John Alexander (Bennelong, Liberal Party) Share this | Hansard source

I'm very happy to discuss this matter today. It is often said that Bennelong is Australia's capital of innovation. This has not happened by accident. It has come about through my electorate's commitment to, and investment in, the local university, which sits at the heart of our innovation district. I refer, of course, to Macquarie University. This university was first founded back in the sixties by a local council with vision to turn the pastures and orchards of Marsfield into a science based industrial area—an innovation zone, before the invention of the buzzword. It was an audacious move and no-one could see it turning into the fastest-growing corner of New South Wales just 50 years later. And here lies the point: knowledge is critical to driving our economic growth, but, in order to be these drivers, our universities must be looking to the far horizon, beyond the petty politics of parliamentary debates and the microscopic duration of election cycles.

Education is vital to Australia's future successes. This government's reform is focused on encouraging quality and excellence in Australian higher education and ensuring students have the support they need to succeed. But it must also make sure that the system is sustainable for future generations so that students yet to come have the sorts of opportunities this and other generations have had. That's why we're going to keep growing our record levels of funding for higher education. However, it will be better targeted and provide equitable access for underrepresented groups, meet the needs of industry and the community and hold higher education institutions accountable for the taxpayer funding they receive.

The reforms start from a clean slate. There will be no fee deregulation and no 20 per cent funding cut for universities. The department has been through a comprehensive process, including a discussion paper that attracted more than 1,000 submissions and worked with an expert advisory panel. Our higher education system is modern and successful. Across the country, we have 1.4 million students, 43 universities and 123 non-university providers. Education is our third-largest export earner and universities are an essential part of this market. And, importantly, graduates enjoy a sustained two to three percentage point advantage in employment rates. The system is in great health. Domestic undergraduate enrolments have grown 118 per cent between 1989 and 2015. However, as a result, taxpayer funding for Commonwealth-supported places in higher education has increased 71 per cent since 2009, effectively growing at twice the rate of the economy.

We must ensure our higher education system promotes excellence and innovation and is sustainable for generations to come. Our focus is on more innovative courses, greater relevance to industry, more transparency for students and more accountability for higher education institutions. We're rebalancing the costs between taxpayers and students to better share the burden and make the system sustainable into the future while ensuring government continues to be the majority funder of student loans. Students will not pay a cent up-front and no longer face deregulated fees. Instead, they will face a modest 7.5 per cent fee increase phased in over four years from 2018 to 2021.

I'd like to end by returning to my cutting-edge university. Our great university sits at the heart of Macquarie Park. The Hearing Hub and the headquarters of Cochlear are both situated on the grounds of the university, and these internationally recognised world leaders interact daily with the students at the university and the businesses at Macquarie Park. The teaching hospital is also unique in its structure and a great asset to our local community, as well as home to some truly revolutionary technologies and skills, not least the life-saving Gamma Knife.

The uni is a linchpin of a group called the Macquarie Park Innovation District. This is a group of companies dedicated to the innovation sector and aiming to increase the output of our cutting-edge suburb. They work together, they collaborate—companies, council and universities—to forward ideas, connect people and design our future. This is how universities should be: not isolated, stuffy or siloed but rather a dynamic part of an innovation and entrepreneurial community.

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