ATN calls for 10% hike in fees

Australian Financial Review    |     16 December 2013

Five universities that teach 20% of students have renewed calls for an increase in student fees to boost revenue in the uncapped system of places introduced by Labor in 2010 but now under scrutiny by the Coalition.

The Australian Technology Network of universities says the so called demand-driven system should be maintained, and its members have increased student numbers in science, engineering, IT, creative arts and education by upwards of 20 per cent.

But to make the system more financially sustainable, Curtin University, the University of South Australia, RMIT University, the University of Technology Sydney, and Queensland University of Technology want a 10 per cent increase in student fees, the majority of which would be deferred through HECS to minimise immediate pain for students.

The uncapped system, whereby universities receive government funding for as many students as they accept, was introduced by Labor but is under scrutiny from the Coalition government.

As a result of the change, the number of government-supported places has expanded from around 469,000 in 2009 to an estimated 577,000 in 2013.

Eduacation Minister Christopher Pyne has said he wants to ensure the system is delivering quality education and is financially sustainable.

Submissions to the review were due at noon on Monday.

Groups representing lawyers and veterinarians have used submissions to warn of an oversupply of graduates in those professions.

The Australian Veterinary Association says limits should be placed on the number of veterinary students accepted into university, as is the case in medical degrees.

“There are strong indications that allowing the current growth in veterinary science enrolments to continue would not only be costly for taxpayers and universities, but could be deemed unethical as graduates are increasingly unlikely to be able to find work in their chosen profession,” says the association’s submission to the review of the demand driven funding system.

The South Australian Law Society is also worried.

While president Morry Bailes said the society did not advocating a cap on the number of law students, prospective lawyers needed to be given a frank assessment of their job prospects.

“Law schools in South Australia are producing around 600 graduates per annum but there are only an estimated 130 to 150 jobs in the legal profession in South Australia per annum, at best,” the society’s submission says.

“There is a real question to be answered as to whether quality has been to some extent sacrificed in favour of quality.”

Labor removed the caps on places to lift the number of Australians attaining degree qualifications, which would in turn meet workforce demand in the future.

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