Nickolas Varvaris (Barton, Liberal Party) Share this | Hansard source

I am very pleased to speak on this important bill today because I know how significant it is to the many students and vocational training providers we have in Australia. The National Vocational Education and Training Regulator Amendment Bill 2015 will enable better regulation and enforcement of our registered training organisations to ensure students and taxpayers are not left in the dark as to the viability of their respective careers or finances. This is an important piece of legislation for many reasons. First and foremost, it affects our vital employment sector and those who specialise in trades. When you think about it, this is far reaching. Every hairdresser, plumber, electrician, mechanic and so forth that we encounter in our lives has gone through the vocational education training system. They have developed and refined a specific and tailored form of procedural knowledge that significantly contributes to our economy and labour market, not to mention the essential services their trades provide to society. Not only do we all rely on the services of a vocational education graduateat some point, but asthese professionals eventually leave the labour market,it is critical they are replaced by those who are equally skilled.

This last point is increasingly significant because our nation is facing an increasingly ag e ing population , with retirees set to outnumber workers. Five years ago every Australian who had reached 65years of age was supported by five working adults. By2050,it is projected thatone retiree will be supported by only 2.7 working adults. Our labourmarket is declining every year, and the need for skilledworkers to continue the services and goods theyprovide cannot be stressed enough.We not only need more workers but, critically, we need skilled workerswho have the right training intheir choice of profession.

It is disappointing to me and to the constituents who have flagged it with my office that there are a number of registered training organisations who are not providing adequate training to equip these workers. Some of my constituents are seeking a career change, whilst others have finished school and are keen to take on a trade that they are passionate about. Yet many of them are baffled by the lack of consistency in quality and training materials provided as well as the difference in costs between the different providers. A few of them were unaware of the financial assistance that is there to assist with course fees, whilst others felt the government's financial assistance on offer had been marketed rather forcefully to them—they were being offered free electronic gadgets and other incentives unrelated to their course. You can imagine that with so many choices of provider, so many courses to choose from and uncertainty about how funding is actually delivered, they have come to my office very confused. These people have a dream and a passion to fulfil. The lack of uniformity, the dramatic difference in costs and the various reputations of course providers has often left them demoralised.

As a federal representative, I know that my colleagues and those opposite want all Australians to be actively engaged in their vocational courses, with training organisations that can deliver what they promise. I know that all members of this House want our students to obtain qualifications from training providers that enable them to successfully complete their studies and take on a job that can reward them accordingly. We certainly do not want to have organisations that exploit students and vulnerable individuals by offering unrelated incentives and not disclosing their fee structure. Unfortunately, some of these hypothetical scenarios are a reality for many individuals. I was perplexed to learn from one constituent that her qualification in child care still left her with an inability to find work despite an industry demand for childcare workers. I was disturbed to learn of a young apprentice who did not know how much the total loan for his fees was or how the fees were calculated to begin with.

I was disappointed to learn that one constituent was solicited repeatedly by an education service provider that she had never heard of, cold calling her on her mobile, who had somehow gotten her details even though she never registered an interest with that organisation or course. Marketing in education is not new, and this is not the issue at stake. What becomes a problem is unscrupulous marketing that centres the focus on the organisation's profitability, with no consideration for the student's best interests. Today's bill seeks to redress the balance by enabling new quality standards in vocational education to be enforced, not just regulated. It will also enable the Australian Skills Quality Authority, our national training regulator, to investigate those breaching the rules and act upon poor-quality providers.

The bill will also allow for significant reforms across our vocational education sector, through the provision of a national VET complaints hotline. It will reduce the regulatory burden on high-performing VET providers, through extension of registration from five years to seven years, and it will allow clear identification of providers who issue a qualification certificate. The bill today will amend the National Vocational and Education and Training Regulator Act 2011 to strengthen the protection of students, to ensure those providers who continuously deliver high quality training do not suffer from over-regulation, but it will also enable those who provide inadequate training to be audited, and sanctions enforced.

We cannot afford to have a poorly educated workforce. It is unfair to the students and to our taxpayers. In addition, it is also dangerous to have inadequately trained professionals. Think of the electricians, whose services are life-time guarantees, and the mechanics, whose training is there to ensure our vehicles are safe and roadworthy. These are just two critical examples of why we must have high-quality graduates.

It is our role to ensure a duty of care to those learning, and that these provisions are adhered to by the training organisations. It is unfortunate that some providers in this vital sector have not been able to undertake all their proceedings having regard for the best interests of their students, in particular the quality of training and the abuse of the sector's VET FEE-HELP. Like the tertiary sector's HECS debt, a student can borrow every dollar of the cost of their course, with no repayment obligation until they reach a certain salary. Furthermore, some organisations have increased or varied the cost of their courses to take advantage of VET FEE-HELP, which they market as 'study now and pay later' to lure students in. Unfortunately, some students have been unable to repay their loans because they were unable to get the job they had hoped for, due to poor-quality training. Some students, as I mentioned previously, have been unaware of how much they owed until they received an invoice. This is not the solution to having a better trained workforce. In actual fact, it would altogether put students off from entering the vocational market. So it is pleasing that this bill will allow our national regulator, ASQA, to make it mandatory that students are aware of what they are signing up for, and that they are notified of their loan fees. This will extend to the brokers who market these educational providers and programs.

In addition, the National Training Complaints Hotline, a joint initiative with the states and territories, will act as a triage system for complaints to be heard and investigated. It is regrettable that whilst most registered training organisations provide exceptional value and support for students, there are those who deliver substandard training to learners.

I implore members from all sides to support this vital bill, to ensure the viability of our vocational sector and that they have regard for the best interests of their students. There is a clearly demonstrated need for enforcement, not merely more regulation. The bill is not about increasing red tape. It is about realigning the interests of students, tax payers and employers so that our skilled labour market is high in quality. It is essential that ASQA is given the resources and support to regulate and enforce the rules of our vocational education providers so that the abovementioned stakeholders do not lose out.

I cannot stress enough the importance of ASQA. Its increasing focus on compliance and auditing has been critical in identifying those providers who are not up to scratch. Our community deserves to have full confidence in the training and assessment framework being delivered in this country, so that trades can continue in their high standards and students learn the right skills to take on a career of their choice. It is our role and the intention of this bill to ensure that there is good faith in the vocational sector, and that the system is carried out with integrity. We want current and future students to have the freedom to choose their path of study without being restricted by fees; however, that should not mean they are exploited by rogue training organisations. The viability of a robust, quality VET sector is needed so that Australian businesses can continue to thrive. This bill is one part in reducing malpractice and inefficiency in this vital sector.

Whilst we all recognise that individuals must research carefully the institutions that provide these studies, we must also take into account those who are unable to make informed decisions by themselves and who might be exploited. Both ASQA and the coalition government will work together to ensure students are provided with the right training and skills needed for their trade and not just saddled with debt. We are committed to creating a framework where funding and support go to the right participants, so that students receive the right qualifications and skills to enter into the labour market.

I ask members of this House to strongly support the bill, which will ensure the best interests of our vocational students, taxpayers and employers. Today's bill is essential to strengthening and maintaining Australia's quality vocational education training system, so that everyone can benefit from our trades sector. I commend the bill to the House.

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