Re-tabled Higher Education and Research Reform Amendment Bill Gets Promoted Before Passing

Thursday 11 December 2014 @ 11.44 a.m. | Legal Research

Following the Senate's rejection of the Higher Education and Research Reform Amendment Bill 2014 (Cth) (the Bill) on 2 December 2014 and the reintroduction of a similarly titled but modified Bill, it is now reported that the Federal Government is using taxpayer funds for an "advertising blitz" to sell its controversial higher education plans. The Government's modified version of the original Bill which the Education Minister Mr Christopher Pyne has since re-tabled on 3 December 2014, will not be considered by the parliament until February 2015 and therefore will not become legislation until next year at the earliest.

Key Measures in Re-Tabled Bill

Key changes in the reintroduced Bill include:

  • What the Government terms as "expanding the scope of the demand driven funding system for higher education"

In this respect the Government plans to:

  1. remove existing caps on the number of Commonwealth supported places in diploma, advanced diploma and associate degree courses that can be offered by eligible providers with the exception of enabling courses, which attract a loading so that providers can provide these courses on a fee-free basis for eligible students, and
  2. extend the providers eligible for Commonwealth funding for undergraduate courses to private universities and non-university higher education providers.

These providers will be funded at 70 percent of the rate for universities on the basis Government says, "that these providers are not required to sustain the same kind of research or meet the same community service obligations as universities".

  • Plans to deregulate fees

In this respect the Government says it is seeking "to facilitate the development of price competition in higher education" which will be done by removing current limits on the maximum amount that a Commonwealth supported student may be charged by a provider. This the Government argues will promote equity in access, the Government will then require higher education providers to direct up to 20 percent of any additional total revenue to "scholarship and equity-related initiatives".

  • Measures the Government claims improve the sustainability of the HELP Scheme

In this respect the reforms proposed by the Government among a long list of measures, include measures to improve the sustainability of the HELP Scheme, like removing FEE-HELP and VET FEE-HELP loan fees, reducing the minimum HELP repayment threshold, and discontinuing the HECS-HELP Benefit Scheme.

The Government's Attempts to Succeed With it's Second Bill

As has been reported widely in the press, the Senate in the last week has rejected the Governments reforms and many students and academics have been vocal and strident in their opposition to the Government's proposed changes.

In an effort to counter its opponents, the Government last Sunday (7 December 2014) revealed an advertising campaign, which it claims is to help counter "myths and misconceptions" about the higher education system and raise awareness of HECS. The cost of the campaign is reported to be "undisclosed" but as SBS reports is justified by the Government arguing that:

". . . students need to know more about the contentious changes, especially what is planned for the HECS loan scheme. . . . Feedback from potential students at 2014 careers fairs and university open days indicated a lack of understanding about the planned changes".

The Government's ad campaign is reported to comprise television and newspaper advertising as well as a dedicated website.

Justified Information - or - Political Advertising

The Guardian reports that Labor’s Higher Education Spokesman, Mr Kim Carr has sent a letter to the Secretary of the Finance Department claiming that the Government's campaign breaches the guidelines on taxpayer-funded advertising which require that “where information is presented as a fact it should be accurate and verifiable” and that it should therefore be withdrawn. Mr Carr is further reported as saying:

"The Abbott government’s advertising campaign on higher education contains 'demonstrably untrue" claims about funding levels after deregulation, . . ."

In the letter, Mr Carr says the Government’s legislation reduces commonwealth funding by 20 percent on average, removes limits on the tuition fees universities can charge and contains no mechanism to ensure an equal cost-sharing arrangement. In this respect Labor claims the facts are that should the Government's proposed laws be passed, the cost burden will shift dramatically to students who will bear up to 90 percent of the cost of their degrees with the Commonwealth's contribution falling to as little as 10 percent.

The Government and its MPs are reported as arguing that it is comments like Mr Carr's from Labor that have created a need to counter the "$100,000 degree scare campaign" as it has become known.

Reaction and Comment

SBS reports that Universities Australia, continues to support deregulation but wants changes to made to the Government plans and has been running its own advertising about the reforms.

The Opposition Leader is reported as commenting that:

"spending taxpayer money on a plan already rejected by the Senate was an absolute disgrace. . . . No amount of slick advertising will make this look any better, . . .".

The Greens are reported as being "scathing" with education spokeswoman Lee Rhiannon quoted as saying: ". . . the choice of where to run ads just showed [the Education Minister] was out of touch".

The independent senator Nick Xenophon is reported as labeling the ads as an: ". . . outrageous use of taxpayers' money and thinly-disguised political advertising" saying further:

"I've previously complained about the boat ads but at least that was government policy - this law hasn't even passed."

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