Karen Andrews (McPherson, Liberal Party) Share this | Hansard source

I welcome the opportunity to speak on this private member's motion condemning the government's cuts to the university sector. I do so not only because of the importance of the education sector as a whole to my electorate of McPherson on the Gold Coast but also because of the significance of education as an export industry and to the future of our nation.

The university sector produces so much economic and social good for Australia, and ripping funding away from such a significant sector has the potential to kill the goose that laid the golden egg. I say this in a very sincere way because education is a growth industry for the future and provides us with an enormous and much needed opportunity to grow our exports and to expand our trading base. This is essential for us as a nation and critical for the Gold Coast, where our major industries of tourism and construction have suffered year after year from economic downturn. I will come back to speak more about specific Gold Coast and education issues shortly.

This Labor government has been unable to demonstrate its support for such a crucial sector and has embarked on one cut after another. The 2012-13 Mid-Year Economic and Fiscal Outlook included the following cuts: a freeze to the Sustainable Research Excellence program—$498.8 million; the ending of the facilitation performance funding from 2014—$270.1 million; the deferral of student support for masters by research degrees—$167 million; and a freeze on student start-up scholarships—$82.3 million. Those cuts alone will have a significant negative impact on the sector, but those cuts have been followed with more cuts. The 2013-14 budget handed down only a fortnight ago confirmed previously announced cuts to higher education of the efficiency dividend on universities of two per cent for 2014 and 1.25 per cent for 2015—$902.7 million; the conversion of student start-up scholarships to HELP loans—$1.186 billion; the removal of the 10 per cent discount for the upfront payment of university fees and the five per cent bonus for the voluntary repayment of HECS-HELP debts—$267.7 million; and an annual cap to tax deductions for self-education to $2,000 per person—$514.3 million.

It is just beyond belief that, at a time of economic pressure, this government cuts one of the sectors that is well placed to provide economic growth. And we should not forget that university places were uncapped in 2012 to increase participation rates, but with the government's cuts it will be more expensive and more difficult for students to study. It is such a contradiction that funding cuts are being imposed at a time when universities are being encouraged to take on more students. This is also happening at a time when universities are under pressure to provide an approximate four per cent annual wage increase to staff. Australia ranks 25th out of 29 advanced economies that invest in universities. These cuts will only serve to lower our ranking and reputation overseas even more.

On the Gold Coast, only about 18 per cent of the population aged 25 to 34 are degree qualified. We are working hard on the Gold Coast to ensure more students take on university education. Each of our universities—Southern Cross, Bond and Griffith—are working with our local schools to promote tertiary education and opportunities on the Gold Coast. The funding cuts of this government are making it so much more difficult for universities and students. The Gold Coast, in particular, is likely to be hit hard by these cuts, as higher education is a significant contributor to the local economy and employs thousands of people. It injects more than $1 billion into our economy and employs more than 7,000 people. Higher education is one of our city's major industries, with the three universities and over 400 education and training providers located there—and with more expressing interest in investigating, relocating or expanding their operations to the Gold Coast.

Southern Cross University has invested $100 million in its Bilinga campus and Bond University has recently announced a collaboration with the engineering faculty of the US Ivy League university Dartmouth to introduce a master of energy management qualification, which will be the first of its kind in Australia in the field of energy sustainability. These measures will not only help create jobs in the area but will add to our growing international higher education reputation. This government must stop damaging such a crucial sector.

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