Submission Number 118

SUMMARY

Avondale College proposes that the contribution to Australian higher education of Non-Government institutions representing distinctive philosophical viewpoints, especially those supporting humanitarian concerns and service to the community be facilitated by:

• providing ready means for independent recognition of awards.
• removing the financial disadvantage to students who choose a privately supported institution by providing access to loans (of which HECS could be considered a sub-set) and/or vouchers.
• providing staff with access to Government sponsored research grants.

The benefits accruing to society and Government would be:

• a greater diversity in higher education.
• the provision of an incentive which would attract increased private and charitable funding for higher education.
  

BACKGROUND

Avondale College, currently celebrating its centenary year, has been offering degree level courses since the early 1950s. Before external recognition based on the merit of its courses became available Avondale prepared students for the University of London BSc degree and offered BA degrees in conjunction with Pacific Union College (California). Since 1974 Avondale College has offered its own degrees which have been accredited through the various accreditation mechanisms of the New South Wales State Government. At present Avondale offers three masters degrees, two post-graduate diplomas and seven under-graduate degree programs. These courses are augmented by the offering of a cluster of post-secondary courses (certificates, associate diplomas, and diplomas) in the fields of preparatory studies, office administration, business and aviation.

Avondale College is operated by the Seventh-day Adventist Church and receives limited Federal Government funding for its Bachelor of Education programs only. All other programs are offered on a fee paying basis. In that only 16% of its operating budget comes from public monies it is properly viewed as a long standing private provider of higher education in Australia. In recent years Avondale College students in all courses have been eligible to apply for Austudy funding. It should be noted that Avondale College does not restrict its student intake to Seventh-day Adventist students.

Avondale recognises that the terms of reference of the review committee encompass the whole of the higher education sector in Australia but this submission will direct its comments mainly to those issues which impact on private providers generally, and specifically to Avondale College.

Theme one: the role of higher education in Australia's society and economy

Most of the social, economic and technological developments which will continue to shape higher education in the next 20 years have the potential to lead to uniformity rather than diversity. If higher education institutions are to preserve the richness and diversity of our community and to present the contribution of minority segments of our population in an academic setting, then higher education must address issues other than those pertaining to vocation and knowledge.

Avondale believes that higher education must continue to focus students' attention on the large existential questions for humanity: for instance, what does it mean to be human and what does it mean to live? While large institutions have addressed these issues (and will continue to do so) their need to function within a multi-cultural constituency necessitates a certain artificial detachment. Avondale considers it important that within Australian higher education there should remain a place for institutions with a particular point of view. It further considers that it will continue to be important for society to reflect on the perspectives of the traditional Judeo-Christian heritage in the quest for knowledge and meaning. Provided the point of view of the institution is made clear to potential students (and is itself reflected on in the academic program) we submit that engagement with ideas and commitment to values strengthens, rather than inhibits, higher education.

Australian higher education should allow for institutions that make a contribution with a distinctive point of view. Already there are two Catholic universities. It is reasonable that a place be found for a perspective from the wider Christian tradition. This does not envisage sectarian education. It does recognise, however, that other providers may contribute a particular perspective on higher education that enriches it rather than detracts from it. As Bruce Wilshire,, commenting on the US scene, has pointed out in The Moral Collapse of the University (p233) "Our times tend to overestimate the dangers of ideologies …. All inquiry is interested". It becomes more a question of whether a tolerable balance exists. It should not be unusual if a college or university develops a distinctive point of view. There would be more reason to be concerned if it didn't.

Avondale suggests that the Government's role should be to develop policies which do not disadvantage providers who can contribute to the diversity in Australian education. In this submission we suggest areas that need consideration in this respect

Theme two: Factors affecting the demand for and provision of higher education over the next 20 to 30 years

The original justification for Government support for private schools was to offer the community a choice in education, including the distinct forms offered by the churches. This was then taken to imply that Non-Government providers should receive assistance in teacher training. Community attitudes show that this is even more important to Australians now than when it was first introduced and, at a minimum, policy decisions should not disadvantage the access of students to private higher education.

