Sussan Ley (Farrer, Liberal Party, Shadow Minister for Childcare and Early Childhood Learning) Share this | Hansard source

I rise to speak in support of the Education Services for Overseas Students Legislation Amendment Bill 2010. The bill seeks to amend the Education for Overseas Students Act 2000, the ESOS Act, to strengthen the registration criteria for providers of education services to overseas students. It introduced a risk management approach for the regulation of these providers. These measures have been introduced by the government to restore confidence in the international education sector and are steps which the coalition broadly supports.

The international education industry is our fourth major export industry, worth an estimated $18.5 billion. An Access Economics report into education in April 2009 found that it creates an extra $12.6 billion contribution for our economy through employment such as teaching and through services such as food and accommodation for international students. These figures combined mean that the international student market contributes more than $30 billion to our economy.

Of course, the contribution international students make to Australia is not just financial; having international students study in Australia contributes to the student experience for Australian students as well. Students from all parts of the world are brought together, and this brings them the opportunity to understand and learn from each other about other cultures and perspectives. Supporting cross-cultural dialogue at the university and vocational education and training sector level plays a key role in our international diplomatic efforts. A strong international education industry assists Australia to build and maintain good relationships around the world.

We are lucky in Australia to have a very welcoming and multicultural society. Students do want to come here to experience our culture and lifestyle. I note that Universities Australia recently released the findings of a new benchmark survey. The survey involved 34 of Australia’s universities and covered the expectations and experiences of international students pursuing higher education in Australia. The results indicate that overall 86 per cent of the 36,308 international students who responded to the survey are satisfied with their education experience. There is obviously room for improvement, but the Universities Australia research tells us that, on the whole, students find studying in Australia a positive experience. This is heartening news, particularly in the light of recent events in the international student sector.

It is well known that the international education sector went through a period of rapid growth over the last decade. Unfortunately, the downside to such accelerated growth in the overseas student market is that it has attracted some unscrupulous education providers to the system. We saw reports emerge in 2009 that some education providers appeared to be operating only to provide a pathway for students to gain residency in Australia rather than for the primary goal of providing a quality education service. These shonky operators preyed on students, taking thousands of dollars to supposedly guarantee results in the English language exam required for skilled migration. Some students fell victim to such rorts.

Other disturbing reports of unethical behaviour towards students also emerged. We have witnessed under-regulated private colleges close. These events, compounded with some violence towards some international students, particularly Indian students, have impacted on our international reputation and led to a decline in enrolments in Australia. The council of higher education providers estimated last year that universities may see a possible downturn of 10 per cent or more in enrolments in 2011. Australia will have to work very hard to reverse the damage to this important industry to remain competitive in the global environment.

The Education Services for Overseas Students Act works in conjunction with immigration requirements to ensure that education providers collect and provide information relating to student visas and to regulate minimum standards, financial assurance and tuition. It is about making sure international students receive a quality education and also meet the conditions of their student visa. Improving the current regulatory framework is a complex issue, but it is essential if we want to maintain the reputation of our industry in the long term.

To work through some of the matters that I have raised, the government appointed the Hon. Bruce Baird to review the Education Services for Overseas Students Act in August 2009. Mr Baird provided a report back to government suggesting changes to ensure that Australia continues to offer world-class quality in international education. The report, titled Stronger, simpler, smarter ESOS: supporting international students, suggested some requirements which now appear in this bill. This includes that approved providers be able to demonstrate their ability to access financial resources to meet the requirements under the ESOS Act 2000 and have a sustainable business model with the capability, governance structures and management to deliver education of a satisfactory standard. This new measure will add to the requirements in the original ESOS Act as well as the Education Services for Overseas Students Amendment (Re-registration of Providers and Other Measures) Act, which passed in 2010.

Included in this bill is also a new strategy for managing risk in the private education sector. Registration periods for approved providers will be limited to five years. Additional conditions will be able to be placed on a provider’s registration when the provider is first registered or at any time throughout the registration period. The bill also provides for the Commonwealth to take steps without referral from state or territory regulators to introduce financial penalties for a broader range of behaviour, including unethical recruitment and services and failure to comply with the proper maintenance of student records.

The Commonwealth will also, upon the passage of this bill, be able to publish any enforcement action taken against education providers. I note one last measure in this bill: that is, the amendment to the Ombudsman Act 1976 to establish an Overseas Students Ombudsman within the office of the Commonwealth Ombudsman. Its function will be to provide advice to private education providers on complaint-handling processes and possibly report on other issues across the international education sector.

Reforms to education services for overseas students do not end with this bill. The measures in this legislation are important steps to strengthen the current arrangements to be of support to international students. The coalition hopes these measures help the services to provide and deliver quality education qualifications while being effectively regulated to ensure sustainability. I understand that the Baird review has many other recommendations that we could consider to improve current arrangements in the sector. While the coalition supports the measures in this bill, we would hope that the government continues to take action to rebuild this industry. As this bill before the House goes some way to doing this, I commend it to the House.

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