House debates

Wednesday, 25 November 2009

Social Security and Other Legislation Amendment (Income Support for Students) Bill 2009 [No. 2]

Second Reading

5:39 pm

Photo of Julia GillardJulia Gillard (Lalor, Australian Labor Party, Deputy Prime Minister) Share this | Hansard source

The churlishness of the opposition, which I was just about to go to, is being evidenced very clearly by the shadow minister, who views this as a matter of politics and not a matter of young people’s lives. In circumstances where the coalition’s amendments no longer had the support of the Senate, we then sought to deliver the beneficial changes that we had negotiated with the Greens Party and with Senator Xenophon.

These beneficial changes could not be included in the bill in the Senate because the Liberal and National parties voted against them—that is, in a churlish act, because their amendments had not been carried, they repudiated these beneficial amendments. Their view, not at all driven by the interests of students, was simply a tit for tat political round in which, if they were not able to get what they wanted, they were not going to give students the benefit of something else—nothing more, nothing less. Any view of the opposition’s rhetoric during the course of this debate would have led you to conclude that they would have voted for these beneficial new provisions negotiated with the Greens party and Senator Xenophon, but politics, rather than the interests of students, prevailed.

Then the bill in the Senate was effectively sidelined by the Senate. It has been adjourned, effectively, in committee. It has not been defeated by the Senate. It has gone into some form of limbo. What is the cost of that bill staying in some form of limbo? The cost of that bill staying in some form of limbo is that the government cannot deliver these beneficial changes for students—that is, 150,000 students will not get scholarships next year. Kids who, by anybody’s definition, live in low-income households will not get full youth allowance next year. Kids who are reliant on low- and middle-income households—possibly not living in them, but living away from home to study—whose parents have low and middle incomes, who could get an increased rate of youth allowance, will not get it next year.

This is not a matter of politics; this is a matter of fact. There are 150,000 kids who will not get start-up scholarships next year. Thousands of kids who need to move to study will not get relocation scholarships. Thousands of low- and middle-income kids who could have had the full rate of youth allowance, a higher rate of youth allowance, or eligibility for youth allowance for the first time, will not get that money.

The other reform features of the bill will also not come into operation: the independence age going down to 22 and the new arrangements to allow students to keep more of the money they earn before they lose youth allowance. Those beneficial changes cannot be delivered.

Understandably, the education system in this country has reacted with scorn and fury to this playing of politics by the Liberal and National parties. I refer people to the comments of those who care most about education. Last week, I conducted a press conference with people who care about education. They were vice-chancellors, speaking on behalf of all of the vice-chancellors in this country. At the press conference, Ian Chubb, the Vice-Chancellor of the Australian National University, said:

Well we as a Group of 8—

that is, the Group of Eight universities—

support this Bill. We think that it’s particularly important that it pass, that it pass quickly so that we can give some information to and certainty to the students.

Ross Milbourne, the Vice-Chancellor of the University of Technology, Sydney, spoke on behalf of our technology universities and said:

I speak really with my other fellow Vice Chancellors on behalf of the entire higher education sector who’s unanimous on supporting the legislation … from my perspective, failure to pass this legislation today is not only bad for the education system in Australia, but it’s bad social policy and is very bad long term economic policy.

Then Paul Johnson, the Vice-Chancellor of La Trobe University, who represented innovative research universities, said:

These students and their parents are having a tough time at present, we all know of the problems in the economy of regional and rural Australia. The proposed legislation will make a fundamental difference to all these families, all these students and their mums and dads.

Then the representative of students, David Barrow, the President of the National Union of Students, said:

Let me … say that students unequivocally support these … scholarships.

Those were the voices of the education sector last week. Their voices were joined on Friday by the voices of all state and territory education and training ministers, who called on the federal opposition to pass the government’s youth allowance changes. Let us just reflect for a moment on that word ‘all’. Madam Deputy Speaker Moylan, I think you would particularly appreciate this: if all education and training ministers around the country called on the opposition to pass this bill then that would have included the Liberal government of Western Australia, which has departed from the opposition on this churlish strategy.

