Higher Education

Cut spending, unions and student places: Federal Budget

As expected this Federal Government's idea of reform is user-pays, privatisation, reduced public expenditure and de-unionisation.

The Federal Government announced 1.5 billion dollars to be injected into Higher Education but this comes after a period of Universities suffering a five billion dollar cut. University will receive $152 million in 2004 and 4.3 billion in 2005 however the money comes with strings attached. The new prosposals change funding arrangements and require that for universities to get funding they must sign an annual agreement with the Commonwealth setting out places and degree mix.

The new funding makes the money available to institutions actively offer employees to take up individual contracts. This is failed policy from David Kemp's Workplace Reform Program given a new kick start from Brendan Nelson and called the Workplace Productivity Programme. The Programme is to link salary movements to individual performance. The Government appears to ignore the fact that this may violate International Labor Organisation principles of Freedom of Association.

The Government also intends to attack the industrial rights of workers in the university sector by amending the Workplace Relations Act. The amendments will aim to reduce legitimate forms of industrial action such as not processing exam results. The Budget and the reform package is an attack on the industrial rights of workers.

The money is also tied to Universities making changes to their Governing Councils. Universities are to act more like businesses. The Government has developed a set of National Governance Protocols for Higher Education Institutions. State Government Education Ministers have previously declined to participate with the Federal Government on this issue. The new Protocols limit membership of governing council to 18 members and stipulates positions must be held by persons with financial and commercial experience.

The Budget goes further down the track of user pays education. The Australian concepts of fairness, merit and equality of access are abandoned and the idea of use pays dominates. The budget allows for the partial de-regulation of fees with universities being able to charge 30 per cent more in HECS courses and a rise in the number of full fee paying students from 25 per cent of places to 50 per cent of places on offer. These proposals will mean that those with the money, or families who can support them will be able to get an education. This will lead to greater inequality in the education system with the older sandstone universities charging more for their courses. There'll be greater division between rich and poor universities. We could also see a widening of wages and conditions of employment between the different institutions as happens in the United States of America.

The Government also plans to introduce a new loan scheme for students. The new scheme provides for students to study without paying up-front fees to take up a loan with repayment 3.5 per cent above the CPI. Students could incur debts that would take them decades to repay. The `reform' package also proposes to introduce voluntary student unionism - again this will impact of the delivery of services especially in regional institutions.

The Budget also lifts the income threshold for HECS repayments from $24,365.00 to $30,000.00. But this does happen until 2005. Continuing the current rate until 2005 is a financial imposition on low paid workers.

The Opposition parties have announced that they will oppose many of the so-called reforms in the Senate and the Opposition spokesperson for education, Jenny Macklin has announced that they will push for a Senate Inquiry.

© 2001 Community & Public Sector Union - State Public Services Federation (CPSU-SPSF) - National Office

http://www.cpsu-spsf.asn.au/campaigns/higher_ed/20030519_135.html
Last Modified: 15 Nov 2005