[1]

CABINET-IN -CO FIDENCE

44

Copy N o . ... ..

C A B I N E T

MI N U T E

Canberra, 26 July 1988

No. 11487
Submission No. 5890
and Minute
No. 11354 (SA)

Higher Education Policy Statement

The Cabinet agreed that :(a)

the Policy Statement on Higher Education be

endorsed and released;

(b)

the full fee overseas student guidelines be

amended to permit institutions to retain the
full capital element of fees to be applied to
capital works at the institution;

(c)

and

the Australian National University, Canberra

College of Advanced Education and Canberra
Institute of the Arts be consolidated to form a
single institution and that the Government's
intention be conveyed to the three institutions
by the Minister for Employment, Education and
Training following public release of the Policy
Statement on Higher Education.

. .. /2
This docu ment is t he property of t he Australia n G overn m ent and is not to be copied or re pro duc ed

CABINET -IN-CONFIDENCE

[2]

CABIN E -IN-CON Fl DENCE

2.
No. 11487 (Cont'd)
The Cabinet noted :-

2.
(a)

that the Minister for Employment, Education and

Training will bring forward a related Submission
on resources for higher education for the
1989-91 triennium;

(b)

the outcome of discussions between the Minister

for Employment, Education and Training, the
Minister for Arts and Territories, and the
Minister for Defence Science and Personnel on
future arrangements for higher education in the
ACT;

(c)

that the Australian Defence Force Academy would

be included in new arrangements for Australian
Research Council (ARC) grants, which would
require the transfer from the Defence portfolio
to the increased ARC research funds pool of the
same proportional cut in funding as other
institutions;

(d)

that the Policy Statement would be amended to

clarify that salary flexibility (chapter 10 of
the Policy Statement refers) will have only
limited application;

... /3

This document is the property of the Australian Government and is not to be copied or reprodu ced

CABIN ET-1 N-CON Fl DENCE

[3]

CABINET-IN-CON Fl DENCE
3.
No. 11487 (Cont'd)
(e)

that reference to the statutory obligations of

higher education institutions under the
Affirmative Action Act 1986 would be included in
the Policy Statement;

(f)

that officials from the Departments of Finance

and Employment, Education and Training would
discuss Finance concerns in relation to
measurement of unmet demand and selfaccreditation of courses, with the final form of
the relevant sections of the Policy Statement to
be settled by the Minister for Employment,
Education and Training;

(g)

that reference to child care provision in

Chapter 5 of the Policy Statement be amended to
refer to the provision of "additional places in
off-campus child care services for needy
students";

(h)

and

the desirability of encouraging a greater

consciousness among both individuals and
industry in relation to private endowments for
higher education institutions.

(This varies Minute No. 11354 (SA) of 13 July 1988.)

Secretary to Cabinet
This document is the property of the Australian Government and is not to be copied or reproduced

CABINET-I -CONFIDENCE

[4]

CABINET-IN-CONFIDENCE
Copy No.

C A B I N E T

44

MI N U T E

Structural Adjustment Committee

Canberra, 13 July 1988

No. 11354 (SA)

Submission No. 5890

Higher Education Policy Statement

The Committee agreed that :(a)

the Policy Statement on Higher Education be

endorsed and released;

(b)

and

the full fee overseas student guidelines be

amended to permit institutions to retain the
full capital element of fees to be applied to
capital works at the institution.

2.

The Committee noted :(a)

that the Minister for Employment, Education and

Training will bring forward a related Submission
on resources for higher education for the
1989-91 triennium;

... /2

This document is the property of the Australian Government and is not to be copied or reproduced

CABINET-IN-CONFIDENCE

[5]

CABINET. -IN-C 0 NFIDE NCE

2.
No. 11354 (SA)(Cont'd)
(b)

the action proposed in respect of Commonwealth

higher education institutions, including a
particular reference in the Policy Statement to
amalgamation of the Australian National
University, the Canberra College of Advanced
Education and the ACT Institute of Arts, subject
to discussions with the Minister for Arts and
Territories;

(c)

that the Australian Defence Force Academy would

be included in new arrangements for Australian
Research Council (ARC) grants, which would
require the transfer from the Defence portfolio
to the increased ARC research funds pool of the
same proportional cut in funding as other
institutions;

(d)

that the Policy Statement would be amended to

clarify that salary flexibility (chapter 10 of
the Policy Statement refers) will have only
limited application;

(e)

that reference to the statutory obligations of

higher education institutions under the
Affirmative Action Act 1986 would be included in
the Policy Statement;

(f)

that officials from the Departments of Finance

and Employment , Education and Training would
discuss Finance concerns in relation to

... /3
This document is the property of the Australian Government and is not to be copied or reproduced

CABINET -I N-CO NFl DEN CE

[6]

CABINET-I N-CO NFl DEN CE

3.
~o.

