9 April 2001

Mr John Carter
The Secretary, Senate Employment, Workplace Relations, Small Business and Education References Committee
Suite S1.61 Parliament House
CANBERRA ACT 2600
Email: john.carter@aph.gov.au, eet.sen@aph.gov.au

SUBMISSION TO THE SENATE INQUIRY INTO TERTIARY EDUCATION

Dear Mr Carter,

This submission is put forward by the Australian Geoscience Council, a consortium of seven geoscience societies, which has a combined membership of more than 7500 professional geoscientists. Our members work in diverse fields, embracing Earth resource exploration (minerals, coal, oil and gas), environmental monitoring and remediation, geotechnical investigations, hydrogeology including groundwater management, teaching, and strategic and applied research. The majority of our members have tertiary qualifications and a four-year degree is the usual minimum qualification for employment as a geoscientist.

We are therefore vitally concerned with the health of the public university sector, particularly in the core geoscience disciplines of geology, geophysics and geochemistry, along with the associated technologies such as mining engineering, mineral processing, and environmental management. These subjects are crucial to underpin the economic well-being of Australia, now and in the foreseeable future.

Some of the more important decisions the Australian community will make in the decades ahead relate to our stewardship of the Earth. We need to have available the technical capability and capacity to make and implement these key decisions, and the general community needs a basic understanding of how our planet works.

Public universities have a vital role in these matters and we welcome the opportunity to place the following points before your committee. They are indexed according to the Terms of Reference for this inquiry.

bullet(a) (i) At a time when investment in science and technology is the key to the quality of life and a healthy economy, the investment in the tertiary sector by the Commonwealth has been declining steadily and is completely inadequate. At a time when many of our OECD partners such as Canada, Sweden and the UK are increasing their public investment in the sciences at the tertiary level, in Australia the reverse is taking place. A few examples indicate the situation:
bulletIn 1997, as a percentage of GDP Australia spent less than two-thirds of the figure spent by the United States per tertiary student (OECD, 2001).
bulletCommonwealth budget papers show a reduction in Federal higher education expenditure from 0.72% of GDP in 1996-97 to 0.62% in 1999/00, and a projected further reduction to 0.52% in 2003/04 (these figures exclude student financial assistance). Worse still, the funding provided to higher education is projected to decrease from 2.56% of total Government outlays in 2000/01 to 2.44% in 2003/04. Clearly, these trends are unsustainable given that private funding has stubbornly remained a marginal source of revenue for universities (at about 10% of total university revenue) for the best part of a decade. It is unlikely that private funding will suddenly come to the rescue.
bulletThe percentage of the population with a Bachelor's Degree or higher qualification has steadily increased from 6.9% in 1985 to 15.1% in 1999, yet the Commonwealth Government has almost halved its funding to universities over a similar period. It provided 89.3% of total university revenue in 1981, a figure that dropped to 50.8% by 1998. Even the new money committed in the 'Backing Australia's Ability' action plan will not be enough to reverse this trend.
bulletThe number of student places provided by universities continues to grow each year. There were 341 000 places in 1990, 419 100 in 1995 and 457 200 in 1999. However, full funding has only been provided for 335 100 (1990), 410 500 (1995) and 413 000 (1999) of those students. The annual per capita contribution from the Commonwealth has declined from $12 300 per student in 1984 to about $9000 in 1999*.

We believe this is unacceptable in a world where education and research capabilities are vital for our future well-being.

Some reliance on private funding is inevitable if Australia is to maintain its present university system, meet increasing demands in terms of the numbers of students and the range of research activities and facilities. In fact, private funding may have to be relied on even more, but this should not be done at the expense of a decline in public funding. The desirability of private funding and determining what constitutes an acceptable level is a formidable issue that must be addressed.

