Cullen talks tough in university money clash

By LIBBY MIDDLEBROOK and DONNA BIRKETT

A war between universities and the Government has erupted with Canterbury University closing in protest over funding, and the Minister of Finance threatening to give $100 million in extra tertiary cash to others.

Thousands of Canterbury University students and staff yesterday stopped work over what they claim is Government underfunding.

In Thursday's Budget, universities were offered a 2.8 per cent funding boost if they promise to freeze fees. Canterbury, which is planning more protests, promptly rejected the deal, saying it would cost it millions.

The university's vice-chancellor, Daryl Le Grew, also said his organisation's base-line funding was at risk - as was research and development and staffing.

But Finance Minister Michael Cullen warned that if universities and other higher education organisations refused his offer, he would give the money to others in the education sector.

Dr Cullen said there were "many priorities in education" which could benefit, and any tertiary sector refusal would result in a big rise in student fees.

The tertiary sector has been offered $68.7 million in subsidies, plus a total of $60.5 million over four years for the establishment of centres of excellence, in return for holding fees at this year's level.

Dr Cullen said that even if the tertiary sector did not co-operate the Government would press ahead with plans to reform the way it was organised and financed.

But at Canterbury yesterday, vice-chancellor Le Grew closed the university at 1pm, and 1800 staff and 12,000 students swarmed into The Quad for speeches.



The vice-chancellor said: "If we accept that deal we're going to be millions down."

The rally marked its displeasure at the Government's stance with a motion deploring the systematic underfunding of universities and the total inadequacy of the 2002 funding offer.

Waikato University vice-chancellor Bryan Gould also described the Government deal as "woefully inadequate".

Canterbury's protest drew widespread support from other tertiary institutions, including the Association of University Staff at Massey announcing industrial action for two hours on Wednesday.

The afternoon closure of Canterbury was seen by its vice-chancellor as symbolic and representing the starting point of a two-month campaign.

The Government's inadequate funding offer of 2.6 per cent for 2002 makes a mockery of its knowledge society aims.

There would be an impact on the staff and they would have difficulty attracting first class researchers.

Salaries had fallen behind those of the rest of the world.

The AUS was looking at industrial action because the staff could not allow this to continue.

"What is the point of freezing fees if you kill off the institutions to which students pay those fees?" asked AUS Canterbury branch president Maureen Montgomery?

The university, AUS and its students urged Associate Minister for Tertiary Education Steve Maharey to reconsider the funding deal for universities for 2002.

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