James Paterson (Victoria, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Education and Training, Senator Birmingham. Will the minister inform the Senate how the government's changes to VET student loans are helping new and continuing students to undertake high-quality training aligned to workplace needs and strong employment outcomes?

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

I thank Senator Paterson for his question and interest in this topic. The Turnbull government's new VET student loan program commenced on 1 January this year. As senators would recall, it replaced Labor's failed VET FEE-HELP program and scheme, which saw vulnerable students targeted, taxpayers ripped off and the reputation of the vocational education and training sector tarnished.

Our new program, happily, is getting off to a very strong start. More than 180 providers have received provisional approval to offer VET student loans under the program. This is reflective of the high standards we have applied for admission, in that it is down from the 270 providers who offered the old VET FEE-HELP scheme. More than 70,000 students have opted in to continue and complete their studies from the old VET FEE-HELP scheme, while around 20,000 students to date have applied for a VET student loan to help them with their important vocational education studies. This is a strong vote of confidence in the VET student loans program, with providers now being thoroughly assessed for permanent admission to that program to commence from 1 July 2017. Aside, of course, from those 40 public providers whom we have guaranteed access into the new scheme.

This program and the adoption of it to date by both providers and students is a vote of confidence in the government's reforms and changes, which are restoring integrity to vocational education and training services; providing, of course, much stronger safeguards and protections for students; and ensuring that taxpayers' loans to students are better protected by guaranteeing they are going to students in cases where there are high prospects of employment outcomes due to the alignment between what they are studying and the job prospects in those sectors. We are very pleased at the start in relation to VET student loans and are confident it will only go from strength to strength.

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

Senator Paterson, a supplementary question.

James Paterson (Victoria, Liberal Party) Share this | Link to this | Hansard source

Can the minister advise the Senate how the government is strengthening protections for students from the abuses and rorts that occurred under Labor's failed VET FEE-HELP scheme?

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

Under VET FEE-HELP, students were left with debts for courses that they could not complete, often did not need or even want to do and that had little employment outcome. In fact, the commissioner of the Australian Skills Quality Authority, who, coincidentally, happens to be former Labor Attorney-General Michael Lavarch, said of the scheme:

I have been in and around public life for a long time. I think I can fairly say that this was the worst piece of public policy I have ever seen

We are pleased that we have cleaned it up and fixed it up. In contrast, under the coalition specific protections are in place for students; a dedicated compliance strategy is there. We have changed the laws to make it easier for debts to be remitted for students. We put in place legislation that I am delighted passed the parliament this week to establish a new VET student loans ombudsman. There are strengthened protections at every step of this new program to ensure that the rorts and the waste of the past are never repeated again. (Time expired)

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

Senator Paterson, a final supplementary question.

James Paterson (Victoria, Liberal Party) Share this | Link to this | Hansard source

Can the minister provide details to the Senate on the views of employers, unions, consumer protection advocates and training providers regarding the VET student loans ombudsman?

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

The new VET student loans legislation, which, as I referenced, passed through the parliament this week, has indeed been warmly welcomed across the sector. Training providers have said that it provides protection, knowing that those who do the wrong thing will be weeded out. Unions, even the NTEU, have said that they are certainly supportive of the actions the Turnbull government has taken in this regard. Consumer law representatives, such as the Consumer Action Law Centre, have said that it is a significant step to resolve disputes, that it will assist the sector to rebuild its reputation and the trust and confidence of students, parents and employers. They have said that the fact the government is acting so quickly to establish this service is welcomed. This uniform praise is recognition that the Turnbull government's reforms in relation to VET student loans, including the new VET student ombudsman, are the solutions that are necessary to clean up the mess that we inherited.