Student visa cuts to cost jobs, say universities

UNIVERSITIES have called on Tony Abbott to scrap his plan to cut international student visa numbers.

They have warned that such a move could cripple the nation's fourth largest export market and lead to massive job losses.

And business has condemned the Opposition Leader's planned cuts to immigration levels, saying he is "pitching to short-term self-interest".

Labor accused Mr Abbott of "a sneaky political trick", claiming he had added up the projected cuts in net overseas immigration arising from existing government policy, and claimed them as his own.

The announcement of the Coalition's plan to cut international student visa numbers comes as a senior delegation from Universities Australia led by Peter Coaldrake, Vice-Chancellor of Queensland University of Technology, is due to meet Department of Immigration officials in Canberra today. The delegation will ask for a change in policy to allow overseas students who come to do a degree to be given the chance to work here for two to three years and then return home.

Mr Abbott announced yesterday that a Coalition government would cut the nation's annual rate of net overseas immigration to no more than 170,000 people a year by the end of the next parliamentary term.

The Coalition policy would reduce Australia's annual rate of population growth from more than 2 per cent to the historical long-run average of 1.4 per cent within its first term.

Given that employer-nominated skills migration and 457 temporary business visa numbers would be quarantined from the policy, the most likely cuts would be to overseas student numbers, which Mr Abbott said represented "the largest contributor to net overseas migration".

"What we are planning to do is to get our immigration levels to those which we believe are economically, environmentally and politically, if you like, sustainable," Mr Abbott said.

Universities Australia chief executive Glenn Withers has called on both sides of politics to stop trying to destroy the international student industry, which generates about $18 billion a year in export earnings.

"International student numbers are already falling substantially, including from the quality students who enhance university education here," Dr Withers said yesterday.

"Universities Australia asks all political parties to step back from causing additional damage to this area.

"A severe drop in international student numbers would cost many Australians their jobs.

"For example, according to Access Economics estimates, a 50 per cent drop in international student numbers represents 62,000 jobs gone -- and this process is already happening.

"Many of these jobs are in marginal and regional seats where universities and colleges are a major community presence".

Dr Withers said international education revenue contributed to the facilities and staff for domestic students too.

"Universities rely crucially upon that help," he said.

"Cutting overseas student numbers is equivalent to a tax or tariff on tertiary education. And it will make it even harder, not easier, to increase domestic skill provision.

"Universities Australia calls on the parties to be clear in the period ahead on how their tertiary education budget commitments will increase to offset the effects of any such cuts in international student numbers, how jobs for employees displaced will be created, and how our reputation abroad for Australian education as a welcoming destination will be maintained."

Jennie Lang, international pro vice-chancellor at the University of NSW, said cuts would be crippling to the sector.

"It's important to realise the international students have offset significant funding for universities," Ms Lang said.

"The presence of international students has been important for the continual internationalisation of our campuses."

She said universities were able to offer a diversity of courses because of strong international student numbers.

"It would be crippling and would mean a loss of staff and there would be a question mark put over programs," Ms Lang said.

Mr Abbott yesterday challenged Julia Gillard to name a migration number after she placed population at the forefront of the campaign last week when she questioned whether it was time to declare that areas such as western Sydney and southeast Queensland had reached the limit of their capacity for growth.

"You cannot have a population discussion without also having an immigration discussion," the Opposition Leader said.

Labor seized on a report to be released today by economic forecaster BIS Shrapnel that predicts population growth will slow considerably in 2010-11 and 2011-12 as net overseas immigration declines.

BIS Shrapnel forecast a "sustained decrease" in net overseas immigration over the next two years, with the net figure falling to 175,000 in 2010-11 and 145,000 in 2011-12.

Sustainable Population Minister Tony Burke said Mr Abbott's immigration announcement "is nothing more than a sneaky political trick".

"All Mr Abbott has done is add up the current projected cuts in net overseas migration arising from existing government policy and call it his policy," Mr Burke said yesterday.

Business Council of Australia chief executive Katie Lahey expressed disappointment at the Coalition announcement.

"There is a temptation around election time to offer simple solutions, and to pitch to perceived short-term self-interest rather than long-term national interest," Ms Lahey said.

"Migration trend figures suggest the Coalition's approach would have little net effect on the program, but it is nonetheless disappointing to see our political leaders engage in such populist rhetoric."

Growth would offset the cost effects of Australia's ageing population, Ms Lahey said.

Source:http://www.theaustralian.com.au/national-affairs/student-visa-cuts-to-cost-jobs-say-universities/story-fn59niix-1225896788381