Stalemate in University student fee row

By LIBBY MIDDLEBROOK education writer

Student fees are on track to rise next year after the failure of talks between universities and the Government.

Last month, three university vice-chancellors met Education Minister Trevor Mallard, Associate Education Minister Steve Maharey and Finance Minister Michael Cullen to try to work out a new funding deal.

The Government said in the Budget that it would increase money to tertiary institutions by 2.8 per cent in exchange for a freeze on student fees next year.

Eight vice-chancellors rejected that, saying it would cost universities millions. They have lobbied since for more money.

Now, in a letter to the Vice-Chancellors Committee, the three ministers say there is no hope of more money from the Government, although it "may be in a position" to offer funding in the second half of next year aimed at improving the "capability and quality" of the tertiary sector.

The Government has also refused to alter the way institutions can access a $60 million research fund, which will be available only to those institutions that accept the fees freeze.

Vice-Chancellors Committee chairman James McWah, who is also head of Massey University, said the committee had no choice but to continue to recommend that university councils reject the deal next month.

Average student fees of $3500 could increase by $500, to make up the shortfall. A freeze on staff salaries, redundancies and reductions in research spending are other alternatives.

Professor McWah said: "Government's unwillingness to contemplate an arrangement which genuinely meets inflation means that universities now face stark choices."

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