House debates

Monday, 21 March 2011

Education Services for Overseas Students Legislation Amendment Bill 2010

Second Reading

4:05 pm

Photo of Nola MarinoNola Marino (Forrest, Liberal Party) Share this | Hansard source

Education is a priority, as I frequently say in this House. I believe that people in this country should have access to lifetime learning, regardless of where they live in our nation—something that is extremely relevant in my regional and rural electorate of Forrest, as brought out very particularly by the government’s changes to youth allowance. Overseas students and services for overseas students are a core economic component of many Australian universities, schools and vocational education and English language training colleges. The Education Services for Overseas Students Legislation Amendment Bill 2010 reflects the national importance of the overseas student market in the Australian education sector. It is the result of the recommendations from the review of education services for overseas students, titled Stronger, simpler, smarter ESOS: supporting international students, conducted by the Hon. Bruce Baird, AM. The bill aims to strengthen the registration process for approved providers.

It is perhaps not well understood by many that overseas students represent Australia’s fourth largest export earner. They contributed $17 billion to the national economy in 2008-09. International student numbers grew from 228,119 in 2002 to 491,565 students in 2009. I understand the most recent valuation puts the export earning figure at around $18.6 billion—significant. By way of comparison, during 2007-08 Australia’s international education industry generated $4.9 billion more in export dollars than the Australian tourism industry.

Given the importance of the industry to the economy and the university sector, we need to ensure that our international education industry remains strong. However, despite Australia being a popular destination for overseas students, there has been a decrease in the demand for Australia’s education services. I understand there has been a 20 per cent fall in student visa applications, which could well see the sector lose $1.2 billion and possibly 19,000 jobs over the next two years. This is causing very serious concern in the education sector, as my colleague will attest. A recent story in the Australian commented that China’s biggest student agent for Australian universities and colleges has accused the Gillard government of policy mistakes that have caused a sharp drop in student numbers. The reasons cited were the changes to immigration rules, mounting competition and superior marketing from the US, Britain and Canada, as well as the rising cost of education in Australia.

One of the reasons given for the drop in numbers has been the high value of the Australian dollar, but this has been disputed by the chief executive of the Chinese student agency, who said that the dollar was at a similar value in 2008, when student numbers were growing rapidly. Australia has dropped from the No. 1 market for Chinese students to the third most popular destination. A further problem for the sector is the scrutiny over recent years, with alarming allegations made against some private education providers and by some students who, despite complying with all the requirements, are being forced to pay additional fees over and above their agreed payment. The collapse of private providers has added to the lack of confidence of potential students. The negativity surrounding Australia’s overseas student market has been exacerbated by international media coverage of protests in Australia by Indian students following a number of violent assaults. Given that the highest number of overseas students comes from India, this has had an impact on the market.

Many students experience the same problems as one Indian student experienced at a private Perth college. He was alone and away from home, away from his family, friends and supporters. He had to deal with the social and cultural differences as well as looking after himself. He had a dispute with his college over fees and was not allowed to attend classes. Then the college issued him with a section 20 immigration breach order. This student was not alone in his problems. At the same time, 12 other students reported problems to the immigration department in Perth. There were dozens of others who had to do the same. They were the subject of some unscrupulous operators—unscrupulous agents in India and unscrupulous colleges in Australia.

These stories are replicated over and over. This has placed Australia’s reputation as a safe provider of high-level education at risk, as you can see by the falling numbers. Some of this has also come as a result of some unscrupulous providers and education agents. We need to look after these students when they come to our shores. We must restore Australia’s reputation and build on our relationship with the countries where our international students originate from.

Improving accountability of not only colleges and education agents but also state and territory regulators is an integral part of this. This legislation will strengthen the registration criteria for providers of education services to overseas students, and the coalition broadly supports this effort. International students need reassurance that the Australian government takes their concerns seriously and will do everything in its power to prevent student exploitation by unscrupulous providers.

There are a number of regional local governments that have identified the overseas student market as an economic opportunity. The CAPEROC group—the combination of the councils of Augusta-Margaret River and Busselton in my electorate—is just one example. I am currently the chair of a group that is investigating the viability of establishing a higher education facility in the Capes region. We held a higher education forum earlier this year. The forum hosted a number of local, state and national representatives who provided information and a diversity of views on the opportunities and risks involved in a sustainable, viable higher lifetime learning education facility for the area. One of the presenters was Professor Jeanette Hacket from Curtin University, who stressed the important role that international students could play in such a facility. This is demonstrated well in the south-west town of Bunbury, where the number of international student enrolments at the South West Regional College of TAFE rose from 39 in 2008 to 67 in 2009. The college anticipates that the enrolment numbers in coming years will remain similar.

The international students currently studying in my electorate come from approximately 29 different countries and contribute directly to the south-west communities and local economy. Not only does the education institution benefit from increased enrolment numbers but the money the students spend during their time in the community contributes directly to the local economy. Often the students themselves also make a valuable contribution to our society, both culturally and socially. Western Australia is fortunate in that it is the closest entry point for African and Asian students. However, we in Western Australia cannot simply take this market or the individual students for granted. Australia must work hard to retain and increase the number of not only Asian students but also all international students studying in Australia.

The legislation is aimed at the principal object of delivering education services to overseas students in Australia on a student visa, which are in part to provide financial and tuition assurance to overseas students for courses for which they have paid and to protect and enhance Australia’s reputation for quality education and training services. The Baird review report made 19 recommendations, and they were related to: more support for international students and improved information; stronger consumer protection mechanisms to ensure students are protected from unscrupulous operators; improved regulation of Australia’s international education sector; and improved support for those who study and live in Australia, including somewhere to go when problems arise. When you consider the isolation of the students, this is a really important part of the services that are required.

In conclusion, we certainly recognise the important role the international education industry plays in Australia. Even though we support the legislation, we really need to maintain very close scrutiny on how it will actually work in practice. That will be the measure of the effectiveness of this legislation.

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