Justine Elliot (Richmond, Australian Labor Party) Share this | Hansard source

I also rise to speak on the National Vocational Education and Training Regulator Amendment Bill 2015. This bill contains amendments to the National Vocational Education and Training Regulator Act 2011 which will work towards supporting ongoing reform measures, including protecting the integrity of the vocational education and training, or VET, system. It also gives the regulator capacity to respond to emerging issues. There are also technical amendments to improve the efficiency and operation of the act and, consequently, the regulator. The bill also extends the period of registration that is able to be granted by the regulator from five to seven years.

As we have heard from many speakers on this bill, a high-quality vocational education and training sector is fundamental to growing our skilled workforce and also fundamental to making sure that we have a very productive economy. It is vitally important for both those reasons. At the same time, there needs to be effective safeguards in place to protect those in the system, particularly those who are young and those people who are vulnerable. As stated by the shadow minister, the member for Cunningham, we on this side will be supporting this bill. She has also moved an amendment to strengthen transparency. I support the amendments that the shadow minister has moved, which will accelerate the introduction of consumer protections for vulnerable people who may be exploited by unscrupulous training providers. Some of these issues have already been identified in the interim report of the Senate Education and Employment References Committee inquiry into the operation, regulation and funding of private vocational education and training providers in Australia, which was tabled recently.

Labor is calling on the government to request the Australian Competition and Consumer Commission to develop national consumer advisory information on the VET sector and for the government to explore all options for increased consumer protection. The ACCC has consumer information available for many sectors that have been the subject of exploitation in the past. Labor has requested that a similar campaign be developed for the vocational education sector to ensure that that oversight is there. We looked at some of the revelations of over 600 complaints to the New South Wales Office of Fair Trading about unscrupulous providers. This really does show that there is a need for urgent action in this space in terms of the transparency required. The fact is that young people deserve to have access to the best quality training, and they also deserve and need to have action to safeguard their rights while they are accessing this sector. This is vitally important. The minister must act now to ensure that consumers are aware of some of those practices are occurring so that people can make informed decisions about who they choose to train with and get the required skills from. This will ensure that they are not being manipulated by the many unscrupulous marketing and recruitment practices that have been occurring in the sector. We have seen a lot of that in the media recently.

The purpose of the National Vocational Education and Training Regulator Amendment Bill is to introduce some measures to protect the integrity of the VET system and also to provide a balance between protection and regulation of the system. The bill aims to enhance the quality within the VET sector by protecting the integrity of the sector through quality assurances that will enable the delivery of high-quality training for students, which is, at its essence, what is required in this field. We want to make sure that that high quality is maintained. It is imperative that students gain relevant qualifications and also imperative that employers have confidence that an individual's qualifications are a reliable measure of the knowledge and skills they possess regardless of where they may have been trained.

The bill also aims to improve transparency in the marketing of VET courses. As we have said, many concerns have been raised about the manner in which some VET courses have been marketed and some of the methods used. At times, it can be very unclear to students, particularly if they are enrolling online, who is actually responsible for their course. The bill places additional requirements on the context of advertisements that relate to VET courses, requiring greater transparency in their marketing. This will allow students to clearly identify who is actually responsible for their course. The bill also reduces the regulatory burden through extension of registration periods. The bill extends the period of registration able to be granted by the regulator from five to seven years. The bill will also provide a number of administrative improvements to streamline processes.

But what this bill fails to do is provide specific consumer protection provisions, which is exactly why the shadow minister has put forward that specific amendment. We believe that is vitally important. As many people have highlighted in speaking on this bill, some of the reports in the media have been very disturbing. We have seen reports on the increase of unscrupulous behaviour by some registered training organisations who are preying on vulnerable students, signing them up for very large VET FEE-HELP debts. It is quite disturbing when you see the situation that some people are in. Distressed students have sometimes been completely unaware that they were signed up for a particular course. Further adding to their distress, often they find they have been saddled with quite a significant debt as well.

These reports often identify a real problem with people being misled about the actual debt they will be incurring with the Commonwealth government through the use of VET FEE-HELP. Many of these stories have identified people having debts sometimes over $20,000 without even finishing a course or gaining a qualification. This is just nothing more than clear exploitation of people who simply want to get out there and improve themselves and improve their chances of getting a job. Unfortunately, we have seen too many instances of people being exploited in those situations. So we really have to see some action taken to stop people who are often already in vulnerable situations being trapped into debts which can lead to more and more hardship for them.

Under VET FEE-HELP, students are able to access up to $97,728 in total for most courses offered by eligible registered training organisations. This becomes something of a double-edged sword in that it provides access to education and training but can also become a very large carrot for those unscrupulous providers. Indeed, some registered training organisations have further muddied the waters through the use of brokers as well. These brokers, at times, have embellished their products to sell them. In this case, it is education and training products to potential students. The use of brokers currently allows RTOs to distance themselves from the actions of some of these particular brokers who are incentive driven. Sometimes, as we have said, their behaviour is quite unscrupulous. The amendments in this bill take some steps to making RTOs accountable for the actions of the brokers they encourage and engage to sell their products, but more needs to be done. With the Grattan Institute warning that almost half of all vocational loans will never be repaid, the financial burden on the Commonwealth continues to grow. When we further consider that the growth of VET FEE-HELP has exceeded all projections, with more than $1.6 billion allocated just last year, action is clearly needed. The community are certainly calling for action in this space as well.

