Higher education reforms: Government flags further changes, Pyne says he'll 'do whatever needs to be done'

Updated

The Federal Government has indicated it is willing to compromise further to get its planned changes to the higher education sector through the Senate.

Education Minister Christopher Pyne has declared he will "do whatever needs to be done" to make sure Australia's universities are the best they can be.

The Government's original package was rejected by the Senate in December, but Mr Pyne immediately introduced a revised plan to the Lower House.

Prime Minister Tony Abbott has said higher education would be the centrepiece of the Government's legislative agenda when parliament resumes in a little over a fortnight.

"Obviously we are very committed to these reforms," Mr Pyne told ABC Radio 891 in Adelaide.

"We believe that they are better for the university sector than what's currently there and we will negotiate with the crossbenchers and do whatever needs to be done, to ensure that our universities are the best they can be and our students have the best opportunities that they could have to go to university."

Scrapping of 20 per cent cut to course funding flagged

The revised package already returns the interest rate for student loans to the consumer price index, rather than the long-term bond rate, and includes a five-year pause on repayments for new parents.

But The Australian reported today that the Government would be willing to scale back, or scrap entirely, the 20 per cent cut to course funding, in return for letting universities set their own fees.

You can polish a turd for as long as you want — it's always going to be a turd and that's exactly what the higher education bill is. PUP senator Glenn Lazarus

"We haven't said that we will necessarily not go ahead with the savings measures in higher education, but they are part of the negotiation with the crossbenchers because the deregulation is vitally important," Mr Pyne said.

Compromising on the funding cut would further reduce the budget savings in the higher education package, but would preserve one of the Government's key goals, to deregulate university fees.

Federal Opposition frontbencher Mark Butler said even if the funding cut was reduced, Labor would still oppose the intent of the plan.

"That still leaves the deregulation of university fees, which is polite language for fee hikes for university students," Mr Butler told ABC Radio.

"Christopher might have got rid of the bond rate as the indexation rate for university fees in December, and that was a very big problem in the package, he might even be toying with the idea of getting rid of the 20 per cent funding cut, but he still has a fundamental problem with the fee hikes, the deregulation, and the most important problem is he can't get it through the Senate."

Xenophon wants bipartisan review

The Greens would not support the deregulation of university fees, meaning the Bill's fate rests with other crossbenchers.

Independent senator Nick Xenophon was one of those the minister hoped to win over.

But while he said he believed university funding needs to be reformed, the Government should start again from the beginning with a comprehensive and bipartisan review.

"I'm happy to talk to the Government, but the only way forward, as I see it, is to have this root and branch review," Senator Xenophon told reporters in Adelaide.

"Have an interim [funding] increase if necessary, a modest increase that'll tie the universities over, because they are doing it tough in terms of funding.

"But let's look at this calmly, coolly and go through a robust policy formulation process, that hasn't been done by the Government on this."

Senator Xenophon said a proper review would mean any significant change to higher education would not happen before the next election.

Independent senator Jacqui Lambie said she would not support Government compromises.

"I want full consultation, I want whatever they come up with taken to the next election and I want the people of Australia and the students to be able to vote on that," she said.

Palmer United Party senator Glenn Lazarus said he did not thing the alterations would improve the bill.

"You can polish a turd for as long as you want — it's always going to be a turd and that's exactly what the higher education bill is," he said.

Opposition Leader Bill Shorten said a review could be worthwhile.

"We're certainly open to working through an independent process to look at the future of higher education; Labor did that when they were last in power," Mr Shorten said.

But he has derided speculation the Government may scale back the proposed 20 per cent cut to course funding as simply "kite flying".

"This nation does not have time for the extreme ideological games of the Abbott Government," he said.

"We do not want, under any circumstances, $100,000 degrees."

Topics: university-and-further-education, education-industry, access-to-education, australia

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