11354 (SA)(Cont'd)
measurement of unmet demand and selfaccreditation of courses, with the final form of
the relevant sections of the Policy Statement to
be settled by the Minister for Employment,
Education and Training;
(g)

that reference to child care provision in

Chapter 5 of the Policy Statement be amended to
refer to the provision of "additional places in
off-campus child care services for needy
students";

(h)

and

the desirability of encouraging a greater

consciousness among both individuals and
industry in relation to private endowments for
higher education institutions.

Committee Secretary

This document is the property of the Australian Government and is not to be copied or reproduced

CABINET-IN-CON IDENCE

[7]

CABINET-IN-C 0 NFIDE NCE

Submission No.

FOR CABINET

Copy No.

Title

CORRIGENDUM TO HIGHER EDUCATION POLICY STATEMENT

Minister

The Bon. J S Dawkins MP,

Minister for Employment, Education and Training

Purpose/Issues

12 July 1988

add following new page 24, Attachment B.

Relation to
existing policy

Sensitivity I Criticism

Legislation
involved

Jency:
Lsltical/significant
dates

sultation:
., M inisters/Depts
consulted

Is there
agreement?

Timing/handling of
announcement

Cost

Fin Yr (

Fin Yr (

Fin Yr (

This document is the property of the Australian Government and is not to be copied or reproduced

CABINET-IN-CO NFI DEN CE

[8]

CABINET- IN- CONFIDENCE

24.
ATTACHMENT B
19. The Affirmative Action Agency in general supports the policy
position outlined in the draft Higher Education Policy
Statement.

In particular, it supports the policy initiatives

indicated in respect to:

linking funding to the achievement of defined objectives
and, in particular, equity objectives;
increasing the availability of child care places available
to students; and
improving the ability of students to gain credit for
previous study, particularly TAFE study, when transferring
between institutions.
20. These initiatives are seen as being of particular assistance
to women students seeking to gain qualifications prior to entry
into the labour market.
21. The Agency has some concerns with that section of the policy
statement relating to employment in higher education
institutions.

In particular, the Agency notes:

the continued lack of credit within the policy to existing

statutory obligations on higher education institutions to
conduct their management within the framework applicable to
all staff provided by the Affirmative Action Act 1986; and
the omission of general staff from certain policy
initiatives outlined in the document, particularly those
.. related to Second Tier Agreements.

CABINET- IN- CONFIDENCE

[9]

CABINET-IN-C 0 NFIDE NCE

5~'10
Submission No.
--

FOR CABINET

Copy No.

HIGHER EDUCATION POLICY STATEMENT

Title

The Hon. J.S. Dawkins MP

Minister for Employment, Education and Training

Minister

To obtain Cabinet approval for the release of a

Policy Statement on Higher Education.

Relation to
existing policy

Sensitivity /Criticism

Legislation
involved

Urgency:
Critical/significant
dates

Consultation:
Ministers/Depts
consulted

Is there
agre-ement?

Timing/handling of
announcement

Cost

The release of nHigher Education: A Policy

Discussion Papern as the basis for consultation
and development of this Policy Statement was
agreed to by Cabinet on 8 December 1987 (CD No.
10571).
Respondents in the Policy Discussion Paper
supported the broad directions of the
Government's approach. See paragraphs 2-5.
N/A
The Policy Discussion Paper announced the release
of the Policy Statement by mid 1988.
Finance; Prime Minister and Cabinet; Treasury;
Industry, Technology and Commerce; Industrial
Relations; Primary Industry and Energy; Arts,
Sport, the Environment, Tourism and Territories;
Defence; Australian Science and Technology
Council; Community Services and Health;
Affirmative Action Agency; Immigration, Local
Government and Ethnic Affairs.
No. See paragraph 15 and Attachment B

Policy Statement to be released in week beginning

25 July 1988

Fin Yr (

Fin Yr (

Fin Yr (

Nil
This document is the property of the Australian Government and is not to be copied or reproduced

CABINET-IN-C 0 NFI DEN CE

[10]

CABINET- IN- CONFIDE CE

2.
BACKGROUND
The Policy Statement details the principles underlying the
Government's plans for reform in higher education.

Copies

have been lodged with the Cabinet Office and are available
to Ministers on request.
is at Attachment A.

