Tertiary students face higher fees

By LIBBY MIDDLEBROOK education reporter

University and polytechnic students are likely to pay higher fees next year unless tertiary institutions receive a hefty boost in Government funding.

Public tertiary institutions are seeking more taxpayer money from the Government if it wants to negotiate another freeze on student fees.

Last year, all tertiary institutions agreed to freeze tuition fees in exchange for a 2.3 per cent rise in their bulk-funding grant, equating to about $31 million.

But the cost of inflation and the low New Zealand dollar have caused many institutions financial headaches, which could have been eased by an increase in student fees or Government funding.

A spokesman for Tertiary Education Minister Steve Maharey said the Government was committed to stabilising and eventually lowering student fees. But any decisions about negotiating a fees freeze or offering tertiary institutions more money had not yet been made.

Association of Polytechnics president Jim Doyle said a 5 per cent increase in the bulk-funding grant would be required next year to ensure the financial stability of polytechnics under another fees freeze arrangement.

Most polytechnics would be forced to increase fees if a similar deal to last year's was proposed.

"The 2.3 per cent increase wasn't nearly enough. I would be very surprised if anyone would accept another similar deal."

The Vice-Chancellors Committee estimates universities will be about $65 million worse off this year because of the freeze. It would cost $80 million to fully compensate them for losses over the past 12 months.

John Hinchcliff, Auckland University of Technology Vice-Chancellor, said the Government would need to increase the bulk-funding grant at least 4 per cent in order for the university to consider stabilising fees.

"We don't like charging the students such high fees but it would need to be higher. My feeling is we'd need about 4 to 5 per cent."

Auckland University Vice-Chancellor John Hood said the university was about $4 million worse off this year because of the deal, which had only given it an overall funding increase of 1.2 per cent. Meanwhile, the university was facing cost rises of 3 per cent.

"On top of this we face considerable cost pressures this year, not least because of the weak New Zealand dollar."

Tuition fees rose an average 11 per cent at Auckland University in 1999 and up to 30 per cent at other tertiary institutions.

University Students' Association president Andrew Campbell said students had benefited financially from the freeze, but inadequate Government funding had compromised the quality of education. For example, universities were cutting tutorial hours to save money.

In 1998, Auckland University received just $7544 in funding for each student, compared with the Australian average of $12,235.