Senate debates

Wednesday, 9 October 2024

Matters of Urgency

Housing

6:10 pm

Photo of Louise PrattLouise Pratt (WA, Australian Labor Party) Share this | | Hansard source

I inform the Senate that the President has received the following letter, dated 9 October, from Senator David Pocock:

Pursuant to standing order 75, I give notice that today I propose to move "That, in the opinion of the Senate, the following is a matter of urgency:

The need for the Australian Government to implement a national housing and population plan that manages international student growth based on consultation and without unintended consequences for the economy or Australian students."

Is the proposal supported?

More than the number of senators required by the standing orders having risen in their places—

With the concurrence of the Senate, the clerks will now set the clock in line with the informal arrangements made by the whips.

6:11 pm

Photo of David PocockDavid Pocock (ACT, Independent) Share this | | Hansard source

I move:

That, in the opinion of the Senate, the following is a matter of urgency:

The need for the Australian Government to implement a national housing and population plan that manages international student growth based on consultation and without unintended consequences for the economy or Australian students.

It seems to me that there is a clear need for the Australian government to implement a national housing and population plan that manages international student growth based on consultation without unintended consequences for the economy or Australian students.

GDP growth was 0.2 per cent in the June quarter of this year. Capital Economics today forecast that the government's Education Services for Overseas Students Amendment (Quality and Integrity) Bill will shave 0.7 per cent off growth in 2025. I'll let you do the maths on that one. The Albanese government say that they want a future made in Australia, that they want Australia to be more than a 'dig it and ship it' country: 'We're going to be the smart country and develop a new economy.' Yet, they bring forth a bill that will cripple our fourth biggest export industry: international education. This is the biggest export outside iron ore, coal and natural gas. It doesn't seem to square to me. They're happy to give our gas away mostly for free. Here we have an industry that isn't doing that, yet they've taken out the sledgehammer. Under the guise of education reform, we see what is clearly just an immigration bill.

We obviously need a sensible conversation about immigration in Australia; we absolutely do. It is not fair on Australians and it is not fair on new Australians, new migrants, who arrive here into a housing crisis. It's not working, and we need to be looking at the number of people who are arriving here and having a really sensible conversation about what the trade-offs are when it comes to the environment of a growing population. It was in the State of the environment report. It is very clear. But we should do that in a sensible way, set targets and then have a plan to actually achieve that. How big do we want Australia to be? I don't hear too many people I talk to here in the ACT saying they want a big Australia, so that means we need to actually have a plan.

Instead of a plan that takes into account things like housing, accessibility, affordability, infrastructure, the environment and water and our priority skills, we have legislation that is rushed, is poorly drafted and will do immense harm to our economy and our higher education sector, a sector that is already on the rocks after COVID. We currently have the lowest research and development spend on record. We have to turn that around, and we have not seen the government deal with that. They finally commissioned a review to look at our R&D spend, right at the end of their term.

As a former well-respected senator in this place and a former higher education minister said today, this bill ignores the Faustian deal that, when the universities were not properly funded, they turned to international education as a way of securing the revenue they needed. Removing funding for research meant they had to go after international students to cross subsidise, and here we are taking that away from them and not giving them extra research funding. Obviously there is broad agreement that the integrity and quality measures in this bill are welcome; there are some shonky providers that need to be cleaned up. But we are in a situation where the unintended consequences are severe not just to the economy, as I have discussed, but also to domestic students. Western Sydney University really highlighted this in their evidence to the Senate committee. They have a small percentage of international students, but, as Vice-Chancellor George Williams said:

In our case, for every dollar we take in from an international student, 24c goes to supporting other activities, particularly our domestic students. So 24c in every dollar goes to our food pantry for domestic students, to equity issues and to study help. So we're thinking very carefully about how this will affect our Australian students, because we will no longer be able to offer some of the vital programs they need to get through university.

The other thing we need to talk about in this bill is the extraordinary power this bill confers on the minister. Surely the Morrison administration taught us the enormous risks with this approach.