A summary of the Policy Statement

Some minor drafting changes since

lodgement may be necessary and will be authorised by me.

ISSUES FOR CONSIDERATION
2.

The Policy Discussion Paper, released in December 1987,

attracted over 600 submissions and responses from

institutions, academics, State governments, professional
bodies, and unions.

There was strong support for the

Government's proposals for growth and equity.

Some

respondents argued for these objectives to be strengthened

further.
3.

Where criticism occurred, it reflected a perception

that the Government was overly concerned with narrow

economic goals at the expense of traditional scholarship or
the arts and humanities; disagreement on priorities; some
questioning whether the means proposed would achieve agreed
goals.
4.

The draft Statement deals with these concerns by

outlining a coherent social and educational philosophy for

the Government's actions.

This framework emphasises the

contributioL of all disciplines to the development of a

more skilled population and identifies social and cultural
goals as well as those which relate directly to economic
development and structural adjustment.

CABINET- IN- CONFIDE CE

[11]

CABINET-IN- CO FIDE CE
3.
5.

In the areas of credit transfer, institutional

consolidations and external studies, consultations were

held with the Australian Vice-Chancellors Committee (AVCC>,
the Australian Committee of Directors and Principles in
Advanced Education (ACDP>, academic unions, the ACTU and
peak employer bodies.

In each case, the directions taken

in the draft Statement were agreed to be the most

appropriate available and supported by all groups on that
basis.

The staffing reforms proposed in the Policy

Discussion Paper were largely implemented as part of the

second tier agreement for academic staff.
6.

The draft Statement deals with the issues of growth and

funding only in broad terms.

The proposals of the Wran

Committee on Higher Education Funding and other funding

options will be the subject of a separate Submission with
the Government's intentions for the 1989-91 triennium to be
dealt with in a plan for the expansion of higher education
for release in the Budget context.
do~s,

The draft Statement

however, commit the Government to at least maintain

the current, 1988, funding base including pipeline effects

of growth in intakes in 198g and earlier years.
7.

The Government's commitment to equity is spelt out in

relation to the opportunities growth will present for a

broader range of Australians to share in the benefits of
higher education.

As well as financially disadvantaged

groups, Aboriginals, women and migrant groups (including

inadequate recognition of overseas qualifications), the

need to improve the low levels of participation by people
from rural areas is acknowledged. National equity
objectives will be published as a guide to institutions and
the scope of current equity programs increased.

CABINET- IN - CONFIDENCE

[12]

CABINET- IN- CONFIDENCE

4.

8.

Support for growth will be directed to those

institutions which choose to join . the new unified national

system.

As part of their application to join, institutions

will need to make commitments on credit transfer,

management, a common academic year and staffing.
Institutions will need a sustainable student load of at
least 2000 Equivalent Full-time Student Units <EFTSU).
Contiguous institutions will be expected to consolidate
their operations.
9.

Institutions in the unified national system will define

their roles on which funding will be based, in their

educational profile.

The profile will consist of the

institution's broad mission; proposed teaching activities;

a research management plan; and statements of intent on
national priorities.

Institutions

wil~

have greater

flexibility than in the past to initiate new teaching

developments, provided these meet agreed principles of
length, nomenclature and for national registration under
the aegis of the Australian Education Council.
10. Respondents to the Policy Discussion Paper generally
agreed that the cost of developing and delivering external
courses is less per student than on campus, provided
economies of scale are attained.

Institutions will be

invited to tender to become one of around six Distance

Education Centres <DEC> funded for course development.
Other institutions will be funded at a reduced rate to
offer DEC courses.
11.

The draft Statement supports the directions set out in

the Policy Discussion Paper on the equalisation of the base

level of funding of institutions, rolling triennia and the
establishment of Joint Planning Committees with the States
to which State Education Ministers have agreed.

CABINET- IN- CONFIDENCE

[13]

CABINET- IN- CONFIDENCE

s.
12.

The Statement outlines measures to increase the

flexibility institutions have in managing their resources.

An important issue is the requirement under the full fee

overseas student guidelines to remit, from 1989, a

proportion of the capital element of fees to the
Commonwealth for redistribution for major capital works.
Allowing institutions to retain these resources would
provide an incentive to expand full fee operations.

propose to amend the guidelines to enable institutions to

apply these funds to major capital works projects.

There

is no budgetary impact from this proposal as any funds

remitted to the Government from 1989 would have been
returned to institutions for capital works.
13.

