Jane Prentice (Ryan, Liberal Party) Share this | Hansard source

I rise today to speak on what is the largest reform to higher education we have seen in a generation. I have asked the Minister for Education about these reforms a number of times during question time. The answer is a resounding win for students. The University of Queensland is within my electorate of Ryan and many students have contacted my office about these reforms. While some are slightly concerned about potential fee changes, although they understand it will not be as high as those opposite postulate, they do know that they will be receiving higher quality education, especially on the research front, and that they will be able to borrow every cent of the cost of their degree from the taxpayer through the Higher Education Loan Program.

The coalition government's reforms to higher education will see Australia's university sector become truly competitive on the world stage into the future. Right now our universities face a constant struggle to maintain their superiority. Our higher education sector is currently our third largest export after iron ore and coal; it just recently overtook gold. Under Labor, international education went backwards. Export income dropped from $19 billion to $15 billion from its 2009-10 peak because of Labor's neglect and lack of backbone to make proper policy action. The number of international student enrolments fell by 130,000 between 2009 and 2012.

When Labor was in office they cut $6.6 billion in funding to higher education, including more than $4 billion in their last year in office alone. Labor cut $2.8 billion of funding to universities and students and capped self-education expenses, which would have left thousands of Australian nurses, teachers and other professionals out of pocket. Labor's legacy was a complicated and unwieldy mess, with large increases in regulation, compliance, reporting, unnecessary red tape and regulatory duplication applying to universities. This meant universities spent an estimated $280 million a year on compliance and reporting. Labor's poor track record is evidenced by the two independent reviews of regulation and reporting in 2013 to which the previous Labor government failed to respond.

Action needs to be taken to ensure that our education sector is not left to crumble as a result of Labor's neglect and the growing competition in neighbouring countries. In November 2013, the government appointed Dr David Kemp and Mr Andrew Norton to review the demand-driven system. More than 80 submissions were received and other significant consultation was undertaken. These reforms are not a result of rash, back-of-the-drink-coaster policymaking. They have been carefully devised with full consultation over a long period of time.

Earlier this year, Universities Australia launched a campaign urging that Australian universities must not be left behind in the face of intensifying global competition. Minister Pyne made it clear that he was in full agreement and that one of the core goals of higher education reforms is to ensure that Australia is not left behind as universities around the world, especially in Asia, rise in standing.

The Shanghai Jiao Tong index, released a few weeks ago, lists eight Australian universities in the world's elite 200. Universities in China, Hong Kong, Taiwan and Singapore are rising strongly through the ranks. Five years ago there were no Chinese universities in the top 200. Now there are six in just five years. We need to make sure our universities are not left behind.

In the lead-up to the budget, many calls for reform—including for fee deregulation—were made by several vice-chancellors across Australia. On the night of the budget, the government announced that two working parties were being appointed to advise on key aspects of implementation of higher education reforms. I would like to point out that out of all the vice-chancellors of Australian universities there is only one who is completely opposed to these reforms—just one, and on an ideological basis, not a practical basis. All the others, in one way, or another, support the reforms.

These reforms are indeed enormous so we do need to have complete agreement by all parties on the whole package. To have wide ranging support for the majority of these reforms is obviously quite difficult; so to have such broad support is testament to the calibre and necessity of this reform package. Just yesterday, in The Australian, there was an article stating that David Gonski backs the coalition's plan to deregulate higher education fees.

These are good reforms; they are the reforms our higher education sector needs. The University of Queensland in my electorate of Ryan is a member of the Group of Eight universities and is one of Australia's top universities. In fact, the University of Queensland is ranked in the top 50 worldwide, as are the ANU, Monash and a number of other Australian universities. Yet not one of those is ranked in the top 20. I think this is a shame. I believe in our higher education sector, and I share in the minister's passion and vision to give our Australian universities the potential to be in the top 20 and to one day compete with the likes of Oxford and Harvard. These reforms make such dreams possible.

I know the minister has worked hard and has done a very good job of communicating what these reforms involve. There are 10 key points to the higher education reform package. The first is expanding the demand-driven Commonwealth funding system for students studying for higher education diplomas, advanced diplomas and associate degrees, costing $371.5 million over three years. The second is extending Commonwealth funding to all Australian higher education students in non-university higher education institutions studying bachelor courses, costing $449.9 million over three years. The third point is that more than 80,000 students each year will be provided with additional support by 2018, including an estimated 48,000 students in diploma, advanced diploma and associate degree courses, and 35,000 additional students undertaking bachelor courses. Fourth, there will be more opportunities for students from low socioeconomic status backgrounds through new Commonwealth scholarships, the greatest scholarship scheme in Australia's history, effectively meaning free education for the brightest students from the most disadvantaged backgrounds. The fifth point is that it will allow universities to set their own fees and compete for students. Competition will enhance quality and make higher education providers more responsible to the needs of students and the labour market. When universities and colleges compete, students are the winners.