In closing, I will say the Senate hasn't even begun debate on this bill, and the government wants it to start on 1 January next year. It's untenable and creates enormous risks. We should be talking about immigration, not using higher education as a scapegoat.

6:16 pm

Photo of Sarah HendersonSarah Henderson (Victoria, Liberal Party, Shadow Minister for Education) Share this | | Hansard source

It's my pleasure to rise and make a contribution to this debate, which of course is necessary because of Labor's opening of the floodgates, which has meant we are seeing record levels of international students in this country, fuelling the housing crisis and causing unprecedented chaos in the international education sector. Senator Pocock is correct in saying that the bill currently before the Senate has caused enormous distress and grief for the tertiary education sector. It is a bill which is riddled with incompetence, secrecy, unfairness and uncertainty because of Labor's botched student caps scheme. We have, in fact, endured some four public hearings looking into the ESOS bill to discover the many irregularities in proper decisions which have been made, as well as the blatant discrimination. It does reflect the government's sheer incompetence.

It is now October, and the government is asking Australia's higher education and VET sector to implement student caps by 1 January with so much uncertainty we don't even know whether or not the bill is going to be debated tomorrow. Really, as the sector is saying, it is absolutely insane.

I particularly want to raise concerns with the way the government, with its proposed student cap, has blatantly discriminated against smaller and regional universities and private higher education and VET providers. We've had myriad pieces of evidence in that regard. That is a shocking reflection on the government's focus on fairness and equity for all. For the Minister for Education, on the day that he announced the national planning level of 270,000, to declare that the regions and regional universities would be the winners is an absolute joke and of course not supported by the facts. We have seen that, at the Group of Eight universities, Australia's most prestigious universities, the proposed number of students there is very much on par with 2023, while the regions and small universities, particularly private providers, have taken a very big hit.

But let's not forget what this is all about. This is all about fixing Labor's immigration mess, fixing Labor's 'big Australia' policy. Labor, in fact, has run the biggest migration program in a generation, with more than one million migrants coming here under this government. At the same time, we've seen record-low construction and building approvals, and that is putting more and more pressure on the housing market. Even the government itself, in its assessment of rentals and the impact that international students are placing on the rental market, has conceded that the record number of international students is fuelling the housing crisis.

Very proudly, the opposition leader, Mr Dutton, announced in his budget reply that we will fix Labor's mess by reducing the excessive numbers of foreign students studying at metropolitan universities to relieve the stress on rental markets, and that's where the big problem is. That's where the big pressures are in Melbourne and Sydney in particular. We will also enhance the integrity of the student visa program by introducing a tiered approach to increasing the student visa application fee and applying it to foreign students who change providers.

The coalition also believes that, by rebalancing the Migration Program and taking decisive action on the housing crisis, we would free up almost 40,000 additional homes in the first year and well over 100,000 homes in the next five years. We will do this by implementing a two-year ban on foreign investors and temporary residents purchasing existing homes in Australia. Secondly, we will reduce the permanent Migration Program by 25 per cent, from 185,000 to 140,000 for the first two years in recognition of the urgency of this crisis. The program will then increase to 150,000 in year 3 and 160,000 in year 4. We are determined to fix Labor's mess, to fix Labor's big Australia policy. As I say, this is very much a mess of its own making.

6:21 pm

Photo of Nita GreenNita Green (Queensland, Australian Labor Party) Share this | | Hansard source

I'm pleased to rise and speak to this pretty wide-ranging urgency motion today. I understand that the mover of the motion and others seek to talk about a bill that's before the Senate and the broader approach by the government to managing student immigration and international students and what impact that might have on resources and housing in other parts of the country. It's a noble approach. I understand the mover of the motion seeks to implement a plan to have better policy outcomes, to have something written down that says how we will go about balancing ensuring that we have enough housing and resources and services for people but also a sustainable education system. I understand that, but the problem with that is that the government has done this work. The government has done the reviews and the work required to understand what is going on in our international education system. We started this work very early on, particularly after COVID, where it was really evident that we needed to understand what was happening in Australia's education system, particularly how international education was impacting our education system.

