SECOND READING SPEECH BY THE PRIME MINISTER
( SIR ROBERT MENZIES)
HOUSE OF REPRESENTATIVES.
UNIVERSITIES ( FINANCIAL ASSISTANCE) BILL 1963.
Introductory
This Bill and the States Grants ( Universities) Bill,
which will follow immediately, are related and for convenience
and clarity my speech now will refer to both the Universities
( Financial Assistance) Bill and the States Grants ( Universities)
Bill. The report of the Australian Universities Commission
covering the period 1961-66 and the consequent legislation now
introduced into this House are stages in a procedure which has
now become a well-established feature of the relationship
between the Commonwealth Government on the one hand and the
State Governments and State universities on the other.
Honourable members will recall that, having received
the report of the Murray Committee in 1957, Parliament passed
legislation by which grants were made to the States for their
universities in the three years 1958-1960. Similarly, on
receipt of the first report of the Universities Commission in
1960, Parliament agreud to legislation authorizing greatly
increased grants to the States for their universities during
the years 1961-63.
I have now tabled the Universities Commission's
second report and am very pleased to introduce a Bill under
which we will offer financial assistance to the States for
their universities at a higher lovl than ever before.
Though the Commission is now a firmly-established
statutory authority o-the Commonwealth, it is worthwhile
taking a little time to recall the terms of Section 14 of the
Act which set it up. It reads:-
The Commission shall perform its functions with
a view to promoting the balanced development of
universities so that their resources can be used
to the greatest possible advantage of Australia.
2. For the purpose of the performance of its
functions, the Commission shall consult with
universities and with the States upon the matters
on which it is empowered to furnish information
and advice. i'
The Commission's responsibilities, therefore, are
much broader and more significant for educational developments
at the tertiary level than they would be were it merely a body
charged with making financial recommendations in connection
with the universities. From 1959 to 1962, Sir Leslie Martin,
the full-time Chairman of the Co, imission, was assisted by four
part-time Commissioners, but from June of the latter year two
additicnal part-time Commissioners were appointed in recognition
of the Commission's growing responsibilities and fields
of interest. The present membership is
Sir Leslie Martin
Professor N. S. Bayliss
Mr. K. B. Myer
Professor S. Sunderland
Professor A. D. Trendall
Dr. J. Vernon
Sir Kenneth Wills
To all of these gentlemen, we are greatly indebted for a most
valuable report. It follows from what I have said that the report is
not merely a financial document. It has much to say of the
educatienal problems confronting the universities. The
Commission's conclusions on these are such that it attaches
great importance to the outcome of the painstaking inquiry
currently being undertaken into the future pattern of tertiary
education by a committee of the Commission specially appointed
for that purpose in 1961.
Although not a matter covered by the present Bill,
there arc recommendations in the report for development during
the coming triennium at the Australian National University.
As is customary with this institution, which is wholly a
Commonwealth responsibility, decisions are reached during the
annual debates on the Commonwealth budget. Nevertheless, I
may say at this stage that, in general and subject to normal
annual budgetary provision, my Government accepts the
recommendations of the Commission for the Australian National
University. Some Major Features of the Report.
Students It seems to me appropriate that I should refer first
to the students. In general, the Commission finds that the
1964-66 triennium will bring still greater demands on the
universities to provide more places for more students at both
under-graduate and post-graduate levels. In the words of the
report " an increasing proportion of secondary school students
are staying on at school for the final year, and increasing
numbers are going on to enrol at universities." If we consider
the equivalent full-time enrolments at universities, that is
if we make certain allowances for part-time and external
students, the numbers are expected to rise from about 53,000
in 1963 to about 74,000 in 1966. This is an increase of
21,000 equivalent full-time students, or 40%, in three years.
Staff More students require more staff. The Commission
estimates that about 2,000 additional academic staff will be
needed to cope with this increase if the present staff/
student ratio is maintained. For comparison, it should be
noted that between 1960 and 1963, the increase in equivalent
full-time students was 11,000 2nd in equivalent full-time
staff 1,000. Demographic factors are such that some
slackening in the rate of increase in student numbers is
predicted from 1966 onward.
Some Achievements Despite the heavy pressures of student numbers on
them and the difficulties they have met in recruiting
sufficient qualified academic staff, the universities have
been able to achieve much since the first effects of the
Murray Report were felt in 1958. They have greatly improved
their buildings and equipment and have been able to provide
for almost all of the students seeking admission, including
the onrolment of large numbers of overseas students nearly
3,500 in 1962. It will be noted with much satisfaction that
graduation rates are significantly better nowadays than they
were a few years ago. Of those who entered our universities
in 1951, some 57% graduated; of those who entered in 1956,
some 70% graduated. It will be remembered that enrolmonts
have greatly increased over this period. Thus not only is
our output of graduates increasing but the percentage of our
young people who graduate is also rising.
