Brett Mason (Queensland, Liberal Party) Share this | Hansard source

Senator Back just said it is our largest services export industry. And it does not create pollution; it helps our soft power and diplomatic prowess. Education, higher education in particular, is a marvellous boon to this country.

All senators must ask themselves the following question: is the current system of uncapped undergraduate places sustainable and will it lead to a higher quality product for overseas students? Will it grow and enhance higher education and the desirability of studying in universities in this country? Is it possible, as the Labor Party is proposing, to continue to uncap undergraduate student places and place a cap on the fees that universities can charge? Will our universities maintain and improve their relative standing internationally under the current funding model? We all know that is impossible—unless of course Senator Carr really does propose to recap university places. Unless he does that, the quality will start to go down and everyone in the sector knows that.

The money is necessary to provide better research outcomes internationally, which of course always drives student demand for Australian universities. The second money is not going into research in our universities, foreign students will not have the same desire to come. Secondly, the money needs to be unlocked to provide a higher quality education for undergraduates. There is no other way than the government's approach, because there is no other money.

If you do not believe me, I can prove it. I can prove there is no other money. Go back to late 2012 to the mid-year economic update, when there was savage cut to research funding—when the Labor Party was in government, not crowing in opposition, but when they actually had responsibility for the budget. Then in 2013—May, their last budget—what did the Labor Party actually do? They cut funding to universities by $2.3 billion. As Dr Emerson said, that was to make the federal budget 'sustainable'.

No-one believes anymore in Cloud Cuckoo Land. Neither the Labor Party nor the coalition can unlock further money in the current budgetary context. It is impossible. The only way we can unlock money for universities—to improve research, enhance our capacity and improve undergraduate education—is by deregulating the system. Otherwise, the system will start to falter.

When I was at university a long time ago, the Labor Party and the left said that 'introducing tertiary fees will inhibit so many Australians from going to university—people from all sorts of socioeconomic backgrounds and women will not have the capacity to go to university'. Thirty years later, three times as many Australians go to higher education. Why? Because fees and the payment of fees unlock the system. (Time expired)