Letter of Transmission

1. The Secretary's review 1999-2000

2. The Department

3. A summary of the Department's roles and the new reporting framework

4. Analysis of performance for Outcome 1

5. Analysis of performance for Outcome 2

6. Analysis of performance for Outcome 3

7. People management

8. Management and accountability

9. External scrutiny and legal matters affecting the Department

A1. Staffing statistics

A2. Occupational health and safety

A3. Freedom of information

A4. Payments to advertising and market research organisations

A5. Consultancies

A6. Performance against actual results against outcomes and outputs

A7. Financial statements

A8. The Higher Education Contribution Scheme

A9. Discretionary grants

A10. Glossary and acronyms

Contents | Previous | Next  

Section 1. Description 
Section 2. Our strategic priorities 
Section 3. Effectiveness indicators
Section 4. Other activities that broadly support Outcome 3 
Section 5. Summary of the achievements against this outcome

(Continued from the previous page)

Table 28 shows that growth in the number of international students studying at Australian educational institutions in 1999 occurred in seven out of ten of Australia's major education markets.

Table 28: Student Numbers for Top 10 Source Countries, 1997-1999

Particularly strong growth has been experienced since 1997 in the major emerging markets of China and India.

Indonesia is Australia’s largest source of international students. While enrolments for Indonesia increased between 1998 and 1999, visa statistics for the peak student visa application period of December 1999 to March 2000 suggest reduced growth from Indonesia in 2000. Australian Education International will work in 2000-2001 to rebuild Australia’s education relationship with Indonesia.

South Korea, Japan and Taiwan experienced declines in enrolments for both 1998 and 1999, in part reflecting the economic difficulties faced by these countries in recent years. However, the number of commencing students from South Korea increased by nine per cent in 1999 compared to 1998, indicating a likely recovery in that market. Visa statistics for the period December 1999 to March 2000 also point to recovery in the South Korean market. In addition, Australian Education International estimates a very large number of Japanese students undertake short duration study in Australia while visiting on a tourist or working holiday visa. These students are not included in Table 28.

Regulation of Overseas Student Providers

Following extensive consultations, the Government announced proposals in March 2000 to strengthen the regulation of overseas student providers to secure the integrity of the student visa system and to safeguard the interests of overseas students. The proposals cover:

• amended legislation to replace the Education Services for Overseas Students Act 1991;
• a national code of practice in the registration and conduct of overseas student providers; and
• an electronic system to track the progress of overseas students issued visas to study in Australia.

It is expected that legislation on these matters will be introduced in Parliament early in 2000-2001.

Strength of relationships with key partners

The Department aims to maintain and strengthen Australia’s international education and training relationships through a range of multilateral and bilateral forums and by direct government to government engagement. The portfolio is an active member of Asia Pacific Economic Cooperation (APEC), the Organisation for Economic Cooperation and Development (OECD) and the United Nations Educational, Science and Cultural Organisation (UNESCO). The Department’s domestic and offshore networks work together to develop and maintain direct country-to-country relations, especially with our major trading partners in the Asia-Pacific region.

South East Asia

Australia’s education relationship with South East Asia remains generally stable and positive. The past year saw continuing cooperation between Australia and its regional partners through both direct country-to-country engagement and joint forums.

The establishment of a Reference Group, chaired by the Department, has enhanced our relationship with East Timor. This group will coordinate efforts by Commonwealth and State education systems working with AusAid to provide assistance for the newly independent nation. Its focus is to ensure that East Timor receives the maximum benefit from Australian assistance in a considered and coordinated way.

North Asia

Australia’s relationship with China was boosted during the year by renewal of an existing Memorandum of Understanding and through a range of direct engagements. Areas of deepening cooperation between Australia and Japan have been identified for further exploration.

Indochina

Australia’s  relationship with Vietnam was boosted by the renewal of a Memorandum of Understanding which will increase cooperation in education and training.

Argentina/Latin America

This is a relatively new educational relationship, strengthened by reciprocal visits during the past year. A Memorandum of Understanding is being negotiated and is expected to be signed in 2000-2001.