Of great significanco for future leadership in
research and teaching is the fact that there were nearly five
times as many higher degree students in 1962 as there were in
1953; and the universities expect this figure to double again
by 1966.
Matters for Anxiety
Points of considerable anxiety remain. The Commission
has doubts whether the universities will find it practicable
to recruit enough qualified academic staff for the coming
triennium. The imposition of quotas has become a feature of
the universities but the Commission reports that except for
all faculties of medicine, other than that of Queensland,
restrictions on entry have been significant only in the four
universities in Sydney and Melbourne. In consequence, therefore,
the Commission recommends additional grants in the
1964-66 triennium beyond those first contemplated to enable
the University of New South Wales and Monach University to
accept students who might otherwise have to be excluded.
Provision is also recommended for greatly increased medical
training facilities at the University of Melbourne and for
the establishment during the trionnium of a faculty of
medicine at the University of Tasmania.
Research Conscious of the national need for greatly increased
attention to research, particularly in the fields of science
and technology, the Commission has recommended greatly
increased expenditure on research and for the provision of
computing facilities at universities.
Student Residences In order that students living outside the centres in
which universities are situated should have a reasonable
opportunity of taking advantage of the greatly increased
provision for university education, it is essential that
greatly increased provision should be made for student
residences. The Commission has therefore recommended expenditure
for this purpose which should lift the proportion
of the full-time student population in residence from about
14% at the end of 1963 to over 16% at the end of 1966.
Recurrent and Capital Expenditure
As always, of course, the main heads of expenditure
at universities are those for recurrent items, such as
salaries and minor items of equipment and so on, and capital
development. Naturally, with rapidly growing student
numbers and related staff growth, big increases in recurrent
expenditure are inevitable. Further capital expenditure is
also inevitable but it will be noted that if the residential
component is excluded, the cost of buildings recommended by
the Commission for 1964-66 will be not much more thae the
cost of those erected in the present triennium. The House
will be interested to know that the Commission proposes no
change in the relationship between Commonwealth and State
contributions for on the capital side and œ 1 ( Commonwealth)
to œ 1.85 ( State grants plus students' fees) for recurrent
expenditure. Report Necessarily Incomplete
Before giving the House a summary of the financial
implications of the report, I should mention that in two
respects it is incomplete. The introduction of Commonwealth
assistance for teoching hospitals dates only from 1962. Since
the completion of the investigation on which that assistance
was made, the Commission has been fully engaged with its
inquiries into the more firmly established pattern of
assistance and has therefore postponed until next year its
recommendations for assistance to teaching hospitals in the
coming triennium. In the second place, the recommendations
of the Commission are based on Commonwealth support to the
States for recurrent expenditure using the salo scale of
academic salaries as was adopted from December, 1960. This
was based on a standard professorial salary of œ 4250. This
is a matter on which I shall have more to say in a few
minutes. Summary of Financial Recormmndations
Tb sunmarise the financial implications for the
Commonwealth of the Commission's recommendations for assistance
to the States for their universities, I ask honourable
members to note the following figures for 1964-66 and the
comparisons with 1961-63; For general recurrent expenditure:
œ 37.7 m. an increase c'f about œ 12 m. over the provision in
the present trienniu; For buildings and furnishings, other
than student residences; œ 15.7 m. an increase of about
œ 1 For research and computers œ 2.9 m. an increase
of œ 2.4 For building and furnishing halls of residence
and affiliated colleges: œ 3.4 m. an increase of nearly
œ 2 For recurrent expenditure in the halls of residence
and affiliated colleges; œ 700,000 an increase of œ 200,000.
From the figures I have just given, it will be clear
that acceptance of the Commission's present recommendations
would require the Commonwealth to offer to the States over
m. for their universities during the coming triennium.
This is an increase of nearly œ 16 m. over the Commonwealth
money provided during the present trionnium. To attract
this e. ount, the total of State grants and students' fees
in all of the State universities would need to be over
m. an increase of more than œ 25 n. on the corresponding
amount for State grants and students' fees in the present
trionnium. It is worth noting in this context that universities'
income from students' fees over the coming triennium is
expected to be nearly œ 20 m.
Commonwealth Government Decisions on the Universities
Commission's Report.
