Susan Lamb (Longman, Australian Labor Party) Share this | Hansard source

Without doubt, reform of the sector is essential. Labor understands this and this is why the government has essentially copied Labor's policies. If only it had acted so much sooner, billions could have been invested in apprenticeships and TAFEs, instead of being wasted on dodgy private providers. If this government had acted sooner, thousands of students would not have paid tens of thousands of dollars for a meaningless qualification. Many private providers have acted unconscionably in pursuing greater profits without regard to the massive debts incurred by each student.

Evocca College is just one example of a private institution that has demonstrated appalling behaviour and a complete lack of responsibility towards its students. Figures obtained in 2015 through an ABC report showed the college had a graduation rate of just 10 per cent despite claiming more than $290 million in government funding via the VET FEE-HELP student loan scheme. Even more concerning are the allegations that came to light after the report was aired. More than 20 former employees reported that the college enrolled students ill-equipped for diploma level courses without enough support, that it enrolled students who did not pass the required literacy test and that it backdated tutor qualification forms to pass federal government audits. Former staff claimed the college actively sought to hamper students who wanted to leave the college and cease adding to their government training debt. Now while I do not seek to traverse the appalling behaviour of many providers, the behaviour of Evocca College is symptomatic of the government's inaction and cuts to funding. In essence, they sat on their hands while dodgy private providers ran rampant and students were ripped off, and left them saddled with massive debts. The fact remains that, just like the rest of this government's policies, its response to problems in the VET sector has been shambolic and lacking leadership. In fact, it has had five ministers covering this portfolio in three years.

There is nothing in this bill to restore the $2.75 billion the Liberals have ripped out TAFE, skills and apprenticeships. There is nothing to protect TAFE, nothing to boost apprenticeships. The government has failed to consult properly on these changes. Labor supports them in-principle but looks forward to the Senate inquiry into the bills and will work with stakeholders to identify any issues through that process. As I mentioned previously, Labor proposed a comprehensive suite of VET reforms at the last election. Labor did this because we know there are issues and we had a plan to address these problems.

They say imitation is the strongest form of flattery so, on face value, Labor might be a little flattered that the Turnbull government has copied our package. I will not go through every amendment but particular important features of our response to problems in the VET sector include: the capping student loans to stop rip-offs—copied; cracking down on brokers—copied; linking publically funded courses to industry need and skills shortages—copied; requiring providers to re-apply under new standards so only high quality providers could access the loan system—tick, copied; linking funding to student progress and completion—copied; and of course, a VET loans ombudsman—guess what, copied. Yet again, this is another case of Labor leading the debate while the minister sat on his hands for two years with rorts going on under his nose. I find this lack of imagination and indeed, leadership, extremely disturbing because it was the Liberals who were falling over themselves to criticise Labor's policy proposals and today they are trying to take credit for them.

When Labor announced a policy of capping student loans, Scott Morrison said it would 'pull the rug out from under the private education industry'. Then Minister Scott Ryan called it a 'classist policy' and a 'thought bubble' that 'will lead to up-front fees for VET students'. Scott Ryan also called it 'impulsive, ill thought through, ill-considered' and a 'sound bite'.    Simon Birmingham said it was an 'ill-considered flat pack'. Before the election, Simon Birmingham said a price cap 'would simply, in effect, establish a government sanctioned price'. He said: 'When you set a price cap, everybody simply shifts to the price cap.' Guess what? He is now proposing three different price caps—$5,000, $10,000 and $15,000—and this is deeply concerning.

The current national partnership, put in by Labor, expires in the middle of next year. Over $500 million a year in Commonwealth support for TAFE and skills is on the line. And the minister does not even seem to know whether a new agreement is needed to keep supporting TAFE. Labor has been absolutely clear—we back public TAFE. That is why we took a TAFE funding agreement to the last election. TAFE is where people like my constituents in Longman get the technical and semi-professional skills they need for growing industries, the skills that are being demanded by industry and the skills Australia needs to be competitive with other countries. TAFE is the backbone of our apprenticeship system. Generations of Australians know just how important TAFE is for our economy. They know the first-class skills and opportunities that going to TAFE can provide.

But the Liberals just don't get it. At a state and federal level, the Liberals have an ideological problem with TAFE. Apprentice numbers are in freefall under the Liberals. They are down 30 per cent since they came to government—that is 130,000 fewer under the Liberals. They have copied Labor's VET FEE-HELP reforms, and if they would join us in backing TAFE they would copy our TAFE policies too.

We welcome the government's commitment, made in the second reading speech on this bill, that they will establish a VET loans ombudsman. Labor moved in the Senate almost a year ago to establish such an ombudsman. We look forward to seeing how the government plans to make good on their commitment, because it is not yet in the bills before the House. It is absolutely crucial that the ombudsman has the resources and the powers it needs to seek redress for students and to protect their interests.

Labor has concerns also about the implementation of these changes. These are concerns that are shared by the sector. We will be keeping up the pressure on the government to make sure students are treated fairly in the transition process; hold dodgy providers to account where they have ripped off students, and get loans refunded; make sure the government gets right the assessment of providers and the approved courses list; and improve governance, accountability and transparency in the sector. We understand the urgency of these bills; it is an urgency the government has brought on itself.

We hope the Senate inquiry into the bill will give stakeholders a chance to examine these issues properly, because the government did not consult properly with students or the sector on the details of these changes. It should not have come to this, of course, but now, after a billion-dollar blow-out, the government seems to have woken up to itself.

VET, TAFE and apprenticeships are crucial to jobs and our economy. We genuinely hope that the government has turned a corner and that from here on it will do what is best for students and for employers. We on this side of the House genuinely hope it works to get right the implementation of these changes.

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