Our Universities: Back-footing The Students

Newcastle Herald

Monday June 16, 2003

By NATASHA STOTT DESPOJA

THE University of Newcastle may be one of the biggest losers if the Federal Government's higher education package, Our Universities: Backing Australia's Future, is implemented.

The scope and viability of research at the University of Newcastle is already threatened as it faces a $1.6million cut to research after 2004.

Currently, the university is compensated for cuts it would otherwise have suffered since the introduction of a new competitive funding scheme for research.

But compensation will cease after 2004, exposing Newcastle to a reduction of about eight per cent in research funding.

If passed, Backing Australia's Future will have quite different impacts on individual institutions.

The big winners will be the established ``sandstones" in Melbourne and Sydney. They will be able to charge high fees and cash in on the prestige of brand names built upon 150 years of public funding.

Regional and newer metropolitan universities are vulnerable for two reasons. First, their income will decline relative to the ``sandstones" because it is very unlikely they will be able to charge high fees, and second, the modest increase in funding per student place will not even restore funding to 1996 levels in real terms.

Thus pressure on staff-student ratios and declining infrastructure will not be substantially turned around.

For reasons that seem more to do with politics than need, both Newcastle and Wollongong universities were pointedly excluded from the list of eligible universities and campuses for the $122million regional campuses scheme.

Ironically, regional campuses of the three wealthiest universities Melbourne, Sydney and Queensland were listed.

Two weeks ago, Federal Education Minister Brendan Nelson did a partial back-flip on the Ourimbah Campus and also invited the vice-chancellor to put in a submission on regional issues for Newcastle University.

This makes nonsense of the Government's claim that the package is the result of a comprehensive consultation process.

For students and parents, the fundamental problem with the package is inequitable fee-hikes. Despite self-serving assertions of some commentators, fees are a barrier to participation.

Permitting universities to set fees up to 30 per cent above the HECS rate, lifting the cap on fee-paying students in courses to 50 per cent so more Australian students can ``buy" a place at university as the Prime Minister put it will accelerate growing divides.

To lessen the impact of fee hikes on students from low socio-economic backgrounds or rural and regional areas the Government has proposed a modest number of $2000 equity scholarships. But barely 20 per cent of eligible students will get a scholarship. Moreover, they will count as income for students on youth allowance, thus significantly reducing their value.

The fear of high debt and increasing reliance on parental financial capacity is already a significant factor for the vast bulk of students from low- and middle-income Australia choosing whether to study at university.

The Australian Vice Chancellors' Committee study of student finances Paying Their Way found 70 per cent of students had to work more than two days a week just to survive and more than a third were missing classes. Yet, Backing Australia's Future is silent on income support. It does, however, impose financial penalties on students who take longer to complete their studies.

All students will have a ``learning entitlement" restricting them to five years effective full-time study in a funded place. After that, they must continue in a fee-paying place with an interest bearing loan of CPI plus 3.5 per cent.

The Government's failure to properly invest in universities and students is out of step with the aspirations of most Australians.

That is why it was no surprise to see recent polls saying three-quarters of Australians would prefer to see increased investment in health and education rather than tax cuts.

Senator Natasha Stott Despoja is the Australian Democrats' Higher Education spokeswoman.

© 2003 Newcastle Herald

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