AUSTRALIA: Review of foreign student decline

The federal government has been forced to respond to growing alarm among universities and colleges at the collapsing number of applications from foreign students by setting up a review to investigate ways of countering the ongoing decline.

Almost 600,000 foreign students were enrolled in Australian schools, colleges and universities this year, with one in three in higher education. They are estimated to contribute US$18 billion a year to the national economy.

Announcing the review, Education Minister Chris Evans and Immigration Minister Chris Bowen said this would give education providers and stakeholders "an important opportunity to share their vision of the sector's future".

"The review is tasked with enhancing the continued competitiveness of the international education sector, as well as strengthening the integrity of the student visa programme," Evans said.

"The Australian international education sector has come under increasing pressure as a result of the rising value of the Australian dollar, the ongoing impact of the global financial crisis in some countries and growing competition from the US, New Zealand and Canada for international students," Evans said.

He did not mention another factor widely believed to be even more important in the downturn: the government's decision to tighten the rules that allow students completing courses in Australia to gain permanent residency.

But Evans did point out the size and nature of the international education sector had changed dramatically over the past decade, with China and India the two biggest markets and contributing more than 40% to total foreign enrolments.

Michael Knight, a former Labor minister in the New South Wales government who had charge of the 2000 Sydney Olympics, will undertake the review. Knight has been asked to report by mid-2011.

Evans said the review would look at ways to better manage immigration risk and deter breaches and misuse of the programme, as well as consider the suitability of separate visas for different education sectors.

To streamline applications from foreign students, Evans said visa assessment levels would be reduced from next April, including those for students from China and India. This means students will not be required to provide as much evidence of their bona fides as is currently the case.

Lobby groups warmly greeted the announcement with the vice-chancellors' organisation, Universities Australia, saying the review "could not be more timely coming as the latest government figures show a clear decline in higher education international student enrolments, after increasing at 11% a year for the past eight years".

UA Chair Professor Peter Coaldrake said the downturn in enrolments had significant implications not just for Australia's higher education system but also for the nation itself because of the flow-on contribution international students made to domestic employment "as well as improving our cultural awareness".

Coaldrake said the review's terms of reference were "on the mark" and reflected calls made to government by Universities Australia itself.

"This review must show that Australia is serious about improving its procedures and correcting the negative perception that has arisen. This will send a strong positive signal to source countries and to prospective overseas students," he said.