Migrant accountants fail English test

From the SMH:

OVERSEAS accountants are flocking to Australia under the skilled migration program but few pass the English requirements to work in the sector, leaving labour shortfalls unmet, a study into immigration policy has found.

There are now more overseas accountants gaining visas each year than there are domestic graduates in the field, a study in the upcoming edition of the People And Place quarterly journal has found.

But the occupation remains on the critical skills list because students using Australian accounting courses to gain permanent residency do not find work.

"The main reason is poor English skills," said the director of the Centre for Population & Urban Research at Monash University, Bob Birrell. Of the 9107 foreign accountants granted visas in 2007-08, more than two thirds studied at Australian institutions.

"The fact that such a large majority of overseas student graduates possess poor English indicates that Australian universities are conferring graduate credentials on students who do not have the skills needed to practise their profession," Professor Birrell said.

The study that Professor Birrell wrote with Ernest Healy uses the "abysmal" employment experience of overseas accountants, by far the largest group in the skilled migration program, to illustrate the program's shortcomings.

For example, the accounting firm KPMG said substandard English resulted in less than 1 per cent of former overseas student applicants landing a job in the company's entry level program.

"This experience indicates the potential for pruning the current program without damage to its core objective of filling skills shortages," the paper said.

The number of skilled migrants entering Australia is at a record. The Minister for Immigration, Chris Evans, has said a small cut to the yearly intake of 133,500 was "more likely than not" when numbers for 2009-10 were adjusted in the May budget to factor in the global financial meltdown.

The mismatch between accounting graduates and available jobs exposes a problem that was allowed to brew for a decade, the paper said.

From 1996 to 2007, the Coalition government tied only a small number of new university places to accounting studies. At the same time, universities hungry for the bigger financial returns of full-fee-paying students gave priority to overseas students, it said.

Part of the solution was for the Department of Immigration and Citizenship to raise the English language standard for student visas and demand higher standards of accrediting bodies, the paper said. "DIAC is fully aware of the dire employment situation of migrant accountants and of the role of English language skills in producing this outcome."

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More:

Degrees still lure low-skill migrants

Bernard Lane | January 14, 2009

AUSTRALIA'S misguided trade in selling accounting degrees to migrants seeking permanent residency visas should be tightened up yet again and locals should be trained to fill severe shortages in the profession, says Monash University researcher Bob Birrell.

Dr Birrell, whose earlier work on the visas-for-degrees industry has inspired sharp debate and partial reform, will release this week new, more complete figures showing that more than a third of overseas students who secured visas as Australian-trained accountants had worryingly low English language skills.

"I regard the 2006-07 data as the best indication yet of the standards of Australian universities ... they're nowhere near the standards required by the profession," Dr Birrell told the HES.

In a paper to be published by People and Place journal, he and co-author Ernest Healy use updated figures and a new breakdown of nationality and occupation to show that accountancy as an easy route to permanent residence is especially attractive to the weaker English speakers among mainland Chinese students.

On the English language test known as IELTS, 45 per cent of mainland Chinese given visas as accountants did not manage a score of six (see tables, page 26). The percentage for mainland Chinese awarded visas across all university disciplines was 37 per cent while the figure for all nationalities given visas as accountants was 38 per cent.

Dr Birrell argues that even an IELTS score of six is not good enough for genuine university study while professions that take communication seriously demand a minimum score of seven, a standard adopted by large accounting firms such as KPMG.

Poor English is commonly cited by employers when asked why so few overseas graduates accepted as skilled migrants manage to secure jobs as accountants at a time of chronic shortages.

"The (former overseas) students who have struggled in the boom years are almost certainly going to go to the back of the queue as the economy slows," DrBirrell said.

"(Universities) are going to come under pressure from the students who are looking for permanent residency - that they can actually achieve this result from their heavy investment of time and money."

Dr Birrell pointed to a "wilful neglect" of domestic training of accountants and cited Curtin University of Technology as a dramatic example of an imbalance whereby overseas students greatly outnumbered locals (see tables).

He hoped the Bradley review would lead to more local opportunities in the medium term but urged the federal Government to complete the reform of the visas-for-degrees market started in September 2007 and revisited last December.

Little improvement would be found in the 2007-08 figures given the "very long pipeline" of former overseas students in the system. He said the 2007 and 2008 rule changes meant many overseas students pursuing the accountancy route to permanent residency would take up the soft option of a new professional year, the Skilled Migrants Internship Program, because it did not stipulate any English language requirement.

"What happens if people finish their professional year and (get a visa but) but still don't have level seven (in IELTS), which is quite likely?" he said.

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If the Department of Immigration and Citizenship is aware of the situation, as the authors of the report claim, then why hasn't it acted to rectify the problem? Why does it continue to allow the universities to serve as permanent residency factories* for non-English speaking foreign students? Why has the Department allowed this to continue even though the students in question are virtually unemployable and, thus, no benefit whatsoever to the Australian economy?

* See chapter six of Dr. Peter Wilkinson's book The Howard Legacy (2007) for a detailed look at how Australia's universities have allowed themselves to be exploited as visa factories. As Dr. Wilkinson notes, "the universities market themselves as providing education but they know, and certainly their prospective applicants know, that they are marketing permanent residency visas."