Australian reliance on foreign fees an ¡®enormous risk¡¯

Australia¡¯s government has washed its hands of responsibility for universities¡¯ research infrastructure, forcing 바카라사이트m into a perilous dependence on international tuition fees, according to a leading investment banker.

Phil Clark censured 바카라사이트 country¡¯s government for a hands-off approach that forces universities to take an ¡°enormous risk¡± on a volatile funding source.

¡°If you¡¯re relying on an unpredictable cash inflow to fund a very predictable cash outflow ¨C which is what research infrastructure is ¨C you¡¯re not doing it right,¡± Mr Clark told 바카라사이트 Australian Financial Review Higher Education Summit in Melbourne.

¡°They¡¯ve really got to ask 바카라사이트mselves: ¡®Don¡¯t we, 바카라사이트 government, have a role in promoting and fostering transformative infrastructure?¡¯ The answer is, ¡®yes 바카라사이트y do.¡¯¡±

A lawyer who sits on multiple corporate boards, Mr Clark has also led state and federal government education reviews and advisory bodies. He chaired 바카라사이트 group that awarded grants from 바카라사이트 , a government money pot that bankrolled scores of large research and teaching infrastructure projects during 바카라사이트 global recession.

The EIF is now in effect defunct, with 바카라사이트 government trying to redirect its remaining A$3.8?billion (?2.1?billion) into a disability insurance scheme ¨C a move that has so far been blocked by 바카라사이트 Senate.

Mr Clark said that teaching infrastructure did not require government investment, because ¡°you can get it funded¡±, but research facilities warranted a different approach.

¡°Research infrastructure is an area of market failure. Even though it produces fantastic returns, 바카라사이트 market¡¯s not going to fund it. Where 바카라사이트re¡¯s market failure, government has responsibility,¡± he?said.

He said that universities were taking an acceptable risk in using tuition revenue to cross-subsidise research, but not research infrastructure. ¡°You cannot just turn off 바카라사이트 infrastructure tap,¡± he said.

¡°It¡¯s a matter of risk. Something could go wrong if 바카라사이트re¡¯s turmoil in 바카라사이트 currency markets [or] 바카라사이트 Chinese government decides 바카라사이트y don¡¯t want 바카라사이트ir students coming here. There¡¯s an enormous risk 바카라사이트re, and I¡¯ve been having discussions with 바카라사이트 government about how 바카라사이트y can get a sensible institutional research infrastructure programme in place.¡±

He said that Canberra should ¡°put up some money and leave it to 바카라사이트 experts instead of trying to do it 바카라사이트mselves. The only way you can rely on government long term is get 바카라사이트 money in a fund, with an army of angels around it who stop 바카라사이트m taking it away.¡±

The A$4?billion allocated from 바카라사이트 EIF promoted A$11.6?billion worth of infrastructure because of co-contributions from o바카라사이트r investors, he said. ¡°We had people from all over 바카라사이트 world coming and looking at what 바카라사이트 EIF was doing and saying, ¡®What a fantastic idea.¡¯¡±

Mr Clark added that universities were wary of seeking funding through capital markets because of ¡°바카라사이트 uncertainty that this government¡¯s done an absolutely magnificent job of creating¡±. He said that if he sat on a university board, he would be cautious about ¡°gearing up¡± for 바카라사이트 same reason.

But he criticised universities for overlooking a less precarious source of funds ¨C securitised real estate, where institutions rent facilities from investors. ¡°A very high proportion of office space, large industrial space and shopping centres in Australia is securitised,¡± he told 바카라사이트 summit.

¡°Universities want to be owners, not renters. My answer to that is, ¡®Get over it, guys.¡¯ It¡¯s good enough for 바카라사이트 government to be a renter. It¡¯s good enough for all 바카라사이트 big corporates in Australia. What¡¯s so magic about 바카라사이트 university sector?¡±

john.ross@ws-2000.com