Steve Irons (Swan, Liberal Party) Share this | Hansard source

I, too, rise to speak on the Higher Education and Research Reform Bill 2014, and join with colleagues from both sides of the House to put forward an argument.

One of the things this coalition government was elected to do was to right the ship with regard to the economic disaster that was left by the previous government. Part of that is making many things sustainable. 'Sustainability' is the word that should be applicable to this particular legislation. It is a word that those opposite have never seemed to understand, let alone put into practice, so I will take the time in this place to explain the concept carefully for them here today so that they can learn what it means.

'Sustainability' is defined as pertaining to a system that maintains its own viability by using techniques that allow for continual reuse. 'Maintain its own viability': that is what this government is trying to achieve by implementing a series of reform packages in this parliament across a range of portfolios. We are trying to ensure that the services and assistance that this government provides to Australians are not something that we will only be able to achieve this year or even for the next five years. We are trying to implement reform measures that will ensure sustainability can be guaranteed for the long term.

Those opposite like to philosophise about policies that create a better health system or a better education system, but they are philosophies that are based on an alternative world rather than the economic reality in which we live. For six years, the Labor Party based their policy decisions on a world where the government could afford to cash splash with no regard for the consequences. This coalition government, too, could sprout these little philosophies, but the difference is that we do not base our policy decisions on theory; we base them on fact, best practice and what is economically responsible for our future generations. We do not base them on unsustainable ideologies, no matter how great they sound. The reality of the world, if those opposite feel like finally sitting up and listening, is that the government is not, and was never intended to be, a never-ending ATM.

The government and its fiscal balance is intended to be utilised to support those who need them most as a means to provide vital services, such as national security and our national approach to policies such as health care, while also assisting each of the states and territories to deliver policy initiatives that they are responsible for, such as building new roads, infrastructure or hospitals.

The Higher Education and Research Reform Bill 2014 is one such reform initiative that this government has introduced to ensure Australia's higher education system remains sustainable. It is a bill that has already been debated in this place and even more so outside it in the media and in the community. As members know, a key feature of Australia's higher education system is its ability to be accessed by all. I am a firm believer that there should be no discrimination when it comes to any Australians accessing education of any form or at any level. When reviewing our higher education system specifically, it is clear that this government has continued this historic tradition by ensuring that all students can access higher education when they elect to further their studies beyond secondary school without having to make any up-front contributions. Instead, under the government's reform package, students will continue to have access to HECS and will not have to repay a cent until they are earning over $50,000.

I also highlight that on top of the HECS scheme which is provided by government, Australian university students only currently pay about 40 per cent on average towards the cost of their education, with the taxpayer paying the remaining 60 per cent. In today's economic climate, however, it is not possible for the government to continue sustaining these costs. That is why as part of the government's reform initiative to ensure HECS is sustainable in the long term, the government will ask students to contribute about 50 per cent towards the cost of their loan to create a much more balanced system. The government will also now be providing Commonwealth supported places for all Australian undergraduate students. This means that around 80,000 more Australian students per year will be able to access Commonwealth funding by 2018. This includes students studying diplomas, advanced diplomas and associate degrees, and bachelor and sub-bachelor courses at private providers, along with non-university higher education providers such as TAFE. Provisions in the bill before the House will also 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 so that there is equality across all assistance measures.

As I said, the coalition government is one which is focused on improving access to our higher education system. That is why another key reform measure in this bill is to create new opportunities for students in regional areas and from lower socioeconomic backgrounds. We will achieve this through our new Commonwealth Scholarships scheme, which will require that universities and other higher education providers spend one dollar in every five dollars of additional revenue raised on scholarships for disadvantaged students. This will ensure tailored, individualised support is provided to these students, including needs-based scholarships to support students who require cost-of-living assistance.

As members are aware, these are important reform measures that have been introduced in this place previously. But I also highlight that there are a number of key amendments that are part of the current bill before the House that I would like to draw the members' attention to.

Contrary to what those opposite have tried to claim in the media, this government has conducted widespread consultation with industry professionals and has conducted good faith negotiations with those opposite and the Senate crossbench since the government first introduced these reform measures in this place in August last year. As result of these negotiations, the bill before the House proposes a number of amendments to the Higher Education and Research Reform Bill 2014 that was first introduced.

The first of these amendments is to the indexation of HECS debts as per Senator Day's proposed amendment. Under this change, instead of moving to the 10-year bond rate, the government will be retaining the consumer price index for HECS debts. The government has also listened to and accepted Senator Madigan's amendment with regard to students who are primary carers of children aged under five accessing higher education. This amendment will introduce an interest rate pause for these students if they are earning less than the minimum repayment threshold, while a new structural adjustment fund will also be introduced to assist universities in transitioning to the new higher education model.

In addition to the Commonwealth Scholarship scheme already proposed under the government's reform package for the higher education sector, the government will also now be introducing a dedicated scholarship fund for those universities across Australia which have a high proportion of low-socioeconomic students. I highlight that these scholarships will be funded directly from the Commonwealth and will be in addition to the Commonwealth Scholarships already in place.

Of all the reform measures this government is proposing, however, members would be aware that the most significant change is this government's move to have higher education fees deregulated. This is the reform measure that universities across Australia have long been calling for, and it is the reform measure that is needed to ensure Australia's higher education system remains sustainable. The leading university in my home state of Western Australia, the University of Western Australia, has been vocal in its call for fee deregulation to ensure that the education our students are receiving is of a world-class standard, rather than our students being left behind because universities are forced to cut costs.

