Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Link to this | Hansard source

My question is to the Minister for Education and Training, Senator Birmingham. I refer to a recent Parliamentary Budget Office report which found that 'announced policies to reduce government subsidies and allow universities to set their own fees will lead to a blow-out in the HELP debt'. Minister, is it still government policy to cut university funding and allow universities to set their own fees?

Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Link to this | Hansard source

The government will have more to say, as the Prime Minister made very clear today, in relation to education policy before the election, and that will be clear for all Australians. I would draw Senator Carr's attention to the reality of the PBO report. That report highlights the fact that the expanse of, and growth in, the HELP scheme is largely attributable to the decisions—

Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Link to this | Hansard source

No, that is not right. It said 'mainly your policy'.

Stephen Parry (President) Share this | Link to this | Hansard source

Order! Senator Carr, you have asked your question.

Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Link to this | Hansard source

Don't burst a button on your waistcoat, Senator Carr! That report says that growth is largely attributable to changes in relation to the demand-driven scheme and is very much attributable to the VET FEE-HELP debacle that those opposite oversaw. Those opposite come in and talk about the expected blow-out in unpaid debt in relation to the HELP scheme, but a very heavy debt weighs on their shoulders as a result of the policy decisions that they made when they were in office. We are attempting to clean that up. We have been working very hard to clean that up in relation to the VET FEE-HELP scheme. We have had to put in place, as the PBO report also recognises, a freeze in relation to the level of VET FEE-HELP debt in place this year so that we can make sure we do stop the growth in those bad debts, that we do get it under control, and we will certainly ensure that we continue on such measures to keep debt under control in the future.

Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I refer to the minister's statement on Sky News on 4 April:

We still certainly want to find savings in higher education.

Can the minister confirm that the government has told universities that higher education will face further cuts, in addition to the $5 billion of cuts currently in the budget?

Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Link to this | Hansard source

Not only can I not confirm what Senator Carr invites me to confirm; I can, in fact, deny what Senator Carr asserts in relation to that. Senator Carr is quite wrong in that regard. What I would, though, make sure Senator Carr appreciates is that, yes, higher education, like all areas of government spending, needs to contribute to a budget sustainability program. That is what this government has been seeking to do—to make sure that all areas of government work towards getting the budget back into balance over time. In higher education, that is critically important because we have seen such phenomenal growth in higher education numbers—which is welcome in terms of participation but does put a heavy burden on the budget. We need to make sure it is sustainable. I want to make sure the HELP scheme, which ensures equitable access for any Australian of any background to go to university, is sustainable into the future.

Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Will the government's ad campaign to spruik its budget include details of the $5 billion to be cut from Australian universities?

Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Link to this | Hansard source

I am not sure there is a word of truth in the question that was just asked. Certainly we will make sure the Australian people understand what our higher education policies are, but we will not be going on a great big spending binge like those opposite. What we see from Senator Carr and his ilk is billions of dollars of additional spending promises which are only funded by $100 billion of new taxes. That is what they are proposing right across all areas of government. More spending and higher taxes is the formula from Senator Carr and those opposite. What we do will be budgeted, it will be affordable and it will ensure sustainability. I repeat again that sustainability in higher education funding is critical because it ensures that any Australian of any background can go to university without having to pay a dollar up-front. (Time expired)