Review of Higher Education Financing and Policy

Submission to the Review Secretariat

Anglican Education Commission
Diocese of Sydney

Grant Maple
Assistant Director

The Anglican Education Commission, Diocese of Sydney is most grateful for the opportunity to respond to the Review of Higher Education Financing and Policy.

The Commission’s response is limited to three aspects:

• the wisdom of conducting discussions about education in the discourse of economic rationalism and managerialism (The Terms of Reference)
• the role and purpose of higher education (Theme 1)
• equity and access considerations with respect to finance and policy (Themes 3, 4 & 5)

A. The nature of educational discourse and the Terms of Reference

1. Economic rationalist discourse and managerialist assumptions:

Much has been written in recent times about the replacement of the welfare state by the competition state with the loss of the notion of social or public good and the adoption in its place of the new economistic rhetoric of individual rights, efficiency ideologies, market mechanisms and choice. With it have come the managerial concerns with structures, funding and governance.

The Commission welcomes the wide ranging nature of the Terms of Reference for the Review. It would caution the Review Committee against the too ready acceptance of economistic discourse as the most suitable way of presenting its recommendations to government.

The Anglican Education Commission is of the view that this development is not in the best interests of universities. Management of universities is increasingly divorced from their teaching and research functions. The economic rationalist concerns about accountability, efficiency and competition mean that many academics spend considerable time on the preparation of funding applications and less time on teaching, scholarship and research. The growth, imposed by the Dawkins reforms, of 'megaversities' with multiple campuses and large student numbers has also increased bureaucratic tendencies and multiplied the number of committees needed for the university to continue to function. With downward pressures on staff numbers, this can only be at the expense of quality teaching and quality research.

It is recommended that the needs for policies and mechanisms which will lead to quality teaching and quality research should be kept to the forefront in all the Review Committee's considerations.

2. The impact of the Unified National System

Vice Chancellors and other senior academics have been forced, particularly since the introduction of the Unified National System, to become line managers on the model of large corporations. As a consequence, they have been prevented from giving the level of academic leadership to their universities and the wider community that they often did in the past The increased turnover rate of Vice Chancellors may be indicative of the often irreconcilable demands placed on them by government, which expects them to be efficient corporate managers with the implication of accountability and uniformity of product, and by the university itself, which expects them to encourage collegiality, diversity and free inquiry. Further difficulties have arisen in some cases because of political interference in the governance.

The ever-increasing amount of regulation and compliance requirements has led, not only to the growth of the central bureaucracy in the Department of Employment, Education, Training and Youth Affairs, to the expansion of the bureaucracy in each university.

It is recommended that the Review Committee look at this to determine whether accountability for the use of public funds can be achieved by other less bureaucratic means than at present. The Commission also urges the Review to examine the assumption that commercial techniques are appropriate for measuring the productivity and efficiency of large educational institutions. In particular, the use of only quantitative criteria for the evaluation of effectiveness in research may well suit some fields where continuous new developments limit the extent to which a piece of research will have influence, but may be entirely inappropriate in disciplines where fresh approaches may take decades to receive full recognition.

It is also recommended that attention should be given to the problem of low morale in many universities, particularly in disciplines which have been subjected to constant pressure to downsize as a result of the current managerialist fad.

The attempts by all universities to offer a similar range of programs has led to an unnecessary duplication of courses of study by institutions which might have been better served by entering partnership arrangements with others or by cross-crediting arrangements. The proliferation of law and business schools and the squeezing out of less economically attractive, but valid and valuable, academic programs exemplifies this.

It is recommended that the Review be cognisant of the wastefulness of unnecessary duplication in its consideration of all five themes.

B. The role and purpose of the contemporary Australian university (Theme 1)

1. General

The Commission recognises that the role and purposes of universities have changed over time in response to changes in their operating environment. The complex pluralist nature of modern Western post-industrial society will inevitably mean that universities are called upon to serve disparate and sometimes conflicting purposes. The Commission considers that it is important that the public be engaged from time to time in defining the roles expected of universities and other providers of post-school education and the extent to which courses of study should be publicly subsidised. The present Review should be seen as part of an ongoing process.

It is recommended that procedures should be put in place to enable periodic community input into definition of the roles expected of universities. It is also suggested that the report’s recommendations ensure that individual universities be assigned the freedom to respond to change in appropriate ways in order to meet present and future needs.

2. The purpose of post-school education

The deliberate collapse of the binary system and forced amalgamations of higher education institutions under the Dawkin's reforms paid scant attention to the purposes of post-school education and even less to the needs of the student. The tendency for underfunded vocational education providers to expand their activities to capture a greater share of students has meant the expansion of this sector into what was originally the province of the Colleges of Advanced Education.