We know that integrity concerns in Australia's international education system and student visa program have been identified in three recent reviews that the government commissioned and has been looking at. This includes the review of the migration system, which is referred to as the Parkinson review, a large-scale review that showed that the immigration system under the previous government was a complete and utter mess. It also includes the review that we did, the rapid review into the exploitation of Australia's visa system. That was the Nixon review. Underlying a lot of this work that we're doing is to make sure that people that come over here to study and are on student visas are not exploited when they are here. Those reviews found that there was a lot of work to do and that we needed to get integrity back into the system. The preliminary report from the Joint Standing Committee on Foreign Affairs, Defence and Trade inquiry into Australia's tourism and international education sectors is also being considered by the government.

So the work is there, and we are considering those recommendations. In implementing this important work, what we are seeking to do as a government is welcome international students but also update the system to ensure that the sustainability and integrity of the sector is ensured. We need to do this because we need to make sure that our international partners can continue to have confidence in the quality of the education and experience that international students receive when choosing an Australian provider. It's a really important step forward.

And we need to do this not for the bare political points that are being made by those opposite. On the one hand, they say that students are contributing to the housing crisis, but they didn't do anything about the housing crisis for 10 years. Somehow that's the problem, but they also don't want to do anything to fix it. If you're genuinely concerned about this sector and how we can build integrity back in, then the ESOS bill before the Senate is dealing with those issues.

I know that there are universities in big cities that have for a long time relied on international students, and one thing that I am genuinely really pleased to see is that, through this process, we are going to get more of those international students into regional universities. I know that there have been committee hearings. You said it's being rushed, but we've had consultation for a long time, and it's been with the committee since May. That's not as rushed as most Senate bills go. It's really important for the people that I represent that regional universities don't go backwards, and this bill and the work that is being done ensure that that will be the case. That is the direct feedback that I had last week from regional universities in my home town of Cairns. They want to see this bill passed because it will give them the certainty that they need. They want to move on and have integrity in the system for international students.

I understand there are probably big universities in big cities that rely on international students, but, for the regional communities and regional universities, this is incredibly important. We know that the government are committed to supporting sustainable growth in the international education sector, and that is exactly what we are seeking to do by delivering on these reviews and implementing this forward.

6:26 pm

Photo of Mehreen FaruqiMehreen Faruqi (NSW, Australian Greens) Share this | | Hansard source

I don't even know where to start with this, but I'll start with the Labor government. Everything the senator has said is completely inaccurate, because, after four days of hearings, no-one could tell us that the bill would in fact do anything to alleviate the housing crisis. It's not even in the methodology or the formula that has been developed to initiate the caps. This formula or methodology did not even consider integrity or quality, and it did not even consider how students would be forced to go into the different skills that the government says are needed in this country. So it is absolute and utter rubbish what the government is suggesting this bill will do. There has been no modelling done to even look at the impacts of this bill on universities, on job losses, on the economy—nothing. This is purely a political play in this horrible race to the bottom that Labor and the Liberals are running to see who can win and who can be the worst on migration. That's what it is all about. It is just a political smokescreen.

International students have suffered blow after blow from this government, starting with the secretive introduction of ministerial direction 107. Then what followed were changes to temporary graduate visas, changes to age eligibility, changes to onshore applications and changes to visa application processes without any consideration of the international students who had already commenced. If this wasn't enough, this was followed by a whopping 125 per cent increase in student visa fees. All of this has led many prospective students to reconsider their decision to apply for study here. International students are telling us that they feel unwelcomed and unwanted and they feel attacked in this country, and that is a disgrace.

On top of that, now there are these international student caps. Labor like to spout these lines about the importance of international education, but their actions completely belie what they say. These caps are going to decimate and crush the higher education sector. In those four days of hearings we heard again and again an almost unanimous opposition to this dog's breakfast of a bill. Not only is this bill a dog's breakfast, but the whole process that was undertaken to bring this bill to where it is now was completely chaotic. It's been called irrational and illogical, and that is absolutely true.

