Senate Inquiry into Higher Education Funding

Dear Friend of Tertiary Education,

I am writing on behalf of the NSW Tertiary Education Alliance to request that you and/or your organisation make a submission to the current Senate Inquiry into Higher Education Funding and Regulatory Legislation.

The NSW Tertiary Education Alliance is a coalition of student, trade union and community groups, which has been formed in response to the Howard Government's attacks on public education. We have come together to promote the benefits of accessible, quality public tertiary education.

The NSW Tertiary Education Alliance consists of: the NSW Teachers Federation, the National Tertiary Education Union (NTEU), the NSW Labor Council, the National Union of Student (NUS), the NSW Federation of Parents and Citizens (P&C), the Community and Public Sector Union (CPSU - SPSF), the Public Service Association (PSA) and the Youth Action Policy Association (YAPA).

The aim of the current Senate Inquiry is to investigate the likely effect of proposed budgetary measures on universities and students - including matters such as the effect of fee deregulation and the expansion of full-fee places. Among the proposals the federal government has put forward for the 'reform' of tertiary education are:

• the replacement of the HECS fees scheme with HECS-HELP which has up to 30% higher fees
• the expansion of the domestic up-front full-fee paying scheme from 25% of any course to 50%
• the introduction of a loans scheme whereby a loan of $50 000 may be accessed, bearing interest at 3.5% above inflation
• a 5 year time limit on the completion of degrees, with financial penalties for failing subjects or changing courses
• the replacement of staff, students and community representation on university governing councils with business representatives
• the tying of additional university funding to the offering of individual contracts, and the dismantling of collective bargaining for staff.

The NSW Tertiary Education Alliance opposes any change to tertiary education that makes TAFE and university less accessible to all students. We oppose any change that compromises the rights of staff and students, and their unions. We oppose the shift to a user-pays public tertiary education system.

The current Senate Inquiry is taking written submissions until August 15, 2003. Please take the time to send 1 or 2 pages explaining your personal or professional experiences and opinions about the future funding of our tertiary education system.

Attached to this email you will find:

• notes on how to make a submission to a Senate Committee Inquiry
• a fact sheet on the proposed changes to tertiary education, with useful links for more info

More information about the Senate Inquiry, its terms of reference, and the coversheet for your submission is available at: http://www.aph.gov.au/Senate/committee/eet_ctte/highed2003/index.htm

To find out more about the NSW Tertiary Education Alliance, go to our website (www.tertiaryeducationalliance.com); or email tertiaryeducationalliance@yahoo.com.au. The Alliance can supply you and/or your organisation with leaflets, action kits, more fact sheets and petitions - please contact us for copies of these.

Thank you for your effort in this important matter.

Yours sincerely
Anna York
on behalf of the NSW Tertiary Education Alliance

In this year's federal budget, the Government announced its intentions to radically overhaul the public tertiary education system.

A package of changes was announced, called "Backing Australia's Future". The package is comprehensive, dealing with many areas of university management including funding, governance and staff and student unions.

Some of the intended changes in the package include:

• a 30% rise in fees - the current HECS fee system will be replaced by a new system called "HECS-HELP" which has up to 30% higher charges. This charge will be determined by the individual university, rather than the government, signalling the partial deregulation of the university system

• the expansion of the full up-front fee paying scheme - currently there are provisions for up to 25% of any course to pay their fees upfront. Upfront fees are different to HECS fees. HECS is deferred, and the student pays only 1/3 of their degree cost. Upfront full-fee students pay the full cost of their degree at the beginning of each year. This can be very costly - at Sydney University this year a Vet Science degree cost full-fee paying students more than $120 000. In return, they are accepted into university for a lower mark - in some cases up to 25 marks lower than HECS students. The government is seeking to double the size of this scheme, so that 50% of all students may be upfront full-fee paying students

• an interest bearing loans scheme - the Government is seeking to offer full fee paying students a loan of up to $50 000 to go towards covering the full cost of their degree. This loan would accrue interest of 3.5% on top of inflation. With the current inflation rate, this would be about a 6% interest rate for such a loan. This loan would have to be repaid AFTER the repayment of a non-interest bearing HECS debt, thereby ensuring that the maximum interest debt was accrued by students

• a 5-year time limit for completion - there will be a 5 year time limit for students wanting to access a HECS-HELP place. If a student is forced to stay on for longer than 5 years because they have failed subjects or transferred degrees, they will be required to pay up front fees. It is not yet clear how this scheme will work for combined or longer degrees

• university governance changes - the Government is seeking to reduce the size of university governing bodies. From the model that the Government is promoting, it appears that student and staff representation on these bodies will be the first to be cancelled

• attacks on staff unions - the Government is seeking to tie additional base funding for universities to compulsory changes in staff union rights. The right to collective bargaining would be ruled out, and instead the offering of individual contracts would be compulsory. The right of staff to take legitimate industrial action would also be seriously restricted

• attacks on student unions - the Government seeks to introduce Voluntary Student Unionism as a means of breaking up student representation.