It is recommended that the Review Committee consider, in the light of its understanding of the purposes of post-school education and the needs of students, whether there are justifications for introducing a state college level of education offering diplomas and first degrees, so that the research and scholarship functions of the university are not overwhelmed by the need to teach ever increasing numbers of students with fewer academic staff, and so that the vocational functions of the TAFE sector do not become submerged by community college-type activities or by the desire to offer higher qualifications. In the light of past experience, some attention needs to be given to preventing bracket creep by institutions.

In recent times the strong emphasis on competitive research funding and quality assurance has, in the Commission's view led to a diminution in the importance of non-research scholarship, where the conservation, criticism and reworking of knowledge takes place. The Commission contends that full recognition should be given to the importance of this dimension of Higher Education, particularly in the context of the knowledge explosion presently occurring.

It is recommended that the Review attempt a statement of the purpose of post-school education which gives due account to the pluralist nature of society, the teaching, scholarship and research functions of the university, the vocational preparation function of the TAFE sector, and the needs of the learner, including appropriate access to stored knowledge whether in print or electronic form.

3. The student as learner

The Commission contends that the personal dimension of education should be based on an agreed anthropology which sees people as more than producers and consumers in an economic system. A university education should afford the student the chance to consider all points of view on any subject and the opportunity to develop intellectual, moral, aesthetic and spiritual skills and understanding as well as the practical and vocational capabilities. Among the anticipated outcomes might be a commitment to lifelong learning, the development of a coherent system of personal beliefs and values, enhanced aesthetic appreciation, a passion for truth and justice, and a willingness to serve the community which has conferred the personal benefits of education. Vocational education will be more employment focused but also needs to have an ethical component so that the student is able to recognise obligations to the community.

It is recommended the Review issue as part of its report a public statement which defines the responsibility of the Higher Education sector towards its students.

4. The future

A review of the changes of the past twenty years shows the futility of extrapolating from present trends what the pattern of society might be like in twenty years time. The only incontrovertible conclusion is that rapid change will continue in the foreseeable future. It is important that universities be empowered to be responsive to change by granting them the maximum degree of flexibility.

It is recommended that close attention be paid by the review to the amount of bureaucratic regulation of the university system with a view to its reduction and a corresponding reduction in the administrative staffing levels of universities. Consideration should be given to the reintroduction of an independent Universities Commission to overcome excessive bureaucratisation and government interference to give short-term political advantage.

It is also recommended that the governing structures of universities be reviewed to provide greater representation of those who can lead these universities to be responsive to future needs. This will probably mean fewer political appointments and less emphasis on graduates for graduates sake. Business and legal representation should be adequate but not dominant.

5. General education versus early specialisation

It is recognised that a difficulty facing those who design degree courses is the extent to which a balanced offering can be achieved in the context of the knowledge explosion of the last fifty years. This task will undoubtedly become more demanding in the future.

It is recommended that consideration should be given by the Review Committee to:

• whether some Australian university students are forced to specialise too early (including the downward effects on school curriculum during the post-compulsory years leading to matriculation) compared with their Asian and North American counterparts;
• whether, in view of the additional requirements being imposed on students after graduating before they can enter professional practice, a variety of entry points and diversity of courses is desirable so that entry into some professions does not become restricted to those able to sustain five or more years of full-time tertiary study (which would be socially discriminatory);
• whether the introduction of graduate entry requirements by some universities for some professional courses (most notably Medicine) is socially discriminatory in view of the heavy costs and the need of many students to support studies with significant part-time employment.

6. University libraries

Any consideration of funding must give due consideration to the critical place and function of the university library as the centre of discovery and learning for undergraduates and as the foundation for effective research in the humanities and social sciences. It is recognised that the role of the library is changing under the influence of developments in information technology.

It is recommended that careful consideration be given, in the light of their needs to develop monograph and serial collections while at the same time developing electronic means of information retrieval, to the adequacy of present funding of libraries and possible ways of remedying deficiencies, including the greater sharing of resources between universities in the same locality.

7. Engagement of the community and the public good

The concept of the ‘public good’ must be addressed for a proper consideration of the university’s role. This will involve value judgments about social goals. The Commission urges the Review Committee to give consideration to the benefits universities confer on society as a whole. It is contended that these should include the gains to persons other than those receiving tertiary education, the gains for future generations, the social benefits deriving from the discovery of talent, the resultant occupational flexibility in the labour force, the stimulation of research, the encouragement of responsible behaviour, the development of competent national and local leadership, social cohesion, the widening of intellectual horizons, and the generally enhanced enjoyment of life. The Commission contends that self-interest (in the form of capturing individual benefits together with the individual unwillingness to pay more in taxes) can too easily obscure a proper consideration of by what means the public good may best be served by universities and other public institutions.

