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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2013-09-26 Daily Xml
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TORRENS UNIVERSITY AUSTRALIA BILL

Second Reading

Adjourned debate on second reading.

(Continued from 24 September 2013.)

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Aboriginal Affairs and Reconciliation) (11:59): I would like to thank members who have made a contribution and for their indications of support for this bill. I note in particular a number of questions were asked by the Hon. Tammy Franks in relation to the bill, and I will attempt to provide a response to all of them now.

The Hon. Ms Franks raised the question regarding the need for this bill. It is true that this legislation is not necessary to establish Torrens University Australia. Indeed, the government's original declaration of the approval to establish Torrens University Australia, gazetted on 17 October 2011 under the Training and Skills Development Act 2008, provided the approval for the establishment of the university itself. However, Torrens University Australia has expressed a desire to be recognised under state legislation to enable it to compete on an even playing field with the state's three public universities.

What this bill, therefore, does is provide a formal mechanism for the South Australian government to recognise the university and, insofar as it is within the legislative power of the state, facilitate the provision of higher education services by the university. The successful passage of this bill through parliament will, indeed, be a statement of support by the parliament for Torrens University Australia and its operations here in South Australia.

What this bill also enables is a level of public scrutiny of the university, insofar as it requires the university to present the minister with its annual report and for this report to be laid before each house of parliament. Similar provisions for reporting form part of the other three university acts. Torrens University Australia is keen to provide this level of public accountability and transparency as they seek to establish themselves as a valuable part of South Australia's higher education sector.

In relation to Ms Franks' question about ombudsman provisions, I can confirm that the state Ombudsman remit is limited to complaints from students enrolled in public institutions. It is the case, however, that the state Ombudsman, through existing relationships, is able to refer matters to the South Australian Office of the Training Advocate. This is to be available to both domestic and international students enrolled at Torrens University Australia. The Training Advocate's Charter of Functions explicitly allows investigation, if required and as appropriate, into such matters. Students will, therefore, have access to the independent and confidential services of the state Office of the Training Advocate.

However, Torrens University Australia must ensure all of its students have access to the university's internal complaints handling processes in the first instance. The national regulator of higher education, the Tertiary Education Quality and Standards Agency, requires providers such as Torrens University Australia to have policies and procedures to manage complaints in a constructive and timely manner, to have an area responsible for dealing with complaints and to have arrangements for a review by an appropriate independent authority. This applies to all of its students.

Torrens University Australia is currently not able to enrol international students. However, I have been informed that the university will be seeking registration on the commonwealth Register of Institutions and Courses for Overseas Students in late 2013. If and when it achieves this registration, Torrens University Australia will be further obliged to comply with the Education Services for Overseas Students Act 2000. This act provides the regulatory requirements for education and training institutions offering courses to international students in Australia on a student visa. This will require Torrens University Australia to comply with the ESOS framework, including National Code Part D, Standard 8, that sets out requirements in dealing with complaints and appeals.

In relation to consumer protection and tuition assurance, I am further informed that Torrens University Australia has arranged for membership of an approved tuition assurance scheme, which is a requirement under the Higher Education Support Act 2003. The tuition assurance scheme ensures that any Australian student displaced from a course due to the inability of a provider to continue the course is relocated efficiently and with minimal disruption to a comparable course with another approved provider.

Finally, international students in Australia can also access the services of the Overseas Students Ombudsman. The Overseas Students Ombudsman is a role for the commonwealth Ombudsman. The OSO is also able to refer matters to the state Office of the Training Advocate for students studying in South Australia.

Ms Franks also asked several questions in relation to the original conditions of approval for the establishment of Torrens University Australia. These were published in the South Australian Government Gazette on 17 October 2011 and are a matter of public record. I would, however, like to clarify some misconceptions about the financial guarantees which form part of the conditions of this approval. The South Australian government, as part of its original gazetted approval for the establishment of Torrens University Australia, sought a range of financial guarantees from the parent companies of Torrens University Australia, namely, Wengen Alberta LP (Canada), through Laureate Education Asia and LEI Singapore Holdings Pte Ltd.

