AUSTRALIA: Universities hit by lack of income

Already cash-strapped universities have suffered a calamitous AUD$800 million (US$569) loss in investment, more than twice the previous forecast, Universities Australia has warned, reports Guy Healy in The Australian. The loss imperils renewal of student services, teaching quality and universities' hopes of aiding national recovery, UA says.

As the Rudd Government continues its pre-budget campaign to lower universities' expectations of a long-awaited funding boost next month, UA chief executive Glenn Withers has highlighted the loss as part of lobbying efforts to win billions in renewal funding. Finance Minister Lindsay Tanner warned recently that the financial crisis had "made it a lot harder" to deal with the priority issues of higher education and innovation "in a substantial way".

But Ross Milbourne, chairman of the Australian technology group of universities, warned that "now is not the time pull back on investing in our universities. What we need from government in the May budget is a commitment to a five to 10-year plan of substantial funding reform in the university sector to give us some hope and certainty."
Full report on The Australian site