Students call for probe into marketing 'waste'

By STUART DYE

Students are calling for a top-level investigation after figures revealed tertiary institutions have spent more than $17 million this year on marketing while hiking up fees.

The New Zealand University Students' Association has written to the Auditor-General asking him to launch an inquiry into the expenditure.

According to ACNielsen figures, the combined amount public tertiary institutions spent on marketing last year was $23,795,000.

From January to September this year the total was $17,114,179, and since 1999 more than $110 million has been spent on marketing and promotion.

Meanwhile, universities have set their fees for 2005, with three - Victoria, Waikato and AUT - increasing theirs by 4.5 per cent, 3.4 per cent and 4.7 per cent on average respectively.

The University of Auckland council approved an average 4.28 per cent fee increase but Massey voted to leave its fees as they were.

"It is a disgrace that our public tertiary institutions waste millions of dollars competing with each other at the same time as forcing students to pay even more in fees," said NZUSA co-president Fleur Fitzsimons.

"The Auditor-General must stop this irresponsible use of public and student money.

"All the evidence suggests students are not influenced by advertising."

In a letter to the Auditor-General, the association said that the amount of money spent on marketing did not constitute an effective and efficient allocation of funds.

The use of marketing "does not provide students with the comprehensive and impartial information that is required to make an informed choice about where and what to study," it said.

Research showed that decisions were made based on speaking to the institution, advice from family, friends and schools and information such as annual reports, argued the association. Latest Government figures show the total student debt is about $6 billion and the NZUSA has been campaigning for changes to the loan system and a reduction in fees.

Students at Victoria and Waikato staged protests when their universities' councils voted for fee rises. But according to the New Zealand Vice-Chancellors' Committee, which represents universities, increases are necessary because the institutions are under-funded, and staff salaries have to remain internationally competitive.

The University of Auckland claims that even with additional Government funding of 3.2 per cent next year it will be left with a $9.7 million shortfall. Cost increases are expected to run to $19.1 million.

Public tertiary institutions are allowed to increase fees by up to 5 per cent a year.

Fee rises

AUT 4.7 per cent

Auckland 4.28 per cent

Victoria 4.5 per cent

Waikato 3.4 per cent

Massey no change