The Commonwealth's treatment of its own institutions

must be consistent with the

Statement.

co~solidation

principles in the

The Statement announces that the Government

will examine institutional arrangements in the ACT.

This

examination will be undertaken jointly with the Minister

for Territories.

I have already received a review of the

Australian Maritime College which raises its incorporation

into one institution in Tasmania.

I will release this

report shortly.
FINANCIAL CONSIDERATIONS
14.

The resource requirements of the higher education

sector for the 1989-91 triennium is the subject of a

seperate Submission.
CO-ORDINATION
15.

All Departments support the broad thrust of the

submission.

A number, however, have made comments on

specific issues.

These are detailed at Attachment B.

CABINET- IN- CO FIDENCE

[14]

CABINET- IN- CONFIDENCE

6.
RECOMMENDATIONS
16.

I recommend that Cabinet:

(a)

agree to the Policy Statement on Higher

Education and its release;

<b>

note that the Minister for Employment,

Education and Training will bring forward a
related submission on resources for higher
education for the 1989-91 triennium.

(C)

agree to amend the full fee overseas student

guidelines to permit institutions to retain
the full capital element of fees to be
applied to capital works at the institution;
and

<d>

11 July 1988

note the action proposed in respect of

Commonwealth higher education institutions.

J S Dawkins

CABINET- IN- CONFIDENCE

[15]

CABINET- IN- CO FIDENCE

7.

ATTACHMENT A
HIGHER EDUCATION POLICY STATEMENT - SUMMARY
Background
This Policy Statement sets out the principles that the
Government will adopt for the long-term development of
Australia's higher education system.

It is an integral part of

the Government's wider agenda for growth and quality at all

levels of our education and training system.

As a strategy for

the future, it must be viewed against a background of broad

community support for the objectives outlined in Higher
Education: A Policy Discussion Pap er, (the Policy Discussion
Paper>, released for public comment in December 1988.

In

particular, there was strong support for the Government's goals

of significant growth in the system and a broadening of access
to higher education by a much wide.r range of Australians than
has been the case to date.
2.

The future directions set out in the Statement were

developed in the context of a coherent social and educational

philosophy.

Our higher education institutions cannot be

isolated from the major changes occurring in Australian society

and the economy.

They are prime agents in the process of

change, both through their teaching activities and through their

contribution to research and innovation.

While initiating and

responding to change, the higher education system must also

preserve the best of its inherited traditions.
inquiry and expression, intellectual

rigo~r,

Freedom of

a broad spectrum of

teaching and research, and the preservation and development of

our national culture and identity have all been nurtured within
our institutions.

CABINET- IN- CONFIDENCE

[16]

CABI ET-1 -CO FIDENCE

8.

ATTACHMENT A
3. The balance our institutions strike between change and
tradition must be assessed against the broader goals and
aspirations we set for ourselves as a society. We want to
achieve intellectual, cultural and economic strength; to
support the development of a just and tolerant society; to
aspire to excellence and extend our skills and knowledge;
to understand our own political and social processes; and
to value diversity and individuality in other people and in
our institutions. Higher education contributes to the
achievement of all these goals.
4. Against this framework, the Government acknowledges the
relevance of all disciplines to our current economic
circumstances; the need for a gradual increase in the share
of tot.al higher education resources directed to fields of
study of greatest relevanqe to industry development and
economic restructuring; the need to enhance the capacity of
higher education to undertake high quality basic and
applied research; and the importance of maintaining and
improving quality in higher educational provision.
Growth and Equity
5. The reforms outlined in the Statement will provide a
sound basis for a significant expansion of higher
education, and greater access to the system and its
benefits.
6. The Government believes strong growth is justified and
necessary. However it is clear that precise long term
targets for growth are impossible to set. The Government
will determine rates of growth for each triennium in light
of student demand, labour market requirements and,
importantly, budgetary constraints.

CABINET-I - CONFIDENCE

[17]

CABINET- IN- CO

IDE CE

9.

ATTACHMENT A
7. Unmet demand is still a major problem. The Australian
Vice-Chancellors Committee <AVCC> and the Australian
Council of Directors and Principles in Advanced Education
(ACDP> estimate up to 20 000 qualified people were unable
to gain entry to higher education at the start of the 1988
academic year. Around half of these were school leavers.
While there will be a drop in demographic pressures from
young people in the early 1990s, this trend will be
reversed by the end of the century. Increases in Year 12
retention rates will continue to create additional
pressures as will greater demands for adult training and
retraining.
,/

8. Priority in the allocation of growth places in the

1989-91 triennium will be directed to areas of strong
demand from students and industry. These include
engineering, information technology, business
administration, economics and Asian studies. In
.
consultation with the States, the Government has
established a discipline review of mathematics and science
teaching to improve rates of transfer to technology-based
courses particularly by girls. A review covering computer
service and information technology will also be conducted.
9. Growth will require substantial additional resources
for both recurrent funding and to meet the pressing capital
needs of the system. The Government is considering the
recommendations of the Wran Committee on Higher Education
Funding. In a plan for the expansion of higher education
to be released at the time of the 1988 Budget, the
Commonwealth will make a detailed statement on growth in
higher education, including specific growth objectives and
resource requirements for the 1989-91 triennium.

