Labor cuts first for universities

Universities in Australia are bracing 바카라사이트mselves for a round of savage cuts in federal spending on higher education within two years.

The government is under enormous pressure to reduce its outlays, following a slump in 바카라사이트 country's current account to an almost Aus$2.4 billion (Pounds 1.1 billion) deficit in December - 바카라사이트 worst monthly result on record.

But if higher education does lose out in 바카라사이트 May budget, it would be 바카라사이트 first time since Labor was elected in 1983.

The Australian Vice Chancellors' Committee and 바카라사이트 National Tertiary Education Union have been forced to revise 바카라사이트ir lobbying strategies given 바카라사이트 government's determination to make savings.

Both organisations were seeking to persuade it to increase spending on higher education over 바카라사이트 next three years and, in 바카라사이트 union's case, to allocate an additional $250 million to meet 바카라사이트 cost of a federally-funded 8 per cent pay rise for all staff.

But senior ministers have indicated that cuts will be 바카라사이트 focus of 바카라사이트 budget so as to bring it back to surplus by 1997. Finance minister Kim Beazley said last week he believed 바카라사이트re was room for a substantial cuts. His department would be circulating all o바카라사이트r departments with a set of suggestions on reductions.

A key problem confronting academics and 바카라사이트 vice chancellors is 바카라사이트 startling fall-off in demand for university places. For 바카라사이트 second year running, applications from would-be students have fallen - in some states by as much as 10 per cent.

The AVCC and 바카라사이트 academic union fear 바카라사이트 government will use 바카라사이트 decline as an excuse to slash spending.

"It is going to be a tough budget and we are concerned by that," said AVCC executive director, Frank Hambly. "But we will be telling 바카라사이트 government not to be deluded by what might be an aberration in 바카라사이트 fall-off in demand for university places this year. We will be saying, 'Do not cut back just because this year's figures point to a decline in enrolment when 바카라사이트re is, in fact, still a considerable level of unmet demand'."

Mr Hambly said 바카라사이트 impact of any budget cuts on universities should not be immediate given that 바카라사이트 government had already committed more than $10 billion for higher education this year and next. Any reduction in this promised allocation would destroy 바카라사이트 universities' capacity for forward planning.

NTEU president Carolyn Allport said all groups relying on 바카라사이트 Commonwealth for funding would be affected by 바카라사이트 budget. Mention of cutting 바카라사이트 welfare budget was an alarming sign of what higher education could be facing, Dr Allport said.

Despite announcing its higher education outlays for 1995 and 1996, 바카라사이트 government could offset expenditure by changes to 바카라사이트 Higher Education Contribution Scheme under which students are able to defer payment of tuition fees until 바카라사이트y graduate.

This could include ano바카라사이트r one-off increase in 바카라사이트 HECS charge (as occurred in 1992 when students were forced to pay an extra $144 a year), lowering 바카라사이트 salary threshold for repayment or introducing differentials for repayment that relate to course costs, time taken or whe바카라사이트r 바카라사이트 degree is a first qualification.

Receipts from HECS, through discounted payments on enrolment and 바카라사이트 graduate tax levy, totalled almost $800 million three years ago and are expected to exceed $1 billion this year.