Students and staff to bear the costs of Nelson’s higher education reform package
17th February 2003
Recent reports of possible outcomes from Brendan Nelson’s Crossroads package leave staff and students on the losing end of the Government’s financial squeeze.
Speaking today in Melbourne Dr Carolyn Allport, President of the NTEU, said “higher education staff and students expected the Crossroads process to address the chronic underfunding of university education. A situation highlighted by the recent Productivity Commission report, “University Resourcing”. Instead it seems that students will pay increased fees for the most popular courses, while staff will still be expected to teach more students without an increase in government resources.”
“Apart from a gesture towards the regional institutions, the general message to institutions is don’t expect increased government funding. This means that, once again, universities will be expected to meet rising costs, including those associated with the current enterprise bargaining round, from internal sources or through higher student fees and charges”, said Dr Allport.
It seems that while recognising the funding crisis in Australian universities, the Government’s response is simply to increase the costs to students. There are however significant problems and inequities that arise from such a policy response.
- If universities are allowed to charge top up fees of 25%, this means some students, such as in law, will pay for the full cost of their degrees (see attached Table).
- The basis on which limited university places are allocated will shift toward those who can afford to pay rather than based on academic merit.
- Student debt, already having reached $9billion, will simply expand at an even faster rate.
- Universities will face increased pressure to fund rising costs by expanding, their risky commercial ventures or by attracting more international students.
“The real question is – are we getting the balance right between student payment and government investment? A number of recent reports, including from the Productivity Commission, make clear that Australian students are already paying well above the level of our main competitors in the US, the UK and some parts of Asia,” said Dr Allport. “Why is that the Government wishes to treat investment in human capital differentially from investment by the corporate sector? Reductions in corporate tax rates were justified on the basis that Australian industry was being disadvantaged by higher tax rates than their international competitors.”
“What is needed is a long term strategy that recognises that expenditure on education is an investment in the future of Australia, that not only yields benefits to individuals but to the whole community including the Government through higher income and therefore tax receipts.”
Further Information and Comment
Dr Carolyn Allport
NTEU National President
Ph (03) 9254 1910
Mobile 0419 349 064
Paul Kniest
NTEU Policy and Research Officer
Ph (03) 9254 1910
Mobile 0418 170 622