Prime Minister Malcolm Turnbull's decision to shelve university fee deregulation was not unexpected, according to Australian National University vice-chancellor Ian Young.
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But it placed the government in a quandary over how to pay for deregulated student places
Professor Young said he was relieved that university funding for next year would remain at the status quo despite the government's ultimate abandonment of its controversial reform plans.
But University of Canberra vice-chancellor Stephen Parker said that universities had been left completely uncertain about future funding arrangements and deserved better.
Professor Parker noted that the Department of Education's portal for universities to estimate their student load for next year had not been operating prior to the deadline of Thursday.
"I don't think they had any choice but to abandon their proposals because they have run out of time. But they could have announced this months ago rather than leaving the higher education system in a real state of uncertainty up until the last possible minute – I really don't think that is a responsible way to run a university system," Professor Parker said.
Universities were informed on Thursday their current funding arrangements would be carried over to next year.
According to Professor Young, "certainly that is better than a potential cut … But we want something more sustainable".
He said Mr Turnbull had previously expressed the "importance of a research and innovation culture in Australia, which is similar to my own views and bodes well for the future of high quality research and the translation of that research into economic outcomes".
But he maintained his firm belief that systemic changes to university funding in Australia were required.
"One of the reasons the deregulation debate came about was because of the inability of parties of either political persuasion to be able to fund an ever-growing system. So either we have to recap student numbers, which no one wants to do, or try and find ways to fund the system.
"That's the challenge, and no-one wants to pay. A government in tight fiscal times can't pay and students and parents are not keen for the costs to be transferred to the user – so that is the policy disconnect that we face."
Professor Parker said it was the right result to abandon the vexed issue of fee deregulation.
And while he was confident Mr Turnbull was forward-thinking, "it is what those thoughts are that matter. If it is going to be the case that he is just going to back the elite institutions then that is not forward thinking".
