ABBOTT WATCH: Plan to privatise HECS, charities

Issue 

PRIVATISE HECS

Prime Minister Tony Abbott is considering a plan to sell off Australia’s $23 billion Higher Education Contribution Scheme (HECS) debt, Yahoo News said on October 16.

The debt, owed by university students, could be privatised and sold to investors.

The Greens strongly oppose to the proposal. Senator Lee Rhiannon said: “Shifting the ownership of debt into private hands creates perverse incentives to increase student debt in the long term. The private sector isn’t lobbying for this change out of the goodness of their hearts. They’ve looked at the United States, are keen to replicate that model here — where the private sector profits from student debt.

“Total student debt in the United States is over $1 trillion dollars. HECS debt in Australia is already projected to double to $42.1 billion by 2016-17.

“This is likely to increase even further due to the Coalition’s plan to slash Start Up Scholarships — adding thousands of dollars to the debt of low-income students.”

PRIVATISE CHARITIES

Social services minister Kevin Andrews has pushed his department to review the way it funds charities.

The Coalition will encourage charities “to take over the delivery of government services” the Australian reported on October 16.

The Australian Council of Trade Unions said this confirms the federal government “intends to commit Australia to follow the failed UK model, rely on unpaid labour, slash jobs and privatise the public sector.”

ACTU president Ged Kearney said: “Charities do a fantastic job but they are there to fill gaps, not take on the full responsibility of supporting all those in need. They already work very hard, are under-resourced and over-burdened. It is the government's responsibility to protect people and provide a robust public sector, not handball their duties to charities and volunteers.

"What they want to do is privatise vital public services on a massive scale. But without an adequate state controlled safety-net many people will fall through exacerbating inequality and ensuring that we well and truly live in a society of haves and have nots.”

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