Australia’s higher education steward would be enlisted to tackle the “market logic” rendering the teaching of Asian languages “functionally extinct”, under recommendations from a parliamentary group.

The House of Representatives Standing Committee on Education says the recently created Australian Tertiary Education Commission (Atec) must use its powers to prevent a terminal decline in the “vital sovereign capability” of Asia literacy.

“At present, students are not financially incentivised to study Asian languages or cultures, academics are not financially incentivised to pursue careers focused on the study of Asia, and Australia’s universities are not financially incentivised to deliver the vital sovereign Asia capabilities Australia requires,” the committee says, in a report from a 10-month inquiry.

“Proactive government intervention is required. Atec has a role in ensuring that the university sector is delivering…skills and qualifications that meet Australia’s strategic interests. [Its] establishment provides an opportunity for a cohesive government approach to embedding Asia capability within the higher education sector.”

The committee has urged Atec to establish an “Asia Capability Compact” as a common feature in the mission-based compacts negotiated with each university. It would designate institutions to serve as “anchor providers” in Asian culture and language, and guarantee that any Australian student could learn major Asian languages through cross-institutional arrangements.