CABINET- IN- CONFIDENCE

[18]

CABI ET- 1 - CO

IDENCE

10.
ATTACHMENT A
10.

Those groups which have traditionally not participated

in higher education are a major source of new demand for

higher education. The achievement of greater equity and
access is heavily dependent on the opportunities growth
will present but 9rowth by itself will be insufficient.
Specific strategies will need to be implemented at the
institutional, State and national level including improved
strategies by at least some schools.
11.

People from rural and regional Australia are also a

potentially significant source of growth.

The transfer

rates of country school leavers into higher education are

well below those of their metropolitan counterparts.

Their

needs, and the skill needs of the primary industry sector,

were taken into account in developing the Statement and a
further statement on education and training for rural and
regional Australia will be released

~ater

this year.

Unified National System

12. Support for growth and reform in higher education will
be based on the institutions that join the unified national
system of higher education.

Many existing constraints on

institutions will be dispensed with.

Institutions in the

unified national system will establish their own priorities

and areas of excellence, accredit their own courses,
develop a broader base of funding support and introduce
more flexible staffing arrangements.

Unnecessary

restrictions will be lifted in areas such as course

approval, salary determination, and the legislative
con~itions

attaching to the use of .Commonwealth grants.

The Government will ensure that institutions are free to

manage their own resources, while at the same time
remaining accountable for their decisions and actions.

CABINET- IN- CONFIDENCE

[19]

CABINE -IN-CONFIDENCE
11.
"ATTACHMENT A
13.

The unified national system will need to develop

strong links with the schools, TAFE, industry training and

recurrent education systems.

The role of TAFE in expanding

higher education opportunties will be taken up with the

States.
14.

To join, institutions will be required to have a

minimum sustainable student load of 2000 EFTSU and willneed to make a formal application indicating their
commitment to reform in a number of important areas
including equity, credit transfer, a common academic year
and staffing, and if they share adjacent sites, to combine
under a single management structure.

The initial agreement

on credit transfer, will commit institutions to guidelines

designed to assist students to receive the maximum credit
for work undertaken elsewhere and to overcome the ad hoc
and wasteful nature of

curre~t

arrangements.

15. Each institution will develop an educational profile to

define its.broad mission, and identify its strengths and
priorities.

Agreement on the profile will be negotiated

with the Commonwealth and provide the basis for the

assessment of resources needed by the institution, and for
subsequent assessment of performance against its agreed
objectives.

The profile developed by an institution will

be based on, and integral to, its own planning processes.

16. An educational profile will contain six heads of
agreement.

These are a description of the institution's

mission and objectives; its proposed teaching activities

including commencements and completions; a research
management plan; a statement of intent on national
priorities including equity; details of other significant
activities; and approved funding levels.

CABINET-I -CONFIDE CE

[20]

CABINET- IN- CONFIDENCE

12.
ATTACHMENT A
Institutional Structures
17.

The Government is committed to the objective of fewer,

larger institutions which offer significant educational

advantages including a greater range of course offerings to
students.

The minimum size for participation in the

unified national system will be 2000 EFTSU.

While there

will always be a diversity of institutions, the Government

will encourage those institutions with a student load in
the 2000-5000 EFTSU range to give serious consideration to
their future as independent institutions.

Institutions in

this category cannot efficiently support a comprehensive

teaching and research program spread across a broad range
of different academic fields.

These difficulties

~re

substantially reduced as an institution grows beyond the

level of 5000 EFTSU.

At around 8000 EFTSU, there is the

basis to provide a wide range of teaching programs while

maintaining a comprehensive research infrastructure.
18:

A variety of consolidation models will be possible.

For regional institutions, in particular, the form of

consolidation adopted should be appropriate to the
circumstances of the region concerned.

The Government will

not support any proposals which would diminish provision or

access in rural areas, and there will be no campus
closures.
19.

The cost of developing and delivering external courses

is less per student than on campus provided economies of

scale are attained.