bullet(a) (ii) At the very least, private funding creates expectations of outcomes by the provider and may restrict institutional autonomy and flexibility. Demand for a specific educational experience by fee-paying students, the introduction of consulting deadlines, the direction of research effort, and the embargo of research results are key examples of such expectations. We recommend that appropriate national guidelines be developed so that the results of privately funded research projects, carried out at universities, are made available in the public domain in a reasonable time after the research sponsor has had access to the results.
bullet(b) (i) Reliance on market behaviour (course popularity) to define cut-offs for course entry adversely affects the quality of science taught at universities. Mismatches between tertiary entrance requirements and the intellectual demands of disciplines are such that science departments must accommodate some of the least able students entering the tertiary sector. Private funding, in this case the provision of scholarships to deserving undergraduates by some industry geoscience bodies, is helping to counteract this situation but much more could be done, especially by prospective employers of graduates.
bullet(b) (ii) Under the present funding regime, the university geoscience sector is able to maintain an adequate supply of graduates for traditional fields of employment in Australia. However, with recent marked reductions in the numbers of geoscience academic staff** and the consequent decrease in collective expertise in many teaching departments, it is unlikely all graduates are as appropriately qualified as in previous times. Co-operation amongst geoscience departments in large metropolitan centres has ameliorated this situation but this is not so for regional universities.
bulletThe regulations governing the current HECS scheme should be reviewed. Although HECS debts are not subject to real rates of interest, the debt, is indexed each year by the CPI to maintain its value. This provides students with certainty of their future obligations and a realistic chance to repay their debt within a reasonable time of graduation and employment. However, students must begin to repay their loan at a rate of 3% of their taxable income once their income reaches $22 346 (2000/01 financial year). We feel that the $22 346 level is too low, places an unfair burden on the graduate, and should be raised.
bullet(b) (iv) Private funding is important for the maintenance of research and research training in the geosciences. However, private funding is determined by company profitability and earth resource companies are greatly influenced by the international economic environment. Economic change occurs more quickly than the speed at which universities can react, which causes problematic lags when private funding is denied. This might be smoothed out by a more flexible approach by government to the provision of public funds (see also our comments on (a) (ii) above.
bullet(e) A cursory examination suggests that there is an adequate pool of geoscientists available to staff Australian universities. Certainly, positions advertised generally attract enough applicants who hold the required qualifications (a doctorate). However, a shortfall in satisfactory candidates is likely for geoscience disciplines that are growing in importance (hydrogeology, engineering geology, environmental geology, exploration geophysics, regolith geology), assuming universities have the funds to initiate or expand courses in these areas. The causes are diverse but certainly include limited research opportunities in Australia, isolation from peers, lack of opportunity to engage in cutting-edge research and research training, and the perceived need to devote excessive time to administration and fund raising. Low salaries are also a problem with the declining A$ and the changes in salary relativities between academia and other parts of the work force in Australia. Average salaries for our academics are consistently low compared to equivalent positions in Canada, Hong Kong, Singapore and South Africa. Assistant lecturers, lecturers, senior lecturers, associate professors and professors in Hong Kong earned between two and three times more than their Australian counterparts in 1996.
bullet(f) (iii) Minerals/Petroleum are Australia's major export earner. The universities provide, together with government agencies (e.g. AGSO and relevant areas of CSIRO) and the mining and exploration companies, the personnel, knowledge base, and cutting edge research programs that have led to this position. The universities have a special role in the basic research in earth science that underpins, often serendipitously, emerging commercial applications. The loss of local company-based expertise due to globalisation, the ongoing financial pressures experienced by relevant government agencies, and the inability of the universities to finance adequate infrastructure and their difficulties in funding subscriptions to international research collaborations are matters of great concern.

Authorised by the Australian Geoscience Council and submitted by its President

David Denham
President

Member Bodies: Australian Exploration Geochemists Australian Geoscience Information Association Australian Institute of Geoscientists Australian Society of Exploration Geophysicists Australian Institute of Mining and Metallurgy Geological Society of Australia Petroleum Exploration Society of Australia

*These numbers are mainly derived from AVCC statistics. **Figures for the geosciences at the University of Sydney and the University of Western Australia show that academic staff-levels have remained constant relative to Science Faculty and Total University levels. At the University of Sydney, geoscience academic staff have represented 7.7% of its Science Faculty for 1998, 1999 and 2000 and the corresponding figure for the University of Western Australia has remained steady at 15.7% over the same number of years. Thus, if an overall reduction in academic staff has occurred for the university sector, the same trend necessarily applies to the geosciences.

Dr David Denham AM, Tel: 02 6295 3014, Email: denham@atrax.net.au

 

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