Government Misrepresents Funding Gain to Universities
June 11
New research released by the NTEU on Wednesday shows the Government has substantially misrepresented the funding gain to universities from its higher education reform package, with only $753 million of the $1.46 billion announced as part of the Federal Budget made up of genuinely new money.
“The NTEU has analysed the Government’s claims that its Backing Australia’s Future package will deliver a total of $1.46 billion to universities between 2004 to 2007 and believes this is not the case,” said Dr Carolyn Allport, NTEU President.
“Changes to the system of funding student places being proposed by the Government will see Canberra claw back $584 million in operating income. Much of this will be returned to universities as conditional funding, in particular on institutions agreeing to controversial industrial relations and governance reforms.”
“The Government has also failed to acknowledge that it will save $128 million on payments for over enrolments which are being phased out beginning in 2005,” said Dr Allport. “Taken together, this means that Backing Australia’s Future will only deliver $753 million in genuinely new funding, not the $1.46 billion claimed by the Government (see summary attached).”
“The other major concern for the NTEU arising from this research is that it will be students and their families who will have to make up most of the funding shortfall by paying even greater fees,” said Dr Allport.
As part of its reform package, the Federal Government is proposing to allow universities to increase the Higher Education Contribution Scheme (HECS) by up to 30%.
“While this is being sold to the public as a choice, the simple reality is that in 2005 universities would have no alternative but to substantially increase HECS for all students just to maintain the level of funding they currently receive.”
“While the Government continues to talk up the importance of higher education, this research shows that much of its package is a smoke and mirrors act that will deliver less to the sector than is necessary to maintain a high quality university system.”
“Australian universities are already highly reliant on tuition fees with only the US private universities exceeding Australia’s 36% of revenue from student fees. The changes proposed in Backing Australia’s Future will take us well beyond this point with significant negative implications for access to universities and the quality of education students receive.”
For information and comment:
Dr Carolyn Allport, NTEU President:
03-9254 1910 or 0419 349 064
Andrew Nette, NTEU policy and Research Coordinator:
03-9254 1910 or 0438 026277
A summary of the research is attached here. A detailed paper outlining the research, Estimating the Impact of Funding Changes in Backing Australia’s Future on University Operating Income, can be accessed at the NTEU website here