University operating grants cut against the national interest says UQ VC

University of Queensland Vice-Chancellor Professor John Hay described as regrettable and against the national interest the continuation of cuts to university operating grants from the Australian Government outlined in the May 13 Federal Budget.

Professor Hay said the further cut of one percent for 2000, on top of the previously announced cuts of one, three and one percent respectively for 1997, 1998 and 1999 was against the direction in which Australia should proceed to maintain international competitiveness.

While the further one percent cut would not surprise those who had read the forward estimates, its confirmation in the Budget was inescapably negative.

"Universities in Australia are already struggling to cope with reduced funding per student plus the costs of justified salary increases for staff which the government has refused to fund," he said.

"This will inevitably lead to reduction of services and will place more pressure on universities to undertake revenue producing activities," Professor Hay said.

"At a time when there has been a very considerable increase in the total education costs, including expensive teaching and research infrastructure investment, we are moving into the fastest decline in net Government outlays per student in higher education that this country has known.

"The expectation of the Government, and one assumes of the taxpayers they represent, is that the user pays philosophy has to be given more emphasis and the taxpayers' responsibility relatively less.

"It is problematical for this country because if we are to compete successfully with Pacific Rim nations, we have to address the fact that they are radically increasing their outlays for higher education."

Professor Hay said the cuts to cooperative research centre funding reported to be $10.2 million over two years were unexpected and would reduce opportunities for universities to tap external funding.

Professor Hay said a welcome aspect of the Budget was more flexibility for students in the discounting arrangements for up-front HECS payments as many were undoubtedly finding the increased HECS charges difficult to meet.

The new arrangements would provide for a 25 percent discount to students who wanted to make a partial up-front payment of $500 or more for a semester - a discount previously unavailable unless the full HECS contribution was paid in advance.

While this measure would be helpful, it should not be forgotten that the HECS increases did not go to universities but were added to government revenue, he said.