Coronavirus: Education Minister Dan Tehan talks down bail out of universities

Dan Tehan has met the Chinese Ambassador to discuss easing internet access for international students stuck in China.

Federal Education Minister Dan Tehan.

Education Minister Dan Tehan has talked down the idea of bailing out universities who suffer a financial hit if international student enrolments plummet as the coronavirus travel ban continues.

Mr Tehan said he had met with the Chinese Ambassador to discuss easing internet access for international students continuing their Australian courses online while they remain stuck in China.

Asked if the government was bracing for a fall in revenue from international students unenrolling, Mr Tehan told Radio National: “Well that’s obviously one of the issues that we would confront if the coronavirus continues to spread and we cannot lift the travel ban”.

“I commend our university sector for the innovative way they are dealing with this crisis, they’ve moved very quickly to get online programs up and running. Some universities have looked to move the start of their semesters.

“It (online courses) all seems to be working very well. There are obviously some limitations when it comes to crossing over onto YouTube or onto Google there. There are problems.

“I met with the Chinese Ambassador last week, and the Chinese Ambassador is very keen to ensure that at their end they’re doing what they can to help and support their students, our international students to make sure while the ban is in place, we’re doing what we can to start them on their studies.’’

Mr Tehan said there was no doubt that if the ban stays in place for this year, it “will have a significant impact on the Australian economy and will be a significant hit in terms of jobs, and potentially, to our international education reputation.”

Asked if the government had considered a future need to bail out universities that had become financially dependent on Chinese international students, Mr Tehan said universities’ cash reserves would offset any need for a bail out.

“Our universities are incredibly well run. They have very good university councils, and most of them have very, very good balance sheets. While they’ve taken in revenue from international students, and they get revenue from domestic students, these boards have invested very wisely, they’ve got reserves. So one of the things that gives me a great level of confidence is that this sector is very well managed, and very well run when it comes to their finances. They’ve got good balance sheets, they’ve got good reserves.”

Speaking generally on the status of Australia’s travel ban from mainland China, Mr Tehan said the government was “monitoring this situation very closely.”

“We’re interrogating the advice that we’re being given to make sure that it is accurate and it’s in the best interest of this nation. We will continue to do this from the Prime Minister down. This is getting everyone’s attention because we understand the primary need to get our health safety first but also the economic impact that it can have.”