The NSW Tertiary Education Alliance opposes these and other regressive changes to the tertiary education sector. We seek to ensure that tertiary education is of a high quality, and accessible to all students, not just those who can afford to pay high fees.

Want more information?

• Read the Government's proposed tertiary education policy at: www.backingaustraliasfuture.gov.au
• Read about the effect of these changes on students at the National Union of Students website: www.unistudent.com (Click on the President's page to read the latest research and briefing papers)
• Read about the effect of these changes on staff members at the National Tertiary Education Union (NTEU) website (www.nteu.org.au) or the Community Public Sector Union (SPSF) website (www.cpsu-spsf.asn.au)
• Find out more about the NSW Tertiary Education Union and get involved in the campaign by going to www.tertiaryeducationalliance.com; or emailing tertiaryeducationalliance@yahoo.com.au
• Fact sheets for high school students and young people are available at www.yapa.org.au

The Australian Senate has referred the proposed changes to tertiary education to an Inquiry - "Into Higher Education Funding and Regulatory Legislation".

The aim of the Inquiry is to investigate the likely effect of budgetary measures on universities and students - including matters such as the effect of fee deregulation and the expansion of full-fee places. A Senate Inquiry allows Senators to hear the views of the public on important matters before they move amendments or vote against legislation.

It is vitally important to have a say in the Senate Inquiry process. Senators want to hear - and are influenced by - personal experiences and perspectives. You only need write 1 or 2 pages on your opinions of the proposed changes - how they will effect you, your family and your friends.

You may like to consider the answers to the following questions when writing your submission:

• How would an increase in HECS fees effect you and your family?
• How would an increase in the number of full up-front fee paying students effect your chances (or those of your family) of going to university?
• How would an interest-bearing loan of $50 000 effect you and your family? Would you (or your family) be able to afford to take out such a loan? Would this amount of debt deter you from going to university? Would you be able to cope with this debt when you left university?
• How would a 5 year time limit for completing your degree effect you, including potential penalties for failing subjects or changing courses?

Formatting your submission:

The following points are taken from the parliamentary fact sheet: 'Making a submission to a Senate Committee Inquiry' The full fact sheet is available at the Senate Inquiry website (www.aph.gov.au/Senate/committee/eet_ctte/highed2003/index.htm):

• A submission may be as short or as long as you like. It may contain facts, opinions, arguments or recommendations. It may cover all the points in the terms of reference or only some of them, depending on what interests you. Supporting documents may be attached.

• There is no prescribed format. However, to make submissions most useful we suggest structuring the submission using the terms of reference. (***) If the submission is longer than a few pages, please include a summary at the front.

• If possible, please provide submissions on computer disk (include a hard copy) or by e-mail. Otherwise, please type or write clearly in blank ink on A$ paper. We can read all documents created on Apple Mac and IBM PCs. The preferred format is Microsoft Word '97.

• Make sure you sign the submission. E-mailed submissions must include your name, phone number and postal address, so we can verify them.

• General inquiries about making a submission should be made to Ruth Clark on 02 6277 3521 in the first instance. Inquiries about the terms of reference should be directed to the secretary to the committee, John Carter on 02 6277 3520.

Where to send your submission:

Submissions should include all contact details, including mailing address, telephone, fax and email address if applicable and should be submitted electronically (Microsoft Word version 6.0 - 95 or above) and emailed to eet.sen@aph.gov.au with the submission cover sheet available at the Inquiry website.

Alternatively, submissions can be posted to:
The Secretary
Senate Employment, Workplace Relations and Education References Committee
Suite SG.52, Parliament House
Canberra, ACT 2600

The Senate Inquiry website address is www.aph.gov.au/Senate/committee/eet_ctte/highed2003/index.htm