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

I firstly want to deal with the inaccuracy inherent in what Senator Carr was saying about state subsidies. States do provide subsidies in their VET system. Since the expansion of VET FEE-HELP, states have largely withdrawn the rate and the amount of subsidies they provide for diploma and advanced diploma courses. It is important to remember that VET FEE-HELP is only available for those diploma and advanced diploma course. Overwhelmingly, state subsidies are directed to certificate level courses. The VET FEE-HELP scheme is not generally available to certificate level courses. So, in that regard, Senator Carr, you are quite wrong.

Do the states want to see the rorting in VET FEE-HELP ended? Yes, absolutely. Does the government want to see it end? Absolutely. Do you want to see it end? Absolutely. We all want to see it end, Senator Carr. We might have disagreements on how we can best end the rorting that has occurred, but we all want to see it end. But by no means are the states on the hook for additional payments because of the growth that has occurred in VET FEE-HELP. It is quite the contrary: the states have actually reduced their support as a result of the growth of VET FEE-HELP across those diploma categories since the previous government opened it up.

As I have said before during this debate, the primary problem that we have seen in the way VET FEE-HELP has been used and abused is not the case of good, well-intentioned students seeking employment outcomes being ripped off in terms of the price of the course. The primary problem has been the targeting of vulnerable individuals to sign up for courses that they are either ill-equipped to undertake or have no intention of actually undertaking. Overwhelmingly, the government's reforms rightly target the primary problem. We are targeting that primary problem in a range of ways. We are making sure that there are minimum prerequisites for students entering into those courses, so that there will be confidence in future that, if you are starting a course, you are in fact capable of being enrolled and completing that qualification.

Of all of the tightening that has occurred in relation to other enrolment practices that we have put in place, importantly, we are also tightening the ability of providers to be in the system. We have now tightened the value of the loans to stem the growth while we seek to re-write the system and enhance the powers of individual students to be able to seek recourse and get their money back for wrongful practices and enhance the powers of the minister to be able to intervene where wrongful practices occur and to be able to suspend new enrolments and payments to those students. So it is quite a comprehensive reform package. It is a comprehensive range of reforms that are directly targeted to the primary problem of the dubious enrolments that have occurred and the serious malpractice of providers around those dubious enrolments.

Senator Carr, I acknowledge that, on this issue, we differ. That is clear for the Senate and all to see. I want to drive efficiency in pricing across the VET sector, but I do not want to drive out competition in pricing and I do not want to drive out innovation and differentiation in the VET products that are offered. I am afraid that that is what would be the logical consequence of the amendment that you are proposing. That is why the government cannot accept it. As we look to redevelop this scheme in 2017, we will absolutely be looking to find ways to get the most efficient pricing behaviour across both providers and students to occur in the VET sector. But we will not support what we think are measures that would stamp out competition and risk innovation and diversity in the offering that is available to students to help them train and be skilled and secure jobs in the future.

The CHAIRMAN: The question is that amendment (2) on sheet 7800 be agreed to.