Pat Conroy (Charlton, Australian Labor Party) Share this | Hansard source

The contribution by the member for Robertson unfortunately typified some of the problems that we have in policy reform in this area. The member for Robertson was very happy to blame Labor for the flaws in this area—and we have acknowledged that we did not put in enough safeguards when the system was designed—but the member for Robertson neglects to admit that they have been in power for over two years. This is a problem that has occurred under them. They have come to it late and they have tried to solve it, and I applaud them for coming to it. This is a problem that has occurred because of mistakes made by both sides of politics, but what we have heard from those opposite was a just a straight blame game about what occurred over two years ago. It is very unfortunate, because on this issue everyone should be committed to getting rid of, to driving out and to prosecuting some of the most outrageous and exploitative behaviour that I have seen in the private sector in this country.

That is why I am pleased to speak on the Higher Education Support Amendment (VET FEE-HELP Reform) Bill 2015. Vocational education is fundamentally important to jobs, economic growth and our future productivity and prosperity. It is an area I am passionate about, given the importance of manufacturing and mining to my home region of the Hunter. It is so disappointing that, in my home state of New South Wales, the Liberal government has decimated the TAFE sector, sacking thousands of employees and drastically increasing fees. This short-sighted approach will have a devastating impact on the future New South Wales economy when we are faced with a significant shortage of skilled workers.

I am contacted regularly by young constituents who have incurred a debt they knew nothing about for a course they did not do or a qualification they did not obtain. Labor are of the view that this bill does not go far enough but we will support the bill nonetheless. Labor call for the Auditor-General to investigate this issue and for the government to appoint a national VET ombudsman. There is a major problem regarding student loans for vocational education. The following figures clearly identify the significant challenges facing this sector: the number of students accessing VET FEE-HELP has grown by 103 per cent, Commonwealth funding for student loans in vocational education has increased by 151 per cent, the average loan amount per student has increased by 24 per cent, and the number of providers offering access to VET FEE-HELP has increased by 44 percent. It is unconscionable that scurrilous providers are preying on young Australians for their own financial reward. Labor has been calling on the government to act on this problem for the last two years, and it is high time that this legislation is before the House.

As I said earlier, Labor will support this bill and is moving a sensible amendment recommending that the government appoint a national VET ombudsman and have the Auditor-General conduct an audit on the use of VET FEE-HELP. The department should also be required to provide students who access loans with a statement of the amount of debt they will incur and to ensure that the student responds to this statement before the debt is raised.

This bill aims to prevent inappropriate enrolments and debts through the following methods: a two day cooling- off period will be introduced between enrolment and the application for a VET FEE-HELP loan so that course enrolment is no longer confused with the loan application process; minimum prerequisites including literacy and numeracy will be introduced to ensure students can complete the higher level VET courses for which VET FEE-HELP can be accessed; and for minors under the age of 18 there will now be a requirement for a parent or guardian to sign-off on the loan, which will help protect younger students seeking vocational education.

There are other sensible safeguards and protections that are necessary. The bill will ensure that it is easier for students to have their debt cancelled when they have signed up to a loan inappropriately and for the government to recoup the cost from providers, minimum registration and training requirements will be introduced to make sure that new VET FEE-HELP provider applicants have a proven history of delivering sound training, and infringement notices and financial penalties will be introduced for breaching the VET FEE-HELP guidelines.

Labor welcomes the fact that the government is finally acting on this issue, but more needs to be done. It is a clear that we need to appoint a national VET inspector for the sector. The government should be creating this position to ensure the problems we have seen now do not continue to happen. The Australian Council for Private Education and Training supports the appointment of a such an inspector, and the reports of the Senate inquiry into the operation, regulation and funding of private vocational education and training also recommend such an official.

The amendment moved by my colleague the member for Cunningham would require the Department of Education to notify prospective students in writing about the amount of debt they are about to undertake and would require a response from the student before the debt is raised. This is a sensible and logical amendment which will provide a much needed safeguard. Labor has also requested that the Auditor-General investigate VET FEE-HELP to make sure that skills funding is being used in accordance with how the legislation intended it to be used, and it is pleasing that the Auditor-General has requested that a performance audit be included in the Australian National Audit Office's work program for 2015-16.

I now turn to the broader debate around vocational education and training. Labor has a proud record of investing in skills and ensuring that students and workers have the skills they need to contribute to and participate in the modern workforce. The Liberal approach to vocational education is very different. The Abbott-Turnbull government has cut $2 billion from the skills portfolio. The coalition should hang their heads in shame at this counterproductive and illogical cut. The new Prime Minister likes to talk about innovation and productivity and new technologies. I say to him: it is pointless to talk about these things when you are cutting investment in skills and vocational education that are so fundamentally important for jobs, innovation and productivity. And at the state level, the Liberal approach is the same. The Baird Liberal government in my own state has a distinctly anti-TAFE agenda. At both the federal and state levels, the conservative side of politics is giving up on vocational education and, in so doing, is damaging Australia's future prosperity and economic growth. This is the context within which we debate this bill.

