Most Successful Fundraising Australian Vice-Chancellor Says, "The sector is in a worrying condition". (October 23, 2006)

    University of Queensland vice-chancellor John Hay has told The Australian, "The sector is in a worrying condition. It can't survive right now without the extra source of funding, without international and local fee-paying students. But some of those (markets) are fairly volatile populations."

The latest statistics from the federal Department of Education, Science and Training highlight the growing dependence of universities on student fees, which now make up almost 40% of their total income. An accelerating shift to user-pays for university education has led to a doubling in revenue from student fees and charges in the past five years.

The new analysis reveals that total revenue from fees and charges reached a record $3.3 billion last year, and if the fees students pay through HECS loans are included -- fees they start repaying when they become sufficiently salaried -- the figure reaches $5.6 billion.

Of the $3.3 billion, $2.17 billion was received by Australian universities from overseas students, i.e. 15% of total universities' income.

Little wonder that Professor Hay noted the volatility of that funding considering the rapidly increasing competition for overseas students.

But once again, the fact of the matter is that the difficulties engulfing Australia's higher education sector are not seen as major issues by the Australian public and for that reason the Coalition Government continues with its policy of nonbenign neglect mixed with putting administrators and academics off balance, and all the while the Labor opposition cries shame but does little else.