AUSTRALIA: Universities slate infrastructure spending cut

Australian universities last week condemned as misplaced the federal government's decision to pull A$200 million (US$181 million) of promised infrastructure funding from the sector as Canberra winds back its stimulus spending, write Andrew Trounson and Justine Ferrari for The Australian.

Rather than stoking economic pressures, Universities Australia said the cancelled spending would have helped ease pressure by providing the infrastructure to boost skills, knowledge and productivity in the future. "It underpins the skills, innovation and productivity that reduce the need for interest rate increases," UA chief executive Glenn Withers said.

The government had planned to release $550 million under a third round disbursement from the Education Investment Fund, but has now cut it back to $350 million. The $200 million saved will be retained in the EIF, which is currently at $6.53 billion. Since 2008-09, the government has distributed $2.9 billion from the EIF for tertiary infrastructure.
Full report on The Australian site