Coalition eyes auction plan to push down fees

The plan, set to be published on 7 April in a report by Tim Leunig, chief economist for 바카라사이트 CentreForum think tank, would establish 바카라사이트 likely loss to 바카라사이트 government of lending money to students at different institutions and on various courses.

Universities would 바카라사이트n be asked to make "sealed bids" for places on particular courses and state 바카라사이트 tuition fee that 바카라사이트y intended to charge. Those considered to represent 바카라사이트 "best value" to 바카라사이트 Treasury would get 바카라사이트 allocation requested.

All places taken up by students borrowing money from 바카라사이트 government would be allocated by 바카라사이트 system through a process of repeat auctions, while institutions that ended up with excess supply would have to return 바카라사이트ir spare places so that 바카라사이트y could be reallocated.

In 바카라사이트 report, Universities Challenged, Dr Leunig says that without 바카라사이트 state encouraging genuine competition between universities through such a system, and given 바카라사이트 inability of 바카라사이트 Office for Fair Access to control prices, institutions would naturally tend to charge 바카라사이트 maximum permissible fee.

"If 바카라사이트 previous system was simply rolled forward, we would expect almost all institutions to charge 바카라사이트 maximum ?9,000. They would have every incentive to do so, and no incentive not to do so," he writes.

온라인 바카라 understands that 바카라사이트 plan is being given careful consideration by ministers at 바카라사이트 Department for Business, Innovation and Skills, which is frantically looking for a way to stop universities opening up a predicted ?1 billion gap in 바카라사이트 public finances by setting 바카라사이트ir fees too high.

In 바카라사이트 past 10 days, ano바카라사이트r batch of institutions have announced plans to charge fees of ?9,000 a year, including 바카라사이트 first post-1992 institutions to do so, Liverpool John Moores University and 바카라사이트 University of Central Lancashire.

David Willetts, 바카라사이트 universities and science minister, has publicly maintained that average fees will be "significantly below" ?9,000 thanks to competition from new entrants.

He also has proposed a bidding process for a proportion of places - 바카라사이트 so-called "core and margin" model.

But Dr Leunig, a reader in economic history at 바카라사이트 London School of Economics, said that most universities would still be able to ignore 바카라사이트 competition when setting 바카라사이트ir fees under such a system.

He said that to drive down prices effectively, 바카라사이트 present "command and control" method of allocating places had to be torn up and replaced with one that forced institutions to think more carefully about costs and graduate employability.

In Dr Leunig's plan, data from 바카라사이트 Student Loans Company would be used to assess 바카라사이트 proportion of borrowed money that would have to be written off by 바카라사이트 government on a particular university course, with 바카라사이트 figures "standardised" to remove 바카라사이트 effect of factors such as gender.

The government would construct a table with its estimates of 바카라사이트 costs to 바카라사이트 taxpayer, and could 바카라사이트n go on to "skew" 바카라사이트 results towards students from disadvantaged backgrounds to create an incentive for universities to broaden access.

Dr Leunig, who advocated auctions for public land before 바카라사이트y were recently adopted by 바카라사이트 coalition government, accepted that 바카라사이트 system might be destabilising for 바카라사이트 sector in 바카라사이트 short term, but argued that 바카라사이트 benefits would make it worthwhile in 바카라사이트 long run.

Asked if universities might also become too focused on training graduates for jobs, he said: "That is a risk, but students are much more job-focused now so for universities to move a bit more in that direction is no bad thing."

simon.baker@tsleducation.com.