Public investment in higher education would pay off for the whole nation

The future of Australian higher education is poised at a significant moment.

The Federal Government’s Review is nearing completion. Final submissions in response to the seven issues papers released by the government are now before those who will determine the future of our system.

The Australian Vice-Chancellors’ Committee has declared its position, in some detail, as to where we see the sector heading, but also why it is such a critical part of the fabric of this country.

Fundamental reform is now a real possibility.

Importantly, the Federal Government has added higher education to its nine key policy reform areas for its third term of office. Indeed the Prime Minister told the Federal Parliament in June this year that, as it relates to the review:

"We are going to have a proper examination and, when that examination is completed, we will be announcing policy which will be to the long-term benefit of the tertiary education institutions of this nation and to the long-term benefit of current and aspiring tertiary education students."

The Federal Education Minister, Brendan Nelson, has acknowledged the significance higher education plays in shaping this country, saying: "what is done about higher education will determine what Australia will be like 20 to 30 years from now. It’s about our future." (Australian Financial Review, September 16)

The need for reform to the sector has been well and truly recognised. The challenge is to turn aspirations into working policy and funding. In the 15 years since the last comprehensive review of higher education the demands on the system have altered dramatically. In numbers alone, there are 56,000 more students attending Australian universities than there were in 1995. Yet this increased growth has not been matched with investment.

There are almost twice as many universities as there were 15 years ago, and competition within the sector is at an all-time high as we compete for research dollars and more institutions – not just universities – are eligible to receive Commonwealth funding.

Funding the broader sector

The AVCC has an ambitious vision for our sector serving the nation – one which is underpinned by the knowledge that the sector will deliver on the investment placed in the system. It is a vision which sees the sector working in partnership with Government to deliver quality at all levels – whether it is through our research programs, or our learning and teaching environments.

Australia has, essentially, a public system of higher education. Yet our universities have shown themselves to be creative and entrepreneurial in building budgets and programs, both in this country and overseas.

We need a policy that supports both increased direct public funding and also self-reliance.

The AVCC argues that there needs to be a greater investment in our sector via an increase in base funding and a better indexation of the base block grants. It is not unreasonable to propose that universities are indexed at the same level as school grants.

But, we recognise that our sector is far from being alone in wanting more investment support from the federal government. We recognise the harsh reality that, in every budget consideration, there must be a political imperative, of national priorities – a measure against all else that competes for the same tax dollars.

Indeed, I believe there is now a compelling case as to why the university sector needs the investment of a new funding package. It needs to meet the challenge of the diverse system we currently have, and must also grow to meet the demands of the future.

As many of you would be aware, the AVCC has detailed its response to the Nelson Review – in ‘Forward From Crossroads’ in the last few days.

It is the AVCC’s position that the level of public and private investment should be set to reach 2 per cent of GDP by 2020. Without this level of investment, we will not be able to achieve the other vision elements concerning access, effectiveness or research and internationalisation.

Put very simply, there is widespread consensus – within the higher education system, government and the broader community – that the current funding and regulatory framework for universities is simply unsustainable. It is inhibiting institutional growth and diversification. And it is beginning to threaten the quality of education our universities are able to offer.

International competitiveness must be our benchmark.

That the review, and the subsequent debate, has often focused on funding is, in many ways inevitable. But of course there are many other pieces to this complex jigsaw that is the higher education sector. And like a jigsaw, the picture is not complete if even one piece is missing.

International Education and the Review

If we turn our attention to international education, we know that it too is an integral part of the complex picture that is higher education.

The internationalisation of our universities – through our courses, our research, and provision of student movement in both directions – must continue to develop. This requires further support for universities international activities, reduced barriers to international students, and active measures to increase substantially the number of Australian students including international education in their degree.

The review of higher education provides an opportunity to consider the international activities of universities together with their traditional roles in teaching and research for Australians. It allows us to improve the effective interaction between the international and domestic roles of universities to the benefit of both.

Without an effective international perspective, Australia and Australians will not be prepared to take advantage of international opportunities. Or even worse, lack of an international perspective could actively lead Australia to lose its existing wealth and general prosperity.

As the key education, knowledge and research drivers of nations, universities are well aware of these developments and recognise the imperative to operate internationally in a number of ways:

• they conduct more of their research in international consortia,
• staff are recruited from all countries;
• staff and student exchanges are promoted internationally;
• curricula are offered that reflect the international economic, social and cultural conditions;
• study opportunities for foreign students, both onshore and, increasingly, offshore are made available;
• foreign-language education is promoted;
• and bilateral co-operative links promoting student and staff exchanges and research with overseas universities are being created.

Through this range of activity, Australian universities produce significant export dollars as well as political capital. Both are critical.

It is important to note that education was the only major service export industry in Australia which grew in the last financial year on the recent Australian Bureau of Statistics (ABS) figures.

