Bridget McKenzie (Victoria, National Party) Share this | Link to this | Hansard source

My question is to the Minister for Education and Training, Senator Birmingham. Can the minister inform the Senate why the Turnbull government decided to axe the VET FEE-HELP loan scheme that Labor introduced?

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

I thank Senator McKenzie, one of this Senate's leading contributors on education policy, for her question. The vet fee help scheme and particularly the changes and opening up of it that the Labor Party introduced in 2012 will go down as one of the most wasteful policy experiments in Australian history, standing alongside the likes of pink batts and school halls.

Senator Wong interjecting—

Senator Wong, I take full responsibility for cleaning up the mess. I will happily take full responsibility for cleaning up the mess.

Let's have a look at what the VET FEE-HELP scheme metric demonstrated. They saw the number of students between 2009 and 2015 jump by some 5,000 per cent. During that time every course cost more than tripled from $4,000 to $14,000.

Senator Wong interjecting—

I know Senator Wong and those opposite do not want to hear about this. That was a massive growth in costs for students. The loans increased by some 11,000 per cent from $26 million initially to $300-odd million in 2012 to $2.9 billion by 2015. It was the expansion that Labor undertook in 2012 that opened it up to rorters and fraudsters without sufficient student protections in place.

Our government put in place 20 reforms over the last couple of years—banning inducements and payments based on student progression. We have driven down the volume of loans this year by hundreds of millions of dollars. Yet we realised that it was still necessary to get those inappropriate providers out of the system, so we had to bring the VET FEE-HELP program to an end and replace it with something that is more credible, is built from the ground up and has all of the appropriate safeguards and protections in place. That is exactly what the Turnbull government is doing to protect students and vocational education in Australia.

Stephen Parry (President) Share this | Link to this | Hansard source

Supplementary question, Senator McKenzie.

Bridget McKenzie (Victoria, National Party) Share this | Link to this | Hansard source

Can the minister advise what the Turnbull government is doing to return integrity to the training system and to protect students and taxpayers?

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

The Turnbull government is taking the action of bringing to an end to the VET FEE-HELP scheme at the conclusion of this calendar year and replacing it with a new program, the VET Student Loans program, that firstly has in place strong safeguards to admit public providers, TAFES, and only those private providers in the training market of high repute and good outcomes for their students. Secondly, it limits the range of courses that are being provided support to those that actually are relevant to employment outcomes and boosting the employment prospects of students studying. Thirdly, it will apply a loan cap across a range of different criteria—$5000, $10,000 and $15,000 loan caps—that will support effective costs of delivering different programs. It will also ensure there is a student engagement measure so that we know students are engaged in their studies and participating. There are a range of other compliance measures that ensure our new program has all of the safeguards that were sadly lacking in the old program. (Time expired)

Stephen Parry (President) Share this | Link to this | Hansard source

Senator McKenzie, a final supplementary question?

Bridget McKenzie (Victoria, National Party) Share this | Link to this | Hansard source

Yes. Can the minister further advise the Senate what the reaction has been to the government's announcement?

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

I am pleased that there has been a wide and positive reaction to this program. For those opposite, the reaction from some who they usually listen to is that they are pleased. The Australian Education Union welcomed our announcement and our changes. The National Tertiary Education Union said they were encouraged that the new scheme will involve greater scrutiny of eligible providers and courses. The Australian Industry Group said that this an important issue and they urge all parties to positively consider the legislation once it is presented. The Business Council has urged the Senate to urgently pass these reforms. There has been broad and wide support from all parts of the Australian economy and from all key stakeholders.

Senator Wong interjecting—

Deborah O'Neill (NSW, Australian Labor Party) Share this | Link to this | Hansard source

In three years you’ve done nothing.

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

I am pleased that, despite the interjections and so forth from those opposite, Labor's shadow ministers have been constructive in comments and have indicated that the Labor Party will be cooperative. I hope and trust we will see these reforms of the Turnbull government legislated and implemented by year's end. (Time expired)