Coronavirus Australia: Universities ‘on their own’ as jobless turn to study, says Dan Tehan

Education Minister tells universities to rely on own resources to handle expected rise in domestic students.

Education Minister Dan Tehan. Picture: AAP

Education Minister Dan Tehan has told universities they need to rely on their own resources to handle next year’s expected boost in domestic student numbers, as the scarcity of jobs turns people to education.

Universities want the government to end the freeze on funding for bachelor degrees and other entry courses which has been in place since December 2017, and are looking for other support to help retrain the recession hit workforce.

But after a meeting with Universities Australia on Wednesday, Mr Tehan dampened their hopes.

“The Australian government is confident that Australia’s university leaders are up to the challenge of minimising the impact of COVID-19 on their operations, such as a greater focus on domestic students, online education and greater alignment with industry needs,” Mr Tehan said, noting the government had guaranteed no cut to $18bn in funding this year even if student numbers dipped.

Universities across the country have begun to unveil plans to slash staff numbers and salaries as the coronavirus pandemic leaves them facing mounting losses.

The University of Adelaide became the latest to warn of a significant budget shortfall, forecast at $250m in 2020 and 2021 — $150m of that next year alone.

It followed the University of Tasmania, which said it faced a revenue loss of between $30m and $34m this year, rising to between $60m and $120m in 2021 and 2022 as the full impact of reduced international student number was felt.

The university’s vice-chancellor, Rufus Black, said the institution would take on $130m of debt but still needed to cut $40m to $50m from its salary budget. Rather than cutting pay, the university plans “prioritise voluntary measures” and stop pay rises.

On Tuesday, La Trobe University also warned it had a budget shortfall of between $197m and $316m in the three years from 2020 to 2022, and said it had approached major banks for a new debt facility. La Trobe’s vice-chancellor, John Dewar, said the university had liquidated a $27m investment portfolio in May.

The University of Melbourne, in its annual report released this week, disclosed the value if its investment portfolio had fallen by $189m in the first three months of the year, “predominantly due to sharemarket movements”.

Group of Eight chief executive Vicki Thomson said the fact the government would not agree to pay for extra domestic students was a “significant structural impediment” on the economy that needed to be addressed “as part of the economic recovery piece”.

NTEU national president Alison Barnes called on vice-­chancellors to cut costs via building projects, executive salaries and travel budgets.

The tertiary education union chief singled out Deakin University’s move to get rid of 300 jobs, amid claims staff were overwhelmed by the short notice given on the cuts.

“Universities can be, and should be, vastly more accountable. Many vice-chancellors have backtracked on our job protection framework simply because they are allergic to scrutiny and want to sack staff. This is callous and cruel.

“Careers and livelihoods are being demolished,” she said. “Before sacking staff, vice-chancellors can cut costs in many areas.”

A Deakin University spokesman said staff were being treated with “genuine compassion and sensitivity”.