Fed: Govt denies $1 billion funding cut for universities

AAP General News (Australia)
12-27-1999
Fed: Govt denies $1 billion funding cut for universities

By Debra Way

CANBERRA, Dec 27 AAP - The federal government today denied accusations it had decided
to cut university funding over the next three years by $1 billion, saying operating grants
had actually been boosted.

The opposition said the government's three year federal funding statement showed the
commonwealth's contribution to higher education would fall back to just over $4 billion
in 2002, down from almost $5 billion in 1996.

University fees and charges would have almost doubled to $2 billion in the period from
1996 - when the coalition came to government - to 2002.

But a spokeswoman for Education minister David Kemp said the allegations of a $1 billion
cut to university funding were untrue.

"The government has made no cuts to government spending in higher education," she said.

"In fact an increase of $259 million is being injected into higher education by the commonwealth.

"The funding report actually shows university revenues are at a record high of $9 billion."

Labor's education spokesman Michael Lee said the government's funding forecast, released
on Christmas Eve when most universities were on holidays, would lead to the dumbing down
of the nation.

"A year ago Dr Kemp announced, almost on Christmas Eve, that he was going to attack
student unions through his voluntary student union legislation and it is almost like he
has an Ebenezer Scrooge habit on Christmas Eve of releasing unpopular announcements right
before Christmas," Mr Lee told ABC radio.

National Tertiary Education Union spokeswoman Julie Wells said the statement confirmed
a trend of reduced government investment in higher education.

"Part of it is due to the increased returns government is getting from HECS," she told ABC radio.

"Students are paying more for their higher education than ever before and that money
is flowing straight to government coffers.

"It is not going to the universities which remain cash-strapped."

Mr Lee said students were being hit for more and more money in the way of fees and
charges to pay for their education.

"This report demonstrates that as the university fees have doubled as announced in
the 1996 budget, year-by-year that's applying to more students; as the government's increased
fees hit the students, the government is actually retreating in its investment in higher
education," he said.

Dr Kemp's spokeswoman said the funding report showed that in 2002, university operating
grants would be significantly increased to nearly $5.3 billion.

AAP daw/pjs

KEYWORD: UNIVERSITIES

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