House of Representatives

Second Reading Speech

Dr NELSON  (Bradfield-Minister for Education, Science and Training)

I move:

That this bill be now read a second time.

This government is committed to the development of a sustainable, quality higher education sector.

Last year I conducted a review of the higher education sector to determine whether changes were needed to ensure that Australia continues to have a university system that meets the needs of students and the community. In that process, I consulted widely with universities, student groups, unions, the business community and other stakeholders. The consultations produced a broad consensus that the current arrangements for funding universities were not sustainable and would, in the longer term, lead to an erosion of the excellent reputation of Australian universities.

The government therefore announced the Our Universities: Backing Australia's Future package of higher education reforms in the recent budget. To be implemented over the next few years, the reforms will allow the higher education sector to develop in a way that is sustainable, provides high-quality outcomes and is equitable in terms of opportunity.

Laying the foundation for this will be an increase in public investment in the sector of almost $1.5 billion over the next four years. Over the next 10 years, the Commonwealth will provide more than $10 billion in new support for higher education.

There will be more Commonwealth supported student places and more funding for each Commonwealth supported student, linked to improvements in how universities are managed. In addition there are extra funds for regional universities and new schemes and funding to encourage excellence in teaching, more collaboration between institutions and a renewed focus on equity. There will also be new places for national priorities such as nursing and teaching and concessional fee arrangements to encourage people to enrol in these fields.

Under the new arrangements for supporting students, people will have greater choice in how they will access higher education and no Australian will have to pay up-front fees at the point of entry to an accredited institution. There will be new income-contingent loans available to help students paying full fees to public and eligible private higher education providers.

The bill now before us continues to deliver on the initiatives already put in place by this government.

In 2003 the government will provide record levels of funding. Total higher education funding through my portfolio (including the Higher Education Contribution Scheme) will be $6.4 billion. This is up from $6.2 billion in 2002.

The key indicators for the health of our higher education sector remain positive. University revenues continued to grow in 2002 and are expected to do the same in 2003. The estimated revenue for the sector this year is $11.3 billion, which is $2.7 billion more in real terms than in 1995.

Participation in higher education also continues to increase. There has been significant growth in domestic student numbers to 498,000, up by 75,000 since 1995.

This bill builds on these achievements.

The bill provides $7.3 million in 2003 to assist the Australian National University rebuild its world-class research facilities at Mount Stromlo Observatory following their devastation by the Canberra bushfires on 18 January 2003. The bushfires that swept through the Research School of Astronomy and Astrophysics site destroyed heritage buildings, critical workshops and state-of-the-art telescopes that were also a key tourist attraction. The research school has long been recognised as an important player in national and international astronomy, providing leading edge training for students as well as world-class pure and applied research facilities.

Funding amounts in the Higher Education Funding Act 1988 are being updated to reflect the indexation of grants for 2003 and the latest estimates of HECS liability.

This bill will also amend the Australian Research Council Act 2001. The Australian Research Council plays a key role in the Australian government's investment in the future prosperity and wellbeing of the Australian community. Its mission is to advance Australia's capacity to undertake quality research that brings economic, social and cultural benefits to the Australian community.

The amendments are intended to streamline the administration and financial management of the Australian Research Council, its advisory structures and research programs. They will update the composition of the Australian Research Council board, strengthen disclosure of interest requirements, provide for the appropriation of funds by financial year, update funding amounts to reflect indexation and insert a new funding cap for the out year of the budget estimates.

Other important amendments to this act include increased flexibility in determining research program funding splits to facilitate administration, and the discretion for the minister to delegate certain powers to, and impose conditions on, the Australian Research Council board in order to facilitate administrative efficiencies.

The government's continuing commitment to world-class research is underscored by the five-year $3 billion Backing Australia's Ability initiative which continues to be delivered in full and on time, with $644 million allocated for 2003-04, which represents an increase of around $217 million on the 2002-03 commitment.

One of the largest single initiatives of Backing Australia's Ability is an additional $740 million to research funded through the Australian Research Council. This will double, over a period of five years, the Australian Research Council's capacity to fund grants through the National Competitive Grants Program.

I commend the bill to the House and present the explanatory memorandum.

Debate (on motion by Mr Rudd) adjourned.