The anticipated additional 3rd day of hearing into the Education Services for Overseas Students Amendment (Quality and Integrity) Bill 2024 [Provisions] program has concluded, and the following is the wrap-up.
1.00pm Panel 1:
Deakin University (via teleconference) Professor Iain Martin, Vice-Chancellor Mr David Reeves, Senior Adviser to the Vice-Chancellor
Regional Universities Network (Submission 24) Mr Alec Webb, Chief Executive Officer
University of Wollongong Senior Professor Sue Bennett, Interim Deputy Vice-Chancellor (Academic and Student Life)
Henderson asks regions that the Minister says Regional Unis would be winners.
“Winning has never felt so much like losing,” was Webb’s response. “Caps remain below pre-pandemic levels.” For example, he used CSU, whose pre-pandemic commencements were 3000 per year, their cap is 1000.
Martin was asked to justify his 35 per cent proposal. “It was debated within our institution, and 35 per cent was deemed to be appropriate to offer a great student experience” he replied.
Martin was asked about penalties, particularly around overshooting the caps and the Minister being able to close off. Martin said, “Penalties at the level of severity are inappropriate.” He signalled warnings should be in place saying “penalties are out of proportion”.
Faruqi asked about Wollongong’s numbers. Bennett responded 3369 (2019) 4387 (2023) est 2381(2024) – Cap for 2025 3700. (The Koala may have misheard 2024 and apologises if this is the case).
All three witnesses agreed with Faruqi’s proposition that 107 should be scrapped and sections 7 and 8 of this Bill should be scrapped and that the government should go back to the drawing board and work with the sector to come up with a system that works for all.
1.45pm Panel 2:
Australian Catholic University Mr Christopher Riley, Pro Vice-Chancellor (Global and Education Pathways)
Australian Technology Network of Universities (Submission 14) Dr Ant Bagshaw, Executive Director
University of Technology Sydney Professor Andrew Parfitt, Vice-Chancellor and President
Western Sydney University Distinguished Professor George Williams AO, Vice-Chancellor and President
Riley from ACU states commencers from the cap allocation would be 55% less than in 2024.
UTS states cap is 4800 in line with 2023 and 2019 but does take into growth in pipelines. It does not allow for future growth.
William of WSU says he was shocked when he read the letter, which contained the cap number…. It did not account for the basics which were thought to be considers noting there is a bed for every student. The bottom line is that WSU would be down 1000 students and will cost $26.5m or $78.4m over the lifecycle. For every dollar received from international students 24c goes to domestic students. The Koala assumes there will need to be a decision made.
Williams goes on to say the formula is deeply flawed, not a sensible approach to public policy. Results appear somewhat random against different institutions. Perverse outcomes. May drive behaviour that is not in line with the outlook aka multi-year degrees v single-year degrees. Diversification, there will likely be a move to specialise in markets v diversify. Potential for increase in poaching as example, scholarships in 2nd year or 3rd year students to fill cap places.
Leon of Charles Sturt mentions $40m down because of 107.
Riley was asked about the ACU cap and numbers: Cap for 2025 is 1700, (2023) 3770 2212 (2019). ACU has been “savaged”, was Henderson’s response.
Faruqi to Williams: “You have pretty much ripped apart the formula”. Was there any consultation about the formula the senator asked of each witness? “No” or “General discussions only” was the response from the witnesses regarding the formula/algorithm. There appears to be consensus to William’s point that any formula will be flawed.
Bagshaw from ATN states losses from 107 is half a billion across student lifetime from its members.
A key theme from the panel clarifies that there is no clarity on future years.
All witnesses agreed with Faruqi’s proposition that 107 should be scrapped and sections 7 and 8 of this Bill should be scrapped, and that the government should go back to the drawing board and work with the sector to come up with a system that works for all.
2.45pm Panel 3:
Holmes Insitute (Submission 37) Mr Stephen Nagle, Chief Executive Officer
Independent Higher Education Australia (Submission 13) Hon Dr Peter Hendy, Chief Executive Officer
Independent Tertiary Education Council Australia (Submission 60) Mr Felix Pirie, Deputy Chief Executive, Policy and Research
Photography Studies College Mr Jim Davidson, Director
This private education-focused panel laid bare the impact of the proposed caps on the private higher education sector.
Pirie from ITECA set the scene well saying “Independent providers in the skills training, higher education, and international education sectors need to be able to plan, invest, and grow with certainty and have a clear understanding of the regulatory environment in which they operate to operate commercially sustainable and protect the jobs of their employees.”
Davidson spoke well at articulating his institution’s situation. In short, the college just had the CRICOS registration limit lifted to 100 places in 2024 post significant investment in campus facilities. In 2019 they had 5 international students with a CRICOS limit of 20. In 2021 they had 18 students registered for 20. They have been provided a cap of 10 international students against the new limit of 100.
Nagle, from Holmes, reappeared after the 2nd day appearance. His take? “a soviet style central planning in a market system.”
He provided another college example of “How can the government give an institution a CRICOS cap of 250 and six weeks letter send them a letter and give them a cap of 0.”
“It’s un-Australian” he says.
He warned of campus closures and mass staff redundancies.
Hendy spoke to the ramifications of the bill, with even Henderson exclaiming, “It’s a dog’s breakfast of a proposal.”
