Mark Coulton (Parkes, National Party) Share this | Hansard source

Before I start my contribution, I must mention the appalling contribution from the member for Jagajaga. The member for Jagajaga was a minister of the Crown in the worst government that this country has ever seen, a government that saw this country rack up enormous amounts of debt. She was a minister in a government that has meant the current government has to make some very tough decisions about getting our economy back on track.

This bill is not a measure taken by this government to try and fix up Labor's mess. This bill is about real reform. This bill is to make our tertiary education sector sustainable and relevant in the long term. It is a bill that will enable our universities to not only survive but grow and prosper. This bill will make it possible for people in the electorate of Parkes to obtain a tertiary education—probably the first generation of their family to do so. From the privileged surrounds of the electorate of Jagajaga in Melbourne, maybe that is not important.

The other thing that is important in this is to actually speak the truth. The member for Jagajaga talked about the government putting up fees for students. But there is no talk of the government putting up fees for students. There is an increase in Commonwealth scholarships and an opportunity for more people to attend university. It is very irresponsible for members of the opposition to be running a scare campaign— through their trainees, their future members of parliament, and members of the students' union who are holding rallies and protesting against ministers of the Crown when they visit universities., Unfortunately, they are not speaking the truth.

I am the father of three adult children who have attained a university degree—and some of them have more than one degree—so I do have a fair idea of the trials and tribulations involved in funding a university degree. If you listen to the members opposite, you would think all this was free, that the education fairies rain goodwill upon all students and magically these courses are funded. What we are talking about is a modest increase in fees. Students are paying 40 per cent of their course fee but they will now pay 50 per cent. When my children were deciding where to go to university, and how they were going to fund it, the tuition fees were not a concern. As regional students, they were more concerned about how they were going to fund their accommodation and find part-time work so that they could live away from home. The fees they paid through their HECS debt were not a major concern. They may be grumbling a little now as they pay off their HECS debt—they are now in the workforce—but it is one of the best deals they will ever get. Given that they are able to earn a higher income because of their university degrees, it is not unfair that they should be paying those fees back.

With this scare campaign, students concerned about how they are going to finish their course have been contacting my office. Students who were enrolled before the budget will not be charged any differently from the arrangements they are already under. Students who accept a Commonwealth supported place at a higher education institution after 13 May 2014 will be subject to the existing arrangements until 1 January 2016, when they will move to the new system. I am conscious that the current debate about these changes has led to some inflated claims about the likely fee levels and repayment requirements for students. These claims should be treated with caution. Universities will have more say about their own fee arrangements in due course. No student will need to pay a cent up front, and no-one will need to repay anything until they earn over $50,000 a year. I repeat: the government is not increasing fees. Members of the opposition should stop saying that because it is not correct. The government is not increasing fees.

Competition between higher education providers will force universities to be reasonable in setting fees. If they charge too much, they will have empty lecture theatres. Higher education providers will have to compete for students. When they compete for students, the students win. The government believes in the transformational power of higher education, and that is why we will provide around $37 billion in funding for teaching to higher education institutions over the next four financial years.

Australian university graduates, on average, earn up to 75 per cent more than those who do not go into higher education after secondary school. Over their lifetime, graduates earn around $1 million more than they would if they had not gone to university. Given this, it is only fair that students make a reasonable contribution to the cost of their education. The government will ensure that students are not disadvantaged by these changes. HECS loans will continue to be available to assist Australian students with the cost of their education.

Australian universities are dropping in world rankings and Australia cannot afford to be left behind in an era of increased mobility, rapid innovation and shifting balances of power. Higher education institutions have the ability to respond to these challenges particularly in the face of rising universities in Asia and elsewhere. The government believes that these higher education institutions, not governments, are the best judges of how we can maintain and promote a world-class higher education system.

From 2016, institutions will be responsible for setting their own levels of student contributions, freeing them from bureaucratic restrictions. The extension of Commonwealth subsidies to private universities and non-university higher education institutions will support 80,000 Australian students and encourage institutions to compete on price. When universities and colleges compete for students, students win, as I said before.

Reform to our higher education system is necessary if we are going to stay at the forefront of international education. The government will be providing around $37 billion in funding to higher education institutions over the next four financial years and government spending is going to increase each and every year. Despite what the members of the opposition are peddling—their scare campaign—the government will be increasing education funding to universities over the next four years.

The government is not proposing to increase fees. In fact the fees will be set by the institutions themselves. This offers great opportunities for higher education institutions to offer courses that are suited to their strengths. These changes will not affect students who enrol on 13 May 2014. As I have said, they will be exempt. It is important to note that on average students will earn more over their lifetime and it is not unfair that they should make that contribution. It is also important to know that they will not have to repay that loan until they are earning $50,000 a year.

Labor cut $6.6 billion in funding to higher education while they were in office including $3 billion in their last year in office. So when you are listening to the contributions of those opposite, please keep that in mind—Labor cut $6.6 billion in funding to higher education while they were in office including $3 billion in their last year. There will be more opportunities for students from disadvantaged backgrounds through the Commonwealth Scholarships scheme and this will be great for regional Australia. Quite frankly, why shouldn't a student from a family that may have limited means, who has exceptional ability, be given an opportunity to study at one of the top universities in this country? Isn't that what opportunity is all about?

Regional educators will be able to provide for more students because they will have greater ability to offer a wider range of courses, and I will mention Charles Sturt University, which has a campus in Dubbo in my electorate. I know Professor Van has had some concerns about parts of this package, but I also think that there is an understanding that the university also realises that there needs to be reform and that some of the issues that are, I believe, of concern to Charles Sturt may even be addressed.

The deregulation of tertiary education will allow opportunities, and in Central Queensland the merger between the TAFE and the Central Queensland University is a classic example. This will allow opportunity for students in my electorate to obtain funding to attend diploma and other courses. TAFE Western has over 36,000 students including nearly 7,000 Aboriginal students. TAFE Western is the greatest educator of Aboriginal people in Australia. These reforms will allow those Aboriginal students from Western New South Wales to possibly be the first members of their families to obtain a tertiary education. I think that is incredibly important.

Following on from legislation that came through this place a month or two back, which will allow apprentices to obtain HECS type loans to help them through those first difficult years of an apprenticeship when the wages are indeed low, will also allow many of those young people in Western New South Wales and elsewhere to be the first members of their families to obtain a tertiary qualification. Indeed, isn't that what education is all about? I know from my previous role as chairman of the Gwydir Learning Region, that once people make that first step into furthering their education, then it is much easier to follow on. Quite often people who make that first step go on to complete further studies and, indeed, spend the rest of their life completing their education. Education is a lifelong journey and I believe that these reforms will enable many more people in this wonderful country to obtain that opportunity.

Debate adjourned.

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