Universities hope for Early Resolution to Hung Parliament

Catholic Communications, Sydney Archdiocese,
2 Sep 2010

Gillard and Abbott - Government in Limbo

With universities across Australia reliant on government funds and dependent on government policy, many have become concerned and say the current political uncertainty is making planning for 2011 and 2012 increasingly difficult.

Eighteen of the nation's universities and tertiary education institutions, including the Australian Catholic University (ACU), have informed the Federal Education Department they expect to go well above the 10 percent funding cap on enrolments, and have recruited substantial numbers of students for 2011 and 2012 who will contribute little to their coffers.

Eager to position themselves for a demand-driven enrolment system which the Rudd-Gillard Government announced in 2009 as part of its university reforms, the 18 universities have expanded student intake in the belief that from 2012 the Government would offer an as yet undecided level of teaching subsidy for every place offered.

But now with a hung Parliament whether the scheme will be delayed, or even go ahead, is possible. That leaves the 18 universities who have enthusiastically increased student enrolments for the next two years by up to 30 percent, under immense financial pressure.

"We need reassurance and guarantees," says Professor Greg Craven, Vice Chancellor of ACU. "We enrolled students in good faith and would expect the Commonwealth to honor its obligation to pay for the students, regardless of who ends up in government."

Vice Chancellors at Australia's universities want certainty and hope that whichever party finally gains the 76 Parliamentary seats needed to govern, power will not reneg on the Rudd-Gillard government's plan to uncap the number of university places in 2012, replacing it with an enrolment system driven by demand.

Reneging on the plan would spell disaster, the 18 universities have told the Federal Education Department. But for the government in limbo, no firm assurances can be given and there is added concern that although the Coalition gave bipartisan support to the demand-driven system, it has also expressed doubts over when it might be feasible to introduce such a scheme and may delay its introduction for several years.

If this occurred, many of Australia's universities would be left in the lurch and find themselves severely out of pocket, particularly those which embraced early growth and vastly increased their enrolments for 2011 as well as 2012 when the scheme was set to be implemented.

Among the universities that have increased enrolments from between 12 and 30 percent for next year and the following year are ACU, Monash, the University of Queensland, Canberra University, Macquarie, the University of Western Sydney, Victoria University, Swinburne University of Technology and University of NSW, who have not only recruited 10 percent above their current enrolment cap, which the Federal Government promised to fund, but well over this figure, relying on student individual contributions for one year until the Commonwealth implemented its new scheme.

"We now have 18 universities and thousands of students committed to a course of action, consistent with the removal of caps," says Professor Craven, who believes whichever party comes to power will have no choice but to go ahead with the demand-driven scheme as planned, insisting that just one semester away from the new university year, it is too late now to turn back the clock.

"I think the horse has bolted on this one," he says.

Professor Greg Craven

Professor Craven also believes it is vital the new scheme be implemented as growth of student numbers at Australia's universities is all important if we are to meet the future demands of employees in a nation with an ageing population, low birth rate and low rate of immigration.

"There will be an increasing need for graduates," he insists pointing out there is a shortage of nurses and teachers. "Whichever political party takes power, the last thing we need is for Australia to contract its number of graduates."

Professor Craven and other vice chancellors at universities across the country are also concerned enrolment of foreign students may be reduced and their visas cut back.

While smaller or newer universities such as the University of Notre Dame (Australia) have few foreign student enrolments, universities such as UTS, the University of Sydney, UNSW and ACU which has campuses in Victoria, Queensland, Canberra and Sydney have large numbers of foreign students and rely on them to provide an estimated 15 percent of all university income.

An $18 billion a year business, the overseas higher education market, however could now be at risk with Labor announcing it would tighten immigration and visa rules for students, and the Coalition warning "foreign student numbers must be politically sustainable."  
   
Numbers of overseas students at Australian universities dropped after a series of widely-publicised attacks on Indian students. They dropped further this year with the sharp increase in the value of the Australian dollar making study here even more expensive.  

Already student recruiters in China are predicting a 30 to 50 percent fall in enrolments for 2011 wit with similar decreases in enrolments from other countries such as Vietnam and India.

Australia is also facing more competition from universities in England, Canada and America, Professor Craven says and believes the fact Australia still has no government, exacerbates the problem.

"It would be nice to have an education minister who wasn't a caretaker minister and no matter what party ends up in power, it would be nice for the minister to give us the green light and say full steam ahead," he says.