Increasing administrative complexity (one example only: coping with a higher proportion of part time students), the utilisation of technology on education delivery, the provision of flexible, or multiple, delivery programs to meet the wide range of student type all place pressures on the cost of delivery of education. International trends are to meet these increased costs by increasing student numbers and achieving economies of scale. Technology is making it easier for the growth of mega-universities.

One danger of the use of technology to grow mega-universities is the tendency that human relations will become more distant, the education process will be more impersonal, social relationship skills will become more difficult to develop, and values that speak to the core needs of society will tend to be ignored. This trend is juxtaposed with current events in public life and business which illustrate the importance of producing graduates of integrity and commitment to traditional moral and ethical values and to humanitarian service.

A further caution has been raised in recent studies concerning the plight of the socially disadvantaged. Learners from these backgrounds need direct human contact and encouragement to learn successfully. Small institutions are better positioned to bring the best out of all students thus increasing the probability of success for the marginal student. This is important when broader access leading to a higher participation rate is being encouraged in higher education and yet the high first year attrition rates in many disciplines in the public universities are causing concern.

Where Government funding can be used to encourage additional private investment in smaller private institutions, policy should facilitate this.

Theme three: regulatory and administrative framework for higher education

Competition Policy

At the present time it is difficult for a private provider of a range of fully accredited degree programs, such as Avondale, to achieve recognition as a university. Different States have taken different approaches to the recognition of private universities. If Avondale, as a private provider, is to maximise its potential and provide higher education at minimal public cost it is important that barriers to fair competition are removed. There is a readily identifiable niche market for Avondale.

For its Bachelor of Education courses Avondale College receives Commonwealth funding on an annual contract basis. This block grant precludes further tuition fees for our education students. However Avondale must meet all infrastructure and development costs for the program: costs which public sector institutions do not have to meet. This places us at a competitive disadvantage.

Now that approval has been granted for Australian universities to enrol local full fee paying students, Avondale is placed at a disadvantage in respect of its other courses which are offered on a fee paying basis. This is inequitable and a mechanism needs to be put in place to remove this inequity.

Quality Assurance

As a private provider Avondale believes that market forces and consumer satisfaction will ensure quality control. However, it is important that within the administrative framework for higher education provision remain for non-university private providers to have ready access to mechanisms that ensure independent recognition of awards.

Theme four: financing higher education teaching and research training

A number of options for funding higher education are currently under discussion. It is important to Avondale that its students be eligible to benefit from any modified funding arrangement. Avondale advances two arguments in favour of this proposition.

• Students should be allowed the liberty of seeking their education from private providers and should not be penalised because of their choice.
• It would be cost efficient for the Government to inject partial funding into an arena where the balance is provided by student fees, private organisations and charitable institutions.

Higher Education Contribution Scheme or a student loan scheme.

In effect HECS is a Government funded loans scheme to enable students to meet a proportion of the cost of their higher education. For students in the public sector the remainder is met largely by Government funds, supplemented by other income to which universities have access. Private providers tap into further additional funding. Avondale argues that the short term cost of providing HECS support for all private students in formally accredited courses would in the medium and long term be more than outweighed by the benefits of the additional places that would be taken up in private institutions.

Avondale students do not come from wealthy backgrounds. Avondale is chosen by students attracted by its educational philosophy, its residential nature, the provision of special services that a small size permits, and the opportunity to be part of a community espousing an identifiable value system. Most of these students have qualified for similar academic programs in public universities but, at significant cost to themselves and their families, they have selected Avondale.

Commercial loans offered by banks and other finance providers are not accessible to all students. An alternative to the extension of the HECS scheme would be the provision of loan funds by the Government to assist students finance their own higher education.

Vouchers

Avondale College strongly supports the concept of providing students with vouchers for higher education. In this way quality control would be driven by survival considerations and an institution meeting a niche market would not be unfairly penalised.

Theme five: funding of higher education research.

Avondale submits that staff in all higher education institutions, including private institutions, should be eligible to apply for Government sponsored research grants.

CONCLUSION

The Government can enrich, improve, and add to the diversity of higher education in Australia by introducing policies that cooperate with the private sector and encourage (rather than discourage) the injection of additional Non-Government funds into higher education. Avondale welcomes the opportunity to discuss these issues further with the committee.