Media Release 3 December 2003
Education industry to bail out Government
The Association of Private Providers of English Language (APPEL) is very concerned at the Government's decision today
to introduce a new private education tax to bail out the Government. The legislative change is in the Education (Export
Education Levy) Amendment Bill, introduced this afternoon, and includes a special export education tax on private
training establishments (PTEs).
"This new export education levy gives the Government a blank cheque to charge the industry for any mistakes made by
private businesses or government quality assurance agencies," said Cleve Brown, APPEL[1] Executive member (APPEL's
chairperson, Patrick Ibbertson, is overseas).
"The Government controls entry to the industry, as only registered PTEs can enrol overseas students, so why should the
industry pay if the Government's quality assurance systems don't work? The legal profession can control the entry and
exit of lawyers but PTEs now face a considerable contingent liability over which they have no control."
"We thought that the decision to refund Modern Age students' accommodation costs was just a one-off reaction, but now we
find that the Government is to institutionalise another tax on the private education sector. If any PTE fails, the
government can not only refund any lost fees with other PTEs' money, but it can also charge any of the costs incurred by
the government. These Government-incurred fees seem to be already spiralling and are subject to no accountability to the
industry. "
"The Government's consultation on this process was a sham and at no time mentioned any legislative change. It is just
another example of the slapdash way that the Government puts together its policy. It announced the payment to Modern Age
students after refusing to consult with the PTE industry and then 3 months later it realises that it needs to change the
law to carry out its goal."
The fact that the use of this year's levy was technically illegal and must now be validated by a new Act is hardly
reassuring to the education industry."
ENDS