Looking at the evidence

Higher Education Legislation Amendment Bill 1999
CONTENT

CHAPTER 2

Looking at the evidence

2.1 The overwhelming volume of written evidence received by the Committee, if evidence is measured in quantity alone, indicated opposition to this legislation. The Committee does not accept that the weight of submissions opposed to the bill properly reflects the opinion of students. It is the invariable experience of parliamentary committees that the most vociferous submissions come from organisations and individuals opposed to change. Such was the case with the New Tax System inquiry: so it has been for voluntary student unionism. It follows from this that there has been an overwhelming presentation of views by those with a vested interest in the status quo.

2.2 The Committee takes the view that much of the evidence presented was unduly pessimistic in its forecast of the effects of voluntary student unionism. It has been the historical experience of legislators arguing for reform, for as long as parliaments have existed, that upholders of the status quo will forecast, with statistical verification, the dire consequences which must inevitably follow change. There is always a low estimate of the possibility that new arrangements will work because people will emerge to make them work. The views expressed in most of the submissions on this bill reveal an underestimate of the capacity, the resilience and the initiative which student bodies and many individual student leaders are likely to demonstrate in order to re-establish their service and representative institutions on a firmer and higher threshold of popular support.

2.3 The most fundamental challenge to be addressed by student organisations is that of maintaining broad student support. This will require a very different approach to student leadership than has usually been exhibited up till now. Hitherto, the student association structures, underpinned by assured income to maintain infrastructure and services, have provided an easy way to the top for a small politically inclined coterie of students. The new order will require the emergence of leadership skills of a different kind. These will include entrepreneurial skills and public relations skills. In some cases we may see the emergence of individuals who would have shown no interest in student affairs under compulsory unionism. It is more than likely that a large proportion of currently active students will continue their involvement in either representative or service providing functions, and will quickly learn to adjust to these new conditions. The Committee does not see this legislation as being `anti-student' or even `anti-radical student'. Voluntary student unionism both maintains and extends the opportunities and challenges for student self-management.

2.4 Submissions and oral evidence to the Committee made a number of points about the likely adverse consequences of voluntary student unionism which need to be addressed. The principal concerns were as follows:

Student unions and trade unions

2.5 A great number of submissions, including that from the Australian Vice-Chancellors' Committee, took some pains to explain why student unions were quite different in kind to industrial trade unions: the inference being that as this was not the case, the basis of the legislation was fundamentally flawed. In the Committee's view this claim misses the point. The argument for legislating for freedom of association does not have narrow application. It cannot be said to apply only to trade unions. It may be applied to any association which claims the right to levy a compulsory fee for providing what is only an adjunct service. The basic right to employment transcends the obligation to belong to a trade union that might be associated with that employment. In the same way, the right to an education, which is self-funded or assisted by government funding (or both), transcends the obligation to belong to a student association which provides only adjunct services. This issue does not arise, in practice, where it is evident to the employee or student that advantage lies in full membership.

2.6 Associated with this argument is the claim that universities are `communities of scholars', and that they are by virtue of this able to justify a levy on community activities in the interest of the `common good'. Analogies have been made with the obligations of rate-payers to local government authorities. The Committee rejects this argument and this analogy on grounds that have already been suggested in Para.1.15. It takes the admittedly unromantic view that the personal identification of students with their universities as institutions is rather tenuous, and although some recreational and relaxation activity may be had between study commitments, the routine of most students is similar to that which is described in one submission, thus:

2.7 A great many of the submissions received by the Committee reflect the residual ideal of a liberal education model of a university through which some sparks of John Henry Newman occasionally flash, but the Committee rejects the view that this ideal of a scholastic community will suffer as a result of this legislation. It is more likely to revitalise university social and community life.

2.8 On the issue of trade union activity, it needs to be stressed that political representation is just one form of 'service' that students unions can provide if the controlling body of that union agrees that this is in the best interest of students. In this respect, certain activities of student unions are very much like trade unions, although this is much denied by the student unions themselves. For instance, NUS state that:

2.9 This statement is contradicted quite strongly by NUS itself. For example, in evidence presented at the public hearing, on page one of the National Union of Students audited report for the year 1997, signed off by the President and General Secretary of NUS on 22 October 1998, it was stated that:

2.10 Although the political aspect of student unions is not the focus of the Government, there were a number of submissions to this Committee which did express concern about the political nature of student unions and, more importantly, the fact that some students are being forced to fund political or moral causes that they were utterly opposed to. Examples of these included submissions by Mr Dan Schiewe who stated that:

2.11 This theme is further developed in the section below which deals with the bias that compulsory fees have against politically weak groups at university.

