(Proposed amendments are shown by bold strikethrough and bold underline. Supporting arguments are shown in italics.)
The grants payable under this Part are also dealt with in the Commonwealth Grant Scheme Guidelines. The provisions of this Part indicate when a particular matter is or may be dealt with in these guidelines. The Guidelines specify requirements for community consultation through a national university-community consultative council and community consultative councils for each higher education provider.
Note 1: The Commonwealth Grant Scheme Guidelines are made by the Minister under section 238-10.
Note 2: The Commonwealth Grant Scheme Guidelines may also deal with matters arising under section 93-10.
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The Guidelines are the key to the Government’s approach to higher education. The Minister will be able to make or break Australian higher education through the Guidelines.
The Minister needs to know that this Parliament insists that the Australian community will have a voice in higher education decision making.
By writing in requirements for community consultation at this level – in the legislation itself – this Parliament indicates the importance it attaches to higher education decision making being based on information from the community about the community’s needs for professional graduates: where the shortages are now or will be in the future; where the retirement of older professionals is creating the need for replacements from recent graduates; where newly developing industries in the knowledge economy are creating needs for new types of professional graduates.
There is ample evidence in the submissions to the Senate Committee from organisations like Professions Australia, Engineers Australia, the Australian Dental Association, the Geoscience Council and others about shortages in particular professions across the community. The Minister’s own department provided evidence on this subject to the recent Senate Committee inquiry on skills formation.
It is a pity the Minister did not take some notice of that material when he was putting this higher education package together.
University-Community Consultative Councils (U-CCCs) would channel the views of professional bodies, community groups, state and local governments, and other stakeholders into decision-making about the mix of courses and the funding of universities. They would ensure that information about needs was available or, where information was lacking, that research could be commissioned.
There have been suggestions that the Commonwealth Grants Scheme and related incentive-based schemes run the risk that decision-making will be based solely on the not necessarily well-informed views of public servants and university administrators. U-CCCs would counter this tendency by feeding in a much wider range of views.
U-CCCs would be composed a little differently at the national and university level. The national U-CCC might comprise Commonwealth, state and territory government representatives, and representatives of the AV-CC, national professional associations such as PA, business, and the community.
The national U-CCC would influence the setting of national guidelines for administering the Commonwealth Grants Scheme. It could take a national perspective on workforce supply and demand issues. It would have an independent chair reporting direct to the Minister. It could meet quarterly.
The national U-CCC would work with the university-based U-CCCs and other state and profession-specific bodies looking at workforce issues. But it would be important to preserve a degree of local autonomy for the university-based U-CCCs.
A U-CCC for a particular university, on the other hand, could include representatives of the university, representatives of state and local governments, local professionals supported by the resources of their professional association, and local community and business representatives. The composition would vary from institution to institution – because, obviously, a suburban university serves a different community from a regional university.
This U-CCC would feed information to its university about local needs for professional graduates in order to assist the university in its Commonwealth Grants Scheme negotiations with the Commonwealth. It would have an independent chair reporting to the national U-CCC chair. It would meet at least twice a year.
The details of U-CCCs can be worked out. At this stage, it is important that the legislation clearly flags the intention of this Parliament that these bodies be set up.
There is a justified concern that the Government’s proposals for universities provide opportunities for Commonwealth bureaucrats to intrude into the running of universities. No-one who thinks about these issues wants this.
The Government may believe that our universities are too important to the nation to be left to run themselves without government involvement. This Parliament should show the Government that universities are too important to the nation to be left to run without community involvement.
Community involvement through consultative councils, supported by commissioned research, is a much more palatable way of incorporating national priorities into the course and student mix at our universities than is bureaucratic intervention.
Clause 30-20 National priorities
A national priority is a particular outcome:
(a) that relates to the provision of higher education; and
(b) that is an outcome specified in the Commonwealth Grant Scheme Guidelines as a national priority; and
(c) that is supported by information obtained from community consultation in accordance with the Guidelines.
Note: The following are examples of national priorities:
(a) increasing the number of persons undertaking particular courses of study;
(b) increasing the number of particular kinds of persons undertaking courses of study;
(c) increasing the number of persons in particular regions undertaking courses of study.
