Nick Xenophon (SA, Independent) Share this | Hansard source

I am very pleased that the Minister for Innovation, Industry, Science and Research is talking about consequences. What are the consequences of having colleges collapse and overseas students lose confidence in our education system? The consequences are that there has been a significant drop in enrolments. The consequences are that one of our biggest export industries is suffering, costing the Australian economy billions of dollars. If we, through this amendment, can give greater comfort to our overseas students of knowing that consequential losses will be covered to some extent, then that is a good thing in determining that we do not have any adverse consequences in having to deal with a loss of confidence in our overseas student sector.

Senator Carr needs to understand, and he needs to acknowledge, that these amendments make it absolutely clear that the minister has the discretion to determine the extent of the regulations. So for the government to say that this is an uncapped, uncosted proposal is absolutely wrong. The minister can determine the extent of any consequential losses to the fund and the minister can determine what the extent of compensation will be in any individual case as well as the total fund. To say that it is uncapped and uncosted is completely wrong and is fundamentally unfair.

This is about strengthening confidence in this education sector, which has taken a battering. It is costing the Australian economy billions of dollars in its loss of reputation. This is about the students and their families having greater confidence in the system—they often mortgage everything and borrow to the hilt, particularly in countries such as India—so that they know there is a greater level of comfort and greater consumer protection. We all agree this is about consumer protection. I urge the government not to misrepresent this to say that it is uncapped and uncosted because the Minister for Education can determine the extent to which this fund will operate—a cap on the overall fund, a cap on individual compensation. But there is an important principle here at stake in consequential losses.