Topics: The Phoenix Institute
E&OE…
BILL WOODS
The financially stricken Australian Careers Network is now warning that it could target thousands of students to repay $300 million in course fee loans if it is forced into administration. Now, you might recall this story, ACN – as it is known – is the owner of the controversial training outfit Phoenix Institute which is teetering on the brink of insolvency. It was unsuccessful in its bid to claw back almost $40 million from the Federal Government under the contentious VET FEE-HELP loan scheme. Now, Vocational Education Minister Scott Ryan said the department is still investigating Phoenix, and we have to be cautious while that investigation is underway. But, here is the thing, the Commonwealth is now trying to protect students and is assisting the ACCC in their current legal action against Phoenix. Protection of the students is the interesting point here; will they have to pay these fees even if they cannot do the course? Scott Ryan is joining us now. Thanks for your time Minister.
MINISTER RYAN
Thanks for having me.
WOODS
What is the problem here for students, and can they be trapped here?
RYAN
If I could just, for the first thing, say that any student who is being contacted who thinks they are being inappropriately pressured have a couple of contact numbers they can call, and I think that is important for students who might be concerned. They should contact either the ACCC on 1300 302 502 or the National Training Complaints Hotline – run by the Department of Education – on 13 38 73.
This is a long running issue; the department commenced some investigations of Phoenix in September last year. Phoenix had its registration as a training provider cancelled by the national regulator in December last year but then sought a stay of that through the Administrative Review Tribunal, as is their legal right. That was stayed on the condition that they do not enrol new students or market courses but they could keep teaching their existing students. The department put Phoenix on a payment plan, if you like, after some concerns were raised regarding this particular provider. Phoenix sought legal action against the Commonwealth Government to seek that money, and last Friday the court effectively said that the Commonwealth could keep that payment plan going.
When I was made aware of this particular story late last night I was particularly annoyed for all of the students because there really is no place for a threatening approach to students to deal with this.
WOODS
Yes, so are there any protections currently in place for them, will they have their backs against the wall or will they be able to get through this without being trapped?
RYAN
Well, firstly all providers are required to have what is called tuition insurance. We are looking into the provision of that at the moment to make sure that if a provider came into trouble that their right to be a student continues if they incurred their VET FEE-HELP debt, if they effectively paid for it via the loan that the Commonwealth pays for directly to the provider. We are looking at that over the last 24 hours and since the actions of last week. However, if they are being contacted and if they do feel that they are being inappropriately pressured then the ACCC is the agency to contact in the first instance, and if they contact our training complaints hotline then we can assist with that too. And, as you mentioned in your introduction, we are working with the ACCC on some of their enquiries and investigations and actions in this regard because you are right to say that this sector has had some providers that haven’t lived up to the ethical standard that most of them do. Vocational education provides opportunities for hundreds and thousands of Australians through the VET FEE-HELP scheme and I am actually very worried that the damage is being done to a good sector by the actions of a few. We are not going to shy away from protecting students, and quite frankly the taxpayers of Australia who stump up hundreds of millions of dollars every year for this.
WOODS
That is a good point, we should point out that the vast majority of those vocational courses that are run are very reputable and very useful. Minister, thank you very much for your time and the ACCC is basically who you would like the students to contact?
RYAN
Yes, and I can give you that number again.
WOODS
Please.
RYAN
1300 302 502 or the National Training Complaints Hotline we run on 13 38 73.
WOODS
Terrific, thank you for your time.
RYAN
Thanks Bill.
(ENDS)