Subject to certain matters which I shall mention
shortly, the Government accepts the financial recommendations
of the Commission, and the present Bill is intended to give
legal effect to an offer to the States on that basis.
I have written to the Premiers and told them of the
Government's intentions with regard to the Commission's
financial recommendations. It is appropriate that I should
emphasise that it is the State Governments which have the
major responsibility for the development of universities
within their borders. But it is a source of much satisfaction
to all concerned that the State Governments readily accept the
Universities Commission as an exp rt body to which they can
turn for advice on matters affecting university development.
I have already indicated that provision for teaching
hospitals and for increases in academic salaries above the
levels which have been in effect since the end of 1960 will
add to the total Lmounts rccormmnded in the report and adopted
in this Bill. There is in addition the report shortly to be presented
by the Commission's Comnittee on the Future of Tertiary
Education. The Commission attaches great importance to the
outcome of this investigation into the pattcrn of educational
facilities over the whole filld at the tertiary level. The
Government has no doubt that the problems with which the
Committee is concerned and the recommendations which the
Commission will make in consequence are of great significance
for the provisions to be made in the future for universities.
Honourable members will note that the Commission is
recommending a grant of œ 5 m. on a for basis as between
the Commnonwealth and the States, to support special additional
research activities at the post-graduate level. However, the
Cormission has yet to complete its study of the distribution
of these funds and recommends, in the first instance, a
distribution of œ 1 m. in the proportion shown in Table 60 of
the report. The Comr. onwealth is ready to accept the
Commission's proposals for the initial œ 1 n. on the understanding
that the funds shall not be used, in substitution, to
finance research activity already supported from the general
funds of universities or from other sources and shall not be
used in such a way as to compete with the Commonwealth postgraduate
awards or similar schemes for assisting post-graduate
research students. We have postponed a decision on the
balance of the Comission's research proposals until it has
completed its study. . o would hope shortly to take an
opportunity to look at the wholo question of Commonwealth
involveennt in research in Australia.
With regard to the reconmendation for affiliated
colloAs and halls of residonce, we accept that there is a
need for additional student residences and we have no quarrel
with the total scale of assistance suggested in the report in
Table 68. However, we do wish to ensurc that, within this
assistanco, affiliated colleges should have access equally
with halls of residence and on a for basis. Our
acceptance of the total amounts shown at Table 68 is on that
basis and I shall be discussing with the Universities
Cormission the practical consequences of this decision. Our
approach on this matter has been influenced by the considcrations
that affiliated colleges are traditionally a part of the
Australian university systoe, have played an outstanding role
over the years and, for each student in residence, nake a
smaller oemand on the public purse.
The Bill to Amend the Existing States
rants ( Univoruities) Act.
Before leaving the subject of affiliated residential
colleges, I take the opportunity to explain to the House why
the Bill to amend the existing States Grants ( Universities)
Act is necessary. The original Act provided for Commonwealth grants
totalling œ 1 n. for affiliated rcsidential colleges and in
Schedule 4 the amount available for colleges at each of the
universitios concerned was specified. As things turned out,
plans for affilinted colleges at the University of Now South
Wales have cone to ncthing in the present trienniiu. Vio are
thereforo left with the choice of scinll the appropriation
lapse or of making it possible to distribute the œ 150,000
involved, according to the judgment of the Commission, among
other affiliated residential colloges which have the necessary
matching funds at their disposal. Vie h-ve thought it profcrable
to mako the money available and the Bill provides
accordingly. Academic Salarics.
I turn now to the probl; i of acdeoic salarios. As
already pointed out, the recurrent grants reconmonded by the
Commission have boon calculated using a scale of academic
salaries based on a standard profossorial ratu of œ 4,250 p. a.
While noting developnrnts affecting acacdonic salaries, the
Comr. lission is unwilling, in present circumstancoo, to suggest
new salary levels. The Cornr ission takes the view that it
should not be the salary fixing body for the universities of
Australia and the Government agrees with this view.
