Student fees likely to soar says Government adviser

By LIBBY MIDDLEBROOK education reporter

Universities will be forced to increase student fees up to 50 per cent within seven years because of limited Government funding, says a senior Government adviser.

In a confidential document obtained by the Herald, Professor Jonathan Boston said universities would not have "much option" but to raise fees 30 to 50 per cent.

Professor Boston is one of nine Tertiary Education Advisory Commission members proposing big changes for the sector.

The commission was set up to advise the Government on the tertiary overhaul, which aims to sort out financial problems at institutions and promote the knowledge economy.

Professor Boston, who is also a public policy professor at Victoria University, presented his discussion document on university funding at a consultation meeting last week.

He said universities were struggling to maintain quality services such as library resources, but they were unlikely to receive more money from the Government.

"I'm not recommending, I'm simply saying I do not see much options for universities but to raise their fees unless there is a very substantial increase in the real level of funding per student from the Government," he said.

University fees had risen about 280 per cent over the 1990s - from $1250 to an average of $3500 for undergraduate study.

That figure would rise to $5250 with a 50 per cent fee increase.

"To be honest, talking about fee increases of a further 30 to 50 per cent over the medium term doesn't seem to me to be either alarmist or exaggerated, given what's happened over the past decade," said Professor Boston.

University Students' Association co-president Andrew Campbell said he was disappointed at the view.

Those in power had to convince the Government to invest more in the tertiary sector, rather than accept higher student fees as a done deal, he said.

At present, student fees are frozen because of last year's financing deal between tertiary institutions and the Government.

But another fee freeze for next year is in doubt unless universities accept a new financing proposal to be completed by the Government next month.

Vice-Chancellors' Committee chairman James McWha said institutions would start considering big fee rises unless there was a change in Government thinking.

Professor Boston's other options include limiting student entry, based on academic performance.

Another option is to vary allocations for universities.

"It might be argued that there is little case for funding a university like AUT [Auckland University of Technology] at a higher rate and on the same basis as AU [Auckland University] given the significant differences in the quality of staff etc," Professor Boston said.

AUT Vice-Chancellor John Hinchcliff termed the comment "an insult".

He said universities offering the same education programmes, such as a Bachelor of Business, should receive the same amount of money.