It is recommended that consideration be given to:

• whether individual universities might better serve the public good through having greater autonomy from bureaucratic compliance requirements and by developing a stronger commitment to educational values from their own distinctive ethos;
• whether the national interest would be best served by officially scrapping the concept of a unified national system and by allowing greater diversity among universities;
• whether twenty years of tightening funding and the uncertainty arising from the politicisation of funding and its link to short electoral cycles has prevented universities from laying longer-term plans;
• by what means university staff salary increases are to be funded in the future and whether it is desirable, in order to attract world class staff, to permit a free market to operate with respect to academic salaries.

8. Research

In the context of limited funding, the Commission believes that any consideration of research raises the questions of whether all university academics should be conceded the 'right' to one-third of their time being subsidised by the public purse for research. The questions also arise as to whether there should be differentiation between universities or centres within universities so that some are recognised as research universities or centres and others are not.

It is recommended that:

• the Review examines the benefits deriving from the reconfiguring of academic salaries to isolate the research component and adding this to other Commonwealth research funding so that the whole is distributed on the basis of competitive tendering with an attempt to retain inter-disciplinary relativities;
• the Review examines the possibility of the allocation of specific funds to competent researchers to allow them to teach research methods to students showing research capabilities; and
• the Commonwealth ensures that sufficient funding is available for research infrastructure, to promote research that is demonstrably in the national interest, and to provide seed funding for promising young graduates to commence careers in research.

9. Articulation and pathways

It is also in the best interests of the majority of individuals that pathways between school, TAFE, employment and universities be as open and flexible as possible to promote inclusiveness and to open opportunities for further and higher education for as many people as possible.

The Commission endorses moves made in the last few years to enhance open and flexible transfers between sectors and institutions.

It is recommended that the Review consider whether, in order to meet the broad range of student needs, there is a requirement for a differentiated third level of post-school education with suitable articulation into university and vocational education (see under 2 above).

Equity and justice in finance and policy decision making

(Themes 3,4 & 5)

1. General equity considerations

The Commission wishes to make the following points:

• Accessibility of higher education to people of appropriate ability from all social, cultural and religious backgrounds and at all age levels is an essential dimension of educational policy. This does not necessarily imply that it should be into any course in any location.
• Arbitrary decisions should not be made about the percentage of an age cohort which should be afforded a university education. However, any further lowering of the level of entry into most courses is undesirable and the payment of academic salaries to provide bridging courses for under-qualified matriculants should be discouraged.
• The public benefits from university education mean that as many as wish to avail themselves of higher education and can demonstrate the necessary skills to make satisfactory progress should be allowed a place.
• Access to specific vocational postgraduate training for those with general degrees in arts or science should not be denied to students. This will have equity implications if these courses are full fee-paying and there is no alternative undergraduate entry into such a course. They may be placed out of reach of those from less advantaged socio-economic backgrounds.
• In double degree programs, where the first degree is compulsory, the second degree should be HECS-based and not full-fee.
• Degree shopping and the pursuit of esoteric programs should not be encouraged at public expense when others are forced to go without education or other welfare needs because of limited public resources.

It is recommended that the Review give consideration to the equity implications of the growing tendency towards prolonging the years of study needed to obtain professional qualifications. It is not in the interests of those from less advantaged socio-economic groups, nor is it in the public interest to divert funding from other social welfare programs to education to finance such an expansion.

2. Equity, rate of progress and optimum use of infrastructure

It would appear to be in the interests of the community as a whole that university facilities be used to the maximum and it is also in the interests of some individuals that courses be completed in the shortest possible time while others are forced to engage in considerable part-time employment to finance their studies, often necessitating the prolongation of an academic program beyond the minimum time.

It is recommended that the Review give consideration to the possibility of restructuring the academic year to create three semesters and so facilitate faster progress for students than is possible under a two semester a year regime.

3. Equity and public financing of universities

There is insufficient evidence that the present level of public funding for universities is unaffordable for the Australian community. It is important that after twenty years of funding cuts that a period of stability in funding and policy be established.

It is recommended that the Review considers what reforms of the taxation base would enable a stable and appropriate level of public contributions to university funding into the future.

