National Monday Update Issue:
Stronger, smarter, simpler ESOS requires industry leadership
This week’s release of the Baird Report on the Review of the ESOS Act has drawn much comment locally and in key markets overseas. Variously welcomed in some circles and criticized in others for lacking depth, the one certainty is that in their current form, a number of the report’s recommendations will not achieve the aim of stronger, smarter, simpler legislation.
A stronger, simpler, smarter ESOS will be welcomed by all ACPET members. A stronger ESOS that assures only those with a commitment to education outcomes and sustainable business practices are registered, a simpler ESOS that does not come with unnecessary and unreasonable administrative and compliance burdens and a smarter ESOS which borrows from the good practice of established industries to protect consumers were central to ACPET’s submission. These principles are reflected in recommendations that propose streamlined regulation and a risk based approach to registration and monitoring.
The principles of greater transparency and better information to students are also supported by ACPET but the practical and legal implications of disclosure requirements must be carefully considered to ensure compliance with commercial law and to avoid driving poor practice underground where it will be harder to manage.
With respect to consumer protection, ACPET is of the view that a successful consumer protection program for international students requires industry leadership. As an industry body, ACPET have a greater level of accountability to our constituents, better understanding of the operation of the market and established relationships with institutions that are stronger than any government agency will be able to develop.
ACPET has a proud record of supporting displaced students and while an unprecedented increase in activity has highlighted areas in which the operation of tuition assurance schemes can be improved, we have responded and improvements are being implemented wherever warranted. Over 12 months ago, ACPET commenced a series of reforms of our tuition assurance scheme aimed at better protecting students and treating institutions according to the risk they posed. The operation of the revised TAS, currently entering a pilot phase, fits broadly with the operational principles outlined in the Baird Report.
An industry led consumer protection scheme operating under a governance framework with appropriate accountability mechanisms will deliver the best outcomes for students and institutions impacted by closures.
Mr Baird’s speculation that 20% of institutions are “dodgy” or operate as visa factories is not supported by any evidence and does little to restore confidence in Australia’s reputation overseas. This narrow focus on the role of colleges ignores the role of various government agencies in failing to monitor the performance of unscrupulous entrants to the industry. Issues of over-enrolment, substandard facilities and deliberately misleading practices by a minority have substantially damaged the reputation of the majority and responsibility for this behavior does not lie solely with the industry.
In the coming months, ACPET will be advocating aggressively on behalf of members to ensure that the principles of stronger, smarter, simpler regulation are delivered in the most effective way.
For those who may have missed it, let there be no doubt about what we stand for as an industry body. We stand for the rights of all members who are committed to quality education outcomes and sustainable business practices. In the face of the current challenges, we will not waver from this commitment.
Please do not hesitate to contact me (
click to email Andrew [dot] Smith [at] acpet [dot] edu [dot] au (Andrew Smith)) to discuss any of the above or to provide your ideas and input into the ongoing development of the Council.
Andrew Smith
Chief Executive Officer
15 March 2010