Under a fixed-fee regime, a university that wants to offer a 20-student law tutorial taught by a former High Court judge must charge the same amount as a university offering a 300-student lecture taught by a retired personal injury lawyer. The result is that all universities will be pushed toward low-cost provision even if students are happy to pay more for a higher quality experience.
Curiously, the review seems to leave open the possibility of raising private fees by suggesting that a university “may designate an undergraduate course as non-Commonwealth subsidised” and then charge whatever it likes. This could lead to a system in which prestigious universities, which are best placed to attract private students, receive high private fees while other universities have their incomes capped.
To make matters even more complicated, in another part of its report, the review appears to contradict itself by stating that “an independent national regulatory body” could cap prices even in non-Commonwealth subsidised courses.
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It is difficult to see how these recommendations fit together.
It is also difficult to understand how “no dollar limit” can be placed on the student entitlement (the government subsidy). Surely, some dollar amount has to appear somewhere, if only for budgeting purposes.
As we move further from the two big ideas - widening participation and student-driven funding, the hedgehogs fade from view and the foxes take over.
For example, the review recommends an increase of 10 per cent in “base funding” for teaching and learning” but it is not clear what “base funding” means in a system driven by student entitlements. Are there funds that do not follow students?
The 4 per cent allocation for meeting widening participation targets and the 2.5 per cent of teaching funds to be allocated for quality also seem to be delivered outside the student subsidy. In addition, these recommendations seem to contradict the review’s belief that universities should not have to compete for small pots of money.
There are many other recommendations in the review, which will doubtless be pored over in detail in the coming weeks. The review provides much for them to consider.
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