What we saw in the Senate last night from the opposition was: ‘Vice-chancellors? Don’t listen to them. Students? Don’t listen to them. Education ministers around the country? Don’t listen to them. Wreak great harm against students and their families next year.’ That does not seem to matter to the Liberal and National parties. They would rather play politics, and they did. They did so by not allowing passage of this bill. The reaction to that has been fast and furious, as it should be. David Barrow, the President of the National Union of Students, put it well when he said:

Last night so many good elements were blocked; a drop in the age of independence to 22—blocked, new personal income test thresholds—blocked, new scholarships—blocked, a system that gets the poorest students to university—blocked.

What remains is an inequitable relic of the Howard-era. It is easily rorted by the privileged. It means 30% of gap year students will not return to university. The current system disadvantages poor and regional students the most.

Then Ross Milbourne, from the Australian Technology Network of Universities, said:

Failure by the Coalition and Family First Senator, Steve Fielding to support this amended legislation is not only bad for the education system in Australia, but it’s bad social policy and is very bad long term economic policy.

The amended Bill would have delivered a level of financial security for those students most in need.

He went on to say:

These scholarships help very poor students give more time and attention to their studies by reducing stress and worry, reducing their paid work hours, and increasing their sense of belonging. As a result, these students have attrition rates about 40% lower than other students—the benefit of this scholarship is tangible.

These are the words of the education sector on what happened last night. I understand that the Liberal and National parties have campaigned on these issues. They have raised these issues. I believe that there are some members of the Liberal and National parties who have been genuine in their pursuit of these issues. They have come and spoken to me. Some of them have sought briefings. They have wanted to understand the details of the legislation and to really get to grips with it. Some of them have been very genuine about being concerned about transition issues. But it is time for the Liberal-National Party members to acknowledge that those transition issues have effectively been resolved by the amendments to the bill that the government volunteered and by the additional amendments that we have agreed to with the Greens party and Senator Xenophon.

There may be opposition members who say, ‘We are still sceptical.’ I think I am entitled to ask: ‘Where were their voices over 12 long years of government?’ If we move on from that point and say, ‘We have agreed to a review of these provisions; we were always going to have a review,’ I am very confident that the review will show that these arrangements are better for regional and rural students. We have also agreed—and this has been something pressed by some members of the opposition—to an averaging arrangement in relation to the 30 hours a week for the new independence criteria. That has been sought. We believe we can manage it within a budget-neutral envelope, and it is contained in this bill.

So what is pressing members on to keep blocking this bill? I am not advised of any changes that the opposition seeks that are budget neutral. Last night the Senate spokesperson, the then shadow parliamentary secretary dealing with the matter in the Senate—I believe that he may have resigned his parliamentary secretaryship today; it is not entirely clear to me—seemed to indicate that one thing that the opposition wanted was all of this stopped and to have the old Commonwealth scholarships back. Madam Deputy Speaker, what would make you think 21,000 scholarships were better than 150,000 scholarships, plus relocation scholarships? So what is it that the opposition is continuing to press for that is achievable and attainable beyond the playing of politics? If the opposition has a budget-neutral amendment that is equitable, I have not seen it yet. If members opposite are going to continue this politics then let it not be done in the name of regional and rural students, because this package is good for regional and rural students and the people who care genuinely about their interests have said so. The vice-chancellors that run the universities the students study in, the student organisation that speaks on their behalf and the state ministers who represent them in state parliaments have all said so.

Do not do it in their name. If you are going to press on with this destructive course then do it in the name of what it is: the cheapest, most destructive form of politics I have seen played out in this parliament in a good while. Next year, have the guts to go and sit with the students you have ripped off and explain to them that the rip-offs were just about politics, that they were just about a desperate hope that you could continue a campaign in some electorates. That must be the only thing now driving this, because there is no credible, budget-neutral amendment being proffered by the opposition. There is not one. There is not one here, not one in the Senate, not one anywhere. I would say to those opposition members—and some of them have caught me on the way in and out of question time; some of them have come around to my office; some of them have talked to my staff—who are genuinely concerned about this issue: do not now vote as a matter of reflex. Actually think about it. Think about what it is that you are asking this government to do. Is it budget neutral and equitable? If you are unable to answer that question then it is time to vote for this bill.

The government is happy to make arrangements for the second reading debate on this bill to continue straightaway, if the opposition are ready to do that. If they are not ready to do that then we will be happy to have the debate adjourned.

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