Privatisation of higher education by stealth

The central themes of the Review by Federal Education Minister, Dr 
Nelson, entitled "Higher Education at the Crossroads: an overview", are 
deregulation and further cuts to government funding. The Review, released 
last April focuses on increasing private funding at the expense of a much 
needed increase in public investment on higher education.

This represents a renewed shift away from Government responsibility for 
ensuring that universities are adequately funded. The Report encourages 
increased use of market mechanisms in raising and allocating funds, 
including substantially increased fees for students.

The paper neglects the fact that Australian universities are already 
heavily reliant on private income, mainly fees from students and their 
families. Australian universities already have the fourth highest reliance 
on private income of the 23 OECD nations.

Universities are now coming to terms with the implications of this report 
and formulating their respective submissions to the Minister.

One of Australia's most "elite" universities, the University of Sydney, has 
supported Federal Government calls for "top-up" HECS which would see a 
potential increase on all HECS* payments of 25 per cent.

This will make access to universities increasingly difficult for poorer 
students, women, ethnic and Aboriginal students as well as students from 
rural backgrounds.

It will no doubt pre-empt further government funding cuts leading to a 
diminished higher education sector and reduced research quality.

Deregulation will force universities to compete with one another on an 
"education market" to attract government funding and accelerate the user-
pays education system.

The Nelson Review has been the target of collective student unrest. On the 
August 22 and September 2, when Sydney University Special Senate 
deliberated on top-up HECS, over 1500 students and a number of staff 
rallied at Sydney University in protest against the Government's higher 
education review.

Their chants fell on deaf ears for the majority of the Senate which voted 
10-6 to recommend top-up HECS to the Federal Government.

Students, however, vowed to continue their struggle in resistance to a 
deregulated higher education system, and the actions at Sydney University 
represent the beginnings of a wave of student protests throughout 
Australia.

At Sydney University student representatives on the Senate spoke against 
the government proposals.

They argued that the Review should be embraced by universities as an 
opportunity to renew calls for higher government funding, and to consider 
broader solutions for higher education such as a progressive graduate tax 
system.

Students felt that the proposed 25 percent increase on HECS would open the 
doors to deregulated fee structures which would see a spiralling fee 
increase.

Coupled with government funding cuts, deregulation would bring to fruition 
a deteriorating higher education system exclusively for the rich.

* * *

*HECS is a student fee. It may be paid up front (if you are wealthy 
enough) or deferred until the student/graduate is earning a certain income 
and then paid in instalments depending on the level of income.