Oz edu sector worried over downturn, blames immigration policy

Updated on: Thursday, September 16, 2010

Australia's once booming education sector is now bracing for tougher times with tighter immigration rules and attacks on Indian students resulting in falling enrolments, prompting experts and academics to question the government's policies.

The drop in enrolments of foreign students have prompted leading universities across Australia to draw the attention of the federal government to the issue.

The enrolments of foreign students dropped significantly in Australia due to series of factors including new immigration rules, a higher dollar value and attacks on Indian students.

"What's brewing here is deep frustration among universities that recent government policy changes are fuelling the drop-off in foreign students," eminent commentator Horst Albert Glaser, emeritus professor at Germany's University of Duisburg-Essen, was quoted as saying by 'The Age'.

In an attempt to stamp out visa rorting, and weaken the link between immigration and education, the federal government last year introduced more stringent rules governing student visas, and tightened immigration regulations.

This, the report said, has led to a slowdown in the rate of foreign students starting courses.

It is believed that Australian universities relied on the international student market for an average 16 per cent of their total funding, and used much of that revenue to cross-subsidise local students.

"If the university sector ends up in financial crisis it is taxpayers who will be bailing them out," Stephen King, dean of the business and economics faculty at Monash, said.

According to Melbourne University's higher education expert, Simon Marginson, the downturn was primarily due to immigration policy changes, not due to drop in demand.

"This export industry cannot be expected to grow forever. And the long-term quality and reputation of Australian international education, including its commercial capacity, depends on the resources we put into it," he said.

Melbourne University education economist Ross Williams said the damage to universities will have a cascading effect on the economy as rental markets will be affected and so will ancillary services such as cafes around universities.

The trends were threatening a number of Universities which hitherto relied on foreign students for a substantial sum of revenue.

The likes of Central Queensland University which relied on foreign students for 44 per cent of total revenue, Monash University, Melbourne University, La Trobe University and many others now in a vulnerable position.

Monash University was bracing for a 5 per cent fall in overseas enrolments next year and a 10 per cent drop in 2012 and Vice-chancellor Ed Byrne said the budgets are already facing crunch.

"Our costs are dependent on the international markets, so not only do international students bring vast economic earnings to the state, not only do they contribute culturally enormously to our campuses, they also are key factors in university budgets in this country," he said.

"For a state like Victoria, I think this is potentially the most serious economic thing on the horizon," he said.

International education is Victoria's top export earner, bringing in USD 5.8 billion last year.

"I personally think we have been let down," LaTrobe university International director Liz Stinson, said pointing out that the institution was preparing for a drop.

"We have done our darndest to both deliver high-quality education and to obey the law... We've all been working away at this for 10 years and I think there is a collective sense in the industry that we have been let down by government," she said.

Earlier, the Group of Eight leading universities had written to federal government to take urgent action to help the industry.

The Age report said the Group wanted changes to student visa arrangements to ensure legitimate students were not discouraged from applying to Australia and argued that tightening visas to deal with problems in the training sector,
particularly so-called dodgy colleges, has resulted in "collateral damage" to the universities.

John Phillimore from John Curtin Institute of Public Policy at Curtin University said a slump in international education sector would also affect the job market, class sizes and courses.

The institute has warned in a report that in the worst-case scenario by 2015 foreign student enrolments in higher education could plunge from about 214,000 in 2010 to about 148,000, resulting in 36,182 fewer jobs and a collapse
of 7 billion dollars in university revenues, the report said.

"The impact of most of these factors has yet to be fully felt," the Curtin report warned.

Official data have shown foreign student enrolments in higher education fell 6.3 per cent for the year to June 2010.

Enrolments in English language courses have been hit hard with over 20 per cent drop.

Reports from student recruitment agents suggest enrolments could fall by up to 40 per cent.

Similarly, immigration data shows visas granted to students applying from overseas fell by a staggering 25 per cent in 2009-10.

David Buckingham, principal adviser to the office of the vice-chancellor at Monash University, said: "The administrative conditions imposed by the Australian visa system are actually far more onerous than (those that) apply with competitor countries".

"It's treating the students and their families almost as if they are money launderers, rather than those who are actually prepared to pay a significant amount in the education of their children," he said.

Deputy vice-chancellor global engagement Sue Elliott said the sector is concerned, considering the outlook for 2011 and 2012, and are seeking to diversify their student source countries.

"What's happening now is a reaction to decisions by government that have been ill informed and poorly implemented with no overarching strategy and no vision," said RMIT deputy vice-chancellor international Stephen Connelly, also president of International Education Association of Australia.

He said he wanted to see the establishment of a parliamentary secretary for international education.

Oz edu sector worried over downturn, blames immigration policy

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