An Update on the $500 Million Better Universities Renewal Fund. (May 19, 2008)

The Sydney Morning Herald's commissioning editor and senior writer Gerard Noonan reports that Education Minister, Julia Gillard, told university lobbyists and university representatives in the Tuesday budget lock-up that the government would establish the one off $500 million Better Universities Renewal Fund (BURF) as well as morphing the $6 billion Higher Education Endowment Fund into the broader targeting Education Investment Fund (EIF) of $11 billion.

According to Mr Noonan $120 million of the BURF is to be divided between the universities of Sydney, Melbourne (~$35M each), UNSW ($26M) and ANU ($24M).

He was told by those present at the lockup that Ms Gillard said BURF was intended for a start on urgent capital works -- buildings, laboratories and equipment and university administrators would receive their universities shares by June 30 thereby being put on the Government's books for the current financial year.

She also assured her captive audience that: "universities would have until December to submit plans to the Government and would have up to three years to spend the money. She said further university funding, based on a formula still to be finalised, would be made available in July next year."

Universities Australia, through its CEO Dr Glenn Withers said UA: "is pleased that the Government has honoured and funded its pre-election commitments on fellowships and scholarships, extra places, and discounting of HECS, [and] while places, incentives and scholarships are important to encourage growth in the sector, the Government must still address the immediate need for better funding per university place to maintain quality of teaching."

However, "Universities Australia is... disappointed that there was no mention in the Budget of additional funds for student income support and services."

Summing up Dr Withers saw the Budget as a useful "first step towards achieving Universities Australia’s blue print for ensuring Australia has a world class university system that is internationally competitive, domestically strong and innovative".

Professor Kurt Lambeck, President of the Australian Academy of Science gave qualified approval for the Budget saying: "The 50% HECS cut for maths and science graduates who become teachers is strongly supported by the Academy. The question that needs to be asked is what improvements will occur in the secondary school system to enhance science literacy in the community and generate well trained students for our universities who can take up the scholarships and fellowships of the future. Innovative secondary school programs such as CSIRO’s ‘Scientists in Schools’ or the Academy’s own ‘Science by Doing’ programs have not been mentioned.

"For run-down universities the promised spending of $500 million on capital investment in facilities before the end of the fiscal year will be very welcome, as is the creation of the Education Investment Fund. However, the latter is tempered by the fact that the Higher Education Endowment Fund has been rolled into [the Education Investment Fund (EIF)] and that the new fund is also available for vocational education and training institutions. With the new name there is also the possibility that its applications will not be restricted to the tertiary sector in the future. If this occurs, the foreshadowed additional funds would be essential."