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This amendment makes clear that national priorities will not be developed from ad hoc, one-off investigations like those that have led to the Government’s initiatives on nursing and teaching. These initiatives are all very well on their own but there is a risk that, if we have a series of them, we will not make higher education decisions in a strategic way, balancing needs across a number of professions.
The amendment requires that decisions about national priorities are made with community involvement through the community consultation mechanism set out in our amendment to Clause 27-5.
There should be a mechanism built in to consider, side-by-side, supply and demand issues for a range of professions, not just on an ad hoc basis.
My attention has been drawn to a remark by the consultant David Phillips, who has a lot of experience in this area. He is a former senior official of the Department. He did some work for the Ministerial Council on Employment, Education, Training and Youth Affairs. This is what he said in that report:
Both the National Review of Nursing Education and the Australian Council of Deans of Education have emphasised that it would be in the national interest for a more coordinated workforce planning and policy development approach to be taken to ensuring the supply of nurses and teachers. While the Commonwealth has given a commitment within the Backing Australia’s Future package to consulting with States and Territories about their workforce needs, it has not proposed any specific
new strategies or mechanisms to address the concerns that have been raised about the lack of a national whole-of-government approach.
Exactly. That is what we want to do with this amendment.
Clause 33-15 Increases in assistance for higher education providers meeting certain requirements
(1) A higher education provider’s basic grant amount for a year is increased under this section if:
(a) the Commonwealth Grant Scheme Guidelines impose on higher education providers either or both of the following:
(i) requirements to be known as the National Governance Protocols;
(ii) requirements based on the workplace relations policies of the Australian Government; and
(ii) requirements for consultation with the community served by the higher education provider; and
(b) the Minister is satisfied that the provider met those requirements as at a date, specified in the Grant Scheme Guidelines, in the year preceding that year.
(2) If subsection (1) applies to a higher education provider in relation to a year, the provider’s basic grant amount for the year is worked out as if the Commonwealth contribution amount for each funding cluster were increased by:
(a) if the grant year is the year 2005—2.5%; and
(b) if the grant year is the year 2006—5%; and
(c) if the grant year is a later year—7.5%.
Here we propose an amendment, first, to delete the link between additional monies under the Commonwealth Grants Scheme and compliance with workplace relations policies. The workplace relations link elevates a secondary issue to primacy and will have very little effect on outcomes. Many interest groups have argued for the deletion of this link.
Instead, the amendment inserts the ‘missing link’, the link to the community. It makes additional funding contingent upon evidence that effective community consultation has taken place.
A community consultation requirement, and monitoring compliance with it – for example, by requiring reporting on consultation in the university’s annual report and that evidence of consultation be provided in the CGS annual negotiations – will contribute more to the achievement of educational objectives than will any link to workplace relations policies.
The community consultation requirement might be written into the national governance protocols applying to each university. But on balance, it would be more effective as a separate and explicit requirement to consult the individual university’s U-CCC (community consultative council) on matters of university policy and planning that affect the courses taught at the institution and their funding.
The extent and nature of consultation and how it actually affected university decision-making should be reported in the university’s annual report.
We understand what the Government is getting at with the national governance protocols. There may well be some concerns about the efficiency of university councils. But some people have regarded the governance protocols, like the workplace relations requirements, as intrusive into the affairs of universities.
Whether or not this is true, we believe this Parliament should make clear that the community, local and national, must have a say in our universities. This amendment does that, by requiring effective community consultation as a condition of additional funding.
It would be a terrible irony if the result of implementing the national governance protocols was that universities were more efficiently spending an increasing flow of money in the wrong direction. That is why these amendments stress the importance of community input about needs and skill shortages.
The effectiveness with which a university serves its community should be addressed just as explicitly as is the efficiency with which it spends its money.
Of course, a degree of flexibility in determining course mix and numbers needs to be retained by the university. On the other hand, this Parliament should be concerned at the lack of mechanisms existing or (so far) foreshadowed for bringing community input into the decision-making process. These mechanisms are the practical expression of the university’s role as a trustee of the community it serves.
These amendments remedy that deficiency.