Tens of thousands of research projects may be within reach of the Morrison government’s foreign deal veto powers, the university sector has warned.
Universities Australia said after examining the draft legislation it held “grave concerns regarding the effect the laws may have on research collaboration, which is the lifeblood of knowledge and job creation”.
The warning comes as Guardian Australia can reveal the education department has had input into the proposed new laws since mid-July.
But the department defended the government for not flagging the proposal with the higher education sector through the university foreign interference taskforce, saying they were two “distinct” initiatives with “different policy intent”.
Parliament is considering a bill – introduced into the lower house on Thursday – that would give the foreign affairs minister the power to cancel or prevent some types of international agreements reached by Australian state, territory and local governments and public universities.
The heaviest scrutiny would apply to “core” agreements between state governments and foreign governments, such as Victoria’s deal to cooperate with the Chinese government on the belt and road initiative, which Canberra is eager to unwind.
But Australian universities would also face scrutiny over any deals with foreign national governments or their departments or agencies. That may potentially bring scrutiny of Confucius institutes – Chinese language and culture centres – since they involve partnerships with an organisation under China’s education ministry.
Meanwhile, agreements with foreign universities are regulated only if that foreign university “does not have institutional autonomy”.
The minister, Marise Payne, will be able to step in to prevent an arrangement if she decides it would adversely affect Australia’s foreign relations or clash with the government’s foreign policy.
The chief executive of Universities Australia, Catriona Jackson, said the sector was still considering the implications of the new laws but held serious concerns about the potential hit to international research collaboration.
“As the laws are written, it seems that tens of thousands of research projects may be within scope, whether by intent or not,” Jackson said.
She said the sector had raised its concerns with Payne and welcomed the opportunity to make a submission to the Senate committee that will review the bill by November.
After the Department of Foreign Affairs and Trade confirmed it had been working on the drafting of the bill for the past two months, the education department told Guardian Australia it too “was engaged on the legislation from 14 July”.
Guardian Australia reported this week that universities had been “blindsided” by the proposed new powers to cancel their global agreements despite what the sector saw as a year of productive talks to resolve any security concerns through the foreign interference taskforce.
Vicki Thomson, the chief executive of the Group of Eight, said the university foreign interference taskforce – which brought together universities, security agencies and government departments – was yet to discuss its role in the current context but argued: “It would be a shame to abandon what has been a highly collaborative and productive process.”
An education department spokesperson said the government and the sector both took the issue of foreign interference in the university sector seriously.
The spokesperson distinguished between the new foreign relations bill and the existing work through the taskforce.
The bill ensured a range of entities acted consistently with Australia’s foreign policy interests, the spokesperson said, whereas the taskforce was a mechanism “to provide better protection for universities against foreign interference”.
Guardian Australia has discovered that the 77-page bill gives the government some space for flexibility – if it chooses to use it.
For example, the foreign affairs minister will have the power to exempt certain types of foreign agreements from the reach of the new laws.
The explanatory notes say the exemption power could be used to carve out “thematic types of arrangements, such as research arrangements” – a discretionary power that will be of keen interest to universities.
Other options include exempting agreements entered into before a certain date or deals that are necessary to address emergency situations, linked to disaster management or urgent public health matters.
The minister will also have to draw up rules defining whether overseas universities operate free of state control – a distinction that will be crucial in determining whether deals are covered by the law.
The rules will likely spare universities from having to notify the foreign affairs minister when they strike deals with universities in countries with similar levels of institutional autonomy – such as in the United Kingdom and the United States.
The explanatory notes hint that a lack of institutional autonomy “may include a government or a political party exerting control or influence over the university management, leadership, curriculum, and/or research activities”.
In addition, military universities established by a foreign defence department would automatically be counted as a foreign government agency – meaning such deals would be subject to scrutiny under a different part of the same bill.
The prime minister, Scott Morrison, argues the bill is aimed at protecting “Australia’s national sovereign interest” rather than being directed against China or any other country.
