Majority report
1.1
On 9 March 2005,
the Senate referred to the Legislation Committee the Higher Education
Legislation Amendment (2005 Measures No. 1) Bill 2005, for inquiry and report
on 16 March 2005.
1.2
Due to the inquiry's short time frame, submissions were
called for immediately. Six submissions were received.
Provisions of the bill
1.3
Like the previous higher education funding bills which
have been considered by this committee, the Higher Education Legislation
Amendment (2005 Measures No. 1) Bill 2005 is omnibus legislation which amends
the Higher Education Support Act 2003 (HESA),
the Higher Education Funding Act 1988,
(HEFA) and the Maritime College Act 1978.
The main purpose of the bill is to honour a number of election and other
commitments for 2004-08, which follow from the higher education reforms announced
in Our Universities: Backing Australia's
Future. Among other provisions, the proposed funding will create one
hundred new radiation therapy places as part of the Government's Strengthening
Cancer Care package; provide the infrastructure for Charles
Darwin University
to improve its information technology; and enable James
Cook University
to establish a school of veterinary science and agriculture.
1.4
Other funding measure include forty additional aged
care nursing places; funding for twelve additional medical places at James Cook
University; an additional $16.5 million in National Institute funding for the
Australian National University; and a transfer of funds for infrastructure
development at the Australian Maritime College's Point Nepean Campus. The bill
will also introduce a number of initiatives under HESA to facilitate
implementation of the Government's higher education reforms. These reforms substantially
increase the total amount of funding under the Commonwealth Grant Scheme.
1.5
The committee's consideration of this bill was limited
to the amendment to section 41-10 of HESA, which will make higher education
providers listed on Table B under the Act eligible for funding under the
Capital Development Pool (CDP). The committee also considered the possibility
that this amendment will be used as a precedent for future funding decisions in
relation to Table B institutions. At present, only Table A providers are
eligible for funding under HESA.
Extension of the Capital Development Pool to Table B providers
1.6
As noted in previous committee majority reports on
higher education funding, it is Government policy to encourage the private
higher education sector to meet the varying training and professional skills
needs of industry. The Government believes that the private sector has an
important role to play in the future delivery of flexible and
multi-disciplinary courses.
1.7
According to DEST, the proposed amendment relating to
the eligibility of Table B providers to CDP funds is mainly required to enable
payment of a $2 million grant to the University of Notre Dame (UNDA) for its
new medical school in Fremantle. The grant was approved when UNDA was listed as
a Table A provider under the former Higher Education Funding Act (HEFA).
However, when UNDA was re-listed as a Table B provider following the
Government's higher education reforms, it became ineligible to receive any grant
money under the new legislative framework. The amendment will enable UNDA to
receive capital development funds previously allocated under HEFA, but which
need to be paid under the Higher Education Support Act.[1]
1.8
The committee received submissions from the University
of Notre Dame, Bond University
and the Melbourne College of Divinity, which are all Table B institutions,
supporting the bill's provision extending the eligibility for CDP funding. Each
university indicated that being eligible for CDP funds would enable overdue investment
in infrastructure development. The University of Notre Dame, for example,
indicated that having access to capital development grants would enable all of
its student programs to be fully supported, including the National Priority
Places which have been allocated to it.[2]
The Melbourne College of Divinity submission also stressed that CDP funding
would enable the Joint Theological Library, the graduate studies centre and the
university's central administration to be located together at an appropriate site
after almost one hundred years of renting different premises.[3]
1.9
The committee notes the concern of the AVCC that the amendment
could be used as a precedent for the future funding of table B institutions. It
does not however agree with the AVCC's conclusion that extending the
eligibility of CDP funding to Table B providers is either inconsistent with the
intent of Table B, or reduces the limited capacity of the CDP pool to provide
for the capital needs of Table A institutions.[4]
As the DEST submission highlighted, the amendment will only make Table B
providers eligible to apply for CDP funding; it does not alter the distinction
between the two tables under the Higher Education Act. Table B providers will
not automatically be guaranteed any funds through the program: 'Funding
allocations are made following a competitive assessment process. During the
assessment process the advice of State and Territory Governments is sought on
their priorities with regard to proposals'.[5]
1.10
The committee concludes that the bill before the
committee will enable the Government to maintain its commitment to Notre
Dame University
and provide consistent treatment to other higher education providers listed on
Table B (Bond University
and Melbourne College of Divinity). The amendment in this bill, which is
consistent with current funding arrangements under HESA, will ensure
consistency and fairness in the provision of Commonwealth funds across the private
higher education sector.
Recommendation
The committee commends this bill to the Senate and recommends its
passage without amendment.
Senator Judith Troeth
Chair