but also in the resources, tourism and health sectors. These are all complex debates that require people to come in here and properly represent their constituents.

There are a range of opportunities for young people to come to Australia. I remind overseas students, as well as those who visit Australia but who are not necessarily studying here, of the importance of our backpacker working visa program, which has been extended from three to six months in a range of industries, such as the hospitality industry, and up to 12 months in the agricultural sector. These represent further opportunities for young people to come to Australia and experience Australia’s great tourism opportunities as well as being gainfully employed under agreed terms—namely, appropriate Australian wages and conditions, which the Australian government now wants to break down. This program will contribute to the needs of a range of Australian industries while also making it easier for some people to have extended stays in Australia. This is important, because we have a major skills shortage in Australia at the moment, in sectors such as agriculture, horticulture, resources and tourism, to name just a few.

I say in conclusion that the member for Capricornia has, quite properly, come into this House and foreshadowed an amendment to what is a very important bill. It is a bill that cements our international reputation as a major provider of education services to overseas students. It is about guaranteeing that those students have proper consumer protection. I urge the government to give the amendment appropriate consideration. Labor supports the passage of the bill. We think the amendment will add to the government’s desire to maintain the integrity and reputation of our overseas student education sector. I commend the bill to the House, along with the amendment foreshadowed by the member for Capricornia.

See this speech in context