E&OE

MICHAEL CLARKE: With the federal election there’s lots of topics to discuss with both the major parties and the minor parties, the independents having plenty to say about all aspects of Australian life. So, what happens when it comes to our universities, our tertiary education, higher learning institutions? They’ve certainly been discussed a fair bit during the campaign, particularly with policies that are on the table looking around international students, which is something we talk about a bit here in the north with areas like James Cook University and CQUniversity relying a lot on those students that come from overseas. Well, Universities Australia is the lobbying group for our universities in Australia and Luke Sheehy is the CEO. He’s in Townsville at the moment with a couple of days of meetings and has popped in to see us. Luke, welcome to the program.

LUKE SHEEHY: Thanks for having me and happy International Banana Day.

MICHAEL CLARKE: It is International Banana Day as well so that’s pretty significant.

LUKE SHEEHY: It’s a very exciting and the best place in Australia to be for bananas.

MICHAEL CLARKE: Maybe something for our morning teas. Tell us about your visit. Why have you come to Townsville?

LUKE SHEEHY: Look, I’ve been in this job for just over 12 months, and I made a commitment to the 39 member universities that I’d come and see them all. I did get to Cairns last year and went to James Cook University up there, but I did want to come to Townsville. It’s been a long time, so I’ve come to see the team at JCU yesterday and spent the whole day with them seeing the fantastic work they’re doing for north Queensland and Australia and in an election campaign here to talk to you and others about the importance of a strong university sector to help grow our local economies, provide our economies with skilled workers, and ensure both major parties stop the race to the bottom when it comes to international students. This is a world-class Australian success story that delivers for the nation and delivers important revenues for our universities so we can get on and do the job of building Australia’s future pipeline of skilled workers and the research and development to ensure we’ve got industries and prosperity for the future.

MICHAEL CLARKE: How important are those international students to the bottom line of our regional universities like CQU and JCU?

LUKE SHEEHY: Incredibly important. This is a $52 billion sector for Australia and for many years, both sides of politics have encouraged universities to seek international students from over 140 countries to support our universities, not only in terms of the finances, but making our universities global and the experience for our students really important. The revenues we get, we are non-for-profit institutions, so every dollar we get from international students goes to invest in our universities. Importantly, it helps support a world-class education not only for the students coming from overseas but for Australian students and ensures that Australians are getting a world-class education because successive federal governments, which are responsible for funding universities, have structurally underfunded us for many, many decades.

MICHAEL CLARKE: So, they are important to come, and they are important to that bottom line of the universities as you say. But, of course, the nature in Australia does change from time to time and we are seeing all sorts of other pressures on the community at the moment – the housing crisis is one of the biggest ones in a regional center. If we don’t have as many international students coming in, does that actually help in terms of the housing crisis that we’re seeing in regional places?

LUKE SHEEHY: I think what’s really unfair is that both the major parties have placed the blame on Australia’s housing construction crisis entirely on international students and I’ve called that a furphy and I’ll continue to call that a furphy. International students only make up six per cent of the private rental market in Australia. Many international students stay on campus or in home stay arrangements. They are only a small proportion of the housing market in Australia. We have a construction problem, and that construction problem shouldn’t be creating the destruction of this incredible sector. There’s over 1,700 international students in Townsville at JCU. They make the economy vibrant and this town more vibrant, this city more vibrant. I want to say to both sides of politics, don’t wreck this important sector and don’t blame it for a housing construction crisis. I know this because the Reserve Bank has told us, and many economists have told us as well. We need a Team Australia moment to build more houses for Australians. We need alignment between local government, state government and federal government. We don’t need to wreck a sector that serves Australia just to have a blame game during an election campaign.

MICHAEL CLARKE: How do universities strike a balance between providing those spaces for international students but also still catering to local students who do want to study? Is there a pressure there that you are seeing?

LUKE SHEEHY: Our universities obviously respond primarily to our mission, which is to serve Australia and Australia’s interests. International students only complement that and enhance our ability to do it. There are more than a million Australian students in our universities that are benefiting from the fact that our universities have international students. Yes, of course, students from time to time want to come and live on campus or live around campus. Housing is an important issue for both students and families and all Australians. So, our universities work really hard to make investments in housing on their campuses and around their campuses. There’s really important private sector investment in student accommodation that happens right across the country right now, but there are some impediments to making that investment happen more easily. I know that that often is due to state government regulations and local government regulations as well. That’s why I say we need a Team Australia effort to build houses for all Australians and international students and Australian students. One of the best things about my visit yesterday, particularly to JCU, is seeing how many of the health workforce are being trained in Townsville. We know that if you learn in this region, you are more likely to stay in this region. Both international and Australian students who study here are disproportionately likely to stay here and make a contribution. This part of the country has a strong economy and a strong need for skilled workers. Having a strong university sector with a strong pipeline of both Australian and international students is going to be part of Townsville’s and North Queensland’s future success.

