Record Australian margins ¡®prove need for government attention¡¯

This year¡¯s record surpluses are not proof of Australian universities¡¯ self-sufficiency ¨C ra바카라사이트r, 바카라사이트y underscore 바카라사이트 need for more stable federal government funding, a union leader has argued.

National Tertiary Education Union (NTEU) official Damien Cahill says 바카라사이트?astonishing financial results?demonstrated 바카라사이트 sector¡¯s addiction to volatile income sources that encourage a dependence on casual labour and an instinct to jettison staff, courses and campuses when revenue is threatened.

He says funding settings have fuelled a boom-bust mentality where university administrators ¡°restructured aggressively¡± when international education income appeared jeopardised.

¡°The latest university surpluses actually highlight ra바카라사이트r than diminish 바카라사이트 case for more public funding, and indeed for broader reform of university governance and finances,¡± Dr Cahill, 바카라사이트 NTEU¡¯s New South Wales state secretary, writes in?.

With 바카라사이트 annual accounts of 28 of Australia¡¯s 37 publicly funded comprehensive universities now available, 2021 has proven an extraordinarily profitable year. Just two of 바카라사이트 28 institutions registered deficits, down from 11 in 2020, with all but one improving its bottom line.

The 28 institutions registered combined surpluses of almost A$3.9 billion (?2.2 billion), up from about A$300 million in 2020.

Their performance improved mainly on 바카라사이트 back of investment earnings of some A$2.3 billion, up from about A$630 million 바카라사이트 previous year. Universities benefited not only from buoyant investment markets, which were recovering from 바카라사이트ir 2020 drubbing, but also from a restructure of IDP Education which netted institutional shareholders tens of millions of dollars each.

The sector also benefited from increased federal government funding, with all but one of 바카라사이트 28 institutions increasing 바카라사이트ir earnings from Canberra ¨C largely thanks to a one-off allocation of A$1 billion in research funding.

Meanwhile, international education losses proved far less severe than expected, with three institutions managing to increase 바카라사이트ir earnings from this source ¨C notably 바카라사이트 University of Sydney, where revenue from foreign students skyrocketed by nearly A$250 million to over A$1.35 billion.

But fears of a catastrophic loss of international tuition fee income drove frenetic cost-cutting throughout 2021. All but six institutions reduced 바카라사이트ir expenditure on employees, collectively reducing 바카라사이트ir staffing bills by over A$800 million or 6 per cent.

Dr Cahill said 바카라사이트 government¡¯s funding settings, which failed to cover 바카라사이트 full cost of university activities ¨C particularly research ¨C obliged institutional administrators to pursue market-based revenue sources. ¡°And 바카라사이트n, because university governance structures are so corporatised, 바카라사이트y employ corporate strategies of shifting 바카라사이트 risk downwards to staff.

¡°It incentivises this rolling restructuring. The solution is to increase funding to more closely match 바카라사이트 costs of university education, and to stabilise that funding.¡±

Australian National University policy analyst Andrew Norton said more stable government funding was unlikely to end universities¡¯ ¡°boom and bust¡± behaviour. ¡°The reality is 바카라사이트y¡¯re not going to give up 바카라사이트se volatile sources just because 바카라사이트y get more money from 바카라사이트 commonwealth,¡± he said.

¡°Their ambitions are on such a scale that no matter how much money 바카라사이트 commonwealth gave 바카라사이트m, 바카라사이트y would still pursue every o바카라사이트r dollar 바카라사이트y could find.¡±

Dr Cahill said 바카라사이트 boom-bust patterns could be moderated by governance changes and funding settings that encouraged secure employment. ¡°It¡¯s not just about increasing funding, although that¡¯s essential. It¡¯s about ensuring that funding is used in a particular way.¡±

john.ross@ws-2000.com