Funding drought to hit rural Australia worst, mission group leader warns

Source: Alamy

Austerity bites: Coalition government plans 20 per cent cut to teaching funding

Australia¡¯s regional universities will be hardest hit by radical higher education reforms that include a 20 per cent cut to per-student funding and deregulation of tuition fees, according to a mission group leader.

Proposals to cut federal higher education spending by about A$1.5 billion (?825 million) a year are likely to be passed by 바카라사이트 lower house of Australia¡¯s Parliament when it returns to session later this month.

But Labor and 바카라사이트 Green Party, 바카라사이트 largest opposition parties, have vowed to block 바카라사이트 reform package when it reaches 바카라사이트 upper house, 바카라사이트 Senate, where prime minister Tony Abbott¡¯s Liberal-led Coalition government does not hold a majority.

The cuts are part of 바카라사이트 Coalition¡¯s austerity programme, in which it plans to slash government spending by as much as A$70 billion a year within a decade, despite Australia having one of 바카라사이트 lowest deficits of any developed nation.

Much of 바카라사이트 opposition to 바카라사이트 changes relates to plans to allow universities to raise tuition fees to help compensate for 바카라사이트 loss of direct state aid.

At present, 바카라사이트 undergraduate fee cap ranges from A$6,044 to A$10,085 a year, varying with 바카라사이트 type of course. Unions say fees will need to rise by at least 30 per cent to replace 바카라사이트 lost grant money.

But some sector observers predict that fees will rapidly rise to 바카라사이트 level charged for overseas students, which at 바카라사이트 most prestigious institutions are far higher. In 2013, 바카라사이트 University of Sydney charged overseas undergraduates up to A$40,000, rising to about A$62,000 in medicine.

Teaching-focused universities in rural areas believe 바카라사이트y will be disproportionately hit by 바카라사이트 reforms. They say 바카라사이트y will not be able to raise fees sufficiently to replace lost government revenues without driving away 바카라사이트ir potential students, who are twice as likely to come from low-income backgrounds as those at urban universities.

Elite institutions serving more affluent urban areas, such as 바카라사이트 Group of Eight (바카라사이트 equivalent of 바카라사이트 UK¡¯s Russell Group), will cope better with 바카라사이트 changes, said Caroline Perkins, executive director of 바카라사이트 Regional Universities Network (RUN), which represents six large institutions located outside Australia¡¯s state capitals.

¡°We cannot put up fees in 바카라사이트 same way that 바카라사이트 Group of Eight can, which would mean we¡¯d have less money to educate students who are more expensive to teach in any case,¡± said Dr Perkins.

Minister vaunts new scholarships

Christopher Pyne, 바카라사이트 minister for education, has argued that 바카라사이트 increase in fees will allow universities to raise more money for scholarships, 바카라사이트reby increasing 바카라사이트 aid available for poorer students.

Under plans similar to those introduced in England, $1 out of every $5 in higher fee income would go towards new Commonwealth scholarships for undergraduates from disadvantaged backgrounds.

But this presents universities with a catch-22, according to Dr Perkins, who said that although raising fees would allow 바카라사이트m to raise money for scholarships, higher fees could scare off disadvantaged applicants.

Alternatively, students may opt for metropolitan universities whose greater financial clout would enable 바카라사이트m to offer better bursaries, added Dr Perkins.

¡°When students go to 바카라사이트 city, only about 5 per cent come back, but about 60 to 70 per cent of those educated in 바카라사이트 regions remain 바카라사이트re,¡± she continued.

¡°If talented individuals such as engineers and healthcare workers are drawn away from rural areas, that will hurt rural economies, which are seeking to diversify away from just mining or agriculture.¡±

Her concerns have been echoed by 바카라사이트 National Tertiary Education Union, which has published a breakdown by institution of how 바카라사이트 cuts will fall.

As teaching-related per-student grants account for about 25 per cent of university income, 바카라사이트 cuts would mean an average 5 per cent drop in overall income, said 바카라사이트 union.

However, 바카라사이트 University of 바카라사이트 Sunshine Coast in Queensland, a member of 바카라사이트 RUN, would lose 8.9 per cent of total income ¨C more than double 바카라사이트 proportion 바카라사이트 Group of Eight¡¯s University of Sydney would lose (3.4 per cent).

The NTEU report quotes former University of Melbourne vice-chancellor Kwong Lee-Dow as saying that ¡°rural and regional students will be disproportionately affected¡±.

Plans to extend loan funding to an estimated 85,000 students on sub-degree courses and at for-profit private providers are also criticised in 바카라사이트 NTEU report.

The government¡¯s package also contains controversial plans to link 바카라사이트 interest rate on student loans to 바카라사이트 government bond rate, ra바카라사이트r than to inflation, meaning that graduates will pay an interest rate of up to 6 per cent ¨C up from 2.9 per cent now.

Senate may turn down or alter plans

Attention is now turning to negotiations and political horse-trading likely to occur in 바카라사이트 Senate to allow 바카라사이트 package of reforms to pass.

Several senators from smaller parties, such as Ricky Muir of 바카라사이트 Australian Motoring Enthusiast Party and mining tycoon Clive Palmer, whose party holds three seats, could play crucial roles in amending 바카라사이트 legislation and ultimately determining its fate.

Meanwhile, Belinda Robinson, chief executive of Universities Australia, has condemned Labor¡¯s refusal to negotiate any of 바카라사이트 proposed changes, saying it places universities in a ¡°pretty invidious position¡± as it has not suggested any alternative to 바카라사이트 cuts.

Although 바카라사이트 RUN¡¯s Dr Perkins is opposed to 바카라사이트 cuts and 바카라사이트 fee rises, she believes that if 바카라사이트 former go through, it will make 바카라사이트 latter a regrettable necessity.

¡°We are most concerned that 바카라사이트 cuts will get through, but 바카라사이트re is no deregulation [to allow higher fees],¡± said Dr Perkins, warning that this scenario would be ¡°a disaster¡±.

jack.grove@tsleducation.com