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NTEU writes to Minister Evans re HE cuts to fund flood rebuilding

Posted 1 February 2011 by Jeannie Rea (NTEU National Office)

1 February 2011

Dear Senator Evans,

 I write in regard to the Prime Minister’s announcement of 27 January 2011 with respect to the Federal Government’s $5.6b package to help rebuild flood affected areas of Australia.  We note that in order to keep the Government’s election promise to return the Budget to surplus by 2012-13, this expenditure is to be financed through:

• ·         A one-off $1.8 billion progressive levy on people earning over $50,000,
• ·         $1 billion in delaying some infrastructure projects, and
• ·         $2.8 billion in spending cuts (over four years until 2014-15).

 The NTEU understands and supports the decision to introduce a one-off levy and the reprioritisation of other public infrastructure projects to respond to these unusual and unexpected circumstances, especially given that the levy is progressive and will only be paid by those earning more than $50,000. 

 We are however concerned that the environment and higher education seem to have been targeted when it comes to the $2.8b in proposed spending cuts.  We would argue that these cuts are very short sighted making up for the short fall in funding by sacrificing public investment in areas that have long term national benefits.  We would suggest that a better public outcome would be achieved by meeting the balance of the rebuilding costs through deficit financing.

While the bulk of the spending cuts are being targeted at climate change programs (such as the abolition of the ‘cash for clunkers’ program ($429m), the green car innovation fund ($234m), carbon capture and storage program ($250m) and the solar flagships program ($250m)), the second hardest hit area of funding cuts has occurred in the higher education through the cessation of:

• ·         The Capital Development Pool (CDP) ($299m), and
• ·         The Australian Learning and Teaching Council (ALTC) ($88m).

These two cuts account for about 13% of total program funding cuts. 

 Both the CDP and ALTC funding will cease to be funded from 1 January 2012. This will only amount to relatively small savings of less than $130m a year over the next 4 four years as shown in Table 1 below.

 Table 1: Budget Savings from Higher Education Programs 2011-12 to 2014-15 ($m).

     The NTEU does not consider expenditure on the CDP or the ALTC as "lower priority education spending” as stated by the Prime Minister when announcing these cuts. 

 Capital Development Pool

The relatively small short term savings in capital grants that will be achieved through the abolition of CDP is, however, likely to have substantial longer term impacts on the universities and their staff and students.  Universities are already struggling to find the financial resources to undertake a significant backlog of urgently required repair and maintenance of their existing teaching and research infra-structure, let alone finding funds for major refurbishments of ageing classrooms and laboratories and for the construction of new facilities.  Many universities will have already begun planning their future capital works program and some will no doubt find it necessary to divert funds from other activities immediately impacting upon students, if CDP funds are not forthcoming.  

 The need to construct new facilities at many of our universities has been made even more urgent in response to Government’s ambitious participation targets and the introduction of student demand driven funding from 2012.   Not only will any cut in capital works funding make it difficult for universities to accommodate the additional student load required to meet the Government’s targets, it will undermine their ability to provide the facilities necessary to deliver an internationally competitive quality of education.

 Australian Learning and Teaching Council

The Australian Learning and Teaching Council (ALTC) performs a number of important functions which help promote and sustain the quality of learning and teaching at Australian universities, including:

• ·         Providing a central collection point and clearing house for ideas and knowledge on  learning and teaching both in Australia and internationally,
• ·         Administering competitive research grants for learning and teaching focused grants,
• ·         Supporting and coordinating discipline based learning and teaching standards forums, and
• ·         Recognising Australia’s outstanding university educators through the ALTC Learning and Teaching Awards.

 Being outside the other quality assurance and regulatory frameworks, the ALTC has had the effect of encouraging those who are dedicated to improving learning and teaching in our universities to pursue their passion, as well as providing them with a sense of ownership over the process.  The ALTC, for example, is a body that is providing academic ownership over the development of discipline based learning and teaching standards. 

 ALTC’s role in administering and awarding competitive research grants and learning and teaching awards has been important in elevating the status of learning and teaching within our universities.  Raising the status of learning and teaching and putting it on an equal footing with research is an important prerequisite to achieving meaningful and sustainable improvements in the way higher education is delivered in Australia. The competitive grants process and, particularly the learning and teaching awards, have rapidly gained prestige and reputation recognising excellence in higher education teaching. Having successfully established these awards over a relatively short period, it would be short sighted to no lose them.

 NTEU is not convinced that functions performed by the ALTC could be performed by either TEQSA or DEEWR.

 In summary, the NTEU believes that the proposed cuts to the Capital Development Pool and the Australian Learning and Teaching Council will not only make it extremely difficult for the sector to meet the Government’s higher education participation and attainment targets, but also undermine its ability to deliver higher quality learning and teaching.  As such we are asking that the Government reconsider these decisions.        

 Jeannie Rea

NTEU National President