• The figures show that in 2001/2002, education as an export industry for Australia was worth more than $4 billion – an increase of 2.9 per cent on the previous financial year. It is now 9th largest and rising in the list.
• The numbers of students choosing to undertake their university studies in Australia are growing – at a time when other industry sectors are at best stagnating or indeed declining.
• Statistics from the Federal Department of Education, Science and Training indicate that international student numbers at Australian universities grew to just over 112,000 in 2001, an increase of some 24 per cent on the previous year and the figure is expected to increase to 160,000 in 2005.

That is encouraging, as it ought to be. But in continuing to grow, we must have a sector which can accommodate not just our international students but also all those who wish to access higher education. Australian students should have access to international experiences in their education, while Australia should provide high levels of access for students from other countries.

This will offer students learning and research opportunities to interact with students from across the globe and equip themselves, and therefore Australia, to engage with the global labour market and global economy.

International education has the potential to bridge gaps in knowledge of other cultures and to build international understanding among students and academics who will be prominent in the future development of their countries. The nation already benefits from its Asian alumni, in particular.

The AVCC’s position

It is the AVCC’s basic fundamental position that what is needed is a framework within which the key elements to achieving the goals for the internationalisation of Australia’s universities can be accommodated – a framework which reflects the diversity of our university sector.

Fundamental to the reform must be:

• a coordinated approach to international education, science and technology involving government at the highest level;
• effective government support for international activities to match what it provides to other major export industries such as tourism;
• achieving a level of 20 per cent of Australian students in study abroad and exchange programs; a revised approach to student visas, that removes the charges imposed on education visas and has sensible assessment criteria; and
• raising community understanding of the importance of internationalisation.

On that last point, universities and government need to address concerns in the Australian community that international students may be reducing access for Australian students or otherwise using up resources to the detriment of Australian students.

Such concerns reflect a poor community understanding of the financing of universities and the reliance on international education to provide additional marginal income to support core university activities

To ensure the sector continues to contribute to the economy, and to provide world-class services to our international students, universities have set themselves a strategic framework – a commitment to achieving key goals within the next two decades.

These include:

• making an absolute commitment to quality in curricula, teaching and research;
• pursuing shared goals with government;
• investing significantly in the development and promotion of international activities; and
• constructing a strong home support base.

While universities are giving equal importance to each of these approaches I would like today to concentrate on the development of partnerships with government in the last three points.

Shared goals with governments [federal and state]

Australian universities’ international education activities are inseparable from a significant range of government responsibilities. These include immigration, overseas trade and diplomatic relations, quality assurance, consumer protection and capital, recurrent and research funding for universities.

It is critical therefore that there be a shared, positive, co-coordinated and consultative approach to internationalisation by governments and universities. And this approach requires joint action.

Onshore it requires:

• full consultation between Australian governments and universities in the formulation of immigration, trade and education policies;
• continuous enhancement, through direct government investment in university teaching and research capacity and facilities (these facilities in turn underpin the value of the overseas student education experience while at the same time directly supporting the education of domestic students);
• and government investment in a reconfigured program to give Australian students enhanced levels of exchange and study opportunities overseas.

Offshore, it requires:

• establishment and maintenance of strong bilateral diplomatic relations;
• a comprehensive range of bilateral agreements in education, science and technology co-operation;
• and a network of high-quality, whole-of-government marketing, promotion and information services.

Recognition of the value of the government-university partnership could be enhanced by the establishment of an annual program of government sponsored national awards for excellence in international education.

International image of Australian universities

In parallel with the efforts universities are making to internationalise their teaching, research and community partnership activities, they devote considerable resources to raising their profile internationally.

Many of these activities are best undertaken in partnership with governments. Some can be undertaken ‘corporately’, through the Australian Vice-Chancellors’ Committee. However, individual or coalitions of universities undertake much of the strategic work. This includes:

• investment in highly targeted reciprocal exchange and study abroad and scholarship programs;
• relationship building with international alumni; and
• active participation and acceptance of leadership opportunities in consortia of foreign universities and international university associations.

Home base support

To achieve the articulated vision for 2020, universities will require a solid national support base. This requires a joint effort by the universities and government to apprise the Australian public of the major benefits that international education accrues for Australia.

There is a particular need to create an understanding that the overseas academic activities and programs are created within the framework of Australia’s high-quality national university sector.

Universities and governments need to give an even higher profile to the national importance of international education.

Specific initiatives

To achieve this, the AVCC proposes two specific initiatives:

• the establishment of a Commonwealth-State Ministerial Council on International Education, with provision for formal input by education peak bodies; and
• delivery of a Prime Ministerial Policy Statement on International Education that commits the government to the support of international education through concrete government action.

These very targeted steps could form the foundations of a significant and effective partnership which will be of benefit to government, universities and the nation as a whole.