Before talking about some of the experiences of my own constituents that has driven this change, I briefly want to bring to the attention of the House a particularly disturbing incident in Sydney. The Australian Competition and Consumer Commission has commenced proceedings against Unique International College in the Federal Court, alleging that its enrolment and marketing system was 'in all circumstances, unconscionable and in contravention of Australian consumer law'. The ACCC alleges that Unique targeted members of rural, remote and Indigenous communities to sign up to diploma courses without properly explaining to the students that they would be taking on a government debt as a result of the program. The offer of a free laptop was targeted at disadvantaged groups. Unique has collected approximately $140 million in government loans. This is worse than cowboy behaviour. This is deliberately targeting and preying on vulnerable young people and vulnerable communities. I commend the ACCC for its actions in deregistering Unique, and in commencing the proceedings against it in the Federal Court.

I have been contacted by several constituents who have had horrible experiences regarding HECS-HELP for vocational courses. A constituent of mine named Colin, from Edgeworth, came to my office recently seeking help with a debt he had accrued as a result of enrolling in a Diploma of Business at Evocca College last year. Within two weeks of enrolling in the course he changed roles with his employer, which resulted in significantly increased work duties. Realising he was no longer going to be able to complete the course, he explained to a representative from the college that he wished to withdraw. Whilst the option of deferment was discussed, I am told that he insisted on withdrawing completely and was assured by the representative that this would be arranged. He recalls being told that there was nothing further he needed to do.

However, when he completed his tax return this year, he was informed by his accountant that Evocca College had charged him for the whole course and he now had a HECS-HELP debt in excess of $11,000. He immediately called the college and spoke with a compliance officer about the debt and was advised that, despite not taking part in any study modules or submitting any assessments, he was still liable to pay for the course as the withdrawal he had requested was not processed. He told her about his request to cancel the course verbally over the phone, but was told nothing had been written down or recorded and unless he could prove that he had spoken to a representative of the college to cancel it, he had no recompense. My office has supported this constituent to seek a formal withdrawal and waiver of fees from the college. Whilst I am pleased that this has now occurred—and I am grateful to all the public servants involved in such a process—I note this involved long and complex interactions with the Department of Education and the Australian Taxation Office. This is clearly a less than ideal process.

How is it fair that a prospective student, with little affiliation with a provider and its systems, bears the full burden of responsibility when it comes to documenting their withdrawal from a course? How is it fair that, despite it being patently obvious to the provider that a student has not engaged with course content in a meaningful way, that the responsibility of proving this falls upon the student? How is it fair, if you contact the person who signed you up for a course, to be told there is nothing further required of you when you seek to withdraw from it, and are then charged tens of thousands of dollars anyway? Colin's example demonstrates why we are debating this bill and why these reforms are so urgently needed.

Another constituent has contacted my office regarding a HECS FEE-HELP debt accrued with the Australian Institute of Professional Education. Her name is Danielle and she recently started her first full-time job and submitted a tax return for the first time. Understandably, she was shocked to discover from her accountant that for the past two years she had been accruing a debt which is now worth more than $7,500. After seeking assistance from my office, she was able to ascertain that she unknowingly signed up to an online training course with the provider and contacted them to request an investigation in to how the debt has been accrued. Whilst the matter is still ongoing, this person has indicated to me that she has no recollection of signing up to this course. She tells me that she can recall being approached over the phone and in person by brokers representing a training provider some years ago, and on one occasion she gave personal details such as her tax file number and date of birth to a representative. She does not believe that at any time it was explained clearly to her that providing this information would result in fees being charged. She has never had any interaction with the college, has received no qualification yet she has a debt in excess of $7,500 as a result. Worse still, she had no idea that the debt had been sitting there for years. How many other people have debts that they have no idea about?

As I said at the start of my contribution, vocational education is of fundamental importance if the Australian economy is to grow, if employment opportunities are to expand, and if we are to remain competitive in an ever-changing and dynamic global economy. Labor proudly believes in the dignity and power of work, and vocational education is a vital component in ensuring a skilled and productive workforce. What has happened relating to VET-FEE HELP loans these past two years is a disgrace. This bill is a welcome step in addressing the problems the sector has faced.

Labor calls on the government to pass our sensible amendments which would bring greater security and safeguards to the system. That said, I do welcome this overdue action by the government. I applaud them for coming to the party and I applaud them recognising that there is a problem. After two years in power they are trying to fix it and I do genuinely thank them for their approach on this issue. More can be done. The amendments should be accepted by the government and should be passed.

I will finish on this point: ultimate responsibility for what has occurred does not rest with the current coalition government, it does not rest with the previous Labor government but with the shonks who have distorted the system and who have ripped hundreds of millions of taxpayers' money out of system while exploiting vulnerable people by making promises that they could not fulfil with offers of free laptops and guaranteed jobs. They targeted people with low literacy, low numeracy and people who were desperate to get a job to advance themselves, to have a house, to pursue a career. I stand here and will conclude by condemning those people. Those people, quite frankly, are scum. They are people who exploit the hopes and dreams of the most vulnerable in our community and, in doing so, rip off Australian taxpayers. So no matter what happens in this place, no matter if the amendments get up or not, those people need to be held responsible for their exploitative actions that give every private sector training provider in this country a bad name.

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