Two Years Into the Job UNSW V-C Fred Hilmer Talks Sense - Will Messrs Rudd and Carr and Ms Gillard Listen? (August 13, 2008)

Fred Hilmer took over the Vice-Chancellorship and Presidency of the University of New South Wales in June 2006.

Mr Hilmer was for seven years CEO of John Fairfax Holdings Ltd and prior to joining Fairfax he was Dean and Director of the Australian Graduate School of Management (AGSM) at the University of New South Wales.

He obtained a degree in law from Sydney University, a Masters in Law from the University of Pennsylvania, and a Masters of Business Administration from the Wharton School of Finance.

In short his background is academic and business administration with an understanding of the law.

His opinion piece in today's Australian sets out several touchstones worthy of the Rudd Labor government's very serious consideration.

Mr Hilmer sees "fragmentation" of resources as being the major problem besetting the university sector, and "[w]ithout leadership from the Prime Minister and the Deputy Prime Minister we will not have an effective revolution in higher education".

And while additional funding is a necessity it of itself is not sufficient: "there is little or no co-ordination [of resources] and no coherent funding strategy...[you might expect funding for] 90 extra undergraduate places in medicine would at the same time [carry] money for new laboratories in which to teach them. Wrong. Or that if a university was given $18 million for research it would receive capital funding for a building to house the researchers. Wrong again."

Mr Hilmer sees the problem emanating from the fragmentation of the sources of funds and the lack of co-ordination between them.

However, it is or has been deeper than that, i.e. a disinterest in substantially improving the resourcing of the university sector together with instruments to demoralise it: the former government's introduction of Work Choices for universities and Voluntary Student Unionism being two blatant examples.

If it's the case that the Rudd Labor government doesn't suffer from the Howard Coalition's paranoia, at least the beginning of a cure is at hand.

A major perversion as Mr Hilmer sees it, "is the financial incentive [for the universities] to grow at all costs".

And where does this lead? "Unfortunately not in areas where the need is greatest, such as engineering, but where the HECS contribution is highest, such as business and law."

Another perversion: "It's much easier to get funding for new buildings than money to maintain existing plants. So we have an incentive to grow while at the same time our facilities are decaying."

Then of course there is the pork-barrelling but that really has been a minor issue up until now. If the federal government does get serious about resourcing the sector, then it may very well become an issue.

So what is the UNSW vice-chancellor's major recommendation? "[W]e need an independent co-ordinating mechanism that will promote predictable, strategic funding for the sector. One of our major recommendations to the Bradley Review into Higher Education is to establish an independent higher education advisory body, linked to the Department of Prime Minister and Cabinet."

If it comes about let's hope it will have greater influence than the Prime Minister's Science, Engineering and Innovation Council (PMSEIC) had with the Coalition government.

Note: Back in April Prime Minster Rudd said in reference to the 18^th PMSEIC meeting, the first during his government:

Today I heard from the Innovation Minister Senator Kim Carr and Dr Terry Cutler about the progress of the National Innovation System review and the core role this will play in formulating the Government's productivity and social agenda.

Innovation, science and research are central to advancing our agenda for a globally competitive Australia – they are not a marginal interest but a key force in driving our economy.

I presented council members with a number of challenges and asked for their best advice on:

• Getting young Australians excited by science and maths;

• Creating new careers for aspiring mathematicians and scientists, in the academy and industry;

• Building a new science and innovation system that can deal with the rise of giants in our region like India and China; and

• Commercial application of Australians' discoveries.

The date of the next PMSEIC meeting is yet to be advised. And what will be the results stemming from Mr Rudd's four directives?

We shall just have to wait and see.