SMH
States may lose control of unis
By Orietta Guerrera
Canberra
November 2, 2004
Australia's universities would become the sole responsibility of the Federal
Government under a radical plan for states to surrender higher education
powers.
Federal Education Minister Brendan Nelson says he has already had informal
discussions with "senior people in one or two states" about Canberra taking
full control of universities.
Discussing the plan in an interview with The Age, Dr Nelson accused the
states of treating many universities as like "quasi" government departments
and of restricting their ability to work with the private sector.
Under existing arrangements, the Commonwealth is responsible for public
funding of higher education, but states retain a key role in running
universities.
If the changes went ahead, Canberra would take over responsibility for
appointing board and council members. Universities would also be audited by
the Commonwealth, and have their financial reports tabled in Federal
Parliament.
Dr Nelson's proposal comes amid a wider debate on the division of powers of
state and federal governments.
NSW Premier Bob Carr has suggested states hand over control of hospitals to
the Commonwealth in exchange for control of schools and technical colleges.
Under the Australian Constitution, education is the responsibility of states
and territories, but in 1974 the states agreed to transfer public funding of
higher education to the Commonwealth.
The idea of handing over the remaining state powers over universities was
raised by the NSW Government a fortnight ago. The state's Education
Minister, Andrew Refshauge, said the Commonwealth already exercised "de
facto control" of universities through its funding, while universities faced
two layers of accountability.
Yesterday Dr Nelson said the idea had "merit" and he would write to state
education ministers proposing they meet to discuss the proposal. "I'm not
prepared to engage in any debate about who should or shouldn't take over
hospitals," he said.
"But as a stand-alone issue, if you want high-quality internationally
competitive universities in this country, it is a prescription of long-term
mediocrity to have one tier of government responsible for their enabling
legislation, and another primarily responsible for policy and funding."
Victorian Education Minister Lynne Kosky said she would be apprehensive
about handing over university powers, but said the Government would be happy
to discuss the plan with Prime Minister John Howard and the other state
premiers.
Ms Kosky said what Dr Nelson was proposing was only "tinkering on the
edges", and that Victoria would like talks to include a broader package of
transfer powers including schools and vocational education. "They can't just
cherry pick what they want," she said.
Australian Vice-Chancellors' Committee chief executive John Mullarvey said
he believed there would be little support for the idea among
vice-chancellors. "I think they would be concerned about putting all of the
powers both for funding and additional regulation all in the hands of one
body," he said.
In other comments yesterday, Dr Nelson ruled out further university fee
deregulation, saying he would not increase HECS fees or the number of local
full-fee students allowed in a course beyond the changes that take effect
next year. "We've already implemented a limited fee deregulation, I do not
propose to go any further than that," he said.
Dr Nelson confirmed that the Government would reintroduce legislation to
lift restrictions on individual workplace contracts and casual employment in
universities, and to abolish compulsory student unionism.
The Government was forced to abandon these proposals to get its higher
education package passed last December, but from July 1 it will have the
Senate majority it needs to pass the changes.
In a win for the vice-chancellors, Dr Nelson reassured them that an inquiry
into the indexation of government grants to universities would proceed, and
the Government would move to scrap unnecessary red-tape on universities.
He also said he would submit a proposal to Cabinet to remove the $50,000 cap
on loans available to local full-fees students.