Will a Public-Private Divide Emerge?

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Will a Public-Private Divide Emerge?

Image of Professor Paul Thomas, Vice-Chancellor

14 August 2004

The recent announcement by the Prime Minister that the Commonwealth Government would provide public funds to help establish the private Notre Dame University in Sydney is seen by many as a major turning point in the evolution of higher education in Australia.

To date there have been two types of universities in this country. The majority have been public universities, and since the early 1950s when the Commonwealth took responsibility for the sector, the funding has come mainly from Canberra. Occasionally, the States have augmented funds where there has been a need to provide for priority areas or projects. From time to time, and with some reluctance, States have supported additional teaching or nursing places, and more recently huge funds have been directed to research centres, and much smaller sums have been directed to help regional universities. The Commonwealth feels the States ought to play their part as it is they as State Governments that create the Acts that establish universities, and if they have priorities they should support them. States on the other hand are not keen on establishing too many precedents that could be exploited subsequently by the Commonwealth.

In the late 1980s, another type of university emerged, the completely private, Bond University. In more recent times Notre Dame has become another Private, located in Western Australia. Now that Notre Dame has been granted a base in Sydney, and has been provided with 200 HECS places that would have been expected to go to the Australian Catholic University in Sydney, we have an initial sign that the public-private divide is blurring, and that there may be a deliberate strategy to change the funding patterns to universities. It is a completely different pattern of funding than that of Bond, which has had no direct Commonwealth support in this way.

On the other hand some public universities now receive around only a third of their revenue from the Commonwealth Government. Notre Dame already receives over 20 per cent of its revenue from the Commonwealth. There is a convergence.

Questions are therefore being asked about the future of higher education in this country and whether we are experiencing a movement of the sector towards a model that characterises the school system and the health system.

Ways are perhaps being explored to see whether university education can be delivered more inexpensively from the Commonwealth's point of view, by encouraging the development of private providers. In such a model the cost is wholly or in part shifted to the student, and there is diminishing overall government investment.

In such a future there could be rich universities charging full fees and being regarded as prestige and their reliance on governmental revenue would be minimal. Just as there are expensive private hospitals and expensive private schools.

In other areas there may be less well resourced universities heavily reliant on government funding and serving less advantaged populations. Just as there are resource-strapped, over-crowded hospitals, and school struggling to break the cycle of disadvantage.

It is clearly an important time for universities, and everyone who is interested in them should be as alert as possible to the varying future scenarios.

Governments, communities, governing councils of universities, staff and students, need to reflect carefully on what kind of public higher education sector we want in this country and what has to be done to achieve that.

Whilst we at USC have been a major beneficiary of the recent reforms, we need to ensure that nothing develops that will damage in the long term, the recent achievements we have made. I don't think many people in this country would want second class universities, any more than they would want under-resourced schools or hospitals.

This country's future is heavily reliant on a strong public university system, wherever those universities are located.

Professor Paul Thomas is Vice-Chancellor of University of the Sunshine Coast


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  • Updated: 09 Jan 2012