Natasha Stott Despoja (SA, Australian Democrats) Share this | Link to this | Hansard source

My question—my last question—is addressed to the Minister representing the Minister for Education, Senator Carr. I refer to the government’s decision to abolish full-fee places, and ask the minister if he is aware of some concern in the higher education sector that the compensation is approximately half what was expected. I ask the minister to outline to the Senate exactly how the formula was created, or how the compensation package was formulated.

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

Thank you for the question, and I acknowledge the extraordinary record that Senator Stott Despoja has had on education issues, and I think her passing will leave a hole in the non-government—

Honourable Senators:

Honourable senators interjecting—

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

Her passing over to another life! I wish her well.

Honourable Senators:

Honourable senators interjecting—

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

All I can say is that it is unlikely that her interest in education is to be replaced by anybody on that side of the chamber when the new Senate is sworn in. The question that the senator asks goes to the phasing out of full-fee-paying domestic undergraduate places at public universities from 1 July 2009. There will be funding of $249 million over 2008-09 through to 2011-12 for up to 11,000 new Commonwealth-supported places to replace fee-paying places, including HECS-HELP affected places. That $249 million includes $242 million in Commonwealth Grant Scheme payments, and universities will also receive around $226 million in student contributions.

The government is providing funding for up to 11,000 new Commonwealth supported places to replace the full-fee-paying places that are currently operating throughout the university system. This should be enough to replace the fee-paying places, and should ensure that students enter university on the basis of merit, and not the ability to pay. This is a policy position the government is strongly committed to. It was an election commitment and it is now being implemented in our first budget. No-one will lose their place. Students who are currently enrolled in a fee-paying place will be able to continue as fee-paying students.

Some universities will receive more revenue from the Commonwealth funding of student contributions than they receive now from fees alone. Some universities that charge very high fees may receive less revenue from the Commonwealth supported places, but assistance for 2009 that may be needed to make the transition to Commonwealth supported places will be discussed with affected universities in the coming months. The government does not intend to simply cover the loss of fees through extra funding to a few universities. This would be unfair to the many universities that either have chosen not to offer fee-paying places or have earned little revenue from them.

Natasha Stott Despoja (SA, Australian Democrats) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I could not resist one last go! I thank the minister for his answer, but I ask him to specify more clearly for the chamber—either now or on notice—exactly how the proposed compensation package was actually formulated and what consultations were involved in that process. I also ask a general question of this government, through the minister: can the minister give a guarantee to Australians that the university sector and higher education will not be financially worse off under this government?

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

On the second point, I can give a guarantee. I think the last budget demonstrated the extraordinary contributions that have been made to support higher education—notwithstanding the 11 years of neglect we had from the other side of the chamber and the fact that Australia is one of the few OECD countries that actually saw a decline in spending in comparison to our international competitors. The senator asked me what the basis is on which the 11,000 new places have been provided. They were provided on the basis of an election commitment. They were provided on the basis of the funding arrangements that were produced as a result of the data reported through the DEST financial collections, which indicated that public universities received approximately $105 million revenue direct from domestic undergraduate fee-paying students in 2006. That was the basis of the calculation—that was the last available information that was published, and included employer reserved summer school places, which are excluded from this current measure. (Time expired)