Division
Robert Simms I have a question for the minister. Minister, are you aware of the comments made by Prime Minister Malcolm Turnbull when he referred to the VET sector as being scandalous? In light of the concerns about the scandal that is unfolding within the VET sector, are you concerned that, by making block grants available to private, for-profit universities, you are going to be opening Pandora's box and bringing a similar calamity onto the university sector within this country? Simon Birmingham No, Senator Simms, I am not concerned, and let me try to calmly talk you through it. I am well aware of the Prime Minister's statements, and indeed I have made similar statements about my concerns with some of the operations in the VET sector and the way in which, in particular, the VET FEE-HELP student loan scheme is working in the VET sector. It is important to understand that that VET FEE-HELP student loan scheme provides demand-driven funding to students enrolling in vocational education and training courses; that the way that it was established means that institutions are free to set their own prices; that they can enrol as many as they want once they have been approved; and that they get paid, essentially if they so choose, up-front for the entire duration of the course once the student commences their studies. That is profoundly different to what we are talking about in relation to Torrens University Australia being listed as a table B provider in the higher education sector, as distinct from vocational education. There are virtually no analogies that can sensibly be drawn in this regard. Obviously access to ARC block grant funding is not something that is demand driven. In fact, there are clear restrictions around that access that ensure that there can in no way, shape or form be blow-outs, rorting or other problems in this regard. I would also note that there are, as I said in my summing-up speech, a number of private providers already listed as table B providers:
Senate, 2015-11-24. affirmative: ayes 38, noes 10.
Question
Robert Simms I have a question for the minister. Minister, are you aware of the comments made by Prime Minister Malcolm Turnbull when he referred to the VET sector as being scandalous? In light of the concerns about the scandal that is unfolding within the VET sector, are you concerned that, by making block grants available to private, for-profit universities, you are going to be opening Pandora's box and bringing a similar calamity onto the university sector within this country? Simon Birmingham No, Senator Simms, I am not concerned, and let me try to calmly talk you through it. I am well aware of the Prime Minister's statements, and indeed I have made similar statements about my concerns with some of the operations in the VET sector and the way in which, in particular, the VET FEE-HELP student loan scheme is working in the VET sector. It is important to understand that that VET FEE-HELP student loan scheme provides demand-driven funding to students enrolling in vocational education and training courses; that the way that it was established means that institutions are free to set their own prices; that they can enrol as many as they want once they have been approved; and that they get paid, essentially if they so choose, up-front for the entire duration of the course once the student commences their studies. That is profoundly different to what we are talking about in relation to Torrens University Australia being listed as a table B provider in the higher education sector, as distinct from vocational education. There are virtually no analogies that can sensibly be drawn in this regard. Obviously access to ARC block grant funding is not something that is demand driven. In fact, there are clear restrictions around that access that ensure that there can in no way, shape or form be blow-outs, rorting or other problems in this regard. I would also note that there are, as I said in my summing-up speech, a number of private providers already listed as table B providers:
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