For-profit education: plenty of blame to go around

Success has a thousand parents, failure is an orphan. The truth of that proverb is illustrated by the blame game now going on around the disaster that is for-profit Vocational Education and Training (VET) in Australia. In the last couple of weeks, I’ve seen dozens of different stories illustrating the extent of the failure. The Oz alone has at least ten.

Reading these stories, it’s clear that this isn’t a matter of bad apples or abuse of the rules. The for-profit sector as a whole is delivering abysmally poor results while chewing up billions of public dollars.

Unsurprisingly, Labor is blaming the government for allowing this to happen. Equally unsurprisingly the Oz is running the line, pushed by Minister Simon Birmingham that it’s all the fault of the ALP who extended the FEE-HELP scheme to the VET sector in the first place.

I had to check back on the history, which reveals that this was actually an initiative of the Howard LNP government, announced in its final year, implemented by the Rudd Labor government, and carried on by the Gillard and Abbott governments. Victorian governments of both parties led the charge at the state level. So, there’s plenty of blame to go around.

But, that’s history. The real problem is that no one is willing to admit the obvious lesson, already evident from the US; for-profit education, funded by public subsidies, is a recipe for disaster.

I should concede though, that Birmingham is already edging towards the right answer, saying that he is and not as keen as he was to extend subsidies to bachelor and sub-bachelor courses at private colleges.

Another piece of good news is that the ACCC and Auditor-General are finally getting their teeth into this, doing what should have been done by the supposed regulator, the Australian Skills Quality Authority, which has been asleep at the wheel ever since it was established.

But no amount of tightening up at the edges can fix this problem. The only solution is to abandon subsidies to for-profit providers and put a serious effort into restoring and upgrading the TAFE system.

Finally, a blast from the past. Back in 2012, ACPET, the for-profit VET lobby group cited me as saying

“I think we will continue to see many examples of (dodgy) educational institutions. They are going to be much more common than examples of successful profit driven training or educational enterprises”.

The report in question (paywalled) concluded by quoting me as saying

The only solution is ultimately for the federal government to take over this area [of VET] and to then have a much more robust accreditation system for private providers than we have, and a much more sceptical one”

ACPET suggested that my position was reminiscent of the Flat Earth Society. At this point, I’d say the Flat Earth Society has at least as much credibility as ACPET.

No New Coal Mines

Along with 60 other Australians, mostly more eminent than me, I’ve signed an open letter to world leaders calling for a moratorium on new coal mines and coal mine expansions. The letter focuses particularly on Adani’s proposed Carmichael mine but it’s important to be clear that this is part of a global movement to stop new coal mines everywhere in the world.

The underlying reasoning isn’t spelt out but ought to be clear enough. If we are to stabilize greenhouse gas concentrations at 450 ppm or below, as the world’s leaders have already agreed we should, it is necessary for carbon dioxide emissions to peak soon, and decline to zero over the next 30 years or so. Given that burning coal creates major health hazards in addition to C02 emissions, coal burning needs to eliminated even more rapidly. That means first, that no new coal mine can expect to work for an operating life of more than 30 years, and second that any new coal mine must be offset be additional closures of existing coal mines. Once these factors are taken into account, it’s essentially impossible for new coal mines to make economic sense within the constraints imposed by a limited carbon budget. Certainly, that’s the case for Carmichael, which is a massive boondoggle keeping alive only in the hope of extracting some form of government assistance or compensation.

Labour Lords Resign the Whip (crosspost from Crooked Timber)

I don’t have much to say about this, but I couldn’t resist the multiple absurdities embodied in the title. For those who haven’t heard anything about this, two appointed members of the House of Lords (Warner and Grabiner) have announced that they will no longer follow the direction of the Labour Party on how to vote, and a third (Mandelson) has made noises suggesting he may go the same way. This is a result of the party’s leadership election, in which the members a (nominally, at least) democratic socialist party chose a (nominally at least) democratic socialist leader.

Flogging a live horse

A while back, I mentioned in passing the failure of the Queensland Greyhound Racing Board to do anything about notorious industry practices such as live baiting and the slaughter and dumping of dogs that failed to run fast enough. But, even if these practices were well known, the perpetrators made some effort to hide them. By contrast, the practice of whipping racehorses to make them run faster is open and unchallenged. Can there be any justification for this beyond “it’s always been done this way”?

Obviously, there’s no inherent interest in the absolute speed attained by the horses, just in the race between them. There’s no obvious reason why a race without whips would be any less interesting. And if we wanted to see the horses go as fast as possible, we’d allow the use of stimulant drugs.

Apparently, defenders of the practice have made the claim that it doesn’t hurt the horses. That’s ludicrous on the face of it – if it didn’t hurt obviously it wouldn’t work – and has been shown to be untrue.

I’d be interested to know about the legal position. Again on the face of things, whipping horses would seem to be illegal cruelty to animals. Is there a special exemption, or has the proposition never been tested?


Former Minister Eric Abetz was in the Oz the other day, complaining that

How often, for example, have I had to put up with the tag of ‘religious Right’ or ‘far Right’, whereas you hardly ever hear it of the ‘religious Left’ or the ‘irreligious Left’ or the ‘far Left’ or the ‘extreme Left’ when talking about the Australian Greens or vast elements of the Australian Labor Party,

That reminded me that I needed to update my testimonial list with one from Michael Stutchbury, then at the Oz. It’s appropriately placed on the far right of the page.

Worthwhile Canadian Initiative (crosspost from Crooked Timber)

I’m writing from the other side of the planet, but there are enough Oz-related links to offer some thoughts on the Canadian election result.

First, taken in conjunction with the recent removal of Australian Prime Minister Tony Abbott, this is a big win for the planet. Abbott and Harper were the only two world leaders who were clearly climate denialists (despite some official denial-denialism) and now they are both gone. That leaves only the US Republican Party as a serious political force dominated by denial (of course, a big “only”). The chance for a decent agreement coming out of the Paris conference in December has improved significantly

Second, as the UK election also showed, the combination of multiple parties and First Past the Post voting is highly unpredictable. If things had shaken out a little differently, Harper might have managed it back into some kind of minority government, or we could be seeing the NDP rather than the Liberals winning on the basis of strategic voting. Applying this to the UK example, the idea that Cameron’s victory was in some sense inevitable is fallacious. Had a few things gone differently, we could all be talking about the mysterious appeal of Ed Miliband.

Third, the supposed dark magic of Oz spinmeister Lynton Crosby did Harper no good. If anything, Crosby’s dog whistle strategy motivated the majority to vote strategically against Harper. But I suspect that people like Crosby are better at selling themselves to politicians than at selling politicians to the public.

Locke’s Road to Serfdom

The second instalment[^1] of my critique of Locke’s propertarian liberalism is up at Jacobin. I’m looking at an obvious (but, AFAICT, rarely asked) question about Locke’s theory: if land is acquired through agricultural labor, how is it that agricultural laborers have mostly been landless? The answer is simple: thanks to slavery and serfdom, it’s the owners of the laborers who acquire the property. To quote Locke

the grass my horse has bit; the turfs my servant has cut … become my property

Locke’s political practice in the Americas was consistent with his theory. In his Constitution of the Carolinas, he suggested the creation of “leetmen” — a hereditary class of landless laborers, tied to specific areas, and bound to work for aristocratic landowners. As I observe (the point isn’t original)

Locke didn’t really need a new word for this institution. The founding figure of classical liberalism was proposing, literally rather than metaphorically, a Road to Serfdom.

[^1]: I’ve done with Locke, but I’m planning a third instalment on Jefferson, his most important successor.