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Students Used As Cash Cows - New Research

Students Used As Cash Cows According To New Research

Students have over compensated universities for the reduction in government funding over the past ten years according to new research released today by the New Zealand University Students’ Association (NZUSA).

NZUSA has found that universities increased their revenue from domestic student fees by $236 million over the period from 1992 to 1999 to more than meet the drop in government funding and inflation. During that period government funding dropped by $96 million. Rising student fees ensured that university tuition income per student did not fall, and that it increased at a faster rate than inflation.

“Tertiary institutions should accept any reasonable offer by the government to hold tuition fees in 2002. If the offer from government meets the cost of inflation and is more than last year’s 2.3% increase, then institutions should be able to afford to accept it. Universities have grown their budgets off the backs of students for the past decade. To go back to that funding source while the government is offering increased funding lacks credibility”, said NZUSA Co-President Andrew Campbell.

“It is too easy to continue to pass on increasing costs to students. Universities have undertaken unnecessary major capital works projects, increased central administration costs and undertaken million dollar marketing campaigns in the past few years. Students and the public are now saying enough is enough. If institutions prioritise their expenditure then fees can be stablilised”, said Campbell

“We believe that government funding for universities and for student support needs to dramatically increase, particularly if we are to keep pace with other countries. We believe that this is a stop-gap measure only. However students have already been bled dry and it is time for the universities to accept their responsibilities to the wider community.”

Attachment: University Funding & Fees, 1992-99


For further information
Andrew Campbell, NZUSA Co-President
Cell: 025 86 86 77 Work: 04 498 2500

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