Before I came here I was in the higher education sector as an academic and a researcher for many years, and I can tell you that what the universities are telling us is the absolute truth. Today we heard that the decline in university rankings is yet another dire warning in the long list of warnings that we have heard over the last three months about the terrible consequences of these caps. If Labor had any sense, they would heed these warnings and scrap these caps. That is the reason why I have been unequivocal in my condemnation and opposition to these caps from the beginning and over the past four months. The chorus of voices, over those past four months, opposing these caps has only grown louder and louder.

The government have tried to insist—and they keep insisting because they have nothing else to say—that this bill is all about quality and integrity. But we know that these caps will do nothing for quality and integrity, so that argument has failed, as has every single argument that you have presented to support your bill. No-one believes a single one of those arguments.

I'll now come to this motion. I have to say, I'm very unclear, having read this motion, what Senator Pocock actually wants us to vote on, because to me it still seems to conflate international students with the housing crisis. Although Senator Pocock is using my line that the student cap bill is a migration policy disguised as an education policy, which is absolutely true, I haven't really heard from Senator Pocock whether or not he opposes these international student caps. So I have to say that I remain confused about where to go with this motion. But I can tell you this: the Greens will not stop doing every single thing we can to make sure that this bill never sees the light of day, because it is going to be damaging for Australia's reputation as a destination for international education, damaging for the sector and damaging for international students. It should be scrapped. (Time expired)

6:31 pm

Lisa Darmanin (Victoria, Australian Labor Party) Share this | | Hansard source

I too rise to contribute to this debate. Our government's focus on education and housing reflects a broader commitment to improving the lives of everyone who calls Australia home, whether they are studying, working or raising families here.

International students form an essential part of Australia's communities, classrooms and campuses. They bring diverse perspectives that enrich our academic environment and our society as a whole. Many of these students use the knowledge and qualifications gained here to become leaders, scientists, teachers and entrepreneurs. International education is also one of Australia's most valuable national assets, providing economic, social and diplomatic benefits that extend far beyond the campus and the classroom. That is why we proudly welcome international students to Australia.

This government is dedicated to ensuring that our international education system maintains the highest standards. We want students to have confidence that they are investing in the best possible education when they choose Australia. Since this government was elected, we have been actively working to ensure we can continue to be a global education leader. As Senator Green has already mentioned earlier in this debate, in September 2022, we announced the Parkinson review of the migration system. This was followed by the Nixon Rapid Review into the Exploitation of Australia's Visa System, in January 2023.

Both of these reviews highlighted urgent integrity issues in international education, and we have moved quickly to act on their recommendations. In particular, the rise of unscrupulous education providers and recruitment agents who seek to exploit this system and threaten to undermine international education in Australia informed part of these recommendations. These dodgy operators focus on making a quick profit, often at the expense of students who are vulnerable. They damage the reputation of the entire sector, undermining the hard work of universities and providers who are doing the right thing. Such practices have no place in Australia's international education sector.

In August, last year, the government closed the concurrent enrolment loophole that allowed agents and providers to shift international students who had been here for less than six months from one course to another—often to a cheaper course or from genuine study no study at all. In October, last year, we boosted the capacity of the VET regulator, the Australian Skills Quality Authority, ASQA, through a $38 million investment and by establishing the an integrity unit.

As members of this chamber would be aware, the government is seeking to deliver some of these objectives through the so-called ESOS bill. The bill gives the minister the powers to support the sustainable growth of the international education sector by providing the minister with ongoing policy levers to ensure that the number and distribution of overseas student enrolments align with government objectives. International students deserve to experience a quality education when they come to Australia, and we are ensuring that this is the case.

Let me quickly turn to the question of housing. We know that being able to find safe and secure accommodation is important to a positive study experience for all students. Housing is a key part of a positive study experience, and we are making sure that it's part of the broader growth of the international education sector. Where universities want to enrol international students above their limit, they will be required to build more purpose-built student accommodation to benefit both international and domestic students.

