Kevin Andrews (Menzies, Liberal Party, Shadow Minister for Families, Housing and Human Services) Share this | Hansard source

I rise to speak in support of the Education Services for Overseas Students Legislation Amendment Bill 2010. Australia is one of the largest providers of education services for overseas students in the world, with almost 270,000 student visas granted during the 2009-10 financial year. While according to the Department of Immigration and Citizenship this number constitutes a decrease of 15.8 per cent from the previous financial year, when 320,000 visas were issued, this is an important sector of the Australian economy and an important export. Almost half of the reduction in student visa applications came from India, and this is something that should be addressed. I hope the passage of this bill alleviates some of the concerns that students and parents from India, and perhaps from other parts of the world, have clearly felt. We know the impact poor word-of-mouth can have on our student numbers. Fairly or unfairly, our reputation in India over the past two years has clearly been diminished. Obviously there are broader issues here, but ensuring the integrity and business viability of our institutions is a step in the right direction. Ensuring international students receive a fair deal and a quality education is at the core of this bill, which is why I support it.

It must be noted that the nation from which the second-highest number of students came to Australia to learn was China, where student numbers did not diminish but grew, albeit marginally, in the 2008-09 to 2009-10 period. It is no surprise when looking at the visa statistics that the international education industry is our fourth biggest export industry—after coal, iron ore and gold—and is worth an estimated $18.5 billion. According to a 2009 Access Economics report, the industry contributes an additional $12.6 billion to our economy through employment and spending additional to tuition by international students.

It is important that we encourage our international students, and not just for their economic contribution. Their presence in the classroom and on campus adds to the learning experience for all students. Firstly, their presence at our educational institutions encourages an international approach to the curriculum by our institutions, helping to prepare Australian students for careers in an international business or academic community. In this way, Australian students receive some of the benefits of international study without leaving their home towns. Additionally, it must be acknowledged that our world is really becoming a global village, and exposure to different cultures is vital to our students in becoming as valuable as they can be in an internationalised world and marketplace. The broader extracurricular experiences that students have access to thanks to the presence of international students help them to understand cultures, religions and values different to their own and those generally around them. Students themselves develop networks with other students and with lecturers that cross international boundaries. The relationships developed by Australian students with international students and vice versa can be lasting and valuable, not just for the individual students but for us as a nation.

International students who study in Australia return home with an understanding of and exposure to Australians, our way of life and our values. As parliamentarians, we know the values that come from understanding not only our near neighbours but those outside our region. There are current international students studying in our universities who will become players on the world stage, whether it is in business or in diplomacy—perhaps even future ministers for foreign affairs, prime ministers or presidents.

In my electorate of McPherson there are two universities. In the south of the electorate we have a campus of the Southern Cross University at Bilinga and, more towards the north of my electorate, at the centre of the Gold Coast, we have Bond University. Bond University is a major contributor to our local economy. Bond’s 2009 study into its own economic impact on the Gold Coast showed a per annum contribution of $300 million, which is certainly a significant impact on the economy of the Gold Coast. Bond has a current student enrolment of about 4,500, and the international student population makes up around 40 per cent of the total student population. The largest international student populations come from China, Canada and the USA. Typically, 80 different nationalities are represented at Bond. This obviously creates an international campus, with the benefits as previously outlined, but it also creates a much more international Gold Coast.

With a significant portion of the economic contribution to the Gold Coast economy no doubt coming from Bond, arising from the presence of international students as part of the academic community, it must be acknowledged that the broader impact on the economy of the loss of these international students would be significant for surrounding accommodation providers, retailers and businesses in the hospitality sector, not to mention the educational institutions themselves. When international student numbers are threatened, so are these businesses and institutions. We must also acknowledge the economic contribution made through tuition to these universities by international students. International students generally pay significantly more for their tuition than Australian students do. Their contribution, in essence, subsidises infrastructure, administration and education for all students and allows for better facilities and additional curricular and extracurricular opportunities.

It is with this appreciation for the contribution of international students that I approach this bill. This bill adds to the existing registration criteria for our education providers to require that they show that their primary function is to supply education and to supply that education at an appropriate standard. In general, from my discussions with the education industry, the industry is very supportive of this move. These changes arise out of the Stronger, simpler, smarter ESOS: supporting international students review conducted by the Hon. Bruce Baird. This bill partly implements the recommendations of that report. The registration criteria now also require of higher education providers evidence of a sustainable business model and appropriate management structures and governance structures. For any business, let alone one in which students place their learning and career futures, this should be part of good management practices.

Further, the changes proposed by the bill include a standardised risk management approach to the regulation of education providers. The risk management model is to be established by regulation, and the explanatory memorandum outlines that those institutions potentially falling into the highest risk category will be those that are newly established, those that have a small course scope that appears to be linked to migration policy, and those that have a high reliance on international students from a small number of source countries. Additionally, high foreign ownership and a history of compliance issues would potentially place an institution into the high-risk category. The risk management model also establishes consistency from the start of the risk management process. It enables the setting of a period of review, enables the placement of conditions on a provider’s registration and requires re-registration within five years.

While no institution should be immune from scrutiny, institutions that do have good track records, that appear to be very low risk, should not be put under undue additional administrative pressure. Red tape for red tape’s sake will not achieve anything, but it will hurt our institutions. That being said, the administrative costs to all institutions should be kept to a minimum. Many of our smaller institutions have been hit hard, and not necessarily due to any action of themselves. The impact of a higher Australian dollar on our education providers is certainly not to be discounted in this regard.

The introduction of the Overseas Student Ombudsman is a positive measure. It should add to the risk management features of this bill and lend international students greater confidence, and I certainly hope that that will be the case. This bill is a positive step in supporting our international education sector. For every poor experience a student visitor has in Australia we lose not only that student from our shores but others—potentially many more. There is no reason for any student to have a poor experience here. We have an accepting and multicultural society. When it comes to education we have high standards and quality outcomes. We have cities and towns that not only are great places to live in but offer unique experiences to visitors. I hope that the outcomes of this bill encourage more students from nations other than our own to make their way to Australia to study. I commend the bill to the House.

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