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Indo-Australian Business 
Bi-Monthly  |   Issue: Sep-Oct 2008
  PERSPECTIVE
 
 
Rudd Calls for Education Revolution
to Build the World's Best Workforce

Australian Prime Minister Kevin Rudd has called for an education revolution to make Australia economically stronger through better and highly skilled workforce. In an address to the 39th annual conference of Pacific Area Newspaper Publishers' Association recently, Rudd also talked about his government's commitment to the 'nation building' through $ 76 billion infrastructure development and various financial reforms to make the Australian economy strong. Excerpts.

Today I want to discuss the core objectives of the Government and the policy agenda we have embarked upon to achieve them - including our agenda for a revolution in Australian education.

Australia, like other nations, faces tough times ahead because of the state of the global economy and the challenges of a rapidly changing world. That is why the Government has a plan to build a more secure Australia, a stronger Australia and a fairer Australia - to see Australia through the challenging times that lie ahead.

That means tackling long term challenges not just putting them off into the never never. That also means doing what can practically be done to help working families, pensioners and careers in the here and now.
We are re-engaging with the international community by deploying Australia's potential for creative middle power diplomacy - to enhance our long term security and that of our wider region.

Our second core priority as a Government is to build a stronger Australian economy. Australia, like other nations, faces tough economic times because of the state of the global economy. That is why the Government is committed to responsible economic management anchored in a strong budget surplus.
That is also why the Government has a plan to boost long-term productivity growth through a comprehensive economic reform program. That reform plan starts with an education revolution with the long-term objective of building in this country the best educated, best trained, best skilled workforce anywhere in the world. That must be our ambition as a nation.

Our reform plan also includes a $76 billion nation-building plan to tackle the nation's infrastructure bottlenecks, the single biggest nation-building plan in our country's history. The Government came to office at a time when Australia was facing some of the most challenging global economic conditions in almost a quarter century.

In the past year, a global financial crisis has been triggered by a wave of defaults in the US housing market, with the most recent manifestation of the crisis being the takeover by federal regulators of Fannie Mae and Freddie Mac which together hold about $5.4 trillion of debt, around half of the United States' entire mortgage debt. The global economy has seen the greatest oil price shock in more than 30 years. Industrialized nations have seen inflation almost double. Five out of the seven largest industrialized economies have experienced zero or negative growth in recent months.

Global share markets have fallen by an average of 20 percent. Global consumer confidence levels have fallen to their lowest levels since the early 1990s. We must face these global economic facts. These are tough global economic times. And Australia is not immune.

But the Government is committed absolutely to steering Australia through these tough economic times to ensure our economy emerges in strong shape for the future. We have delivered responsible economic management, with a conservative Budget grounded in a $22 billion surplus.

The surplus was designed to put maximum downward pressure on inflation and interest rates to give the RBA maximum room to make interest rate cuts. The Government has also embarked upon the most comprehensive microeconomic reform program that Australia has seen since the early 1990s.

We are committed to building long term prosperity by investing in five key platforms for future productivity growth: an Education Revolution to which I have referred; a nation-building infrastructure plan including roads, rail, ports and most critically, a national high-speed broadband network; investing also in innovation; creating a seamless national economy through an ambitious program of business deregulation, and long term tax reform.

We have laid out an Education Revolution for Australia's future - ranging through early childhood education, school education, vocational education and training, universities and research.

The Education Revolution isn't a slogan, it is a driving vision for the Government. It's at the heart of building a 21st century economy. Australia can't compete against the rest of the world by driving down wages and conditions. The low-cost economies of our region can always beat us at that game. And we can't expect our resources sector alone to shoulder the burden of building our future prosperity.

We must invest in knowledge and the knowledge-based industries for the future. In our first Budget we allocated nearly $20 billion to the Education Revolution over the next four years.

We have begun allocating funding from our $2.5 billion Trades Training Centres program for Australian secondary schools, our $1.2 billion digital education revolution for Australian secondary schools as well. And we are working for the first time in the country's history on a national school curriculum covering English, maths, the sciences and history.

We are funding 630,000 training places for the Skilling Australia for the future programme. And investing an additional half a billion dollars from our first Budget to begin rebuilding our university infrastructure.

The Government's commitment to the Education Revolution is matched by our commitment to nation-building infrastructure. The Government's nation-building program is now in motion. In just nine months, we have committed $76 billion in these critical areas of infrastructure bottleneck. These long-term investments will help build the foundations of the nation's future prosperity.

On the deregulation agenda, through the Council of Australian Governments which has come back to life, we are working on 27 areas of regulatory reform with the single objective of building a seamless national economy. It's time for the Federation to enter the 21st century. I will work with every State and Territory Government towards that goal and I don't intend to allow politics to get in the way.

Finally, we have established the Henry Commission as the starting point for long-term reform of the tax, welfare and retirement income system - another crucial element in building a stronger Australian economy for the future.

We're delivering on our commitment to tax relief for working families, with a $46.7 billion tax package, a $4.4 billion Education Tax Refund, the first in the country's history, to help with the kids' education and an increase in the Child Care Tax Rebate from 30 to 50 percent.

We've also provided $7.5 billion in additional payments to pensioners and careers in the Budget and begun a detailed review of retirement incomes with a view to placing pensioners on a more secure footing for the future.

