Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Hansard source

I thank Senator Xenophon, at least in relation to Senator Lazarus's amendment, for bringing some common sense back to the debate. I think we saw a level of scaremongering being attempted by Senator Carr and Senator Simms in terms of the Lazarus amendment. Senator Lazarus's amendment sensibly provides provisions for determinations on a case-by-case basis. Let us be crystal clear here. It is not a proposal that would mean that for a category of qualification or a category of occupation that there would suddenly be some blanket exemption that applied. It is about a case-by-case basis, that an application would need to be made by a provider who had reached their cap and, in reaching their cap, was able to demonstrate the national interest in extending that cap, the relevancy of the qualification and the fact that the qualification was a prerequisite for the licensing requirements in relation to that qualification, and that they would need to demonstrate the merit and worthiness of the value of the proposed extension of that cap. So the cap itself would in fact just be increased—not lifted by increased—by a fixed and finite number on the case-by-case basis.

Senator Lazarus's amendment is carefully crafted and ensures that, by placing the cap on the total value of VET FEE-HELP loans across the board that the government is proposing, there is scope to make sure, if there are inadvertent consequences in an area—and he has highlighted, as has Senator Xenophon, aviation as a potential area. I do not seek to prejudge that in this chamber. That is a matter that would be judged under the provisions of this amendment by the secretary to the department or he delegate. I would encourage the chamber to view this amendment as in some ways analogous to the way in which the government has crafted the amendment in relation to the admission of new providers of VET FEE-HELP services.

The government has not slammed the door shut on any new providers of VET FEE-HELP because we recognise that there are a small number of longstanding registered training organisations who have long delivered high-quality outcomes, who have applications in, and if we shut the door on every single new application then of course we would be acting to the serious detriment and disadvantage of those providers. So we have provided a test to ensure you must have been in the sector for five years, that you can only do it in relation to the qualifications you have already offered and that you will only be able to offer those qualifications and up to a loan value that is consistent with what the fee-for-service value of your operations had been previously.

This is analogous to that in the sense that it is recognising that in applying a blanket rule, as we seek to, in terms of the application of the cap across the total loan value, this amendment provides very narrow criteria to make sure that we do not end up with circumstances where that is to the detriment of others.

I commend Senator Lazarus for considering the consequences, for bringing this amendment forward and for ensuring that it is tight. I re-emphasise to the chamber, as Senator Xenophon did in his contribution, that this is very limited, that it will only apply on a case-by-case basis, that each one will have to be presented on its merits.

Finally, I take issue with the remarks Senator Carr made in his last contribution that the government is pursuing these amendments overall and our reforms to VET FEE-HELP to somehow close down public debate. Chair, let me assure you and the chamber that the government wants to close down rorting and we want to close down those who are ripping off the taxpayer, who are taking advantage of vulnerable students and destroying the reputation of the VET sector. But we are damned happy to have a public debate on this. We are very happy to have a public debate about the failings of VET FEE-HELP because I think, just like the pink loans scheme, we want to make sure going into the next election that Australians remember that the Labor Party cannot be trusted to set up schemes such as this, cannot be trusted with public policy and programs because when they are, we end up with disasters like pink batts or VET FEE-HELP where huge sums of public money are squandered and where, indeed, Australian businesses suffer as a result because of shonksters and fraudsters who are let in.

We are very happy to continue the public debate, Senator Carr. The only reason we want these measures through this parliament, ideally today, is that we want to clean up the mess we inherited.