These financial guarantees included capital injections of $A10 million at the formation of the university on enrolment of the first student, and a further injection of funds when enrolments reached a total of 500 students. These capital injections were to be made to Torrens University Australia from the parent companies of Torrens University Australia. At no time was it suggested that these funds were to be paid to the South Australian government, I am advised.

These financial guarantees were included in the original approval as a way of assuring the future of Torrens University Australia and as a protection for students in the event that the university failed. Torrens University Australia has advised it has received the first capital injection of $10 million to support the establishment of the operation of the university. This first payment was made in January 2012, prior to the handover of regulatory responsibility to the commonwealth. I further state that no state government financial assistance has been provided to Torrens University Australia to establish operations in South Australia, nor has it provided any undertakings to provide any government scholarships. In fact, Torrens University Australia itself is funding a number of generous full and partial scholarships across all programs on offer to cover tuition for the 2014 intake.

I also note that in relation to the original conditions of approval the national regulator for higher education, the Tertiary Education Quality and Standards Agency (TEQSA), is now responsible for the regulation of Torrens University Australia and assessing whether it is meeting its conditions of approval and operation. This has been the case since 29 January 2012. Under these circumstances the original conditions imposed by the state government have been overtaken by the process of Torrens University Australia being registered with TEQSA, and the state government has no further role in the regulations of Torrens University Australia as a university. I am also advised that TEQSA has not imposed any conditions on Torrens University Australia's operations.

With regard to the question raised in relation to the naming competition held in 2011, I can confirm that Torrens University Australia did hold a naming competition for the new university. While there were around 450 entries I am told, the final name of the university was not selected from any of these entries and therefore no winner was selected to meet former president Clinton. The university has confirmed that all entries were considered; however, following internal research the name Torrens University Australia was put to the minister for approval as per condition 3 of the original approval.

Ms Franks also questioned possible future locations for Torrens University Australia. The university is currently located in an international university precinct located in the Torrens Building in Victoria Square, under a formal leasing arrangement. I am advised that teaching will be conducted from a leased space in the Torrens Building. However, the university will acquire additional premises in the future as it expands its operations and student numbers. At this stage the university has a short list of properties it is considering; none of these, I am advised, are publicly owned. At this stage I make the point that Torrens University Australia is a private Australian company and the South Australian government is not, nor should it be, privy to its commercial arrangements or agreements. While Torrens University Australia has been willing to share many of the details associated with the establishment of its operations here in South Australia, it is under no obligation to furnish details of its private property transactions.

With respect to questions asked about the agreement with TAFE SA in relation to a number of new technical colleges in Saudi Arabia, I am advised that this is an agreement between TAFE SA and another member of the Laureate network. Torrens University Australia is not a party to this agreement, and therefore the question should have no bearing on the passage of this bill. I would suggest that, if it is indeed a matter of interest, the member seek further information on these arrangements directly from TAFE SA. However, I do think it is important to highlight the benefits of having an organisation like Torrens University Australia, and a Laureate universities group, involved in South Australia, as it has potential to create opportunities for other institutions in this state.

As a private company the issue of staffing numbers are operational matters for Torrens University Australia to consider. The number and qualifications of staff also impact on the quality and provision of teaching and learning at the university and are therefore matters to be considered by TEQSA as part of its regulatory activities. That said, I have been assured that Torrens University Australia will employ appropriate numbers of staff to support its teaching and learning activities, taking into account the number of students enrolled and the number of programs being offered at the time. I also point out that details of staffing numbers will be included in the university's annual report, which, should this bill be passed, will be tabled in parliament.

The Hon. Ms Franks yesterday posed a question about why we need another university in South Australia, or indeed if there is a market in South Australia for another university. The fact that South Australia had a clear vision about establishing Adelaide as a university city was something that was considered positively by the Laureate Group when it was looking to establish a university in Australia. It was one of the key reasons it selected South Australia, I am told.

The establishment of Torrens University Australia in South Australia supports this vision and further contributes to achieving the state's seven strategic priorities: building education, research and innovation as key enablers for success and an essential component of Adelaide's future as a vibrant cultural and economic centre of the state. I note in particular Torrens University Australia's contribution to achieving the priority of creating a vibrant city. Adelaide is arguably more than a university city but an education city with tens of thousands of domestic and international students living and studying in the CBD, bringing cultural, economic and social benefits to the city.

