Labor Government's Analysis for Higher Education Funding 2001 -2012. (May 18, 2011)

The Labor Government today released its analysis following the 2011 budget. The joint media release from Senators Evans and Carr, Ministers for Tertiary Education, Skills, Jobs and Workplace Relations, and Innovation, Industry, Science and Research respectively states: "The new analysis shows that Commonwealth expenditure on higher education – through both funding for teaching and learning and for research – is projected to increase to $13 billion in 2012. That is up $5 billion from $8 billion in 2007, and over $3 billion more than the projection to 2012 of the Coalition’s funding trend from 2001-2007."

The figures (see chart below) are given in "nominal dollars", i.e. not adjusted for inflation, and if the trend line for the Coalition is taken from 2004 through 2007 the nominal dollar difference is $2 billion rather than $3 billion, still a marked increased, but we believe a truer comparison.

If we calculate inflation from 2007 through 2012 to be 16% HE expenditure in 2007 would be $9.3 billion in terms of 2012 dollars giving a real increase of $3.7 billion, certainly sizable, but significantly different from $5 billion. In addition by manipulating the trend line for the Coalition as it has done, Labor calls into question its objectivity in assessing the relative support by the two governments. It's quite unnecessary and just makes Senators Evans and Carr look shabby.