Adelaide university mega merger ‘would reduce student choice’

The merger of two South Australian universities would reduce competition because of the areas in which the institutions compete.

The Grattan Institute’s higher education policy director Andrew Norton.

Grattan Institute higher education analyst Andrew Norton has warned that a proposed merger of two major South Australian universities will reduce competi­tion because of the many areas in which the two institutions compete.

The University of Adelaide and the University of South Australia announced last week they would report by the end of the year on whether they would merge into a new mega university.

After analysing current student numbers in South Australia’s three universities, Mr Norton found that a new mega institution would have an effective monopoly in undergraduate studies in five areas — architecture, architecture and urban environment, interior and environmental design, environmental studies and music.

In other areas, including teaching, nursing, computer science, mechanical engineering and civil engineering, there would be substantially less competition.

In postgraduate studies, the new university would have an ­effective monopoly in numerous areas including computer science, civil engineering, mechanical engineering, architecture, architecture and urban environment, nursing, public health, secondary teaching, business and management, marketing, and law.

If the two universities merge they will create a mega institution with more than 43,000 students, measured on an equivalent full-time basis, compared with Adelaide’s other university, Flinders, which has 17,000.

“Taking some courses from a three university market to a two university market, and others from a two university market to a one university market will reduce choice for students in Adelaide and make the market less competitive,” said Mr Norton, the Grattan Institute’s higher education policy director.

He said competition was particularly important if a Labor government restored the demand-driven funding system, as it has pledged to, and universities were able to compete for students.

However, he said competition would still exist in many courses even if the proposed merger went ahead.

The University of Adelaide (21,500) and the University of South Australia (22,300) have similar full-time equivalent student numbers.

Adelaide commands far greater research funding.

It won Australian Research Council grants worth $33.6 million last year compared with UniSA’s $6.6 million.

Mr Norton said his inclination was to be against mergers of ­“already at scale institutions”.

“There is value in competition and universities not dominating a particular market,” he said.

Former UniSA vice-chancellor Denise Bradley, who chaired the Bradley review, which led to the demand-driven funding system and the rise in university participation rates from 2010 onwards, has backed the merger talks.