Money, money, money

Dear Colleagues,

Much of the talk in the sector and beyond is about the up-coming Federal Budget. Like other Australian universities, we are looking to the Government to make a funding commitment to the issues raised in the two national reviews relevant to the sector: Bradley and Cutler.

Bradley identified that Australia’s universities have been under-funded for years and both support a significant increase in funding to universities, to assist students undertake and complete their studies and to innovation. The Deputy Prime Minister has set some challenging, but attainable, targets for the sector – and that is all good. Now we look for the funding support so that we can see this through properly.

Of course, times are tough. Growing unemployment is testimony to that as are what have become regular downgrades in the performance expectations of many firms. A consensus view is apparent, predicting that Australia will go into recession, but with a lighter touch here compared with many other developed economies. In Australia, Governments are spending on infrastructure, to create jobs while creating assets, and providing funds to consumers so that they (we) will continue to spend.

Universities have benefited from around an additional $1.5 billion from the Federal Government for capital expenditure since May 2008, with $1 billion of that being shared across all universities and the remainder being granted through HEEF. This has been just terrific for the sector – and there is every reason for Government to extend this in the Federal Budget.

A recent report released by Universities Australia demonstrates that increasing funding for universities is a sound investment that will yield significant returns to the Australian economy. The report, prepared by KPMG, estimates that if the Bradley reforms are fully funded, the economic rate of return of that investment in the Australian economy is around 14-15 percent. This is a staggering number and a far better rate of return that one would expect from most investments. And KPMG modeling clearly demonstrates that better funding for universities not only assists the sector, it also provides a platform for the revitalisation of Australian economy as well. [The report is available at http://www.universitiesaustralia.edu.au/content.asp?page=/publications/policy/economic/index.htm ]

Since my last post, the Queensland Government election has been fought, with Labor securing an historic fifth term and seeing the election of the first woman Premier of any Australian State. Since then, significant changes have been made to the Queensland Public Service, with the creation of super-departments. Education and Training is a key portfolio for us, of course, but we also take a great interest in several other areas, including Health and Employment, Economic Development and Innovation. We can expect the continued roll out of the Government’s Q2 strategy, a strategy that we can work with to play our part to secure a stronger Queensland. The up-coming Queensland Budget will be just as interesting – and impactful in its consequences – as the Federal Budget. We’ll be watching that space with great interest too.

Cheers,
Sandra