Uni funding not keeping pace with costs of quality higher education
21 December 2000
The Higher Education Report for the 2001 to 2003 Triennium, released today by Dr David Kemp, has confirmed the funding shortfall in universities created by Commonwealth Government funding cuts. While Dr Kemp boasts of record income to universities he neglects to note the even faster increases in costs, resulting in diminishing surpluses.
"Dr Kemp’s report demonstrates the need for immediate public reinvestment in our universities", Grahame McCulloch, NTEU General Secretary said. "His policy has been to withdraw public funding in the mistaken belief that it will be replaced from other sources.
"The private sector is unwilling or unable to provide the resources necessary to maintain our universities. There is a clear case for increased public investment to fill the funding hole and allow universities to remain focused on teaching and research rather than income generation.
"The degree to which increases in costs have outstripped increases in revenue is demonstrated by the sharp decline in the Safety Margin- the surplus relative to income. In 1995 it stood at 6.9%. It has fallen in three of the four years since, to a low of 3.3% in 1999 (see attached graph). If the trend continues, our higher education system will be unable to maintain its current level of quality or diversity.
"The Government is also trying to hide the increasing cost to students. This year’s report differs from previous years by including HECS fees paid by students in grants from the Government. This is a crude attempt by the Government to distance itself from its unpopular policy of cost shifting to students.
"The central policy of last year’s report was the rejection of Dr Kemp’s leaked Cabinet submission. This year the Government’s policies can be summed up as encouraging universities to generate private income. Dr Kemp believes that this exposure to market forces will deliver increased access, assure quality, improve responsiveness, advance the knowledge base and ensure accountability. Unfortunately, the evidence on his efforts so far suggests the exact opposite."