Institutions will be invited to tender

to become one of around six Distance Education Centres

(DECs> funded for course development.

O~her

institutions

will be funded at a reduced rate to offer DEC courses.

CABINET- IN- CONFIDENCE

[21]

CABINET- IN- CONFIDENCE

13.

ATTACHMENT A
Equity Strategies
/

20. The Commonwealth's aim i~ to ensure that equity

objectives become an integral part of higher education
management, planning and review. Institutions will be
asked to specify appropriate equity goals, strategies and
measures of performance to meet both national and regional
needs within their educational profile statements. The
Government will develop national equity objectives as a
guide to institutions and future funding allocations will
have direct regard to the progress made by institutions
towards the achievement of agreed goals.

~ )

21. Some work has already commenced in this area. A Task

Force has been established to develop a National Aboriginal
Education Policy, which will provide a framework for
improving the participation of Aboriginal people in higher
education. A draft National Policy and Plan of Action for
Women will form a basis for the development of national
objectives for women in higher education.
22. The Government will continue to support specific equity
programs which encourage innovation and the application of
proven approaches towards achieving equity goals. The
scope of the Higher Education Equity Program will be
increased to include seeding grants.
A child care
component will be added to buy places in existing community
based child care services. The Aboriginal Participation
Initiative <API> and Special Course Funding under ABSTUDY
will continue.

CABINET- IN- CONFIDENCE

[22]

CABINET- I - CO FIDENCE
14.

ATTACHMENT A
Advisory Arrangements
23. The Government will create a more effective operating
environment for institutions by providing clear national
direction and co-ordination. This will be based on an
independent advisory structure and agreed consultative
arrangements with State and Territory Governments.
24. At the Commonwealth level, the National Board of
Employment, Education and Training (NBEET>, its Higher
Education Council (HEC> and the Australian Research Council
<ARC> have been established to provide advice on national
higher education objectives and priorities, and general
resource allocation issues. To ensure collaboration

between the Commonwealth and the States in general higher

education planning, a system of Joint Planning Committees
will .be established to co-ordinate advice on State and
regional higher education needs.
Resources.
25. The resource allocation processes detailed in the
Statement will provide institutions with greater
flexibility in resource allocation and a secure basis for
institutional planning. Current distortions in the base
funding of institutions will be removed and future funding
arrangements will be developed to take account of a range
of output, quality and performance measures. The
Commonwealth will no longer intervene in detailed resource
issues such as the allocation of minor works, equipment and
special research grants. Institutions will be allocated a
single operating grant and be free to determine the most
efficient distribution of funds among their activities.

CABINET- IN- CONFIDENCE

[23]

CABINET- IN- CONFIDENCE

15.
ATTACHMENT A
26. The introduction of guaranteed triennial funding for
institutions on a rolling basis will provide the system
with unprecedented surety of funding against which to
plan. A reserve fund of 1 per cent of total operating
grants will be set aside and allocated on a competitive
basis to areas of national priority.
27. Further growth in student numbers can only be achieved
by a substantial increase in the provision of capital.
Capital funds will continue to be directed to priority
locations and their allocation will take account of the
need both to accommodate growth including provision of
student residences, and to refurbish existing facilities.
Research and Postgraduate Education
28. The higher education system provides the major part of
Australia's research effort and this function will continue
to be supported and strengthened. Basic research will
continue to be fostered across the entire range of academic
fields but the application of research findings for direct
social or economic benefit must be increased. The ARC will
make recommendations on national research priorities,
co-ordination of research policy, the development and
funding requirements of research support schemes, research
training and measures to improve interactions in research
between the public and private sectors.
29. Most research funding will continue to be provided in
the operating grants of institutions. In the long term,
performance will be taken into consideration in adjusting
research funds. The Government will, however, continue to
reallocate funds from university operating grants to the
ARC for competitive allocation.

CABINET- IN - CONFIDENCE

[24]

CABINET- IN- CONFIDENCE

16.
ATTACHMENT A
30. The Government will ask the HEC and the ARC, through
NBEET, to conduct a review of research based postgraduate
studies. The findings of the review will provide guidance
about the structure, spread and quality of courses. The
Government has also asked the ARC to advise on future
arrangements for the Commonwealth Postgraduate Award
Program. In the interim, the Government will index the
stipend payable and increase it by a further 10 per cent in
real terms.
Institutional Management and Staffing
31. Improving institutional management p~actices and
staffing policies will be vital in the development of
expanded and more effective higher education system.
Government will not dictate institutional management
structures (the legislative responsibility rests with
States and Territories>, but will assist institutions
review their management structures to ensure that its
are met.

an
The
the
to
goals

32. The Government's objectives for institutional staffing

policy aim to allow a significant degree of flexibility in
the use of staff resources across the higher education
system and provide an environment in which individual
excellence can be recognised and rewarded. The staffing
reform principles proposed in the Policy Discussion Paper
were designed to meet these objectives. In large part,
they were accepted by the employers and academic ~nions as
the basis for the recent academic second tier wage
increase.

