Today, Ian Aird , CEO of English Australia, delivered a masterclass in how to respond to the impacts of the proposed legislation changes for the international sector
The full 23 pages are in the link below, and contain articulate, polite yet very direct concerns about the devastating impact these policy changes will have on not just the education sector, but the wider economy in general.
https://www.englishaustralia.com.au/documents/item/1224
There is so much to unpack in the legislation, ranging from a dictator-style overreach of a Minister single-handedly determining how many students a college can enrol, the proposal to completely cut off courses that have ‘systematic integrity issues’, rather than the government actually doing its job and regulating the specific providers that are the cause of these issues.
If you don’t have the time or inclination to read through the document, here are some of the most pertinent points that deliver an uppercut to these ridiculous changes that are up for legislation
- Misalignment with Sector Realities: The Framework’s significant changes are fundamentally misaligned with the sector’s realities and will severely impact Australia’s economy, leading to widespread job losses. Only a small proportion of ‘bad actors’ are identified yet the entire sector is getting smashed.
- Lack of Economic Impact Study: The government has not produced an economic impact study to understand the likely dire consequences of transitioning from a free-market economy to a centrally controlled one.
- Inappropriate Blame for Housing Crisis: Government efforts to hold international students responsible for Australia’s housing crisis are misguided, as recent research shows that students neither caused nor significantly contribute to this crisis. What started as an integrity issue then got moved to an issue about inner city rents to win election favours, and rather than targeting the major contributors of this issue, a sector-wide smash down is occurring.
- Opposition to Enrolment Limits: Setting enrolment limits annually is wholly unrealistic, at odds with the sector’s operational realities, and will lead to reduced investment and increased financial risk for providers. We have already seen a great number of redundancies in the sector and I am reading estimates from commentators that this could total over 100,000 – at a time when we are balancing on the edge of a recession.
- Severe Financial Strain on Quality Providers: Recent restrictions on visa grants have severely strained high-quality providers, necessitating urgent government support to maintain sector sustainability. Imagine the financial damage to the economy (let alone TPS funds and the hundreds of millions the Government will need to shell out), should 10, 30, 100, 200 or more providers go insolvency
- Stifling Entrepreneurialism: The shift from a free-market economy to centralised control will stifle entrepreneurialism, leading to a risk-averse business community that cannot modernise at the rate of the global economy. I question what reason does any college have to innovate or deliver a better student experience if they have a cap on numbers and cannot grow.
- Damage to Regional Economies: Current policies are causing domestic and international divestiture, job losses, business closures, and damage to regional economies and communities, which are vital to Australia’s growth. We have heard numerous comments from business owners like Ian Pratt from Lexis Training and The Culinary Institute, whose business provides critical chefs and cooks to Noosa restaurants, stating that the mass reduction in students means local businesses will have no graduates to operate local restaurants, or students to staff local shops.
- Negative Impact on Australia’s Global Standing: The policy changes are likely to reduce Australia’s global standing and attractiveness as a destination for international students and skilled migrants. Remember when the Morrison Government told all students to Go home during Covid? Now we are saying ‘we don’t want you’, and this is completely misaligned with the 2030 education Strategy released only last year that aimed to position Australia as an education leader.
- Increased Financial and Legal Risks for Providers: The government’s policy of setting enrolment limits annually with minimal notice exposes providers to significant financial and legal risks. The cost of commercial real estate for campuses, long-term lease commitments, and staffing arrangements are not compatible with such unpredictable policy changes. This approach threatens the viability of educational institutions and undermines their ability to deliver high-quality education. We have recently come out of a post Covid recovery, and most providers have spend millions of dollars securing more campus space – which now sit empty. The policy also states providers will get notified of caps on Sept 1 for the following year. How are providers supposed to secure trainers, student support staff, campus space etc knowing their student allocations can change with only 3 months notice?
- Reckless Implementation Timeline: Forcing enrolment limits before 2026 is unreasonable and reckless, putting hundreds of organisations at financial and legal peril. The government must delay implementation to allow for meaningful consultation and planning
Thanks to the EA team for their concise and direct response that addresses the issues. While we don’t expect the Government to listen, I hope these insights may give some reflection and flexibility on some of the intended policy changes.
The Koala thanks Simon Costain for permission to republish this piece. It was originally published via Linkedin here.
