Education Investment Fund Gets a Board and is Reported to Set Up to Allocate "Bonus" Funding. (February 17, 2009)

Mr Philip Clark, Chair, EIF

Andrew Trounson reports in The Australian that an "announcement is expected later today approving a "bonus" funding round from the $8.7 billion Education Investment Fund" (EIF) as part of the government's economic stimulus package.

This coincides with the Minister for Education, Julia Gillard's and the Minister for Research and Science, Kim Carr's joint announcement that a six member board has been appointed to the EIF.

Philip Clark, Chairman, is a member of the J P Morgan Advisory Council. He was Managing Partner and CEO of Minter Ellison and worked with that firm from 1995 until June 2005. Until his retirement from the Business Council of Australia in June 2005 he was a member of the BCA and served on the BCA Education Task Force. He was the BCA representative on the RQF Expert Advisory Group and the RQF Development Advisory Group. Mr Clark holds a Bachelors degree in Arts and Law from Sydney University and an MBA from Columbia University.

The five other members of the board are:

• Dr Cherrell Hirst -- Dr Hirst was awarded the Centenary Medal for distinguished service to education and medicine, and was made an Officer of the Order of Australia in 1998 for service to medicine and to education as Chancellor of the Queensland University of Technology.

• Dr Michael Vertigan -- Dr Vertigan is a former Chancellor of the University of Tasmania, and previously was Secretary of several Victorian and Tasmanian government departments.

• Professor Penny Sackett -- Professor Sackett is Professor of Astronomy at the Australian National University and currently holds a five year appointment as Australian Government Chief Scientist.

• Ms Lisa Paul PSM -- Ms Paul is Secretary of the Department of Education, Employment and Workplace Relations.

• Mr Mark Paterson -- Mr Paterson is Secretary of the Department of Innovation, Industry, Science and Research.

According to Mr Trounson, to date "the government hasn't given the EIF board any guidance on the amount of money it is prepared to fast track out of the fund. The final amount is expected to be decided as part of the budget process".

And Universities Australia says: "This is clearly a bonus round, additional to the previously planned funding schedule."

The deadline for funding applications is March 2 and the EIF board expects to forward its recommendation to the government by early April, which could allow funding to begin with the start of the financial year.

Previously the Rudd government had allocated $580 million of EIF funds to universities in December. Additionally the government provided $1 billion in one-off infrastructure funding for universities and vocational education and training.

The "bonus" round is geared to fund specifically university and research institute projects equal to or greater than $15 million. Vocational education and training providers have a floor of $5 million.

It is surprising and disturbing that of the six-member board only one (Professor Sackett) is a practicing academic and researcher.