The end of a research funding boost and no early return of international students hits unis

SA’s biggest export earner is drying up at the same times as researchers face diminishing funds - leaving unis in tough times.

Extended border closures to international students and failure of the federal budget to repeat a $1bn stimulus for research have delivered a heavy financial hit to South Australia’s universities.

The revenue blow and lack of recognition that universities drive innovation was “disappointing” and “very concerning”, senior leaders at SA’s unis said.

Before the pandemic, international students were the biggest export earner for the state at more than $2bn a year, with half of that spent outside unis on accommodation, living expenses and tourism.

``Overall, it’s very disappointing that the Budget hasn’t recognised universities’ critical contribution to job creation, particularly during the pandemic,” UniSA vice-chancellor David Lloyd said.

``University research underpins Australia’s innovation and productivity and will be critical to the continued pandemic response.

``While the economy is beginning to recover, the projected border closures mean the toughest years for international education are still to come.”

David Lloyd, vice-chancellor of UniSA.

Sebastian Raneskold, Pro Vice-Chancellor (International) at Flinders University.

Tuesday’s budget forecast “small phased programs” of returning international student would be allowed from late this year, followed by only a gradual increase next year.

Flinders pro vice-chancellor Sebastian Raneskold said the extended border closure was “deeply concerning for universities, and will have significant flow on effects for the wider economy and society”.

“The longer we delay their return, the slower the state’s economic recovery will be,” he said. “International students create jobs in our local economy and also help to support innumerable local businesses.

If numbers do not recover, SA’s unis will be under increased pressure to consider mergers.

“The only reason SA, with a very low population base, benefits from having three very good universities is linked to the one measure which makes that survivable – the international student revenue,” Adelaide University vice-chancellor Peter Hoj said recently.

He feared “our competitiveness could become sub-scale quite quickly” without that financial support.

International students Marcela Trobon, from Colombia, Prithvi Rana, from India, Eugene Cheah, Malaysia, and Adele Xavier, India, were among those who enjoyed SA’s tourism attractions in summer when they were unable to return home. Picture: Tom Huntley

Federal Education Minister Alan Tudge said overall higher education funding was at a record $20.4bn and that there were more domestic students this year, 802,000 compared to 763,000 in 2020.

“It’s important to note Australia’s universities remain relatively financially healthy, with many reporting surpluses in 2020,” he said.

In SA, Flinders reported a $35m surplus and UniSA a $21m surplus for 2020 – with Adelaide yet to publish results.

This year, the three unis expect international enrolments to be down a third to half, with those effects to ripple through to future years.

Last November, SA was given approval to pilot bringing back 300 students but that trial stalled.

Now, State Cabinet has discussed a plan to bring in students but must submit this to the Federal Government.

Education Minister John Gardner said the Government was “committed to working with the sector” on a safe and viable resumption of international student arrivals.

Any merger talks would need “authentic buy-in” from the unis.

“We will collaborate enthusiastically with the institutions on any proposal that will help them to deliver improved outcomes for SA’s students, industry and economy as a whole,” he said.

Opposition higher education spokeswoman Susan Close said the federal budget was “a body blow not just to our universities but to our economic future”.

“Without funding for higher education and for research and development this nation risks a future of low wages, under employment and being at the mercy of countries choosing whether or not to buy our raw commodities,” she said.

Adlaide Uni vice-chancellor Peter Hoj.

Group of Eight chief executive Vicki Thomson.

Last October, the Federal Government allocated $1bn extra for research after the sector suffered a collapse in revenue.

Flinders deputy vice-chancellor (research) Robert Saint said now there would be “increased competition for shrinking dollars”.

“The federal government’s decision to not respond to calls for an extension of the COVID-related $1bn in additional funding for university research will have a negative impact on Australian research and development capacity,” he said.

The Group of Eight universities – which includes Adelaide uni – called for more government support so unis could support the Australian people and economy.

“The current system will not achieve this,” chief executive Vicki Thomson said.

“Our biggest challenge remains – and that is ensuring we can continue to do world class research, which at its core is all about people, which will change and save lives – particularly through research related to the COVID-19 pandemic.”

Originally published as The end of a research funding boost and no early return of international students hits unis