Higher education funding changes required to remain globally competitive: Universities Australia Chair

Speaking at the higher education review, Ms Harding said: "Successive governments have been disinclined to fund universities and research at the level required in order for us to certainly maintain, if not build, our competitive position."

Current funding levels would not allow the higher education sector to meet the future needs of the Australian economy in a globally competitive environment, she said. 

"The way in which we go about funding higher education research right now in Australia is unsustainable," she said.

Ms Harding said the fact that Australian universities have a consensus position regarding sector reforms is rare.

"I'm not quite sure when it occurred last time that the universities of Australia… established a consensus position on something as important as the proposed Government reforms and the future of higher education in this country," she said.

In regards to the Federal Government's proposed higher education reforms currently in the Senate, Ms Harding said there are many facets worth supporting. However, in order to be reasonable and sensible three essential changes are required to the proposed reform package.

These changes, proposed by Universities Australia, are:

• Funding cuts - modifying the 20 per cent cut to higher education funding as the cut would result in universities increasing prices just to maintain current delivery;
• Interest rate on student loans - keeping the current student loan interest rate indexing at the Consumer Price Index (CPI), not the long-term bond rate as proposed; and
• Implementing a structural adjustment package - putting aside funds to deal with future market failures that may arise.

Ms Harding said Universities Australia is encouraging senators to "think these reforms through" and not oppose fee deregulation.

"They have the opportunity now to craft a major legacy: the largest changes and the most significant changes to higher education reform that this country has seen in a generation," she said.

"In a globally competitive economy, in an economy that is shifting, that is changing, we're going to be ever more reliant on the skills of our people and on the innovation that we can create."

The following Vice Chancellors also spoke at this event:

• Professor Michael Barber, Vice Chancellor and President, Flinders University
• Professor Warren Bebbington, Vice Chancellor and President, The University of Adelaide
• Professor David Lloyd, Vice Chancellor and President, University of South Australia