Monash University > News and Events > Monash Memo

Ancora Imparo, April, 2009

The Deputy Prime Minister and Minister for Education Julia Gillard announced the first part of the Federal Government's response to the recommendations of the Bradley Review of Higher Education when she opened the Inaugural Universities Australia Higher Education Conference on 4 March. In doing so she again expressed the Government's support for universities and the recognition of the relative neglect of this vital sector over the last dozen years or so.

She made the following specific announcements in that speech and another speech a few days later:

• The number of graduates in the 25-34 age group at bachelor level or above will be increased from the current level of about 30 per cent to 40 per cent by 2025;
• The number of Australian students who could be admitted to undergraduate university places at public universities would become unregulated from 2012 and universities would be permitted to over enrol from the negotiated government target by 10 per cent (currently 5 five percent) from 2010. This means that from 2012 students could choose to study at any university and in any course for which they could qualify for admission, without the university facing caps on the numbers of students they could enrol in a particular discipline;
• The equity target of 20 per cent of university places being offered to students from the lowest socioeconomic quartile by 2020 would be adopted (currently it is about 15 per cent); and
• A national quality and accreditation agency would be established at the Commonwealth level to accredit all higher education providers.

In addition to these announcements, the Minister for Innovation, Industry, Science and Research Senator Kim Carr at the same meeting and in a later speech made comments relevant to the Bradley Review and the Cutler Review of Innovation along the following lines:

• The Government was committed to moving towards full funding of the indirect costs of research;
• He was committed to the concept of "compacts" between the Government Department of Innovation, Industry, Science and Research and individual universities relating to each university's specific mission and he stated that funding would be associated with these compacts; and
• Recognising that not all universities could be excellent in all disciplines, there should be a "hub and spokes" model for major areas of research with a university which is a research leader in that field being the "hub" and other universities also carrying out research in the area, the "spokes".

Notably both Ministers emphasised that the current financial situation meant that the government would be restricted in what it could do in the next budget and that it could only move towards increased funding commitments for university education and research in stages.

There are a number of implications of the announcements.

An increase in the number of graduates need not imply a great increase in the number of university places if retention and completion rates are increased and if the role of other education providers to bachelor level is increased, as is likely, by 2025.

For example, the role of the TAFE/VET sector in providing education to bachelor level has just started. The private sector has expanded considerably in scope and it is likely that many of these institutions will provide bachelor level education by 2025. Thirdly, the expansion of online education following improved technology and broad-band access will make it possible for universities and other providers to provide bachelor-level education to larger numbers of students in distributed locations. There will likely be an expanded role for Open Universities Australia and possible activities by large-scale international providers in Australia. Obviously the role of the central quality and accreditation agency in ensuring that the diverse range of providers delivers education of an appropriate quality will be vital. Research-intensive, campus-based universities will not be the only contributors to Bachelor-level education but will play a particular role at the top end of the tertiary sector.

The concept of deregulating undergraduate Australian student numbers in our universities with maintenance of capped fees raises the possibility of a number of scenarios over time. It will be tempting for universities to increase the number of domestic places in high demand, low-cost courses such as business and law, and decrease the number of places in high-cost courses or poorly compensated courses such as engineering, health sciences and education.

The reliance on market information to guide the choices of students and universities to deliver the appropriate outcome in terms of the number of graduates in areas of national need is optimistic at best. It is hard to imagine that the Federal Government will allow the number of graduates in areas of political sensitivity such as education, nursing and medicine to be left to the market especially when the market is distorted by price caps. On the other hand, universities will be likely to take national needs into account when deciding on the number of places offered in different disciplines and it will not be possible to make rapid changes to discipline mix given established staff numbers in different disciplines.

Equity targets are meaningless when we use the postcode of a student's residence as the measure of socioeconomic status. Other indicators will be required. Individual targets will need to be assigned for different universities and additional financial help given to generate and deliver the appropriate pathway programs and student support for the students coming from disadvantaged backgrounds.

A national quality and regulatory body seems essential given the diversification of institutions offering degrees. However as university and other tertiary education is currently regulated by the states, this will require agreement between the Commonwealth and the states.

The statement by Senator Carr stating that the government would move towards fully funding the costs of research is welcome. Increasing the Research Infrastructure Block Grant from its current 20 cents in the dollar to 50 cents in the dollar would be a welcome first step.

Senator Carr's comments about compacts appeared a little paradoxical in view of the silence of the Bradley Review on this topic and the advocacy by Deputy Prime Minister Gillard of minimal interference by government in the affairs of universities with accountability based on outcomes.

Regardless of the rhetoric substantially increased investment in universities will be needed if they are to achieve the benefits for Australia articulated in the two reviews and recognised by the two ministers. The tough financial situation will make it difficult for the government to deliver this but a start must be made towards redressing the financial neglect of recent years.

Our universities have done well over the recent past but could deliver so much more for the prosperity of Australia and the welfare of its people and its environment if they were properly funded.