Ricky Muir (Victoria, Australian Motoring Enthusiast Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Education, Senator Payne. Can you give an assurance to future university students that, under your proposed reforms, university will not become unaffordable for everyday Australians?

Marise Payne (NSW, Liberal Party, Minister for Human Services) Share this | Link to this | Hansard source

I thank Senator Muir very much for his question and for some prior notice to my office of the question. In relation to Senator Muir's question, clearly the government's view is most certainly that that will not be the case, but there are many third parties also participating in the debate at the moment who equally agree with the government's position on this matter. I will begin by referring to one that has an institution in the senator's constituency of Victoria—RMIT. Vicki Thomson, who is the Executive Director of the Australian Technology Network of Universities, has written an opinion piece and made it quite clear in that. She said:

So let me repeat what has been said a million times: the university sector is not looking to introduce standard $100,000 degrees and deregulation won’t deliver them.

Those who have brainwashed some journalists and … senators to accept that we plan to do just that deserve to be shot down.

It is not only wrong, it is shameful for the fear such myths are creating in the community.

She goes on to say:

Deregulating fees will provide students with increased choice and universities with flexibility. Will fees go up? Some may, but others would also decrease as we have the freedom to determine the size of our institutions and the degrees that we offer.

A far more realistic estimate of how high fees might rise for a standard degree in a deregulated market is $12,000 to $14,000 a year—rather lower than the $100,000 being yelled from certain rooftops.

Senator Muir asked about the government's view. Most certainly we are of the view that we will give students more choice, more flexibility and more opportunities, particularly with Commonwealth funding for those who are pursuing degrees such as associate diplomas and diplomas, both in private institutions and even through TAFEs in some examples— (Time expired)

Ricky Muir (Victoria, Australian Motoring Enthusiast Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. If your higher education reforms were to pass as is, student HECS debt would accrue interest at the government bond rate. Can you explain why a woman or a man who studies at university and then takes time out of the workforce to raise a family should have to pay the government bond rate rather than the CPI and be punished for having a family?

Marise Payne (NSW, Liberal Party, Minister for Human Services) Share this | Link to this | Hansard source

Thank you, Senator Muir, for your supplementary question. That is a very important question and it is one that has been raised consistently with the government since the package was introduced through the budget process. We are very interested in the views of those who are prepared to have a sensible conversation about this—

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

What about an answer?

Marise Payne (NSW, Liberal Party, Minister for Human Services) Share this | Link to this | Hansard source

Those who choose to scream from the rooftops, perhaps not. As you know, at the moment student debts are indexed by the CPI. Our proposal is to increase it to the 10-year bond rate. The reason for that is that the bond rate is the same as what it costs the government to borrow the money that it lends to students in the first place. On budget night though the minister did announce two working groups on the higher education issues. The first on legislation and financing is being chaired by Professor John Dewar, the Vice-Chancellor of La Trobe University. They have considered a number of options on the interest rate on student debt and in fact have proposed three alternatives to the government's measure. They are summarised in the regulation impact statement to the reform bill. (Time expired)

Ricky Muir (Victoria, Australian Motoring Enthusiast Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. I did not go to university but I want my five children to have the option to go to university if that is the path they choose. I am very fortunate to be on a high income for the next six years that I am in this chamber. I hope to be here for six years after that, but who knows? I may end up back in a sawmill on a modest wage. If that is the case, I worry that I will not be in the financial position to be able to support my children to get the quality higher education they choose and I worry that all my friends still working in a sawmill will be in that position. What should I tell my children when they ask me why the government wants to deregulate the sector that could put universities out of reach for millions of ordinary Australians?

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

Senator Muir, I was very generous with you going over time. I remind senators that, if you have a long preamble, you run the risk of running out of time.

Marise Payne (NSW, Liberal Party, Minister for Human Services) Share this | Link to this | Hansard source

I thank Senator Muir for that question. As to the end of the six-year period, we are all in the same boat. I say in response to Senator Muir's question that most certainly the government is not changing any aspect of the system that requires no student to pay any costs while they are studying and not to pay a cent before they earn $50,000. That would be the first thing I would say.

The second thing I would say is that we are pursuing a process to extend Commonwealth funding to those who wish to undertake qualifications in a much broader range of areas—and that support is not currently available to students who want to study in those areas, whether it is a diploma, an associate diploma or a pathway course. That will open up opportunities for, we estimate, another 80,000 students over the next four or five years. That is a very significant change in the opportunities available. We are also very proud of the institution of the Commonwealth scholarship scheme, which I would be happy to explain further to the senator— (Time expired)