Massey looks at $1089 rise in student fees

By LIBBY MIDDLEBROOK

Massey University students could face fee rises of $1089 each next year if the institution turns down a deal offered by Government.

A study released under the Official Information Act shows Massey is considering raising tuition fees 27 per cent, from $4033 to $5122, next year if it refuses the Government's fees freeze deal.

The alternative is to accept the deal but cut spending by $11.5 million.

"It's a very difficult position to be in," said Massey registrar Adrienne Cleland.

Tertiary institutions have protested against the deal since it was announced in the Budget on May 24, saying it will cost them millions.

The Government has offered institutions 2.8 per cent more money in exchange for another freeze on student fees next year.

Massey's study on the implications of the deal, which was released to the National Party under the information act, estimates the university would need to find an extra $15.3 million - equating to a 23 per cent fee rise - to maintain its present financial position if it rejected the deal.

The extra money would make up for a projected operating deficit for the 2002 financial and calendar year of $9.7 million, caused by insufficient Government funding.

Ms Cleland said that if the university wanted to reach the Ministry of Education's benchmark for "good financial performance," tuition fees would have to rise 27 per cent.

The alternative was to reduce spending by $11.5 million. "None of the options is very attractive."

Massey University Students Association president Huia Welton said she was shocked by the figures and urged the university to accept the freeze, as students could not afford higher fees.

"Only the wealthy will be able to access an education," she said. "The whole elitist thing would come back."

The Vice-Chancellors Committee, which represents the country's eight universities, has already recommended that they reject the deal.

Universities have until August 31 to decide.

The committee is unhappy that universities have been told to agree to the freeze or forfeit the 2.3 per cent rise in financing they received last year.

They would also lose the chance to apply for some of the $60 million set aside for research centres.

Auckland University of Technology vice-chancellor John Hinchcliff said the institution had also completed a study on the implications of accepting or turning down the fees deal.

Fee rises of 27 per cent "wouldn't be the case" at AUT, he said, but exact figures were not available yesterday.

An Auckland University spokesman could not be contacted.

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