CABINET- IN - CONFIDENCE

[25]

CABINET- IN- CONFIDENCE

17.
ATTACHMENT B
CO-ORDINATION COMMENTS
The Department of Defence strongly supports the overall
thrust of the submission. The emphasis on external studies
and on credit transfer between institutions will be of
great benefit to Service personnel and ~heir families who
are now disadvantaged in their efforts to undertake
tertiary studies by their mobility.
2. ADFA. The paper states that ARC grants to researchers
at ADFA will continue 'on condition that ADFA contribute to
the process of reallocation of resources'. This is
understood to mean that ADFA will suffer the same
proportional cut in funding <possibly 1%) as other
institutions to fund the increased ARC research pool
studies. As ADFA has been competing very successfully for
ARC funding it could be expecte~ that it would gain more
than it lost under this arrangement. The paper further
states that ADFA needs a close working relationship with
other higher educational facilities to avoid duplication of
facilities and courses. The Academy already has close
liaison with ANU and CCAE particularly in relation to
postgraduate studies. Academy cadets also study languages
at the other institutions.
3. The Department of Industrial Relations supports the
thrust of the Policy Statement. It considers, however,
that any initiatives in respect of salary flexibility and
other staffing issues should be consistent with the
Government's wages and industrial relations policies, and
with the Australian Conciliation and Arbitration
Commission's wage fixation principles.

CABINET- I - CONFIDENCE

[26]

CABINET- IN- CONFIDENCE

18.

ATTACHMENT B
4. The Department of Community Services and Health
supports the Submission's proposals for growth and equity,
in particular, the recognition that barriers to the full
and equal participation of disadvantaged groups in higher
education and in subsequent employment represent a major
source of structural rigidity and inefficiency. The
Department therefore supports the inclusion of a Child Care
-Grant component in the Higher Education Equity Program.
These funds will enable the purchase of additional places
in services funded by the Children's Services Program and
ensure the access of clients who are priority groups for
tertiary institutions. DCSH agrees with the proposition
that child care is a student service which should receive
on-going funding from the general operating grants of
institutions. It also supports the time limited and
targeted provision of the child care grant proposed to
facilitate the access ~f students in less well provided for
campuses to child care.
5. Were the Minister for Community Service's and Health
child care new policy proposal for a further four year
program to be approved, DCSH would be in the best position
to assist institutions wishing to purchase child care
places and would also be in a position to negotiate joint
funding arrangements where institutions are located in
communities with a high need for child care. DCSH
recognises that ongoing funds for child care like other
student services would come from the institutions' general
grants rather than from specific purpose grants.

CABINET- IN- CONFIDENCE

[27]

CABINET- IN- CONFIDENCE

19

ATTACHMENT B
6. The Department of Primary Industry and Energy supports
the thrust of the submission and notes that further
consideration will be given to providing support for
disadvantaged groups. These initiatives should include
specific consideration of the difficulties faced by rural
people in obtaining access to higher education.
7. Finance supports the thrust of the proposed Policy
Statement, particularly the moves to increased flexibility
combined with increased accountability for efficiency and
effectiveness. Finance's concerns are essentially related
to points of emphasis and to making commitments ahead of
more careful budget deliberations .

8. On points of emphasis:
while the Ppper now has no long-term target for growth,
Finance still considers it gives greater emphasis to
growth than can currently be substantiated;
some recognition should be given to the Paper to the
risk to quality in the proposals for self-accreditation
of courses by institutions combined with the
expectation that receiving institutions will grant full
credit for studies undertaken elsewhere. This question
should be kept under review;
the references to amalgamation seem excessively
prescriptive and bureaucratic - Finance suggests that
moves to standard funding of different courses should
place the necessary additional pressure on institutions
to amalgamate where economies of scale exist;

CABINET- IN- CON IDENCE

[28]