MICHAEL CLARKE: Well, we certainly want those students to stay after studying here and to work in the area. Luke Sheehy is the CEO of Universities Australia. He’s visiting Townsville in his role at the moment. Now there has been long perception here in North Queensland that our regional universities are really trailing when it comes to some of those big sandstone universities in the capital cities. Is that just a regional perception, a misperception, or does there need to be a better even playing field when it comes to universities in Australia?

LUKE SHEEHY: I think all universities need to be supported. That’s the most important thing. And as I’ve said many times, and I’ll continue to say, universities as not-for-profit institutions are here to serve Australia’s interest and it’s so great when I get to come to parts of regional Australia and regional cities that have such vibrant universities and beautiful universities like JCU here in Townsville and CQU and others right across this part of the wonderful continent that we all share. And I think it’s really important to think about supporting all universities. Regional universities, like regional schools and regional hospitals, need special attention because there are additional costs to deliver in regional and remote Australia and we want to make sure that future funding settings allow for that to be accommodated

MICHAEL CLARKE: And they often don’t have the infrastructure that some of those more well established and bigger universities have. Isn’t that right?

LUKE SHEEHY: Certainly. And they do a lot with what they have, and we have a wonderful vibrant university community in this part of the country and you should be really proud of it as your community, which I know you are. I want to make the case that all universities need to be supported for the unique mission and the communities that they are serving. And it’s important that regional universities get additional support when they need it. You’re right, some of our larger, older metropolitan universities do particularly well and they have done well in getting international students, which complements their mission. And I want to make sure that there’s an opportunity for regional universities to get international students. It’s fantastic to see the hundreds and hundreds of international students studying in regional Australia at JCU and other campuses in this region. We want to make sure that continues, but we also want to make sure that universities get a fair deal from the funding that they get. I’ve been making the case for a number of weeks and months now that the Job-ready Graduates Package, that’s the funding system we have, is not fit for purpose. The previous Coalition government put it in, it gives us nearly a billion dollars less to do more every year. And the current Labor government’s promised to change, but it hasn’t yet come. So, it’s an election on May 3. Let’s hope we see some more cards on the table when it comes to university funding from both sides of politics.

MICHAEL CLARKE: Certainly wanting to hear a bit more about uni policy and the remaining weeks of the election campaign. I wanted to ask you, are you expecting maybe an influx in international students, particularly from America to come here in light of recent developments. Just in the last 24 hours, the Trump administration has said it is going to withhold funding federal funding from Harvard University because it’s not agreeing to certain requirements that the government over there is wanting to apply to the university. Looks like a bit of a rough time for tertiary education in the United States. Will that mean more students coming here?

LUKE SHEEHY: It really is quite alarming what we’re seeing through the Trump administration’s attitude towards universities in their country, but also the nearly half a billion dollars the U.S. government provides in funding for Australian university researchers, particularly in areas of medical research, agriculture and defense. I’m still confident that the U.S. government needs our expertise. That’s why they’re providing the funding for it. On a research front, we’ll keep making the case through the Australian government that we want to settle the relationship with America and ensure that that continues. But if it doesn’t on a research front, we can turn to other more reliable partners. And one thing the Australian government hasn’t done is signed us up to the EU’s Horizon program that is nearly a hundred billion euros in funding, in partnership with the European Union. New Zealand’s part of it, yet Australia’s yet to join it. That’s an important thing that we’re asking the government to reconsider. In terms of students and researchers coming to Australia, we are at an attractive destination and let’s hope this race to the bottom or the talk of student caps or the doubling of already the world’s highest fees for student visas isn’t sending the wrong signals. I was listening closely to the Science Minister Ed Husic recently, and he said Australia’s going to open its doors to any researchers that want to come to Australia. That’s a good thing. I think we can start by saying to any Australians in the US right now who are world-class researchers, come home and come home and do your research with us in our fantastic world-class Australian universities, including fantastic ones in regional Australia.

MICHAEL CLARKE: Well, you continue with your visit in North Queensland today, Universities Australia CEO Luke Sheehy thanks for popping in and having a chat to us during your visit.

LUKE SHEEHY: Thanks for having me.

ENDS