Budget leaves shortfall for universities

The University of Auckland appreciates the 2 percent increase in the student tuition subsidy announced in today’s Budget.

“Given, though, that the projected rise in the consumer price index for 2011/12 is 3.1 percent and that university costs rise more quickly than CPI, there has effectively been a cut in funding,” said the Vice-Chancellor, Professor Stuart McCutcheon.

“The continuing limit on increases in student fees means we cannot make up the shortfall from that quarter. This pattern of annual cuts in real funding has been going on for many years and must inevitably lead to the quality of New Zealand universities being compromised.”

Professor McCutcheon praised the creation of 40 new places for medical students across the two medical schools. “This is a valuable contribution to expanding the medical workforce.”

He said the changes to the student loan scheme amounted to only minor tinkering. “They don’t address the fundamental problem of interest-fee loans which are a huge fiscal drag on this country and make it difficult for governments to invest in university education and research at an appropriate level.”

As well as a net decrease in funding for tuition fees, said Professor McCutcheon, there had been no increase in research funding.

“We appreciate that the Government is in a difficult position financially. But its reluctance to invest properly in university education and research will do little to take New Zealand forward as a modern innovative economy.

“By contrast in Australia, notwithstanding the major natural calamities that recently befell that country, the Government significantly enhanced its investment in research universities in the recent Budget.”