Mr ABBOTT (9:56 AM) —I move:

That the bill be now read a second time.

The important role higher education plays in Australia's social and economic development is the rationale for the government's substantial investment in it and policies designed to ensure that we realise the greatest possible individual and collective benefits. Australia already has a good higher education system, an achievement recognised by surveys of graduates and the large numbers of overseas students choosing to pursue their studies here. But we are working in a rapidly changing environment, and there is always scope for improvement.

The government has a number of objectives which flow from this position. It aims to continue to increase access to post-secondary education, including higher education, so that all those who can benefit from it will have access. This means the higher education system must deal with a very diverse student body and offer the choice that meets varied needs. Lifelong learning is already a feature of our education system, as shown by the large numbers of people across the age groups who are participating in education, but we need to ensure a whole of life focus, which means everything from a good foundation in primary school to opportunities for reskilling later in life. These access goals will be enhanced through better teaching, and government policies are providing incentives and assistance to maintain and lift standards.

The various provisions of this bill should be seen in the context of the government's pursuit of these goals. The success of the government's higher education policies is evidenced by the unprecedented number of Australians who are able to attend university and the increased level of resources available to universities. Our policies are making this a reality.

The government has created an extra 10,000 Commonwealth funded places for undergraduate students in the past two years. In 1998 the Commonwealth will fully fund 361,925 undergraduate student places in universities. This is a record number. No government in Australia's history has provided so many undergraduate places. Not only is this government making more undergraduate places available in 1998; the number of undergraduate places will continue to increase each year to 2000. By the year 2000, the government will be fully funding nearly 366,000 undergraduate places. This compares to less than 352,000 in 1996, the last year funded by a Labor budget.

To these figures can be added enrolments in addition to those undergraduate places fully funded by the Commonwealth. To encourage universities to offer these places, the government is offering partial funding of about $2,500 a place. In 1998 the universities offered around 29,000 of these extra places. To this can be further added full fee paying undergraduate places, an innovation of this government, taking the total number of extra places, on top of those fully funded by the Commonwealth, to nearly 30,000.

This government has made access a priority, and we have delivered. Australians have never had greater opportunities to enter higher education than they have in 1998. This government has confirmed its commitment to maintain public funding levels for higher education. This year the government will spend around $5.5 billion on higher education. Commonwealth funding for each full-time equivalent student will be more than $11,400, a significant increase on 1996 funding. This level of government spending on each student is also higher than at any point since 1990.

The reality is that universities have never had more resources than they have today. The government's policies to diversify the mix between public and private funding for universities means that there will be an estimated $8.5 billion available to Australian universities this year. This policy approach will secure university funding levels into the future. It is a policy that has been, and will continue to be, successful because it is a sensible solution to the needs of our universities and right for today's circumstances.

Consistent with this government's commitment to maintaining public funding levels for higher education, the bill provides for a total net increase of $10,990,000 to 1998 funds. This funding provides supplementation for price movements and additional superannuation expenses incurred by institutions. It also includes an increase of $5,824,000 in the 1998 funding limit for special grants, offset by an equivalent underexpenditure in 1997. The bill also legislates funding levels for the years 1999 and 2000. Funding for 1999 is increased from $3,877,383,000 to $3,885,630,000 and the funding limit for 2000 is set at $3,679,500,000.

In legislating funds for 1999 and 2000, the bill confirms to higher education institutions the overall funding levels detailed in the Higher Education Funding Report for the 1998-2000 Triennium. The bill also demonstrates this government's support for the continued growth of Australia's education and training export industry. The government is providing $21 million over the next four years for international marketing and other activities to promote our education and training services overseas.

The bill amends the Higher Education Funding Act 1988 to provide funding for expenditure on the international promotion of Australian education and training services by Australian Education International. AEI was previously known as the Australian International Education Foundation. The new name reflects new funding arrangements and the new direction set for it by the government. AEI will be more fully integrated with the operations of the Department of Employment, Education, Training and Youth Affairs, which will enable it to act as an effective link between the offshore promotion of Australian education and training and broader government objectives for foreign affairs and trade.

In 1998, AEI will receive $1,016,000. In 1999 this will rise to $2,468,000, and by 2000 AEI will be funded to the extent of $3,883,000. It will have a number of key responsibilities in the areas of marketing, government to government coordination, research, facilitating access to markets, providing information and awareness raising. AEI services are provided through its offshore network including Australian Education Centres in Bangkok, Hanoi, Hong Kong, Jakarta, Kuala Lumpur, New Dehli, Paris, Seoul, Taipai and Tokyo.

This measure implements the government's response to the review of the Australian International Education Foundation by maintaining and strengthening a mechanism for promoting Australia's international education and training industry. It demonstrates the government's support for this industry at a time when it is contending with major changes in the overseas environment.

Finally, the bill also amends the Higher Education Funding Act 1988 and the Employment, Education and Training Act 1988 to reflect the name change of James Cook University of North Queensland to James Cook University. The matters in this bill continue the government's objectives of fostering a higher education sector that is open, accessible and well funded. I commend the bill to the House and present the explanatory memorandum.

Debate (on motion by Dr Theophanous) adjourned.