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Government to take $500m from public university funding in favour of competition with private provid

3 October 2000


The Federal Government is proposing to shift nearly $500m out of general university operating grant funding and open it up to competition between public and private providers.

The proposal is contained in the Australian Research Council (Consequential and Transitional Provisions) Bill, which is currently before the Parliament. It would give effect to the policy outlined in the Government’s White Paper on Research, which foreshadowed opening up postgraduate research places and research funding to private providers.

The Bill would take funds from operating grants – which are currently provided to public universities listed in the Higher Education Funding Act – and transfer them to a program for `special research assistance’, which may be accessed by private universities and other private providers of higher education. The criteria for accessing these funds include registration of courses by the Australian Qualifications Framework and preparation of a research plan; but the criteria also provide significant discretion to the Minister.

The National Tertiary Education Union, which represents staff in Australian universities, condemned the proposal as further undermining the strength of public universities.

`This potential transfer of public funds to private institutions is a extension of the Coalition’s elitist schools policy,’ said NTEU Policy and Research Officer Julie Wells. `There is no rationale for this decision, other than an ideological commitment to supporting private institutions while withdrawing funding for public universities. At the same time, it refuses to recognise the urgent imperative to lift investment overall in education and research.’

`NTEU is also concerned about the level of accountability which applies to institutions in receipt of these funds,’ she continued. `While public universities are required to provide detailed financial and educational data to the Government, no such requirements apply to private institutions not listed in the Higher Education Funding Act.’

`We call on the Parliament to reject this policy and restore funding to universities.’

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