Compulsory unionism is biased against the politically weak

2.12 Many of the submissions proclaimed the idea that the allocation of student resources is best achieved through the democratic processes of the student unions. However, this very mechanism itself is insufficient for some, especially the politically weak, as was stated clearly in a submission by Right to Life Australia. Their submission states that:

The submission goes on to note that:

2.13 The Government does not wish to endorse or reject the opinions or policies of Right to Life Australia. This is not the issue. However, the predicament of Right to Life Australia illustrates exactly why the Government's model of voluntary student unionism is important. The issue is not whether or not student unions should have a particular policy on abortion or family issues, or about the treatment by student unions of those students or groups who disagree with the policy of the relevant student organisation. The issue is that under the current compulsory scheme there will always be students or groups who are funding activities that they are morally opposed to.

2.14 Only the Government's model of Voluntary Student Unionism can absolutely guarantee that no student will be forced to fund an activity that they are deeply opposed to.

Student control of student affairs

2.15 The Committee has heard argument that voluntary student unionism would have more justification if it were promoted and acted upon by students themselves. The Committee does not dispute this argument. It also recognises, however, that in circumstances where entrenched vested interests hold sway, governments have a responsibility to consider the wider public interest. Universities are not privileged enclaves which can be allowed to operate in ways which are out of step with processes accepted by the community at large. Students are citizens who have the same expectations of their governments as other citizens: that governments will legislate in their broader interests, in particular to protect their rights of association or non-association, and to safeguard expectations of value-for-money in their purchase of an education.

2.16 A principal outcome of the bill will be a strengthening of student association accountability for its expenditure. The Committee notes that a number of submissions describe in detail the legal accounting procedures which exist for the auditing of union accounts. These do not, however, take account of the nature or purpose of expenditure. They only record the `money trail' and are an anti-fraud insurance measure. This has little to do with ensuring accountability where it is a real issue: looking at why expenditure is authorised for particular purposes. The Committee has heard allegations of fraud in the conduct of student union affairs, and is satisfied that strict audit procedures are a deterent to this activity. More problematic has been the improper – though not unlawful - expenditure of student funds on particular causes, as in the case of large donations to political parties at election time. A characteristic problem of university unions in ensuring proper accountability is described in one submission from a Victorian university:

2.17 Compulsory student unionism encourages this kind of irresponsibility. The Committee refutes the argument that the proposed legislation is aimed at `eliminating' a cadre of `professional' student politicians. It is aimed more especially at injecting into student affairs a greater imperative to perform professionally. This was a point emphasised at the public hearing by a former president of the Australian National University Students' Association:

2.18 Finally, on this point, the promotion of voluntary student unionism has been frustrated by anti-democratic tendencies in some universities where freedom of expression has had a suprisingly narrow interpretation. The Committee heard evidence of the suppression of materials promoting voluntary student unionism during orientation week at the University of Adelaide in February this year. The Adelaide University Liberal Club was advised of this resolution of the Adelaide University Union:

2.19 The Committee does not believe this blunt application of the power of vested interests in universities to be an isolated example. It goes some way to explain why students opposed to compulsory unionism have been forced to take their concerns beyond the campus and to find support in a broader polity. Student control of student affairs will be an ideal taken more seriously only when genuinely free discourse results in the election of responsive and responsible student government.

Dealing with `free-loaders' under VSU

2.20 The evidence from Western Australia suggests that universities will need to come to grips with this issue, which each university will need to deal with in its own way. The use of some services by non-members – especially food and beverages – should present few problems as it is in the interest of unions to maximise business. Access to other services can be regulated by the issue of photographic cards to members, which will also allow members' discounts on commonly available services. These are routine procedures which operate outside universities and their adoption by university unions will, in time, be readily accepted. The Committee believes that it would be quite appropriate for unions to regard these processes as a way of promoting union membership, apart from other inducements.

Alleged detriment to non-academic life of students

2.21 A large number of submissions dealt with this issue. The Committee is strongly in agreement that university life consists of more than lectures, tutorials and exams, although it makes the point, on behalf of a very significant proportion of students, that traditional undergraduate pastimes maybe less in demand in these days of a changing student profile and changes in employment patterns. This point has already been covered in paras. 1.15, 1.16 and 2.5.

2.22 In the Committee's view the extra curricula activities of students would only be marginally affected by the introduction of voluntary student unionism. A great many recreational services now offered to students are already provided on condition of payment. At its hearing the Committee explored with representatives of Australian University Sport the developments in sport in universities in Western Australia since the introduction of voluntary student unionism in that state. A picture emerged of a continuing and dynamic sports culture, attracting increased support from the corporate sector. [10] This was referred to by the Minister during the consideration in detail of the bill in the House of Representatives:

2.23 Basic to this legislation , however, is the assumption that if students believe that a rich extra-curricula life is important at university then they will pay for it. They will support student organisations because they are worth supporting. For instance, the Committee received a submission from the Sydney University Ski Club which cast doubt upon the financial ability of many students to continue skiing if sports union funds were lost to the club. [12] While the Committee does not reject this assertion out of hand, it points out that keen participants in sports which attract such enthusiasts have a capacity to find money when needed. In this case it could well come from savings made from the voluntary union fee. Thus SUBSKI may find itself in more comfortable circumstances than it may have imagined if the majority of its members are able to afford higher joining fees.

