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The Dearing report is "constrained in terms of dynamic vision", the ABS executive concluded this week. The executive endorsed Dearing's quality regime, supporting plans for a national framework of qualifications and minimum threshold standards for degrees, but said that it failed "to address the increasing global nature of higher education".

Mr Slack said: "Soon people will be able to study at any institution. Competition from abroad will be intense and it is too short-sighted to look just to the domestic market."