CABINET-IN-CO FIDENCE
20.
ATTACHMENT B
while supporting some redirection of research funds
through ARC, Finance questions the amount proposed
<rising to $65m over 3 years> and also questions
whether there is scope for the ARC to withdraw from
funding minor research projects which are b~tter
assessed and prioritised within institutions, noting
that projects as small as $5,000 currently receive ARC
support.
9. On budgetary matters:
Finance would prefer that any overall financial
commitment be held over until the Submission on
Resources for 1989-91, including the question of
alternative funding sources (i.e. the Wran Report>, has
been considered in the budget context. If some
commitment needs to be addressed in the Policy
Statement ahead of the Budget, Finance suggests that it
be to maintain the 1988 real level of funding not
including the pipeline effects, thus leaving open the
possibility that all future growth be funded from other
sources;
Finance is opposed to the provision of additional funds
for a specific program of purchasing child care places
for needy students and notes that the question of the
Commonwealth's provision of child care places is under
broader review;
a commitment to increasing the Commowealth Postgraduate
Award by 10% in real terms in 1989 should not be made
in the Policy Statement, but be considered in the
Resources Submission.

CABINET-IN-CO FIDENCE

[29]

CABINET-IN-CONFIDENCE
21.
ATTACHMENT B
10. Finance has no objection to recommendation (c)
concerning the amendment of the guidelines for full-fee
paying overseas students, subject to institutions taking
full responsibility for any additional capital investments
needed in this area.
11. The Department of the Prime

~nister

and Cabinet

considers that, as far as it goes - and in this reqard

recognising the important supplementation role of the

Higher Education Development Plan - the proposed Policy

Statement embodies a sound approach to higher education
provision.

We particularly applaud the Statement's

eschewing of long-term growth targets in favour of

triennially determined growth rates based on student
demand, labour market requirements and budgetary
constraints.
12. The Department notes the intention to develop national
objectives in relation to equity and regards this and the
specific measures outlined in the Statement as the minimum
required to address the under-representation of particular
groups in higher education.

The Department suggests that

the Minister bring forward in the first half of 1989 a

Submission setting out the proposed equity objectives.
13. Treasury supports the broad thrust of the policies
proposed in the White Paper.

In relation to some of the

issues canvassed there, and in the Submission, it notes the

following points.

-CABINET-IN-CONFIDENCE

[30]

CABINET-IN- CONFIDENCE
22.
ATTACHMENT B

14. The question of future funding levels for higher

education would be most appropriately considered in the
context of the forthcoming submission on Higher Education
Funding and initiatives for the 1989-91 triennium, which is
to be taken in the budget context. In order not to get
ahead of that consideration, the current commitment to
maintain 1988 funding levels would best be deleted from the
White Paper. If, however, the commitment s maintained;
it should be more closely specified to avoid, inter alia,
being interpreted as applying for an indefinite period. In
this context, the proposal specified in the Submission that the funding base to be guaranteed should include the
pipeline effects of growth in intakes in 1988 and earlier
years - is not supported. Such a proposal amounts to a
1988 real terms "plus" guarantee.
15. The analysis of factors underpinning pressures for
growth in higher education places - such as the level of
unmet demand and the implications of rising school
retention rates - does not make any mention of the possible
impact of future funding arrangements- such as.the
graduate tax - on the future demand for places. This may
leave the Government open to criticism that it is planning
for, and possibly proposing to fund, a demand which may not
emerge. While it will be difficult to provide detailed
comment until decisions regarding the Wran Committee's
recommendations have been finalised, the issue s?ould be
flagged, if a convincing case is to be made that the
analysis will not be undone by future decisions on funding
mechanisms.

CABINET-IN-CONFIDENCE

[31]

CABINET-IN-CONFIDENCE
23.
ATTACHMENT B

16. As they currently stand, the range of specific

commitments given in the White Paper for Government funding
(e.g. trial/pilot programs for longer academic years and
summer terms, equity programs and early retirement
packages> may raise the _expectation of additional
expenditure on higher education. While it is stated that
funding for some programs will be met from sources such as
.
the proposed "Reserve Fund", a clear statement should be
made to the effect that all specific commitments will be
funded from within existing overall resources levels. If
the specific commitments in the Paper do entail a net cost,
the references to them should be deleted and they should be
brought forward in the new policy context.
17. To the extent that the proposal for rolling triennial
arrangements and the annual legislation of update triennium
grants results in locking in future levels of funding this
will further constrain already limited budgetary
flexibility and they are not supported.
18. Finally, if the proposed additional -funding to child
care is to be targetted to achieve the maximum effect in
terms of the Commonwealth's priority groups, this would be
best done by providing funding to individuals, not
institutions.

CABINET-IN-CONFIDENCE