Europe/USA

In the 1999-2000 Budget, the Australian Government announced endowments of $A5m each for Australian Study Centres in London and Washington. Deeds of Gift were signed in December 1999 and January 2000 respectively. These Centres will advance the knowledge and understanding of Australia and its education systems and strengthen government to government links.

Asia-Pacific Economic Cooperation (APEC)

The Minister and Departmental Secretary participated in the 2^nd APEC Education Ministerial Meeting in Singapore in April 2000 which focussed on globalisation and the information economy. The Department was also represented at two APEC Human Resources Development Working Group Meetings in Japan (January 2000) and Brunei (May 2000).

The Department assisted our New Zealand counterpart to conduct a review of the structure and management of the Human Resources Development Working Group. The Working Group subsequently endorsed the review recommendations in January 2000.

The Department coordinated and participated in a range of APEC activities to advance Australia’s education, training and youth interests, including projects to:

• facilitate the mobility of professional engineers;
• establish a youth network to prepare youth to meet the future challenges of trade and investment liberalisation; and
• consider the use of information and communication technologies in teacher pre-service and in-service training.

University Mobility in the Asia Pacific (UMAP)

The Department participated in the 7^th meeting of the UMAP Reference Group in Korea in September 1999. Australia, through the Australian Vice-Chancellors’ Committee, continues to coordinate and participate in the UMAP Credit Transfer Scheme to facilitate greater student mobility in the region by providing a framework for establishing credit transfer arrangements.

Return to the top of the page

Additional effectiveness indicators

The previous effectiveness indicators were published in the 1999-2000 Portfolio Budget Statements and have therefore been reported on. The following effectiveness indicators have also been included as they help give a fuller picture of performance towards Outcome Three.

Contribution of higher education to Australian Research and Development Performance

Higher education expenditure on research and development (HERD) as a proportion of GDP has risen from 0.34 per cent in 1990 to 0.44 per cent in 1998, an average annual increase of 3.4 per cent.

Table 29. Higher education expenditure on research and development as a proportion of GDP

Source: Australian Bureau of Statistics Research and Experimental Development, Higher Education Organisations 8111.0, 1998.

International comparison of higher education Research and Development expenditure and activity levels

Australia’s higher education research and development to Gross Domestic Product ratio for 1998 compares favourably with those available for other OECD countries, including Germany, the United States of America, France and Canada.

Table 30. Higher education research and development to Gross Domestic Product ratio

Source: Australian Bureau of Statistics Research and Experimental Development, Higher Education Organisations 8111.0, 1998.

Number of higher degree research students and completions

Table 31. Domestic higher degree research students and completions

Source: DETYA Students 1999, Selected Higher Education Statistics, Canberra February 2000 - and unpublished data (for 1999 figures).

The number of domestic students undertaking higher degree research courses increased by about 4.3 per cent from 1998 to 1999. The number of completions increased by about 4.7 per cent.

The research student numbers show that the system expanded rapidly in the early to mid 90s as institutions from the former college of advanced education sector achieved university status and began to expand their research activities. Since 1995 numbers have continued to increase but at a slower rate. As would be expected, the increase in completions lagged behind the rapid expansion by several years.

Numbers of research-only and teaching and research staff

Total numbers of research only and teaching and research staff declined marginally between 1998 and 1999.

Table 32. Numbers of research-only and teaching and research staff

Source: DETYA, Staff 1999, Selected Higher Education Statistics, Canberra, November 1999

Recognition in Australia of Overseas Qualifications

During 1999-2000, the National Office of Overseas Skills Recognition completed:

• a total of 3 793 comparative educational assessments (2 223 in 1998-99). Educational assessments are authoritative opinions on the educational level of an overseas qualification compared with an Australian educational qualification;
• a total of 2 948 occupational assessments for migration purposes (994 in 1998-99). These assessments are undertaken to determine whether the overseas qualifications of prospective skilled migrants meet Australian occupational requirements; and
• a total of 145 occupational assessments by examination (326 in 1998-99).

