House of Representatives

Second Reading Speech

Nelson, Dr Brendan, MP (Bradfield, Minister for Education, Science and Training, LP, Government)

I move:

That this bill be now read a second time.

Mr Speaker, late last year I introduced on behalf of the government into the parliament a package of comprehensive reforms to Australia's higher education system. The reforms now contained in the Higher Education Support Act 2003 and the Higher Education Support (Transitional Provisions and Consequential Amendments) Act 2003, have clearly assured a vibrant and strong future for Australia's universities and will further enable the continued provision of world-class education to hundreds of thousands of Australians.

The measures contained in these two vital pieces of legislation will continue to deliver to universities $2.6 billion over the next five years and more than 34,000 Commonwealth funded places. The Commonwealth will provide some $11 billion of additional public funding to universities over the next 10 years. Just as importantly, this legislation will deliver much needed reform to the sector, enabling the growth and diversification of Australia's already excellent institutions.

The bill now before us will make some minor funding adjustments to the acts to make the transition between the current and new funding arrangements as smooth and as effective as possible.

The Higher Education Legislation Amendment Bill 2004 will amend the maximum funding limit for grants made under section 23C of the Higher Education Funding Act 1988 to allow for price increases for current programmes and for the creation of new initiatives. It will ensure that the Regional Protection Fund delivers on the government's commitment that no regional university would be detrimentally affected in its research funding by the Knowledge and Innovation reforms in the first three years of their implementation.

The bill will also provide $1.5 million this year to enrich Indigenous higher education in the Northern Territory and the relationship between Batchelor Institute of Indigenous Tertiary Education and Charles Darwin University. A total of $3 million will be provided for this initiative over the next two years.

The bill will also amend the Higher Education Support Act 2003 to reflect the correct funding to be provided under the act in relation to the Commonwealth Grants Scheme and other grants for the years 2005-07. It will also make some minor technical amendments to the Higher Education Support Act relating to the setting of student contributions and tuition fees, the remission of HECS-HELP debts for work experience in industry units, the definition of equivalent full time student load, and the notification of tax file numbers by students.

The bill will also allow higher education providers to set in advance the student contribution amounts and tuition fees which will be paid over the life of a course by the students who commence in that course in that particular year. This flexibility was requested by the universities last year and this bill will provide them with this.

The bill will also provide the minister with a discretion to approve funding increases under the Commonwealth Grants Scheme in the first year of implementation, where the minister is satisfied that both the higher education provider has taken all reasonable steps within its power to meet the requirements of the governance protocols and the relevant state or territory has taken all reasonable measures to obtain necessary amendments to university enabling legislation. This will enable universities to benefit from additional money in 2005. Delays in passage of state government policy and legislation may otherwise prevent them from complying in full.

Finally, the bill will simplify the transitional funding arrangements in the Higher Education Support (Transitional Provisions and Consequential Amendments) Act 2003 for the University of Notre Dame Australia. The current drafting of the transitional provisions creates some unintended consequences for the University of Notre Dame and through this amendment, the transitional arrangements will be more appropriately and effectively managed while ensuring that the University of Notre Dame Australia's current HECS-liable students can continue in their courses until 2008.

Full details of the measures in the bill are contained in the explanatory memorandum circulated to honourable members.

Mr Speaker, by making these adjustments to the Higher Education Funding Act 1988 and by further refining the operation of the Higher Education Support Act 2003, this bill improves the transition between the current and new funding arrangements. It will give Australia's higher education providers the certainty that they need to plan for the implementation of the new framework in the coming year. In doing so it further enhances the package of reforms which will be the new foundation for Australia's higher education sector.

I commend the bill to the House and present a signed copy of the explanatory memorandum.

Debate (on motion by Mr Edwards) adjourned.