It is also recommended that the Review gives consideration to the possibilities of state governments making a contribution to the funding of universities commensurate with the benefits they derive from the employment of university graduates. This might take the form of significant scholarships or traineeships which could also ensure that the number of graduates more closely approximates the numbers needed in particular professions such as nursing and teaching. Such a provision could do much to lift the standard of entrants into these important professions.

4. Business' obligation as a beneficiary of more highly skilled workers

While the present division of funding responsibility is limited to the student and the Commonwealth (in a ratio of approximately 1:2), another beneficiary is business in the form of gaining employees with enhanced skills.

It is recommended that the Review Committee explore ways in which business can contribute an education levy through the taxation system in order to fund research and student places, particularly in vocational courses. Along with this there might be reciprocal and interactive arrangements between universities and the professions to provide input and feedback on matters related to research and training.

5. Access and equity for non-metropolitan students

The cost associated with maintaining a student away from home is now in excess of

$10 000 per annum, exclusive of fees or HECS liability. The low level of assistance through AUSTUDY does little to compensate for this. Long intensive full-time courses (such as Medicine, Veterinary Science and Dentistry) are beyond the financial capabilities of many non-urban families.

It is recommended that the Review consider the impact of present policies on access to university places for non-urban students and the impact of present AUSTUDY arrangements on their ability to take up university places.

6. Possible retrogressive effects of fee-paying undergraduate courses

The scope given to universities from 1998 to admit an additional 25% of fee-paying students into a course will inevitably mean a weakening of smaller and regional universities as they lose more students to the major metropolitan universities. The promise by the latter to apply some of the extra income to providing opportunities for less wealthy students to enrol in their courses will further exacerbate the negative impact.

It is recommended that the Review Committee evaluate the impact policies relating to fee-paying undergraduate places have on rural communities which already suffer from disadvantage with respect to accessibility in comparison with their metropolitan counterparts.

7. Equity and access consideration arising from new technologies

The impact of interactive multimedia technologies to service rural and isolated students may increase the accessibility of high quality courses. It may also negatively impact smaller and regional universities and their communities, if they are not able to compete in the high development costs of such courses. It may ultimately damage every Australian university’s capacity to serve the community if highly regarded overseas institutions compete with Australian universities for the limited numbers of available students. In the longer term this will also lead to the diminution of overseas full fee paying student numbers.

It is recommended that consideration be given to ensuring that Australian universities are well prepared to meet the challenges of new technologies and international competition.

8. Inequities with respect to students at private higher education institutions

Under the present funding arrangements, areas of disadvantage occur because of the artificial divide between students attending private higher education institutions belonging to the Unified National System and those which do not. There has also been a marked reluctance to recognise the national benefits deriving from those trained outside the public university system for the ministry of Australian churches. A survey of the huge amount of community welfare and support they co-ordinate illustrates their national importance.

It is recommended that consideration be given to addressing the inequities at present existing between those institutions inside and those outside the present Unified National System.

9. Conscientious objection and the pluralist society

The public recognition of associational and contextual pluralism raises the issue of the relationship of the state to those who conscientiously do not feel they can participate in a secular higher education system. The Commonwealth since 1963 has accepted the fact of structural pluralism with respect to schooling. A similar case can be made for community acceptance of a mixed public and private education system at the level of higher education to enable similar entitlements for those students who are conscientiously unable to participate in the public universities. This implies access to HECS and AUSTUDY/ABSTUDY. (Objections that private higher education institutions are not answerable to the public and therefore should not be funded do not take into account the significant regulation imposed by each appropriate state authority on degree-granting institutions, the extent to which professional associations limit access of graduates to membership and the fact that funding is a student entitlement for a place, not funding of an institution.)

It is recommended that the Review consider the matter of the non-discriminatory entitlement of all qualified students in making its recommendations.

10. HECS and equity

The availability of HECS for all Australian students engaged in higher education is, in the Commission's view, a matter of social justice. The wisdom of placing science and engineering courses in the middle and upper HECS bands must be questioned because many science graduates demonstrably earn less than their counterparts in other disciplines.

It is recommended that the impact of stratified HECS liability be carefully monitored to ensure that its impact on science and engineering courses is not retrogressive.

11. Long-term impact of accumulated HECS debts

Anecdotal evidence suggests that the longer term impact of HECS cost-recovery may be negative with respect to family building and home ownership. This is further compounded for families without access to local universities. Such trends are not in the best interests of the nation which already suffers from low rates of natural increase of population.

It is recommended that the impact of HECS liability on graduates be monitored to determine its impact with respect to family building and home ownership.

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