The increase in the number of educational assessments is mostly due to increased demand by educational institutions for advice on overseas qualifications. The increase in occupational assessments for migration is linked to changes introduced on 1 July 1999 to the General Skilled Migration programme. The impact of those changes on demand for assessments is expected to diminish during 2000-2001. The reduction in assessments by examination is the result of the progressive transfer of responsibility to professional bodies, which was completed at the end of June 2000. In 2000-2001, the National Office of Overseas Skills Recognition will not undertake any assessments by examination.

Assistance to overseas trained Australian residents

Assistance under the bridging programme is provided to overseas trained Australian residents to help them meet or prepare to meet recognition requirements in certain occupations. In 1999-2000, the programme had a budget of $2.65m. A total of 490 individuals were assisted under the programme. Of those, 342 were commencements and 148 were in continuing bridging training. The rate of completion of bridging training exceeded 80 per cent. The programme also assisted eligible Australian residents by meeting the cost of assessment and examination fees in some professions. In 1999-2000, financial assistance was provided for 482 assessments and examination attempts at a cost of $418 000.

International recognition of Australian qualifications

There have been two significant developments in 1999-2000. The first is the successful conclusion of a project undertaken on behalf of the Asia-Pacific Economic Cooperation (APEC) Human Resources Development Working Group. This project facilitated mutual recognition of engineering qualifications and the mobility of qualified engineers in the region. The outcome is a framework for the recognition of professional engineers. The framework is based on strong quality assurance features that will enable the partial or complete elimination of supplementary licensing and registration requirements in participating economies. Following the success of this project, the working group endorsed an Australian proposal for a similar project covering architects.

The other significant milestone has been the conclusion of national consultations on the Lisbon Convention, concerning the recognition of higher education qualifications in Europe. Australia will sign the Convention in early 2000-2001. The Convention will facilitate arrangements for the recognition of academic qualifications. In addition to many European countries, the Convention has been signed by Canada and the USA.

Return to the top of the page

Section 4 - Other activities that broadly support Outcome 3

The Department engages in a number of activities that, while not directly attributable to any strategic priorities or effectiveness indicators, are also important to the achievement of Outcome 3. They are reported on here.

DETYA International Services (DIS)

DETYA International Services contributes to the internationalisation of Australian education by providing Australian education and training expertise to other countries that seek to learn from Australian developments. This interaction also helps DETYA International Services to develop the Department’s skills, knowledge and experience of international education and training systems and practice.

Future factors that will influence our performance towards Outcome 3

We are addressing a number of factors that will affect Australian Education International and the Australian education export industry in the future. These include:

• increased competition from other countries in the education export market;
• reforms to student entry arrangements by the Department of Immigration and Multicultural Affairs;
• strong growth in the demand for Australian courses to be delivered to international students offshore;
• the need to respond to emerging issues of quality assurance, both in Australia and in Australian courses delivered offshore;
• international developments in e-education; and
• recognition of professional qualifications in selected markets. Australian Education International is working closely with other areas of the Department regarding qualification recognition and is undertaking research to inform policy development and assist the industry.

Return to the top of the page

Section 5 - Summary of the achievements against this Outcome

The Department’s participation in the international education and training arena incorporates a range of direct and indirect strategies. Our activities promote and enhance Australia’s reputation as an effective learning society - one which has much to offer the global community and is also open to learn from it.

In 2000-2001 we expect further achievements, particularly by taking the outcomes of this year’s Education Services (Overseas Students) Act Review to strengthen the regulatory framework for the education and training services export industry.

Australia’s higher education research and research training system has improved steadily. Research expenditure as a proportion of GDP has increased. Industry funding for collaborative research projects and the number of countries involved in collaboration on Australian research projects have also increased.

Although no new data has become available this year, the most recent data on Australia’s share of world research papers shows that Australia performs very credibly for a country with a relatively small population. The number of research students and completions is also increasing.

Implementation of the Government’s Knowledge and Innovation policy over the next two years is expected to lead to further improvements in the quality, impact and relevance of Australia’s higher education research and research training.

The Department estimates that the number of international students studying at Australian institutions will continue to grow in 2000 by 15 per cent.