Amanda Rishworth (Kingston, Australian Labor Party, Shadow Parliamentary Secretary for Health) Share this | Link to this | Hansard source

My question is to the Prime Minister. Before the election the Prime Minister promised to ensure the continuation of the current arrangements for university funding, but it has been revealed today that, because of the Prime Minister's unfair changes to universities, fees for economics students at the University of Western Australia will increase by 56 per cent from 2016. Now that the Prime Minister's promise has been exposed as a sham, will the Prime Minister finally abandon his unfair university changes?

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

The government's very strong conviction is that the deregulatory changes that we announced in the budget—this important reforming budget—will allow universities to get on with their lives, which is the way it should be. We are absolutely confident that these changes are going to be good for universities and good for students. It is not just my confidence; let me cite a great authority on these things. This authority said:

Australian universities should be free to set student fees according to the market value of their degrees.

This authority further said:

Universities will have a strong incentive to compete on price and quality.

This is a terrific statement. It is really good. It goes on:

Much-needed additional funding will be available to universities that capitalise on their strengths and develop compelling educational offerings.

Gee, this is good!

Mr Nikolic interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for Bass will desist.

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

This was said by, in fact, none other than Labor's own Assistant Treasurer—our friend, the Assistant Treasurer. Where have you got him today? I see he is being hidden today! He is in rehab at the moment! He said:

The result will be a better funded, more dynamic and competitive education sector.

That is exactly what we are delivering. He called for it and we are delivering it.

Stephen Jones (Throsby, Australian Labor Party, Shadow Parliamentary Secretary for Regional Development and Infrastructure) Share this | Link to this | Hansard source

He needs a witness protection program!

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for Throsby will desist.

Ian Goodenough (Moore, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Education. Will the minister please explain how the government's higher education reforms ensure that students receive a high-quality education and make a fair contribution for the benefits they receive?

Christopher Pyne (Sturt, Liberal Party, Minister for Education) Share this | Link to this | Hansard source

I am delighted to get a question from the member for Moore about the government's higher education reforms, because I can tell the House that the government is very proud of the higher education reforms we passed through the House of Representatives and that we want to see passed through the Senate.

They will do to dramatic things for universities. Firstly, they will spread the opportunity to get a higher education qualification to 80,000 more young Australians, with all the private benefit that that will bring in higher income, low unemployment, longer life expectancy, better health outcomes and higher incomes. Secondly, these reforms will free universities to be able to compete internationally and to raise the revenue they need to continue to be amongst the best universities and the best university system in the world.

These reforms are vital in bringing able to bring about those two incomes. All we are asking students to do for all the benefits that they receive is to pay 50 per cent of the cost of their education. They are currently paying 40 per cent. We are asking them to pay 50 per cent and we are asking the taxpayers to continue to pay half the cost for those university students to gain those extraordinary benefits. Under our very fair system, students can borrow every single dollar of that up-front and pay it back at the lowest interest rates they will ever get for a loan in their lives. They do not have to start paying it back until they earn over $50,000 a year.

The Labor Party's response to this has been twofold. Knowing all the problems that universities have had in the last 10 years, their response was to cut university spending by $6.6 billion. They have gone very quiet!

Opposition Members:

Opposition members interjecting—

Christopher Pyne (Sturt, Liberal Party, Minister for Education) Share this | Link to this | Hansard source

They made $6.6 billion of cuts over the time that they were in government, without providing any commensurate ability for universities to raise revenue.

Mr Perrett interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for Moreton is destroying his record.

Christopher Pyne (Sturt, Liberal Party, Minister for Education) Share this | Link to this | Hansard source

Their second respond was to try to scare university students and their parents with this ridiculous, exploded $100,000 degree myth about the University of Western Australia. Do you not know the difference between a post-graduate degree and an undergraduate degree? No wonder you are the shadow Treasurer!

Mr Bowen interjecting—

You will never get your chance on this side of the House as Treasurer, let me tell you. The University of Western Australia has exploded the myth. They have demonstrated that they will be charging $16,000 a year for a university in the top 100 in the world. There are 11,500 universities in the world. They are a top 100 university and they are going to charge $16,000 a year. That is light-years away from the $34,000 a year that Labor is trying to scare students with. We are moving in the right direction and we are making great progress with our reforms. These reforms will save universities and give students the chance for more opportunities.

Bill Shorten (Maribyrnong, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. Last year, the Prime Minister promised not to increase university fees; but it has been revealed today that because of the government's changes to universities, fees for science students at the University of Western Australia will increase by 82 per cent from 2016. Now that the Prime Minister's broken promise has been exposed yet again, will the government finally abandon its unfair university changes?

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

It is right and proper that universities should set their fees. Under this government, universities will set their fees—

Mr Bowen interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for McMahon will desist.

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

and students will be supported so that they can meet those fees. They will not have to pay a dollar up-front. Their fees will all be potentially covered by FEE-HELP. The taxpayer will continue to support them to the tune of 50 per cent of their total fees. This is a good deal for students and it is a good deal for universities. It is a very good deal for our country, because this will give us—

Mr Brendan O'Connor interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for Gorton will desist.

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

the strong, competitive and dynamic university system that we want. Again, I know members opposite do not like hearing this, but Labor's own Assistant Treasurer spoke of freeing universities and said the result would be better funded and more dynamic.

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The Prime Minister will resume his seat.