The sixth point is that it strengthens the higher Education Loan Program, which sees the taxpayer support all students' tuition fees up-front and ensures that students repay their loans only once they are earning a reasonable income—more than $52,000 per annum. No one needs to pay a cent up-front. Seventh, it will remove all FEE-HELP and VET FEE-HELP loan fees, which are currently imposed on some students undertaking higher education and vocational education and training. Eighth, it secures Australia's place at the forefront of research, with $150 million in 2015-16 for the National Collaborative Research Infrastructure Strategy, $139.5 million to deliver 100 new four-year research positions per year under the Future Fellowships Scheme, $26 million to accelerate research in dementia, $42 million to support new research in tropical disease, and $24 million to support the Antarctic Gateway Partnership.

The ninth point is that it will reduce the Commonwealth Grants Scheme by 20 per cent. Currently taxpayers fund more than 60 per cent of a student's degree. We believe that it is fair to ask students to pay for half of their degree—especially when people with a tertiary education earn significantly more over their lifetime. And do not forget that this 50 per cent can be completely borrowed on HELP—previously known as HECS—regardless of the student's background. Tenth, it adjusts the interest rate on student HELP loans. This is the money that the taxpayers lend to students up-front for the student's tuition. It will be adjusted to the 10-year government bond rate, with a capped maximum of 6 per cent, away from the current interest rate which is CPI. Taxpayers borrow the funds at the bond rate so it is reasonable that students should also borrow at the same rate. Remember that this is possibly the best value loan that students, or anyone, will ever get in their lives.

These reforms mean more competition and more choice for students. And, as a result of these reforms, there will be more courses. Universities will receive government support to offer more courses to more students. These qualifications will provide career opportunities and pathways to further qualifications.

There are some objections to these reforms on the basis that they do not help those in regional and low socioeconomic areas. However, diploma courses provide crucial opportunities to higher education for less-prepared students, giving them the opportunity to develop the skills needed for further higher education study. Expanding Commonwealth subsidies to these courses will ensure our students have the best chances of success. This is especially important in regional and low socioeconomic areas where students are less likely to enter into higher education compared to students living in metropolitan areas. These reforms mean more choice for students.

Universities will be empowered to set their own fees for their courses, which will generate more competition for students between a greater number of providers. More competition between higher education providers is good for students as they will now have a greater array of choices when it comes to course offerings and prices. Competition will drive quality and encourage providers to be more responsive to the educational needs of students. This will see many other students paying less than they do now for their education as the government supports more higher education options.

Many TAFEs and private colleges already work in partnership with universities. Those universities have been seeking funding for pathway and other diploma courses that help less prepared students succeed at university. The coalition government will now fund pathway and other diploma courses through universities and colleges, enabling many more people in Australia to get qualifications that can be used outright or towards a university degree.

Teaching and learning quality is a large part of these reforms. A competitive market requires an informed consumer. The coalition is responding accordingly. New information provided through the Quality Indicators for Learning and Teaching will put the performance of each higher education institution—private as well as public—in the public eye. This will ensure that all those involved in the market have all the information they need to make the right choices and that no one party is advantaged at the expense of another. Students and their families will be able to access information about the quality of the courses and institutions they are considering. There will be better information about how successful previous graduates have been at finding jobs and what other students and employers think about the course. This information will also help Australian institutions compare their performance with other countries, assisting them to continue to improve. A new website presenting this and other information will be online later this year, with full implementation by August 2015.

I would like to reiterate that there are no up-front costs for students studying pathways which lead to a career with higher earnings. The government will maintain the HELP loan scheme so that no student need pay a cent up front for their higher education until they have graduated and are earning an income of more than $50,000 per year. Australian university graduates, on average, earn up to 75 per cent more than those who do not go on to higher education after secondary school. Over their lifetime, graduates may earn approximately $1 million more than if they had not gone to university. Given this, it is only reasonable that students contribute fairly to the cost of their education.

There has been a determined scare campaign regarding the future for fee paying students. Let me be clear. The current debate about these reforms has led to some inflated claims about the likely fee levels and repayment requirements of students. These claims should be treated with caution. Students enrolled before the budget will continue to be charged under existing arrangements. The government is not increasing fees. It is up to universities to choose what they charge, and for students to choose to pay.

Higher education providers will have to compete for students, and when there is competition for students, the students are the winners. Universities will have more to say about their own fee arrangements in due course. However, the wild speculation those opposite are using to scare the public away from the greatest higher education reforms we have seen in a lifetime are vastly incorrect and have no founding in reality. Some university fees will go up and some will go down. Students can choose a university that is best for them. They can choose the courses they want at the fees they want. Students will have the chance to go to universities that truly compete on the world stage and will set them in good stead to reach their full potential. These reforms mean that students win. Australian universities are dropping in world standing, but we cannot afford for them to be left behind.

I urge all those in this House to support this bill. To stand in the way of these reforms is to stand in the way of our children and their potential. I commend this bill to the House.

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