Deakin says unis and students have done their bit for budget repair

Media release
27 April 2017

Deakin University Vice Chancellor Professor Jane den Hollander has declared "enough is enough" after new analysis shows universities and students have already contributed $3.9 billion to rein in the Federal Budget deficit since 2011.

Fending off any further cuts in the May 9 Budget, Professor den Hollander said “when it comes to the heavy lifting of Budget repair, Deakin – like all universities – has done more than its fair share.”

“Any further cuts that affect student affordability or put at risk access and the quality of education and research would be beyond the pale, most particularly for those in outer metropolitan suburbs and regional Australia.

“To ensure Australia’s prosperity, we must have strong universities that compete internationally. Let's invest in our future and in the next generation. Unnecessary cuts simply hurt one of Australia's most successful enterprises – higher education. Who does this advantage? Certainly not Australia.”

Professor den Hollander said new Universities Australia analysis found some of the major cuts across 89 Budget measures between 2011-12 and 2016-17 included:

  • Reductions to Student Start-up Scholarships ($1.41 billion);
  • Cuts to the Sustainable Research Excellence (SRE) scheme ($648.8 million);
  • Abolishing performance funding for universities ($698.5 million);
  • Cuts to grants for building works under the Capital Development Pool ($298 million); and
  • Cuts to the Higher Education Participation and Partnerships Program ($90.7 million).

These cuts do not include the new proposed cut of $3.7 billion to the Education Investment Fund or other previously announced cuts.

“Deakin has a deserved reputation as a prudent financial manager, but year after year of universities being treated as a drag on the Federal Budget means we do not have the capacity to absorb a further funding erosion,” Professor den Hollander said.

“Universities are not-for-profit, but we shouldn’t be for loss either. We need to protect the crucial economic role universities play as big employers and job creators. Deakin is proud of its achievements in Geelong and regional Australia but to continue this momentum means having confidence about future funding. The continual uncertainty is unhelpful.”

A risk to the international education market

“Uncertainty about policy and money also puts at risk Australia’s success as a powerhouse provider of international education, which contributes over $22 billion dollars a year to the Australian economy and is our nation’s third largest export,” Professor den Hollander said.

“I am disappointed by the Federal Government’s announced changes to temporary work visas, which could have unintended consequences for international students and for universities that want to recruit the best global talent.

“The international education market makes a significant contribution each year to Deakin’s operations – well over $200 million in direct economic benefit and much, much more than that is the social benefit arising from different cultures and ideas and perspectives connecting in the great melting pot of our Australian higher education system, recognized internationally for its innovation and outcomes.

“As one of the few countries that remains open to attracting and retaining brilliant scholars and leaders, we should use the opportunity to become the smartest nation we can. We need assurances that the Federal Government’s changes to temporary work visas won’t damage Deakin’s vibrant international character.

“Australian higher education is one of the most successful systems in the world. Let's keep it that way. Our future may well depend on it.”

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