Nick Saunders Vice-Chancellor and President

1. The future of Higher Education in Australia: A Vice-Chancellor’s perspective Nick Saunders Vice-Chancellor and President

2. Current Characteristics of Australia’s Higher Education Sector • Uncertainty • Discomfort • Opportunity

4. The Nelson Agenda • Building Better Foundations • Building University Diversity • Research Quality Framework • Learning and Teaching Performance Fund • National Governance Protocols • Workplace Relations • VET – University linkage • Voluntary Student Unionism

5. Building Better Foundations “Re-aligning Commonwealth-State responsibilities” • Almost all Australian universities established by State legislation yet almost all government funding for them comes from the Commonwealth • Other issues • Commercial activities, management of intellectual property • Governance arrangements • Reporting requirements • Recognition and accreditation • State taxes, general legislative requirements

6. Building Better Foundations: Vice-Chancellors’ Views • Not the main game • Need for a national vision for higher education • It ain’t broke, so why fix it? • Devil in the detail • State relationship valued • Moderation of political influence Source: C.Ewan (2005) Draft Report to DEST

7. Building University Diversity “What is a university?” • Approval and accreditation • MCEETYA protocols • Breadth of activity • Research? • Comprehensive teaching programs? • Nature of the university experience

8. “I have sometimes thought of it as a series of individual faculty entrepreneurs held together by a common grievance over parking.” From Clark Kerr, The Uses of the University, Harvard University Press, 1964.

9. “The multiversity is an inconsistent institution. It is not one community but several – the community of the undergraduate and the postgraduate; the community of the humanist…the social scientist and…the scientist; the communities of the professional schools; the community of all the non-academic personnel; the community of the administrators. Its edges are fuzzy – it reaches out to alumni, legislators, farmers, businessman…..it looks far into the past and far into the future, and is often at odds with the present….Devoted to equality of opportunity, it is itself a class society.” From Clark Kerr, The Uses of the University, Harvard University Press, 1964

10. Building University Diversity: Vice-Chancellors’ Views • Mixed • Traditional view prevails • - full range of awards • - education across number of disciplines • - research active • - community engagement • - commitment to public good • Arguments put forward by AVCC • - are about quality and reputation • - are NOT about limiting competition or private providers Source: Quality and Diversity: A framework for approving higher education providers, AVCC, 2005

11. Research Quality Framework • No current institutional assessment of research quality (other than AUQA) • Commonwealth funding linked to quantitative measures (a mix of inputs and outputs) • Research grants - publications • HDR student numbers - HDR student completions • Funding formulae have changed behaviour

12. Research Quality Framework • Aims to assess QUALITY and IMPACT of publicly-funded research in Australia • Emerging system • Most (or all) University staff • Peer-review panels, broad discipline focus • Rating scale sensitive to discipline differences • Implementation delayed until at least 2007

13. Research Quality Framework Unresolved Issues • Assessment process • Research training • Measurement of impact • Multidisciplinary research • Early career researchers • “Third stream” funding

14. Learning and Teaching Performance Fund • Aims to reward and provide incentives for excellence in learning and teaching • $252 million over 3 years (2006-2008) • Two stage process • Stage 1: strong strategic framework (eligibility) • Stage 2: performance-based allocation • Indicators • Graduate perceptions (CEQ) • Graduate outcomes (GDS) • Student progression

15. Learning and Teaching Performance Fund: Process • Data on indicators collected by DEST • Institution given opportunity to submit context statement • Expert Panel • considers scores and university statement • recommends score amendments, if indicated • recommends to Minister where the scores demonstrate clear differences in learning and teaching outcomes • Minister makes determination

16. Workplace Relations • Higher Education Workplace Relations Requirements (HEWRRs) • Workplace Productivity Program

17. Higher Education Workplace Relations Requirements • Choice in agreement making • Direct relationships with employees • Workplace flexibility • Productivity and performance • Freedom of association

18. The Nelson Agenda • Building Better Foundations • Building University Diversity • Research Quality Framework • Learning and Teaching Performance Fund • National Governance Protocols • Workplace Relations • VET – University linkage • Voluntary Student Unionism

20. Funding the Higher Education Sector

21. Thanks for the freebies. Thanks for the freebies

22. Thanks for the mergers, HECS and poor indexation. Photographs courtesy of National Library of Australia and AUSPIC

23. Thanks for fees, red tape and…

24. Growth in university student numbers1950 – 2003 Note: Includes all domestic and international (offshore and onshore) undergraduate and postgraduate students Source: DEST Higher Education Student Statistics (incl. unpublished data)

25. Commonwealth Expenses 2004 - 05 Source: Treasury’s 2004 – 05 Budget paper

26. Average Annual Increase (1998 – 2004)

27. Impact of Under Indexation since 1996

28. State Contributions to Universities (2003) Source: Building Better Foundations for Higher Education in Australia, DEST 2005

30. Funding Per Commonwealth Funded Student Place, 2000 - 2008

31. End of Year Financial Results for NSW Universities Source: Auditor-General’s Report to Parliament 2005 Volume Two

32. “The role of Australian universities has changed beyond recognition in the past 30 years. …..They provide professional qualifications as well as generalist studies; basic research together with fee-for-service consulting; and teaching ranges from undergraduate humanities and science to in-house corporate training. These disparate and sometimes conflicting roles have made the traditional government funding arrangements obsolete.” From S.P. King (2001). The Funding of Higher Education in Australia: Overview and Alternatives Aust. Econ. Rev. 34:190-4

33. Index of revenue 1997 - 2003

34. 1.70 1.60 1.50 1.40 revenue 1.30 expenditure 1.20 1.10 1.00 0.90 1997 1998 1999 2000 2001 2002 2003 2004 Newcastle revenue vs expenditure 1997 - 2004

35. Financial Performance (Adjusted)

37. “No pressure, no diamonds” - Mary Case

38. Grasping the Opportunity will depend on: • Mission • Focus • Partnerships • Flexibility