Swain Paul: Education (Export Education Levy) Amendment Bill — Third Reading 
Swain Paul: Education (Export Education Levy) Amendment Bill — Third Reading 
[Volume:619;Page:14926] 
Hon PAUL SWAIN (Minister of Immigration) for the Minister of Education 
: 
 I move  
That the Education (Export Education Levy) Amendment Bill be now read a third time 
. The general purpose of the bill is to further support New Zealand’s export education industry and to ensure that New Zealand continues to be viewed by overseas Governments as a desirable education destination offering excellent education in quality establishments that operate with business integrity for their international students. Export education has become a key industry for New Zealand. In order to maintain this major industry students and their home Governments need to be assured that international students will receive quality education in exchange for their investment. The export education levy introduced by the Education (Tertiary Reform) Amendment Act 2002 was conceived with a view to supporting a range of industry-wide development and risk management activities to ensure the ongoing quality and sustained growth of the industry. The increased demand from international students for a New Zealand education led many providers to expand their operations and led many new ones to open their doors. Some grew too fast too quickly and the closure of some private establishments has focused the export education industry in New Zealand on the risk of negative publicity. 
The Government has taken several measures including those in this bill to maintain the financial security of international students in their quest for enhancement of their further education in New Zealand. It will continue to do so by holding the appropriate sector accountable should failure occur in the future. The Government will also continue to support the sector providers that act responsibly and with integrity. Specifically the legislation will achieve its general purpose by enabling international students to be reimbursed. The fund may also be used to recover any consequential expenses incurred by the Government. Immediate action is required to protect the educational and financial interests of international students when a provider of tuition to international students fails. Although there are arrangements in place between the New Zealand Qualifications Authority and the Tertiary Education Commission to place students statutory security is essential to ensure certainty for those students. Furthermore when the failure affects international students the wider dimension of the implication for overseas Governments needs to be addressed quickly in order to avoid damaging our bilateral relationships and our reputation as an education destination. The Government has acted quickly in that regard in the three failures that have occurred in the past year. The bill will clarify the rights within the process. 
A number of submitters to the Education and Science Committee objected to a proposal to increase the percentage component of the levy on private training establishments. The Government took on board the concerns of the education sector. After listening carefully to the feedback the Minister asked the select committee to remove the clause that specified the increased rate. Sector representatives had wanted more time to adjust to any possible increase to the levy in order to ensure their viability during a time of market downturn. They also expressed concern about being accountable for the business decisions of particular providers. The Minister also considered it responsible to introduce Supplementary Order Paper 240 to enable the Government to recover its losses in circumstances where there may be the need for additional Crown funding for the levy account in order to make immediate and direct redress to international students. 
I thank the members of the Education and Science Committee and other members for the contribution they have made to the passage of the bill. In conclusion I commend the Education (Export Education Levy) Amendment Bill to the House for its third reading.