Christopher Pyne's education gaffe draws fire from Opposition, Greens

Updated

The Federal Opposition and Greens have leapt on a mistake by the Education Minister as proof the Government does not understand its own budget and it does not deserve support.

From June 2016, the Federal Government wants to change the rate at which all higher education loans are indexed, meaning the effective interest rate would go from CPI to as high as 6 per cent.

The Education Department's website states it would apply to all existing debt, but Education Minister Christopher Pyne seemed to indicate something different as he defended the change.

"Anybody who was enrolled before May the 14th, nothing will change in terms of their arrangements," he told Insiders yesterday.

Mr Pyne's office said he was referring to any fee changes not impacting on current students, but that was not the question he was asked.

His comments drew a swift response from Labor and the Greens, who say they will not compromise on any element of the Government's plan.

There are around $5 billion worth of savings measures in the higher education budget, but the vast majority are currently unlikely to pass the Senate without negotiation.

"Either he doesn't understand his own policy, or he has deliberately misled the Australian people after the election, as well as before the election," said Kim Carr, Labor's education spokesman.

Greens education spokeswoman Lee Rhiannon said: "Either the Minister deliberately lied when he made the statement, or he doesn't understand his own budget changes".

Government struggling to sell education reforms

Mr Pyne's comments will not help the Government in its efforts to find support for its broader deregulation package.

The Government wants to make more loans available by including pre-bachelor and vocational courses.

It hopes students will be prepared to wear a higher level of debt for the chance to further their studies.

Mr Pyne insists that market forces will lead to lower fees, but some vice-chancellors and the Opposition do not see it that way.

Senator Carr says he has been given estimates that show the effects of budget cuts to Commonwealth grants programs and other incentive payments.

"No university is going to lower its fees; every university will be obliged to put its fees up just to keep pace," Mr Carr said.

"For the University of Melbourne, the effect of the budget cuts already announced would be $62 million. For the University of Queensland, it would be $60 million, for Deakin it'd be $43 million.

"That's a representative sort of spread, so that means that fees just to keep pace with the Government's cuts will have to increase by twice or sometimes three times."

Mr Pyne's argument does not wash with the Greens either.

"What they're failing to detail is the debt burden that will come with that education and in many cases students, once they graduate, will not pay off the debt in their working lifetime," Senator Rhiannon said.

Changes won't pass Senate without negotiation

With Labor, the Greens, and the Palmer United senators opposed to the changes, they will not get through the parliament in their current form.

Mr Pyne said last week that he accepts his plan to deregulate universities is unlikely to pass in full.

And Senator Carr says Labor is not in any mood to compromise.

"Look, it's not our job to make what is currently an ill-digestible cow pat in any way palatable for the Australian people. The sooner the Government puts these things aside, the better," he said.

"We are doing all we can in the Senate to explain to our colleagues in the Senate that these are measures that don't deserve their support.

"Public indications are pretty much what we're hearing in private - that this is unlikely to enjoy the support of the Senate, and frankly, it clearly does not enjoy the support of the Australian people."

AM asked for an interview with Mr Pyne, but he was unavailable.

Topics: university-and-further-education, education, federal-government, government-and-politics, budget, australia

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