Media Release
FACING THE CHALLENGES IN FINANCING AUSTRALIAN
HIGHER EDUCATION
MIN 131/02 25 July, 2002
The financing of Australian higher education is one
of the most debated aspects of the current Review of higher
education.
Many submissions to the Review have proposed
alternative approaches to university financing, but there is almost
universal agreement that the current arrangements require change.
There is a strong view that the current ‘one-size-fits-all’
funding model is constraining excellence, diversity and student
choice.
The third in a series of discussion papers, Setting
Firm Foundations: Financing Australian Higher Education, reviews
the current funding arrangements for higher education, examines the
issues critical to any reform of these arrangements and canvasses
some possible ways forward. The paper does not propose any preferred
options.
This paper follows on from the overview paper, Higher
Education at the Crossroads, which broadly outlined the
challenges facing higher education, and Striving for Quality,
which explored issues relating to teaching and learning.
Setting Firm Foundations focuses on issues
relevant to, and possible mechanisms for, the development of new
flexible, accessible and equitable financing arrangements for higher
education. It does so on the basis that the long-term prosperity of
our higher education system needs to be assured.
The paper canvases a range of issues for
consideration and discussion, including:
- How large should the Australian higher education sector be?
- What is the best mix of public funding mechanisms to promote a
high quality and responsive higher education sector?
- What are the options for further increasing funding sources
for higher education?
- What are the options for the funding of research in higher
education?
- How do we determine a funding model that enables sufficient
flexibility for institutions to pursue their strategic
objectives while providing sufficient choice for students?
In considering these issues, the paper canvasses a
number of possible ways forward, as drawn from debate and
submissions to the Review. These options are not exhaustive, nor do
they represent Government policy. There are other models and
variations on those presented. The examples are intended to serve as
the basis for discussion about how best we can achieve effective,
sustainable financing arrangements.
In parallel to this Review, the Productivity
Commission is undertaking an international comparative study of
university financing arrangements. The results of this study will be
taken into account in developing recommendations for the Government’s
consideration towards the end of the year.
Further discussion papers will be issued in the
coming weeks focusing on areas such as diversity, specialisation and
regional engagement; indigenous involvement in higher education;
governance and workplace relations; and the interface between higher
education and vocational education and training.
A dedicated Secretariat within my Department has
been working on the Review and a Reference Group has been assisting
to guide the consultation process.
The Review will conclude towards the end of the year
with a forum to consider all the issues raised and the subsequent
development of a package of policy measures for consideration by
Government.
Setting Firm Foundations, together with previous
discussion papers can be accessed through the Department of
Education, Science and Training website at www.dest.gov.au/crossroads.
A summary of the issues raised in Setting Firm
Foundations is attached.
Copies of the full report are also available by
contacting my Canberra Office on 02 6277 7460.
For further information:
Dr Nelson’s office: Yaron Finkelstein 0414 927
663
DEST Mark Giffard 02 6240 8532
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