The Treasurer, Wayne Swan, announced his Mid-year Economic and Fiscal Outlook for 2011-12 last Tuesday, with the higher education sector taking a hard hit as part of the government’s budget cuts. The Treasurer cited recent instability in the global economy as a major impetus for finding further savings in the budget.
In relation to the higher education sector, approximately $240 million will be saved over a total of four years by cuts to the controversial university performance funding, but the largest cuts will be a result of scrapping student HECS fee discounts for maths, science and statistics which will save $404m over three years.
Universities Australia (UA) expressed its disappointment at these cuts but remained optimistic.
UA CEO Dr Glenn Withers said that while the cuts were short-sighted, UA was nevertheless “pleased to see existing programs aimed at facilitating increased university participation for low SES groups are not included in the cuts.”
"With regard to the abolition of the HECS reduction for maths and science students, we see this as disappointing for students in these fields. Alternative programs to improve school science and maths studies and consequent university enrolments are instead imperative and have been promised by government. Universities Australia would wish to keep working closely with the Chief Scientist to ensure that this is what can happen."
"It is pleasing to see the Government stand behind its core reforms, recognising the important role higher education plays in ensuring the short, medium and long-term productivity of our nation. This important contribution must not be directly compromised nor indirectly undermined by an accumulation of specific cuts," Dr Withers concluded.
However, the National Tertiary Education Union (NTEU) was more critical. The NTEU said cuts to the sector over the past 10 years had left it at "breaking point" with President Jeannie Rea saying that while the HECS discounts for maths and science had been costly and ineffective in stimulating demand, the money should be redirected into alternative programs.