As the university's vice-chancellor, Professor Paul Johnson has previously stated:

The status quo is not feasible as it will over time erode the quality of our education and research activities - not a good position to be in when our nearest Asian competitors are investing so heavily in these areas.

This is a sentiment that I and this government understand, and we will continue to stand in this place to see it implemented.

Unfortunately, many of those valuable reform measures have been overshadowed by untruths regarding the cost of university fees if deregulation is implemented, and by the scare campaign from Labor and the Greens that Australians have witnessed in the media and in the community. This is despite the reality of fee deregulation already being revealed by universities across Australia, including the University of Western Australia. This university has now set its fees for 2016, which are less than half what is being claimed in the scare campaign of those opposite. The university has also already announced that they will target their Commonwealth Scholarships toward rural students, who will receive residential scholarships to support their studies while at university, which is directly in line with the scheme's intent.

Despite the fact that universities across Australia have already outlined why deregulation is needed—as has this government and many expert commentators, including the architect of the former Labor government's education reforms, David Gonski—those opposite refuse to accept that these reforms are necessary for the future sustainability of our higher education system. This is not really a surprise to anyone standing on this side of the House, because we know that although the Labor Party likes to claim that they are the education sector's friend and this Coalition government is the enemy, once again we need to step away from the fantasies of those opposite and take a long hard look at the reality. The reality is this: under the former Labor government, $6.6 billion in funding for higher education was cut, including more than $3 billion in their last year in office alone.

Just to add to those opposite's attempts to deceive the Australian public, a number of the cuts they proposed are the same ones they have now turned around and blocked in the Senate. This is exactly why those opposite cannot be trusted. They will backflip on their own policies if it suits their politicking of the day. I think even those opposite would struggle these days to justify why the cannot support their own previously-held policies and why they will not allow the Coalition government to get them through.

Despite those opposite, this Government has, however, once again listened to all concerns raised during consultations regarding safety nets for Australian students under a deregulated system. Further amendments to this government's original reform package have therefore been added to the bill before the House to ensure students are appropriately protected. This includes the government guaranteeing that fees for Australian students will be lower than international students' fees, and the government will also ask the Australian Competition and Consumer Commission to monitor fees as the new system is implemented. These are important reforms that will further strengthen Australia's higher education system for the future, and I commend Minister Pyne for his efforts in negotiating these amendments for the benefit of both students and universities.

Another key aspect of the government's reforms is ensuring that as competition is increased under a deregulated system, students are more informed about the quality of education they will receive from a higher education provider. This will ensure universities put their best foot forward in providing high quality education and do not overprice their fees. New information will therefore be provided through the Quality Indicators for Learning and Teaching, so that any member of the Australian public can assess the quality of both the courses and the institutions they are considering. This will include information regarding how successful previous graduates have been at finding jobs and what other students and employers think of the course. It is expected that a new website presenting this information, and much more, will be fully implemented by August 2015.

If the measures before the House are not passed in this place and the other, there will however be significant implications for other vital education initiatives that form part of this overall reform package. These include funding initiatives such as research infrastructure, through the National Collaborative Research Infrastructure Strategy, and our very important Australian Research Council Future Fellowships.

I do, however, highlight that I understand why the Labor Party continues to oppose the bill and funding for initiatives such as these. It is because they simply do not care about these initiatives, and, as the saying goes, the proof is in the pudding. Under Labor, not a single dollar was dedicated to the National Collaborative Research Infrastructure Strategy, beyond 30 June, and there were no funding provisions for any further Future Fellowships.

This Coalition government is the real friend of Australia's education sector. We have listened to universities across Australia, who have overwhelmingly called for fee deregulation, and, like many other initiatives that those opposite failed to fund in their own budget measures, we have again picked up their shortfall and ensured Australians do not miss out on the opportunities these education and research initiatives present.

To make Australia's higher education system sustainable in the long term, reform is needed, and the bill before the House will ensure best-practice measures, based on widespread industry consultation, are implemented. If those opposite want every Australian to continue accessing higher education in the future then I will provide them with the solution: pass the government's reforms in this place and the other. Alternatively, if they want our future generations to suffer and higher education to no longer be sustainable, then I tell those opposite: keep playing your political games and keep blocking this legislation, because every member in this place and the Australian public know that it is not for the benefit of students, as you like to claim; it is for your own.

If the claims being made in the scaremongering campaign of those opposite were remotely true, then universities across Australia would not be rejecting them. Mr Gonski would not be rejecting them, and Labor's own former education minister and Treasurer, the Hon. John Dawkins, who transformed Australia's university system under the Hawke Government, would not be rejecting them. These industry experts are rejecting the claims of those opposite because they know that the coalition government's education policies are the ones that will ensure our students are provided with a world-class education and that our universities do not fall behind other international universities.

As I said earlier, the government is not an ATM machine—no matter how many times those opposite tried to make the Australian taxpayer accept this during the six long years of their being in government. The coalition government is providing the necessary solutions to Australia's fiscal imbalance and we will continue to introduce solutions in this place that are in the best interests of the Australian people.

It is time those opposite got on board, stopped playing their political games and remembered that it is their children's and their grandchildren's futures that they are jeopardising every time they stand in this place and the other place to oppose another budget savings policy. Australia's higher education system needs to be sustainable, and the coalition government will continue to do everything in its power on behalf of the students and universities to make that happen. I commend this bill to the House.

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