Jill Hall (Shortland, Australian Labor Party) Share this | Hansard source

It gives me great pleasure to speak on the Higher Education Support Amendment Bill 2009. This legislation shows the Rudd government’s commitment to education. The Rudd government has overseen an education revolution. We are committed to seeing this revolution continue within Australia so that all Australian students benefit. This bill provides for minor amendments to the Higher Education Support Act 2003. It amends the tuition assistance assurance arrangements for both FEE-HELP and VET FEE-HELP to remove the requirement for higher education providers and VET providers to have tuition assurance arrangements in place at the date of application for approval. It also means the VET provider approval provision in schedule 1A of the HESA will allow the minister or her delegate to accept recommendations regarding an applicant’s compliance with the VET quality and accountability requirements from an approved national, state or territory registered accredited authority. This legislation is about the quality of education that is being offered. Every member of this House is beholden to have this as a paramount concern. We do not believe that education should be provided based on just performing a task or jumping through the hoops; rather, we think that education needs to be of a certain standard and that it needs to be quality education.

Concerns were brought to a head at the closure of the Sterling College in Sydney. It was a private education college offering vocational qualifications. It went into administration in late July. I know there was great concern expressed in the media about this. I was contacted in my office about this situation and how it eventuated. The doors of Sterling College shut on 500 students—students who were mainly from overseas and who had spent thousands of dollars on tuition fees. The issue of financial mismanagement in this lucrative sector was highlighted. I think this is important to know: the sector is worth about $14.35 billion to the Australian economy. Also, at the Sterling College substandard courses were being offered. Former lecturers at the Sterling College complained about not receiving basic training. We need to ensure that the right sorts of procedures are in place. This amendment to the tuition assurance arrangements for the FEE-HELP and VET FEE-HELP assistance schemes will assist.

These measures provide for minor amendments to items 16 to 25 and item 60 of schedule 1A of HESA by removing the requirement for higher education and training organisations to have tuition assurances in place at the date on which they make their application for approval as a higher education provider. The tuition assurance requirements under HESA are a safeguard for students in the event that a higher education or VET provider ceases to deliver a course of study in which students are enrolled. In that event, the students have the choice to either transfer their enrolment to a different provider offering the same course or have their tuition fees refunded.

Because of my concerns about what happened with Sterling College, I spent some time today researching this matter. I discovered that the majority of students enrolled at Sterling College were overseas students. Australia’s education of overseas students is a very important economic activity. Australia is seen as an education powerhouse. For those members who are not aware, in the vicinity of 70,000 Indian students—that is, Indian students alone—are enrolled in this country. It is the country’s third most lucrative industry—after coal and iron ore—and is worth about £7.5 billion or, as I stated earlier, $14.35 billion. Concerns crystallised following the closure of the Sterling College in Sydney. It was a private education college. We need to focus on these details. There have been a number of media reports around this issue. I note that after investigations the ABC’s Four Corners program claimed that some colleges and migration agents were ripping off students. Federal Police and immigration officers have raided many offices and found information to show that we need to address this issue.

Australia, as I have already stated, has put a lot of effort into making itself an attractive venue for overseas students to come and study in. We need to ensure the quality of the courses and introduce amendments, even if they are minor amendments such as this legislation. These amendments and other amendments will make this sector a lot more transparent and accountable. I think it is really sad if we have a situation where overseas students come to Australia and find themselves in limbo as colleges collapse. I see that the member for Melbourne Ports is to my left. He would be aware of the fact that colleges have collapsed in Melbourne. The Melbourne International College had its education licence cancelled by the Victorian Registration and Qualifications Authority.

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