With a global network of over 70 accredited private institutions delivering both on-campus and online educational programs to around 780,000 students in more than 30 countries worldwide, Laureate is certainly not a new player in the global education market. In relation to the decision to establish another university in this state, I am confident that Laureate undertook significant market research to determine if there is room in the South Australian tertiary market for another university before seeking approval to establish in South Australia. Indeed, the efforts made to gain approval, along with the significant financial investment by the Laureate group, are an indication of their level of confidence in their decision.

I note also that Torrens University Australia is not the first higher education institution in which Laureate has an investment in Australia. The Blue Mountains International Hotel Management School, established in New South Wales in 1991, was acquired by Laureate in 2008 and to date has successfully graduated more than 3,000 students. The South Australian government firmly believes that the strengths and capabilities of our three public universities are complemented by the introduction of other universities in this state.

This has certainly been evidenced by the introduction of Australian campuses of two high-calibre international universities—US-based Carnegie Mellon University and University College London—and the opportunities this has created for partnership and collaboration. I am confident that Torrens University Australia will continue to help develop and strengthen our higher education sector and the reputation of Adelaide as a leading centre for educational research and innovation.

The South Australian government looks forward to the positive contribution that Torrens University Australia will make, and I commend the bill to the house.

Bill read a second time.

Committee Stage

In committee.

Preamble passed.

Clause 1.

The Hon. T.A. FRANKS: Of the 450 entrants for the competition to name the university, was any suggestion other than Torrens University Australia put to cabinet for a decision?

The Hon. I.K. HUNTER: My advice is no.

The Hon. T.A. FRANKS: Given he has only just responded to my questions about the Ombudsman, could the minister clarify whether there has been any public information to clarify what role an ombudsman-like position will play in Torrens University to ensure that students have access to adequate grievance procedures? I thank the minister's staff for ringing me this morning with some information, but I would certainly like it on the record.

The Hon. I.K. HUNTER: I am advised, and I think I said in fact during the speech (the Hon. Ms Franks might not have been in the chamber when I was doing that)—

The Hon. T.A. Franks: I came in as soon as I heard you talking about it.

The Hon. I.K. HUNTER: Yes. I am advised that, under the requirements of the registration with TEQSA, Torrens University must have these procedures in place.

The Hon. T.A. FRANKS: Then following that, I was previously assured that Torrens University would have access for students to some sort of ombudsman-like role, as all institutions did. However, Torrens University is a private institution, so I understand that the arrangements will be somewhat different, and I would like the minister to clarify that.

The Hon. I.K. HUNTER: I might just reread a section of my speech very quickly for the benefit of the honourable member:

In relation to Ms Franks' question about ombudsman provisions, I can confirm that the state Ombudsman remit is limited to complaints from students enrolled in public institutions. It is the case, however, that the state Ombudsman, through existing relationships, is able to refer matters to the South Australian Office of the Training Advocate. This is to be available to both domestic and international students enrolled at Torrens University Australia. The Training Advocate's Charter of Functions explicitly allows investigation, if required and as appropriate, into such matters. Students will therefore have access to the independent and confidential services of the state Office of the Training Advocate.

However, Torrens University Australia must ensure all of its students have access to the university's internal complaints handling processes in the first instance. The national regulator of higher education, the Tertiary Education Quality and Standards Agency (TEQSA), requires providers such as Torrens University Australia to have policies and procedures to: manage complaints in a constructive and timely manner; have an area responsible for dealing with complaints; and have arrangements for review by an appropriate independent third party. This applies to all its students.

The Hon. T.A. FRANKS: This is the final question, I assure you. Can the minister confirm that that is indeed in conflict with the original advice I was given in this past week from the department?

The Hon. I.K. HUNTER: I am not aware of the original advice provided to the honourable member so I cannot confirm that.

Clause passed.

Remaining clauses (2 to 12) and title passed.

Bill reported without amendment.

Third Reading

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Aboriginal Affairs and Reconciliation) (12:17): I move:

That this bill be now read a third time.

Bill read a third time and passed.

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