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Decision to cut university funding clashes with needs of 'knowledge economy'

15 Apr 2013

The University of Sydney Business School Co-Dean, Professor Tyrone Carlin, says the Federal Government's decision to cut funding to tertiary education is in "absolute conflict with the needs of Australia's knowledge economy".

"The Prime Minister's announcement is in complete contrast to the Federal Government's rhetoric about the need for global excellence in our university sector," Professor Carlin said. "This decision will impact on the nation's future."

The Federal Government has announced that it will cut funding to higher education by $2.3 billion dollars.

Universities will be required to produce an "efficiency dividend" of $900 million, student start-up scholarships worth $1.2 billion will be converted to higher education loans and the 10 per cent discount for upfront HECS payments will be abolished.

The cuts have been widely criticised as "out of step" with the Federal Government's statement commitment to global excellence in higher education and to achieving 40 per cent participation in higher education by 2025.

"Higher education is going to suffer," said the Australian Financial Review in a comment on the impact of the cuts on the quality of tertiary education in Australia.