Education Minister Christopher Pyne has set himself a two-month deadline to pass higher education reform, while warning he will not "adulterate" his proposals to the point they become meaningless.
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Mr Pyne will write to Opposition Leader Bill Shorten on Wednesday to ask him to negotiate a compromise deal on higher education policy. The overture comes after Senate crossbenchers, including Australian Motoring Enthusiast Party Senator Ricky Muir, indicated they would not support allowing universities to set their own fees in this term of Parliament.
But prospects of a compromise with Labor on fee deregulation appear slim, with Mr Shorten describing the offer as a "desperate stunt".
Mr Pyne, who has previously refused to put a timeline on passing his reforms, said he wanted the issue resolved by March and that the Senate was playing a "high stakes game" by resisting his proposals.
"We want to get this reform through in February or March this year but we will not so adulterate the reforms that they're now meaningless," Mr Pyne said. "If that's the situation in Australia today, if the crossbenchers are not up to microeconomic reform because they don't want to be unpopular with any organisation in Australia or any particular individual, well the government will accept the decision of the Senate.
"People can't have their cake and eat it too. When a vote comes you have to say yes or you have to say no."
Mr Pyne said voting down the bill would mean that research programs including the Future Fellowships scheme and National Collaborative Research Infrastructure Strategy would no longer be funded and that students at TAFEs, private colleges and in sub-bachelor degree programs will not receive government support.
"So it's a high stakes game," Mr Pyne said.
Mr Pyne said fee deregulation remained at the "heart" of the government's plan but said he was open to suggestions from the crossbenchers, including a call from independent Senator Nick Xenophon for a capped increase in fees to help boost university revenues.
"We will consider every suggestion by the crossbenchers because the fundamental core of this reform is the deregulation of universities," he said.
At the heart of our reform is de-regulation of the university sector and I believe that we can come into a landing.
Mr Pyne said Mr Shorten should heed calls from former Labor education minister John Dawkins and former Labor MP Maxine McKew for Labor to reach a deal with the government on higher education.
A spokesman for Mr Shorten, who is travelling in the Middle East, said: "This is desperate stunt from a hopeless Education Minister, doing everything he can to divert attention from the fact his Prime Minister is now a laughing stock.
"Young Australians who have worked hard and got good marks are now forced to consider whether they can afford to go to university under Tony Abbott.
"The spectre of $100,000 degrees still hangs over Australian students and Labor won't support students being gouged in this way."
Senator Muir told Fairfax Media on Wednesday reports he was open to potentially backing deregulation had led to "confusion" about his position on the issue.
"I am of the view that if deregulation is the only option the government has for university reform then it should be taken to the election," he said.
"The people of Victoria and Australia have spoken and it is my job to listen to them."
Senator Xenophon has said that he will not vote for fee deregulation unless the government achieves an election mandate for it. Liberal Democratic Party Senator David Leyonhjelm and Family First Senator Bob Day support the principle of fee deregulation but have warned they will not vote for it if the government makes too many expensive concessions to win Senate support.
with Latika Bourke