As well as meeting the challenges of building a more secure, stronger and fairer Australia today, the Government also recognises that Australia must prepare now for the challenges of the future.
What will be the shape of China, what will be the shape of India, what will be the shape of the Asia Pacific region. And how does Australia carve intelligently its future in the midst of this ocean of change.
Like other nations, Australia faces long-term challenges, including climate change and water, the ageing of our population and long-term food and water supply. That is why the Government has a plan to act on climate change, to tackle the long-term needs of the hospital system as well as a plan of action on the future of the Murray-Darling Basin.

We are acting on these challenges.

After a long period of inaction, we have drawn a line in the sand on climate change. We recognise it as the greatest economic, environmental and moral challenge of our time. That's why the Government ratified Kyoto on the day we came to power. It's why we will be implementing a Carbon Pollution Reduction Scheme to achieve the lowest cost reduction in carbon emissions for Australia.

It's why we are supporting an energy efficiency strategy for the nation. It's why we will introduce a new national renewable energy strategy for the nation.

And we applaud the leadership being shown by many media organisations and other organisations on reducing carbon emissions and embracing sustainable business practices.

What we do as nations must be matched by what we do as households, what we do as corporations. The planet, at the end, is at stake. We have begun on a long-term strategy to reform also the health and hospital system and end the blame game between different levels of government.

We have established the National Health and Hospitals Reform Commission and the National Preventative Health Taskforce, and we have invested in our public hospital system and in the reduction of elective surgery waiting lists. This task has just begun. And through COAG we are negotiating now a new Australian Health Care Agreement, a major step in our long-term program of health reform, to take effect mid-2009.

For me, a first-class education is both a matter of basic fairness as well as being a national economic imperative. We have committed as a Government to lifting school retention rates from 75% to 90% by 2020. We are doing this so that nine out of every ten children have the choice of a job, learning a trade or completing a university degree.

We know completing schooling to Year 12 level is important not just as a pathway to further education, but because without it Australians are significantly more likely to be unemployed. Each additional year of schooling is associated with around a 10 percent increase in earnings. Children who receive a better education are less likely to commit crimes in later life.

Low educational attainment is also associated with inter-generational poverty and social exclusion. The individual, social and economic benefits of high quality schooling are inseparable from each other.

Education is critical to people's life chances, to our future economic growth and to our community life. The Government's revolution must be both quantitative and qualitative. In our first Budget we allocated $19.3 billion to education initiatives over the next four years. But we are also implementing a set of qualitative reforms.

We have invested $20 million and are developing a national curriculum in English, maths, the sciences and history for all school students by the end of 2010. From 1 January 2009 we will be investing $625 million to encourage more students to study maths and science and pursue related careers including teaching. We need to act on the crisis of maths and science teaching in our schools. We are investing also $62.4 million to re-establish a National Asian Languages and Studies Program so that more students have the opportunity to learn the language and civilisations of our closest neighbours. And again a mission of the Government is this: to make Australia over time into the most Asia-literate country across the collective West.

The most China literate country across the collective west, as this region of ours - the Asia Pacific region - becomes the geo-political, geo-strategic and geo-economic centre of the world in the 21st Century.

Two weeks ago at the National Press Club I set out our quality education agenda for Australian schools. I announced the three central pillars of reform that the Commonwealth will be seeking to achieve in partnership with State and Territory Governments through COAG.

Firstly, improving the quality of teaching; Secondly making school reporting more transparent, and thirdly lifting achievement in the most disadvantaged schools in our communities.

As I said when I released my outline of the Education Revolution in January of last year, that is, the month after I became leader of the Parliamentary Labor Party, this revolution requires a substantial and sustained increase in the quantity of our investment, and the quality of our education outcomes. This is required at every level of education from early childhood to advanced research.

We need to set for ourselves a new national vision for Australia to become the most educated country, the most skilled economy and the best trained workforce in the world. In our reform agenda and collaboration with the States, we are proposing two distinct pools of reform funding.

To support reforms that advance quality teaching within schools, we will introduce new National Policy Partnerships with the States. These partnerships payments are up-front payments that help drive reform and payments that are made on outcomes achieved.

In the case of disadvantaged schools we have proposed a separate policy partnership with the States to provide more resources to achieve better and measurable outcomes.

Our goal is to see an average sized school in a disadvantaged area receive in the order of an additional $500,000 per year to use flexibly to lift student outcomes. This might enable a school to employ additional teacher aides, pay high performing teachers who help lift student outcomes to top up on their regular salary - or fund after-school homework or reading classes.

Over time, reward funding would also be available for the schools that make real progress in these difficult challenges. We are prepared to support those reforms up front that can make a difference. And we are ready to reward schools that go the extra mile to make sure they continue to improve.

While the priorities and the payments are distinct, their delivery needs to be integrated together so that it has the maximum impact on student learning.

We will judge each element on the evidence of its effectiveness. But in reality, none of the reforms we propose - school transparency, teacher quality and lifting attainment in disadvantaged school communities - can be undertaken without the other. In short, reform is required to identify the weaknesses and then to target additional investment and to measure improvement.

In a few weeks' time I will mark the tenth anniversary of my own election to the national Parliament. In my first speech in Parliament, I called for an education revolution. That was ten years ago. Within weeks of becoming leader of the Federal leader of the Parliamentary Labor Party, I set out a detailed case for the Education Revolution.

Now, in government, I am determined to implement that Education Revolution. It will require tough choices, tough decisions, tough reforms.

But without significant change and significant new investment we will not achieve the best we can in the future. Therefore, this Education Revolution is necessary in 21st century economy, necessary to give our kids the best possible start in life, and necessary also for overcoming entrenched disadvantage.

The Education Revolution is central to building a stronger, fairer Australia and one that delivers a better future for all Australians.