Karen McNamara (Dobell, Liberal Party) Share this | Hansard source

This bill will enable, by 2018, an additional 80,000 higher education students per year to gain access to government subsidies. For the first time ever students will receive Commonwealth support to undertake and complete diplomas, advanced diploma and associate degrees. All Australian undergraduate students in registered higher education institutions will be supported for all accredited courses.

This bill enhances opportunity. For an electorate such as Dobell, this measure will see more people afforded the opportunity to engage in higher education, in addition to attracting quality jobs as a result of a highly educated labour market. By extending Commonwealth support to diploma courses, we are providing an important pathway to higher education for those students seeking later admission to university studies.

Providing students the opportunity to develop the skills required to successfully undertake higher education, ensures that they have the best chance of attending university and attaining a tertiary qualification. This is especially important in regional and low-socioeconomic areas where students are currently afforded less opportunity to enter into higher education, as compared to students living in metropolitan areas.

In Dobell, only 50 per cent of students attain year 12 qualifications. Students who do not complete their Higher School Certificate are often denied the opportunity to attend university. On the Central Coast, only 16 per cent of residents possess a tertiary qualification. It is my aim to see that number increase.

By extending student access to the HELP scheme, we will open the door to people who were previously unable to meet the up-front costs of a diploma pathway course, which allows more people to participate in undergraduate studies at university.

We are also extending Commonwealth support to enable private universities and non-university higher education institutions to compete for students. By doing so, we acknowledge the role played by private institutions in contributing to the diversity of Australian higher education. By extending support to private institutions we are welcoming and encouraging them to play a greater role in providing higher education.

Again, this will benefit regional communities where non-traditional providers can meet the demand for higher education services. This is a significant reform for regional communities such as the Central Coast.

The University of Newcastle has demonstrated a commitment to the Central Coast, with the establishment of its Ourimbah campus, which is currently celebrating its 25th anniversary. The Ourimbah campus offers 16 undergraduate degrees, four of them exclusively, and sees a partnership with TAFE that provides diverse educational opportunities.

The Ourimbah campus partnership with TAFE will benefit from funding for pathway and other diploma courses, which will see more people provided the opportunity to succeed at university. Unfortunately, despite the outstanding work of the University of Newcastle, many local students have no option but to travel to Sydney or Newcastle to study their chosen course.

Unfortunately, once qualified, few return to the Central Coast to undertake employment, settle down and raise families. So this is seeing us exporting our best and brightest to metropolitan areas. Figures released by Wyong Shire Council have estimated a shortfall of 7,600 university places within the Central Coast and the Hunter Valley.

Based on forecasted population growth it is expected that this number will increase to 8,600 by 2031. Our growth plan for the Central Coast recognised this shortfall and included a commitment to facilitate the approval process for university development in our region. This commitment is forged from the understanding that universities play a crucial role in driving development in regional areas through job creation and educating the community.

I am proud to be working with Wyong Shire Council, as they develop a master plan for a new university precinct at Warnervale. On the back of these reforms is a vision that this precinct will be home to a diverse range of education providers, including a university, a TAFE and other private education institutions.

Private institutions and non-university higher education providers will be encouraged to establish themselves in regions such as the Central Coast as they will now be able to offer Commonwealth subsidised courses to a market in which courses are currently not available. For the people of Dobell, this is critically important in ensuring that they have access to world-class education facilities that will unlock the prosperity of our region for years to come.

This reform package also empowers universities to determine the appropriate fees for their courses, which will generate a competitive market for students between a greater range of providers. Currently, higher education institutions have little means to distinguish themselves within the market and demonstrate the true monetary value of their courses. It is fair to say that universities have been operating with one arm tied behind their back.

Despite the government not being in a positon to know the true cost for a university to deliver a course, it had been imposing upon universities how much they can charge their students. This is unique within the Australian economy and has undoubtedly restricted the growth of university standards when compared to foreign universities. Competition between higher education providers will benefit students as they will now have a greater array of choice when it comes to course offerings and prices. Fees will be set on the basis of supply and demand in a competitive market. This competition will drive quality and encourage providers to be more responsive to the needs of their students and the needs of business and industry. Ultimately, all providers will be required to compete on price and quality, meaning more flexibility and choice for students.

As previously highlighted, the Central Coast has a below average number of people completing secondary education, undertaking tertiary education or possessing a tertiary qualification. The contributing factors include but are not limited to: a shortfall in available local university courses; costs associated with transport or relocation to metropolitan areas; and below average education attainment rates. This government is determined to assist people who find themselves in these difficult situations. This is why this government will establish the new Commonwealth scholarship scheme. These scholarships will deliver major new support for regional students to attend university.

Under the proposed higher education system, we will require universities and other higher education providers to spend $1 in every $5 of additional revenue raised on scholarships for disadvantaged students. Universities and higher education institutions will be able to provide tailored, individualised support to students of a low socioeconomic status. This may include needs based scholarships to help meet the costs of living, fee exceptions or tutorial support. For a Dobell school leaver unable to afford to relocate to Sydney, such assistance can result in them having the opportunity to attend university and achieve a sustained path of employment and investment in their future. These scholarships will be of enormous benefit to students from regions, including the Central Coast.

I struggle to understand why members opposite are so committed in their opposition to these reforms. It is one thing to oppose these measures in parliament on ideological grounds, but to see members opposite parading around university campuses and blatantly peddling lies to scare students away from higher education is shameful. This government is not—I repeat not—increasing fees. Fees will be set by universities who will determine what to charge. Competition between higher education providers will ensure universities are reasonable when setting their fees. Higher education providers will compete for students. The truth is that, under these reforms, more students will have the opportunity to attend university and they will not face any up-front costs.

The government is maintaining the Higher Education Loan Program scheme, meaning no student will pay a cent up-front for their higher education until they have graduated and are earning a reasonable income of over $50,000. As a government, we believe that it is fair that students contribute equitably to the cost of their education. We are asking students to pay for 50 per cent of their higher education costs. The Australian taxpayer will pay the other 50 per cent. Under the current system, the Australian taxpayer is meeting 60 per cent of the cost, with students paying the other 40 per cent. It is folly to suggest that somehow these reforms are delivering a cut to education funding.

This government's expenditure on higher education increases each year. Compared with Labor's 2013-14 budget, where total education funding was $8.97 billion, our budget shows higher education funding growing to $9.47 billion by 2017-18. We are supporting more access for people to attend university and other higher education institutions. Members opposite would have you think that there is no support for these reforms. Vice-chancellors across Australia overwhelmingly support this government's reform package, with Professors Gareth Evans and Ian Young of the Australian National University stating:

The bottom line is that if Australia is to develop universities which can truly compete internationally … and produce really outstanding graduates of the kind that are so vital to our nation’s future, we have to not only allow, but encourage, diversity by removing the constraints that prevent innovation.

I look forward to the unlocked potential these reforms will deliver, in particular for regions such as the Central Coast. We will see renewed investment from higher education providers and greater opportunity for local students. We will see higher paid jobs as a result of industry and business being attracted to regional areas through the provision of a better educated workforce.

Students need not fear these reforms. Students should embrace the endless opportunities afforded to them by this nation's great universal education system and have the confidence to say, 'I can follow my dreams and there are no barriers to prevent me from reaching my full potential.' The possibilities are truly endless. I commend this legislation to the House.

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