In terms of housing more broadly, this government has an ambitious housing agenda, backed by $32 billion worth of commitments to help people build, rent and buy homes. That has been the subject of much debate and discussion in this chamber. Our goal is to build 1.2 million homes by the end of the decade. It's a challenge, but it's one that we must meet if we are to ensure that all Australians have access to affordable, secure housing. Supporting this housing plan is not only good for Australians and Australian students; it will also benefit the international students who come here to study.

This government is committed to ensuring that our higher education system remains one of the best in the world. By managing growth responsibly and sustainably, managing integrity in our education sector and addressing housing challenges, we are working to create a better future for students, both international and domestic. We are delivering on our promise to provide quality education and secure housing for all Australians.

6:36 pm

Photo of Malcolm RobertsMalcolm Roberts (Queensland, Pauline Hanson's One Nation Party) Share this | | Hansard source

Thank you to Senator Pocock for raising this issue. Australia desperately needs housing and population policies that work for Australians. The Labor government has no coherent or practical policies. Both chiefs of the Liberal-Labor unity party have been implementing massive immigration. It's essentially: 'Open the floodgates to arrivals, no matter how many Australians are made homeless.' We need a policy that does the opposite and puts Australians first.

Australia just hit a record level of temporary visa holders. Excluding tourists and other short-stay visitors, temporary visa holders in the country now number 2.43 million people. This blows the previous record of 1.9 million out of the water. That's up to a million extra houses needed for these people. And 680,000 of these are international students—another record. This is putting untold pressure on the housing crisis. When the borders were closed during COVID, nearly all suburbs close to universities experienced higher rental vacancy rates. That means that when international students couldn't come into the country there were more homes available for Australians. Now, who would have thought?

The truth is that some universities and private vocational education and training providers are completely abusing the system. A student visa is more often seen as a backdoor way to get working rights in Australia and eventually staying here forever. Hundreds of thousands of people on temporary student visas end up illegally working full-time hours and sending the money back to their home country. Personal remittance flows out of Australia almost perfectly correlate with the number of student visa holders in the country. On the latest figures in 2023, the transfer of money out of Australia hit a record $11 billion—out of the country. We can only assume that it has increased since then.

A particular lie is being peddled in this debate. That lie is that international students are one of Australia's largest exports, at $40 billion a year. That figure assumes an international student arrives here on day one with all their money for course fees, rent, food and transport bills, and other spending already saved in their bank account. In reality most students end up working here for the money to support themselves and sending the remainder back home. The claim that international students are one of our biggest exports is simply not true because it is does not align with reality. Until housing and infrastructure catch up, One Nation will drop net immigration to zero.

6:39 pm

Photo of Gerard RennickGerard Rennick (Queensland, Liberal Party) Share this | | Hansard source

I, too, rise to speak on this motion because I think that we definitely need a plan/policy—however you want to call it—to deal with the catastrophic rise in population and the catastrophic rise in homelessness that is occurring in this country. It is clear that the Treasury, the immigration department and Home Affairs have lost control of our borders.

I note a comment made by the current head of the Treasury, Steven Kennedy, during the last set of estimates. I apologise if I don't quote it verbatim, but it was along the lines of saying that he was surprised by the number of immigrants and visas of people who had come into the country. I remember being surprised that he would make such a remark because I would have thought the Treasury would also talk to the immigration department and talk to Home Affairs about the number of visas being issued, No. 1, and then the number of outstanding visas or visas that had been issued whereby people had not yet arrived from the visas that had been issued.

I think another key word in all of this planning or policy is actually 'priorities'. As a government, a good government needs to get its priorities straight, and it is clear that the vested interests of universities and big corporations are being put in front of the needs of hardworking Australians in regard to both their ability to acquire housing as well as the ability for the government as a whole to build infrastructure that provides essential services. Finally, our skills based economy—why do we always have to necessarily use people from overseas? Do we really want a large university sector at the expense of a skills based sector in the trades? I feel as though our trades sector is being eroded in order of everyone going to university, getting a degree and then graduating broke and brainwashed. We need to get our priorities straight, and, if having a plan is a part of that, then so be it.

Question agreed to.