Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Link to this | Hansard source

My question is to the Minister for Vocational Education and Skills, Senator Ryan. Is the government considering placing a cap on the size of loans charged to students under a revamped VET FEE-HELP scheme? Minister, what has changed since December, when the government voted against Labor's amendments to cap the costs for students?

Scott Ryan (Victoria, Liberal Party) Share this | Link to this | Hansard source

I thank Senator Carr for his question, and I am aware of an article in The Australianthis morning that alluded to a number of these issues. The article is incorrect in making the assertion that this was under consideration by me. I stated yesterday that, as part of taking over this portfolio, I have recommitted to the review of the VET FEE-HELP system that was announced by the government last year. I am being briefed, and I am discussing a number of options, but at no point have I got to actually considering specific options. I look forward over the coming weeks to meeting a number of the key stakeholders in the sector. I am keen to listen to their views. I am keen to hear all views about how to make this system more financially sustainable as well as to increase the mechanisms by which the Commonwealth can undertake compliance. I think the senator will appreciate that it would be foolish of me to state that I have any preferred options after six days in the role.

Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Minister, can you confirm that the private VET sector insurance scheme will almost certainly be inadequate to face the college collapses that are expected to occur in the near future as a result of the government's policy decisions that were announced in December? How many students is this government predicting will be affected by the collapse of private VET colleges in the next 12 months? And how many of these are eligible for VET FEE-HELP loan waivers?

Scott Ryan (Victoria, Liberal Party) Share this | Link to this | Hansard source

Senator Carr, I disagree with your assertion in the first part of the question that the challenges this sector is facing are as a result of changes and policy implemented last December by the coalition government or indeed earlier last year by the previous minister, Senator Birmingham. All VET providers are required to have tuition assurance arrangements in place under the Higher Education Support Act, except those who are exempt. In almost all cases tuition assurance is provided by the two tuition schemes currently approved. They are administered by the Australian Council for Private Education and Training and TAFE Directors Australia. ACPET and TDA have the full details of the tuition assurance coverage of their members. It is only for students currently enrolled in units of study. My department undertakes compliance monitoring of the tuition assurance status of the providers. It is currently involved in a number of major compliance investigations but it would be premature to comment on the details at this stage.

Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Minister, how can the VET sector, TAFEs, students and the taxpayer have any faith in your government's capacity to deal with this crisis given the blowouts, the fraud and the corruption that have occurred since the Abbott-Turnbull government was elected? Isn't this a symbol of the dysfunction and the chaos at the core of this government?

Scott Ryan (Victoria, Liberal Party) Share this | Link to this | Hansard source

I am happy to address that, because the problems in this sector occurred under policies that were put in place under the watch of the previous government. And, quite frankly, as I said yesterday, the substantial and unprecedented growth that I have not seen in another government program has partly come about, along with some of the problems, because of my early view that there is a flawed legislative framework for this program. I have made this and will make this my highest priority, because this is an important sector to Australia and, in fact, some of the problems in the VET FEE-HELP system are, in my view, unfairly impacting on the reputation of the much larger vocational education sector.

Senator Carr, it is disingenuous in the extreme, given legislation put in place by your previous government, for you to assert that the problems that have arisen as a result of that are in any way attributable to this government, which under numerous ministers has actually taken substantial measures to address the flaws you left in place.

George Brandis (Queensland, Liberal Party, Attorney-General) Share this | Link to this | Hansard source

Mr President, I ask that further questions be placed on the Notice Paper.