University funding: Student fees may rise as Government considers major shake-up

Updated

Students may have to pay much more for their degrees, with the Federal Government believed to be considering a major shake-up of the nation's universities.

AM understands the Coalition is privately discussing ways of deregulating higher education funding.

The news will be welcomed by the country's top research institutions, which are renewing a long-running campaign to charge higher fees.

The nation's top research institutions say Australia could one day have a university on par with Oxford, Harvard or Stanford. But that requires a lot more money.

Australian National University vice-chancellor Ian Young, and his chancellor, former Labor minister Gareth Evans, think students should pay more.

"In a perfect world, the Government would fund that," Professor Young said.

"That's just not a political reality, not an economic reality for Australia right now."

Professor Young is the head of the Group of Eight - a coalition of Australia's top research universities - which is renewing its call for the Government to remove limits on the amount of money higher education institutions can charge students.

The group says current funding levels are threatening the quality of research and teaching.

"We think it's really important for Australia to have some really world-class universities," Professor Young said.

"We as a nation need to debate this. We as a nation need to think hard about the sorts of education we provide to our students in the future."

Calls for reform gaining traction

Although the argument is not new, the calls for reform are now gaining serious traction in Liberal ranks.

Senior ministers believe the higher education sector is tied up in red tape which is reducing competition and innovation.

A spokesman for Education Minister Christopher Pyne says the Government also welcomes the debate.

"We are committed to the best possible higher education system in Australia and to ensuring our universities are not left behind by our Asian competitors and other international universities," the spokesman said.

"The Government is carefully considering the Kemp-Norton Review of the Demand Driven Funding System and the other views currently being put forward.

Sorry, this video has expired Video: Leading universities call for fee caps to be scrapped (ABC News)

"We will respond to the review in due course and carefully consider ahead of the budget how we can ensure that the excellence of Australian universities is maintained."

The ABC understands the Coalition will consider ways of deregulating university funding streams, including opening the sector to private providers.

Education Minister Christopher Pyne did not want to be interviewed, but since the release of a major report into the university funding system last week the Government has been encouraging those calling for change to publicly make their case.

University of Adelaide vice-chancellor Warren Bebbington favours the introduction of private, US-style colleges to boost competition and better cater for the varied needs of students.

"I think at the moment we have a system with one hand tied behind the back," he said.

"I don't think really we have much to fear here except for more innovation, more choice, more competition - all things that would be good for students."

Government fears electoral backlash

But the Government does fear an electoral backlash, which has quashed proposals to overhaul the sector in the past.

Smaller, regional universities are unlikely to support full fee deregulation.

Students, teachers and Labor's education spokesman, Kim Carr, say increasing fees will make it harder for poor people to study.

"They can't [study] if you are starting to put huge financial barriers in their way," Senator Carr said.

The Coalition is only currently calling for 'vigorous debate' and will wait until closer to the budget to publicly announce its plans.

Topics: university-and-further-education, education, government-and-politics, federal-government, australia, act, australian-national-university-0200, adelaide-5000, adelaide-university-5005

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