Sue Lines (WA, Australian Labor Party) Share this | Hansard source

Thank you, Mr Acting Deputy President. So we have these 'ATM colleges' in the United Kingdom that allow private for-profit colleges to enrol students eligible for government supported tuition loans and this has resulted in what has been termed 'cashpoint colleges'. Students are encouraged to enrol in these colleges because they can get access to up to £11,000 of student income support, while the college collects the student tuition fees from the government who lends it to them on behalf of the students—a scheme similar to the HELP scheme in Australia.

This has led to a substantial increase in the level of student debt. It has also raised serious concerns about the quality of education that students at these colleges receive, given that there seems to be little regard paid to whether students attend classes or complete assignments. The USA and the UK experiences demonstrate that there will be private for-profit providers eager to enter the higher education market where public subsidies are available. These businesses target the most disadvantaged students with persuasive marketing.

This attempt by the government to deregulate and turn our universities into some kind of commercial market is wrong. It has been widely condemned by the public; it has been widely condemned by student associations. It is not liked by the university themselves, and that is why Labor will not vote to allow these changes through the Senate today.