Australian Coat of Arms Dr Brendan Nelson  
Australian Government Minister for Education
Science and Training and Training

Media Centre
   

MEDIA RELEASE

SIMON CREAN EMBARRASSED BY UNIVERSITY FUNDING ERRORS

14 July, 2003 MIN 412/03

Simon Crean has demonstrated that he doesn’t understand the Government’s higher education package – despite being prepared to criticise it at every opportunity.

Mr Crean was speaking to Dave Harrison on 4TO Townsville on July 10 when he was asked about universities:

HARRISON:
Alright, higher education. You came out with a deal the other week to look at maths and science students. And it comes in view of money for universities, here, we have done pretty well.

CREAN:
Yes, well it has. Other regional universities have missed out, I think UCQ (sic) has taken a hit …

This is incorrect.

It was announced on July 8 that Central Queensland University (CQU) would be $7.35 million better off over the next three years.

In fact every Queensland university will be millions better off as the package is rolled out.

The Townsville radio presenter knew Simon Crean was wrong.

HARRISON:
That doesn’t really affect Townsville people does it?

CREAN:
No, but what affects Townsville people is, regardless of what universities got Dave, is that if the university fees are going to go up 30 per cent, and that is what Sydney University has just authorised, the government is allowing universities to put their fees up in every course by up to 30 per cent, well they have to get that through the parliament, Labor is voting against it we are not going to cripple the students with debt. The other thing the government has done is to introduce interest, real interest on student loans.

HARRISON:
You mean the deferral of HECS?

CREAN:
No, the HECS is a deferred fee, but in taking out the loans they are going to cop a real interest rate on top of it. (emphasis added)

This is also completely misleading.

The way HECS operates does not change at all in the new package, except that students will begin repaying only when they are earning more than $30,000 a year. It is still an interest free - income contingent deferred loan scheme which completely covers a student’s contribution to their course.

It is exactly the system introduced by Simon Crean and the Labor Party when in Government in 1988.

There is no real interest rate on top of HECS loans.

Simon Crean, Jenny Macklin and the Labor Party are prepared to mislead, distort and scaremonger in this debate.

Australians deserve better.

 

Media Contact:

Dr Nelson’s Office: Ross Hampton 0419 484095

 

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