Yet, instead of action from this government, what we have seen from the Assistant Minister for Education and Training, Senator Birmingham, is that he has been out there advancing the incorrect and fanciful argument that it was Labor in government that failed to protect students and taxpayers from these unscrupulous providers. In fact, Labor has a very strong and long record on investing in skills and helping students and workers to obtain the skills they need to participate and compete in the modern workforce. As well, it was Labor that was committed to and introduced regulation and quality assurance. We are very proud of our record in this particular area. But unfortunately for well over a year Senator Birmingham and his predecessor, whilst they might talk tough about action against those RTOs, have failed to take firm enough action to stop these problems which of late, as we have seen, have been quite extensively reported within the media.

While we are talking about providing training and skills, I want to turn to New South Wales and look at what is happening there and the need to have a greater investment in TAFE. I would like to make some remarks about New South Wales Labor and their very strong commitment to a strong, quality TAFE system. That was demonstrated in their recent statement in relation to TAFE. As New South Wales Labor have said: 'We need to grow smart jobs and opportunities for our state, but we can't do that without a strong, well-funded TAFE system.'

The fact is that, since 2011, the New South Wales Liberal-National government has cut $1.7 billion from education and training, sacked 1,100 TAFE teachers and support staff, cut TAFE courses, slashed class contact times and drastically increased student fees by up to thousands of dollars. In 2015 alone, fees have risen significantly, with 40 per cent of students being slugged an extra $500 to $1,500 for courses. These particular cuts have been devastating for the people of northern New South Wales in areas such as mine. In fact, they blame the National Party for these very vicious and harsh cuts to TAFE. It is the responsibility of the National Party. They have cut funding and cut courses for people in northern New South Wales and in other parts of New South Wales. The National Party will be held to account not just for these massive cuts to TAFEs but also for their cuts to education and health.

Quality education and training is the key to a better job, a better career and a better life. I commend New South Wales Labor for making the commitment to invest in skills and training and ensuring we have a fair and equitable TAFE system so that can give our young people the start in life they deserve. It has been announced that, if elected, a New South Wales Labor government will invest an additional $100 million to help make TAFE affordable and accessible for everyone in New South Wales by winding back the privatisation of TAFE and stopping the course cuts and fee hikes that we have seen from the Liberal-National government. This funding from New South Wales Labor would also allow TAFE institutes to reinstate vital courses which have been cut and restore support services for students. As part of New South Wales Labor's TAFE rescue package, they have committed that within the first term of government they will abolish the Liberal National's Smart and Skilled privatisation program. They will reverse the Baird government's TAFE fee hikes. They will also guarantee funding to TAFE by capping the amount of public funds that can be contestable by private operators at 30 per cent, and they will commission a landmark review of education and training in New South Wales, which is really important as well.

Every day we depend in some way on the services and support of someone who has vocational qualifications. We on this side of the House understand how important that is, and equipping the workforce with the skills required for the jobs of today and those of the future is an urgent challenge in my state of New South Wales. I certainly commend New South Wales Labor for the commitments they have put forward particularly in the context of the state election we face in a few weeks time.

On top of the harsh cuts by the New South Wales Liberal-National government, we also have the harsh cuts by the Abbott government as well. It has cut $2 billion from the skills portfolio since the budget. That is devastating when you look at the extent of some of those cuts. I will run through some of these cuts, because they are quite extensive and I would like to list them because this issue goes to the heart of the need to have people who are properly trained and skilled in our workforce. As I said, they have cut $2 billion from the skills and training sector, with the axe falling on the following programs and services: the Australian Workforce and Productivity Agency, the Tools for Your Trade payments, the Australian Apprenticeships Access Program, the Australian Apprenticeships Mentoring Program, the Accelerated Australian Apprenticeships program, the Apprentice to Business Owner Program, the National Workforce Development Fund, the Workplace English Language and Literacy Program, the National Partnership Agreement on Training Places for Single Parents, alternative pathways programs, the Productive Ageing through Community Education program, the Step into Skills program, joint group training and base funding for industry skills councils.

That is a shameful list of cuts by the Abbott Liberal-National government to skills and training. It is vitally important that people throughout our community can access these services, and yet the policies of the Abbott government are attacking opportunities for young people. Whether it is those cuts to training and skills programs or whether the cuts are to youth programs, and there are higher education cuts as well, they all impact on the opportunities for young people to get trained, to get ahead, to get a good job. We have spoken many times about the harsh impact of the $100,000 university degrees. In areas like mine, it means that people just cannot send their families to university. Yet again they hold the National Party responsible for this. They tell me it is because of the National Party that their kids will not be able to get to university. They will hold them to account for these very harsh measures. It is unfair that kids from regional and rural areas cannot access university because of the National Party's harsh cuts.

We are also talking about cuts to youth programs and training and skills initiatives. We saw the Abbott government cut those three youth unemployment prevention programs in the budget. Those three very important programs were Youth Connections, Partnership Brokers and National Career Development—all vital to providing, again, skills and training for our young people. I have had a lot of feedback from my area because people are very concerned about the fact that young people cannot access these services.

In conclusion, we need to have a government that is committed to providing effective training and skills for our young people and we need to have that training, as well as our TAFE services, all in place. We also need to make sure there are effective mechanisms in place to provide consumer protections for our younger people—we have to make sure they are aware of exactly what they are signing up to and understand exactly what courses they will be undertaking and paying for. We would certainly like to see some more transparency and consumer protection. Consumer protection is important across a whole range of areas but it is particularly important when you are dealing with younger people or with vulnerable people, so we would like to see an advance when it comes to consumer protections in relation to this bill.

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