Labor Ups its Higher Education Promise $1.6 Billion to $5.6 Billion.

        Education Minister, Nelson: [It's a] rehashed policy that will remove billions of dollars from universities. (October 6, 2004)

    The Australian Labor Party yesterday released its revamped policy paper for higher education, Aim Higher: Learning, Training and Better Jobs for more Australians. The twenty page policy document's principal promises include:

• $834 million to create 23,000 new (full and part time) fully funded commencing university places to be distributed throughout Australia each year by 2009.

• $165 million to create 20,000 new (full and part time) fully funded commencing TAFE places to be distributed throughout Australia each year by 2009.

• Stop the 25 per cent HECS increases allowed by the Coalition's higher education reform package.

• Abolish full fee places for all new Australian undergraduate students.

• $67 million to reduce current HECS fees for science and mathematics students by $1,600 per annum.

• 4,600 extra (full and part time) teaching places by 2009 including 1,700 extra commencing places each year.

• $27 million to create 500 extra full time HECS-funded postgraduate teacher education places in areas of specialisation and professional development from 2006.

• $69 million to establish 300 three year post-doctoral fellowships.

• Establish a competitive $809 million fund to encourage universities’ transition to twenty-first century learning institutions.

• Maintain the value of funding to universities by using the Wage Cost Index (Education) to increase university grants over and above existing increases which will provide $912 million additional funding.

• $486 million to secure critical elements of the Commonwealth Grants Scheme.

A number of other promises deal with the provision of additional nursing and medical student places.  And increases in funding of $62 million for the higher education of Australia's indigenous people.

Overall the the higher education community, through its representative groups have been markedly positive in their responses. One clear exception is the Vice-Chancellor of Melbourne University, Kwong Lee Dow who maintained the university would be worse off under Labor. "I would be surprised if we will get through the public purse . . . what we will miss out on through the fees."

The President of the National Tertiary Education Union, Carolyn Allport, was straight forward, "Labor's policy promises substantial benefits for students and staff, as well as the universities." She emphasised that, "A proper indexing system mechanism [which Labor appears to be advocating]... will help revitalise declining university infrastructure."

The President of the National Union of Students, Jodie Jansen, said universities would be between $150 million and $200 million better off under Labor's plan without raising fees.

The Australian Vice-Chancellor's Committee was more circumspect is assessing Labor's proposals. The AVCC's President Professor Di Yerbury said the AVCC remains convinced universities should have the flexibility to set HECS levels if they wished to do so as it "ensures universities are not so reliant on the public purse that we are at the whim of a future government. The AVCC [also] welcomes Labor’s decision to retain the 2.5 per cent increase to the Commonwealth Grant Scheme in 2005 in addition to effective indexation."

Earlier this year the Coalition Government promised to review the matter of indexing university block grants in 2005.

Professor Yerbury was also pleased that "Labor has heeded AVCC concerns about the extensive intrusion into the autonomous running of universities and increases in reporting requirements. It has committed to simplify the funding agreement arrangements and reduce bureaucratic red-tape." but she is critical of Labor not allocating sufficient funds to implement administrative changes the would be required should mechanisms put in place to undo the changes dictated by the Coalition's higher education reform bills.

Finally, we set out below a couple of tables taken from Labor's policy paper:

* 1 student = 0.7 Equivalent Full Time Student Units

Labor presents its higher education policy as a $5.58 billion investment in Australia's universities and TAFEs over five years.

It assesses the costings as follows:

    The budget impact over the forward estimates is $3.94 billion. This figure differs from $2.34 billion announced in 2003 as a result of updated costings spanning the forward estimates period following the 2004-05 budget.

    Abolishing the Howard Government’s budget measures will generate savings of $2.759 billion over the forward estimates.
    The net Budget impact of this policy is $1.183 billion over the forward estimates. In addition, this policy is funded through previously announced savings including the reduction of the diesel fuel rebate scheme for mining from 100 per cent to 90 per cent – the same level that prevailed before the introduction of the Howard Government’s GST.