Editorial: Student fees must not be increased

One thing needs to be said loudly and clearly in this argument between universities and the Government: students must not face higher fees. They must not even be threatened with increases as a means of bringing pressure to bear upon those who hold the public purse. Young people beginning another semester of study should not be disturbed by the thought they might not be able to afford to continue next year. Unfortunately, some have already been given reason to fear.

Massey University students learned last week they may face a 27 per cent fee increase next year if their institution turns down the deal the Government offered in the Budget. That would raise their fees by more than $1000 to exceed $5000 for a full-time course. They might not be alone. University vice-chancellors are speaking with a united voice in their argument with the Government. Their spokesman is usually Massey's vice chancellor, James McWha. His university is not the only one contemplating higher fees.

Unfortunately, the Government has given them that option. For a second year in succession it is offering a small increase in funds on condition that they do not increase their charges to students. If they reject the deal they will not only forgo a 2.6 per cent increase in state funding this year, they will also lose the 2.3 per cent lift they were given last year. But if they reject the deal they will be entirely free, it seems, to make students pay more. A lot more.

It is time to remind the Government and universities that there is a public interest to consider, too. The taxpayer still provides the bulk of tertiary finance in this country. We do so because there is a definite public benefit together with private rewards in a well-educated population. The public benefit depends upon the widest possible access to tertiary studies.

Fees undoubtedly present a barrier that the availability of soft loans cannot entirely remove. For that reason, many remain implacably opposed to charging fees of more than token amounts. But provided they are kept within reason, student fees serve valuable purposes. They not only increase the pool of tertiary finance, and hence the numbers that can be educated, but they also force students to evaluate the costs of courses against the benefits, intellectual and occupational, that they might derive.

It is a matter of deciding what level of fees is reasonable. The previous Government suggested a level. Early in its term it set up a task force to weigh up the public and private benefits of tertiary qualifications. The task force proposed that students should pay either 50 per cent or 25 per cent of course costs. The Government opted for the lower figure.

Fees duly rose gradually through the 1990s towards that 25 per cent share of the costs. At that level they have proved not to be a deterrent to tertiary education - numbers have risen steadily - but nor have they proved painless. They are working as intended, keeping students aware of the cost of their studies without discouraging them. It is a fine line and it could easily be crossed.

It is up to the Government, in the public interest, to see that fees rise no further. The Government is reluctant to increase taxpayer funds for tertiary education until it has greater control of the sector. Universities say they cannot wait and they are wary of greater Government control in any case. When universities accept public funds, they must also accept a cap on the fees they can charge. In their wrangle with the Government, something has to give. It should not be the students.

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