ASHLEY HALL: As the number of international students coming to Australia continues to drop the Federal Government has announced

a review of the student visa program. The move is being welcomed by the education and business sectors as Samantha Donovan reports. SAMANTHA DONOVAN: Earlier this year a review of Australia's international education sector found that there'd been an emphasis on revenue rather than quality in some institutions. The review's chairman former Liberal MP Bruce Baird labelled them "permanent residency factories". Mr Baird's findings led the Federal Government to tighten up student visa requirements. That crack-down as well as adverse publicity about attacks on students, the strong dollar and global economic conditions have seen a sharp drop in the number of students coming to Australia to study. Now under pressure from educators and business the Federal Government has announced another review specifically of the student visa program. Universities Australia says it's a break-through for the troubled industry. Spokeswoman Jennie Lang is from the University of New South Wales-International. JENNIE LANG: We think it is important now to look at student visas more strategically and to also ensure that the policy settings actually support the students that we are hoping to attract particularly to our universities. SAMANTHA DONOVAN: What are the particular issues that Universities Australia would like to see addressed? JENNIE LANG: We would like to see the financial impost that is placed on a number of students applying to study in Australia significant reduced so that what we require is in line with what the US or the UK require. We would also like to see the Australian Government start to look at some interesting packages. We understand that it was important to break education from migration. But at the same time we would really like to see students who are the best students come to

Australia and if they so wish remain in our country for two or three years to work in a professional area and then return home or abroad with a first rate degree. SAMANTHA DONOVAN: The drop in overseas student enrolments has also worried the Business Council of Australia. It's welcomed news of the review. Policy director Patrick Coleman: PATRICK COLEMAN: With the existing visa program there seems to be some inconsistency with the way it applies to foreign students from different countries. We understand that there are issues that need to be examined in relation to how Australia's visa system compares to countries like the United Kingdom and like America. We need to make sure that we are competitive with those countries. Also the amount of money that students have to demonstrate that they have available and the amount of evidence that they need to provide to support their claims for a visa are all issues that need to be considered. ASHLEY HALL: Patrick Coleman from the Business Council of Australia. Our reporter Samantha Donovan.