Grattan Institute university fee proposal no “winner” for Australia’s economic future
NTEU today labelled the university funding proposal by the Grattan Institute’s latest report, “Graduate Winners” as seriously flawed and potentially damaging to Australia’s economic future.
NTEU President, Jeannie Rea said, “The Report’s proposal to introduce a narrow ‘public interest’ test would see $3 billion (2016-17) being slashed from universities, and at least a 50 percent increase in student fees, without there being any overall increase in investment in higher education.”
“While NTEU welcomes discussion on improving university funding, it remains that Australian students already pay amongst the highest fees to attend university in the world, with only students in the United States, Japan and Korea paying more. Furthermore, according to 2009 OECD figures, they also shoulder one of the highest proportions of personal contribution to higher degree learning in the world, with Australia’s public contribution to education being one of the lowest in OECD countries”
”When HECS was first introduced, it was set a rate that was estimated to be the equivalent of 20% of the average cost of a university education. In 2009 the student contribution had on average almost doubled and was about 38%. In 2011-12, the dollar values the contribution a student makes toward the cost of an accounting degree, for example, has almost tripled, increasing from $3,290 in 1989 to $9,080 today,” said Rea
NTEU is also critical of the Report’s assumption that students do not consider high debt to be a deterrent. “Students from low socio economic, rural and regional backgrounds do take into account costs of study and tuition when considering tertiary studies. The increase proposed in this Report would undoubtedly deter these students and reduce access and opportunity for many in this country. Furthermore, under this proposal, students would be left with such a significant personal debt that it would no doubt affect their ability to borrow for a car, house or business, even decades after graduation. Indeed, many would never be able to pay off their debts, particularly women graduates who are still significantly behind graduate men in earning capacity, “said Rea
Rea added, “And these issues are compounded for mature age students seeking to retrain while working and supporting families. With current labour market adjustments, there are more and more people needing new qualifications.”
Ms Rea said, “The real flaw in the “Graduate Winners” Report however, is the failure to fully comprehend the public benefits resulting from higher education. Indeed, the report’s narrow definition of public investment does not acknowledge the national return that results in governments investing in universities.”
“The Report also fails to acknowledge that there is already a shortage of people with higher education qualifications in many areas, with demand for high skilled jobs set to increase over the next 10 to 20 years as Australia adjusts to global changes in almost all sectors of the economy.”
Concluded Ms Rea, “Put simply, Australia needs to substantially boost public investment in our universities if we, as a nation, are to have a competitive future. We need a highly skilled and educated workforce, where increased productivity and research innovation will see us as world leaders in health and medicine, science and technology, humanities and the arts. Having a secure economic and social future benefits all, not just individuals.”
Media comment: Jeannie Rea, NTEU President: 0434 609 531
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