I was wrong about Julia Gillard
August 28th, 2008As Andrew points out, Gillard has backed plans by the Victorian government to free up the vocational education sector by having the Commonwealth provide income contingent loans as a tradeoff for the Victorian sector being allowed to raise fees and remove caps on current courses so that students can in effect buy whatever courses they want - in other words a voucher system. Where before both fees and courses were previously capped, they will now be able to respond to market forces in return for a relatively less restrictive intervention of an income contingent loan scheme.
She has clearly moved on from her socialist left past. Here is the announcement:
There are a number of different ways that the training sector can be reformed to meet the challenges of the future and the needs of individuals, industry and therefore the modern economy.
To ensure that cost is not a barrier to students accessing training, the Commonwealth will support Victoria in the introduction of an Income Contingent Loan (ICL) scheme for government subsidised diploma and advanced diploma students.
The Commonwealth will also meet the administrative costs of the scheme and not charge a loan fee to students.
This will increase access for those without the financial resources, boost the quality of courses and expand the number of places for students.
Again via Andrew, the Liberals are playing spoilers on a reform with the potential to extend market forces across the educational sector. According to Liberal leader Red Ted:
Opposition Leader Ted Baillieu said more expensive fees would only force up the cost of doing business in Victoria
In other words, Red Ted would prefer a price capped, quantity (of courses) capped vocational system rationed to a lucky few. Why not go the whole hog and bring back Whitlam’s free university education while he’s at it?
Meanwhile, in contrast to Red Ted we have John Brumby extolling the virtues of price signals:
Premier John Brumby said the new system was fairer and would make training more accessible, helping ease skills shortages.
“The beauty of this and the adjustment of the fees is that everybody who is eligible gets a place. There’s none of this where some people pay $877 and other people pay $8000 a year for full private cost recovery,” he said.
“It’s demand driven. More will participate and the level of skills in the community will increase.”
Skills and Workforce Participation Minister Jacinta Allan said it was only fair that Victorians studying courses such as engineering and accounting paid more than those learning to read and write.
“Some (fees) will stay the same and others will rise in line with the expected job opportunities and wage outcomes from engaging in one of those qualifications,” she said.