Effect on regional universities

2.24 The Committee received submissions from all regional universities, and noted both the claim to regional disadvantage, and the lack of any substantiation of these claims. The Committee sees no particular disadvantage to regional and rural universities flowing from this legislation. It did note that some universities claim a very high degree of involvement with community groups whom they claim to be dependent to some extent on the local university. Thus, the Bathurst campus of Charles Sturt University cited its gymnastics program as pivotal to the teaching of gymnastics in the city. [13] The University of New England Union described its considerable and successful entrepreneurial endeavours in staking out its financial commitment to the City of Armidale, including ownership of a hotel and a cinema. [14] In the Committee's view the UNE union initiatives should serve as a model of how unions will need to operate in future. Many other examples were given in submissions to the Committee.

2.25 It is difficult for the Committee to accept that services of this kind will terminate simply because of this legislation. User-pay principles will ensure the continued viability of services whether they are sold to students or to members of the local community. Furthermore, it is unlikely that regional universities will face the same level of competition as metropolitan university unions will face if union catering services are contracted out under new arrangements. The Committee has also heard evidence of the closer and more cohesive relation between students and their union which prevails in regional universities. [15] This appears to be confirmed by impressions the Committee has gained from reading submissions from regional universities.

Job losses

2.26 In the same vein, the Committee heard evidence and read submissions about projected job losses in union service facilities. The most detailed claims came from the Australasian Campus Union Managers' Association, whose survey claims an estimated job loss of over 3,000 permanent and part-time jobs, not including indirect job losses. [16] The Committee views this survey with scepticism. It takes no account of the redistribution of spending and of employment. Claims of this nature are very difficult to substantiate or assess. The Committee acknowledges that there is likely to be structural change resulting from a re-orientation of services entailing some contractions and some expansions.

2.27 It should be understood that universities and university unions are not primarily organisations established for the purposes of employing people. Like any other organisation they employ according to requirement. A reduced requirement for labour may be a consequence of a choice made by students for a reduced range of services, but this is unlikely to have a significant impact on non-discretionary services like food and beverage services, where relative stability in employment may be expected. While it is likely that students may have a modest increase in disposable income as a result of voluntary student unionism, it is impossible to anticipate where this would be spent.

Impact on international student enrolments

2.28 The Committee heard evidence from the Convenor of the National Liaison Committee for International Students in Australia on the important work of that organisation in maintaining a continuing link with the Australian university alumni in south-east Asia. It was not made entirely clear to the Committee, however, how adversely that organisation would be affected by the legislation. It appeared to the Committee that much of the work of the National Liaison Committee, particularly its orientation and `meet and greet' activities could continue as before. The Committee was, however, concerned about the uncertainty existing in the minds of organisation members about the application of this legislation to foreign students, given that the fee structure and enrolment processes for international students is different from that applying to local students. The Committee recommends that this matter be clarified between the National Liaison Committee and DETYA.

2.29 The Committee sees no cause for alarm at gloomy prognostications about the adverse effects of voluntary student unionism on the enrolment of international students. While it is probably too early to make any firm assumptions based on data available from DETYA about enrolments in Western Australian universities, the first indications offer no comfort for opponents of the legislation. In 1994, before the introduction of voluntary student unionism, Western Australian universities enrolled 6,242 international students. The 1998 figure was 9,764 student enrolments, representing an increase of 56 per cent. This exceeds the increase for universities in New South Wales over the same period. In the Committee's view this comparison probably reflects the closer proximity of Perth to south-east Asia, and the lower costs overall. To the extent that voluntary unionism is an issue, it probably contributes to lower costs.

 

Footnotes

[1] Submission No.404, Mr Blake Scriven

[2] Submission No. 219, National Union of Students, p. 8

[3] Tabled evidence, National Union of Students incorporated, Financial Statements for the year ended 1997. Lockwood White Services (Chartered Accountants) and the National Union of Students Inc.

[4] Submission No. 3, Mr Dan Scheiwe.

[5] Submission No. 160, Mrs Margaret Tighe, Right to Life Australia

[6] ibid, pp.1-2

[7] Submission No. 98, La Trobe University Liberal Club, p.1

[8] Hansard, Canberra, 7 May 1999, p.22

[9] Hansard, Canberra, 7 May 1999, p.26

[10] Hansard, Canberra, 7 May 1999, pp.62-64

[11] Hansard (Representatives), 12 May 1999, p.4245

[12] Submission No. 14, Sydney University Ski Club, p.2

[13] Submission No.51, Mitchell Association of Student Councils - Charles Sturt University, p.1

[14] Submission No.22, University of New England Union, p.2

[15] Hansard, Canberra, 7 May 1999, p.82

[16] Submission No. 159, Australasian Campus Union Managers Association, p.7