Jenny Macklin (Jagajaga, Australian Labor Party, Deputy Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. Is the Prime Minister aware that the latest OECD figures show that Australian university students pay the second highest fees in the world, second only to those paid by students in the United States? Can the Prime Minister confirm that the OECD has sheeted home the blame for this to the Howard government, stating:

In Australia the main reason for the increase in the private share of spending on tertiary institutions between 1995 and 2003 was changes to the Higher Education Contribution Scheme that took place in 1997.

In light of the Prime Minister’s deliberate Americanisation of our university system—

Government Members:

Government members interjecting—

David Hawker (Speaker) Share this | Link to this | Hansard source

Order! The Deputy Leader of the Opposition will come to her question. Members on my right!

Jenny Macklin (Jagajaga, Australian Labor Party, Deputy Leader of the Opposition) Share this | Link to this | Hansard source

In light of that, is it any wonder that student debt under the Howard government is ballooning by $2 billion a year and is projected by the department of education to blow out to $18.8 billion by 2008-09?

John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I thank the Deputy Leader of the Opposition for that question. I will check part of it out with former Vice President Al Gore, who seems to have become a sort of resident authority for the opposition on just about everything. I am quite sure he, like all of our American friends, will take that with very great good humour—

Steve Georganas (Hindmarsh, Australian Labor Party) Share this | Link to this | Hansard source

Mr Georganas interjecting

David Hawker (Speaker) Share this | Link to this | Hansard source

The member for Hindmarsh is warned!

John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

because that is the nature of the nation and that is the nature of the American people. This nation has every reason to be very proud of our friendship with the people of the United States, although on a lot of issues we approach things rather differently. That applies in relation to the social welfare system of this country, where this nation has struck the right balance between the overpaternalistic social welfare structure of Europe and some of the less desirable laissez-faire features of the social welfare structure of the United States. When it comes to the social security safety net, the Australian way is the best way.

In relation to the particular question asked by the Deputy Leader of the Opposition, let me remind the House that HECS was introduced by the Labor Party when it was in government. We supported it, once again illustrating that when Labor brought in something that was good when it was in government we supported it, unlike the approach taken by the Labor Party in opposition. In relation to the OECD examination, I do not accept the conclusion drawn by the Deputy Leader of the Opposition. I point out to the Deputy Leader of the Opposition that in real terms Australia’s public expenditure on educational institutions increased by 32 per cent between 1995 and 2003—

Kim Beazley (Brand, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

Look at this.

David Hawker (Speaker) Share this | Link to this | Hansard source

The Leader of the Opposition will put his placard down.

John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

which is an increase greater than that in at least 12 other OECD countries. According to the OECD, Australia’s expenditure on tertiary educational institutions has increased by 25 per cent in real terms between 1995 and 2003.

Kim Beazley (Brand, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

Look at this.

David Hawker (Speaker) Share this | Link to this | Hansard source

The Leader of the Opposition is warned!

John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

This magnitude of increase is higher than that in at least six other OECD countries, including Germany, Austria, the Netherlands and the United Kingdom. Australia’s total expenditure per student on tertiary education in 2003 is 10 per cent higher than the OECD average of $US11,254.

The actual contribution of the Australian government to higher education is much higher than that indicated by the OECD. For example, the OECD fails to take into account the value of the 25 per cent discount paid for the student by the Australian government when that student pays their HECS fees up front. The OECD also fails to take into account the provision of HECS doubtful debts, such as the value of HECS paid by the Australian government for any student who never reaches the repayment threshold.

I remind the Deputy Leader of the Opposition and those interested in this issue that about 97 per cent of all domestic undergraduate students are in Commonwealth supported places. On average, about three-quarters of the cost of these students’ education is met by the Australian government. The average HELP debt is around $10,500 for Australian students and most debts are quickly repaid.

It stands to reason that the debt would have risen, because since 1996 the number of university students has nearly doubled. In 2005, university student numbers reached a record high of nearly one million. We are further expanding the number of new places by 39,000 and extending loans to private higher education providers. I reject the conclusion of the Deputy Leader of the Opposition.