With the exception of a few providers, there is a 32% hit on 2023 figures, said Hendy.
The private sector has their backs against the wall.
3.45pm Panel 4:
Department of Education (Submission 51) Mr Ben Rimmer, Deputy Secretary, Higher Education, Research and International Group Ms Karen Sandercock, First Assistant Secretary, International Division Ms Vanessa Lapthorne, Assistant Secretary, Engagement Branch Ms Alexandra Procailo, Assistant Secretary, International Quality Branch
Department of Employment and Workplace Relations (Submission 47) Ms Anna Faithfull, Deputy Secretary, Skills and Training Ms Laura Angus, First Assistant Secretary, International, Defence and Assessment (via teleconference) Ms Katerina Lawler, Assistant Secretary, VET Quality and Regulation (via teleconference) Mr Daniel Langer, Assistant Secretary, International Policy and Defence (via teleconference)
DEWR provided an opening statement. Department of Education did not.
Henderson started with an aggressive question of Rimmer from Education. Firstly, asking about consultations, which Rimmer eventually agreed to provide the committee with details on all consultations. Henderson remained adamant that previous witness’s testimony confirmed a lack of consultation. The Koala believe consultation was had, but likely in a more general sense, not on the methodology.
Henderson moved on to data quality. After a tense exchange between the two, Henderson asked for documents relating to this and suggested that documents had been concealed, which was denied by Rimmer.
Exemptions and twinning arrangements. PRISMS does not currently capture twinning arrangements. A figure of $2.6m for upgrades to prisms to capture this information was given with work underway. Henderson asked about how many students are currently on twinning arrangement. Rimmer provided no figures “we’re working through that at the moment” was the response.
“I’m concerned about pathway colleges,”, said Henderson. Why is 2023 data not available? Currently working on 2022 data, which was suggested to be inappropriate. Rimmer explained the methodology of caps, being that they count toward both providers.
Faruqi takes over.
Was there specific consultations held on the formula with providers? The answer was no. Farqui asked why. Rimmer responds “fixed number of places to be allocated across the sector” and “didn’t expect to get valuable feedback.”
What evidence do you have that students will go to the universities where the cap exists? Rimmer replied, “all Australian quality higher education providers, not a small number of providers located in areas of housing stress.” He makes the point that 50% of international students are in the private rental market. He challenged the Property Council report of 4% of the rental market being international students by saying it was done in 2021 when the market was it its lowest in 10 years. Rimmer agreed to provide modelling/work in this area.
What will happen in 2026? The minister has indicated modest growth.
How many have been provided a zero allocation? Response about 20 and there are various reason for that.
Questions from following Senators, with the exception of Pocock, tended to miss the mark. The Koala received text… “perhaps George Williams should have been on the panel to ask the questions”.. the Koala agreed.
4.30pm Panel 5:
Department of Home Affairs (Submission 3) Ms Tara Cavanagh, Group Manager, Immigration Policy Mr Damien Kilner, First Assistant Secretary, Immigration Programs
Department of the Treasury (via teleconference) Ms Sam Reinhardt, Deputy Secretary, Fiscal Group Dr Adam Cagliarini, First Assistant Secretary, Macroeconomic Conditions and Population Division Mr Brendan McKenna, A/g First Assistant Secretary, Labour Market, Environment, Infrastructure and Industry Division Mr Nicholas Downie, Assistant Secretary, Housing Strategy Branch Mr Nicholas Latimer, Assistant Secretary, Centre for Population
No opening statements were made.
Henderson starts by asking about the documents requested, specifically the working documents. NOM calculations were called out as being especially important.
Questions moved to system improvements with a number being taken on notice. Home Affairs believes system changes will be ready for 1 January.
Henderson asked how many students would be exempted from the categories. It was a messy exchange around definitions and categories. Twinning arrangements and foreign government scholarships were called out as not categories. Clearly, Henderson is fishing for modelling. The question was again taken on notice.
Faruqi takes over.
Asks whether 107 would be replaced. Home Affairs has not informed anyone of this change. Home Affairs clarifies that Minister Clare has spoken publicly about removing it. They are aware that it is under active consideration but nothing further. Home Affairs acknowledges the sector is significantly concerned with 107.
Asks about last appearance and the modelling of labour and economic costs. Re asks the same question as to whether modelling has been done now. The response from Treasury is that the process is about to kick off for MYEFO.
Pocock starts.
Asks about a goal for NOM. “Senator we are not working towards a number” was the response from Home Affairs.
Housing is the topic. Refuted the 4 per cent number, and Pocock asks for the modelling that refutes that. Provides rental vacancy rates around universities. The koala believes this will be tabled.
Half of the economic growth was from international students. Does this line up with treasury figures? Response: 22/23 1.3 percentage points to GDP growth. 23/24, just over half of the growth in that year.
Pocock asks “Will student downturns hurt economic growth for next year?” The response “Expecting a slowing, it doesn’t expect to have a material effect on growth was the response.” Pocock follows up, 110k less students wouldn’t have an effect? No was the answer. Long pause. You could hear a pin drop.
The Koala believes MYEFO is worth keeping an eye on.
5.15pm Adjournment
What’s next? Questions on notice have been requested for 11 September 2024.
The caps document for universities was submitted to the committee and can be found here (document #20).