\ 7 have given careful thought to the matter of
salaries. ' 7J are aware of the increases, and claims for
increascs, in acaeonic salaries which have followed the
decision of the New South Ulos Industrial Corlnission. Even
before this, the univcruitics, through their Staff Associations
and Vico-Chancellors, had rprescnted to us that current
salaries should be roviewed and that for this purpose it was
desirable to have soue mnchinory, on an Australin-wide basis,
fitted tc: the particular circu:_ stanccs within the academic
We fully accopt thn t r3 l-rios plnid in a Strato
unive-rsity nr, no romain, Ultilur,. toly3 a. mattor for tha~ t
univu2r,, ity nn its Stato Govornncant. At thc sarie time,
' rcvision for sninllries is C. -njor cniponent in the rcurre-nt
grants riode by the Corvionilth1 rmd the Sta-tos Cond these
gra nts nust the--refore be calcula1ted. on soonei 1nom scale of
r. c-nc" cic slrs. Inevitably, any scale adopted, for this
purpose wvill be highly releva, nt for a-ctul salarics in the
universitios. Given the fact that _, ala1ry movemeonts are
occurring, the bscence%; cf a re co-mieindtion now by the
Univorsitioes Conn-_, is on on a n. ew salary scale for grnnts
see i-m to us to call for sc. c afction on the pa'rt of
the Corinonwenith WeT hai-? ve the re-f o ru 0cid iG d that the
Cormmoinwea,, lth ough1-t to esta blish : Done-now manchinery to adviso
it on thu scc rof a ca-demic salaries which could be
a-ppro~ pria tely ad'opted by the Univcrcitics Commission for the
purpose of -Clcula tinC r'e current ( grants for ea-ch trionniuni-.
What we have in mind i: 3 that'U ve appoint a person of suitable
Qulific-tions and expcrience to onquire into academic
solaricssistod perha-ps by two assess ors to ropresent
Govcrnmient a-nd univers-ity interests. Althou,-h tho a-ppointee
xvould need to be clcthed with appropriate authority, we
wculd hope to coo proceedings devisedC which wore not too
f olvol. It is our intention to sock an Carr-n~ or'ont along
theseo 1 mo with the object o~ f having; an inquiry to producc
a. detominoation for the 1964-66 trienniuna, effeJctive from 1st
January, 1964. I ha-ve informod the Preiers of our intontion to seeDk
this arrn-ngemelnt as , a1 oano pro-vidin. g gui, 2ance, to the
Cfor,-onvalth on the level of 0snLnrioo o n which its offeor to
the Stnto. s for re current expenditure s; hould be calcula-ted.
When deciding on our plans-for an innuiry, 17e shall take into
considera-tion tho vie ws ) f the Stn-tesl. I would hope thnt we
Y~ ay be able proce'td in the knowled0ge that such arn arranMgei-.
ont woulC comme1. ind itsclf to the Staites, as42b eing to the
ad0vantage) of nL-1 conce rned and tha-t it woculd therefore enjoy
the Staes' full support.
In the eatie being! ' ware tha-t a professorial rate
of' P. 4,250 p. a. is no lon.-er &-enerally a-ccepted, we ha7ve
decde tat, as an interim eaur pendin.-the inquiry, we
should offer to the Sta~ tes, for rccurre-nt expenditure by their
unive-rsities, g-rants ca-lculated' on the basois of a profeOssorial
rateU of œ-' 4,600 p. a. nrc thus ready -to support increase]. s up
to this level in sala'ries in State unive3rsiticns from. the lot
July, 1963 and intend to ccosr res pond ing, increasecs in
the, scales of academuric s--la-rioz; in the Autra-lian N.-tional
University. Our Ccc, ptance) of the, Unive rcitioo ComissiCln's
rccc'menda-tionsj for recurrent expenditure is thus on the basis
that we. shall take, stepz by Wa,-y of am-. cndinE leg-isla-tion to
provide the supplenemnta-ry funds; reqluired. on the Corirmonwealth's
part to support the interi-. levels referred to a-bove and,
subsequently, wihatcuver leve ls for the 1964-66 trienniun are
arrived nt -s a mosult of the inquiry vie propose to cot up.
Cm. ommowel1th Scholarsjhips
I am sure tha-t nil honourabie me--. mbers will be interested
to knmow, although it iu not a ma-tter related to the present Bill,
thant when dealing-with the Corris. jicn': report a7nd. noting-their
recormtondotions for increased financial asoistance for students,
the Government before it also a rccomenO!. timn from the
CcrElonwe-2lth Schonlars hips Board for n increase in the numbor
of awards under the Cor'' onwer,, l th Scholar, s hip Schema. I ani
plealsed to announco that we have decided that from-. the
beginning of 1964, the number of open entrance awards under the
Commonwealth Scholarship Scheme will be increased from 000 to
9,000 nd' th-. t the nurmber of second and later ycar Lwarcs unler
the same scheme will be increased by 500 fro:-, its present level
of 780. In cominr to this Cucision, we hrivc taken account of
thc prospect that vv : may need further to consider the .'. tter of
assistnce for students in the light of thc rocoimmL_, cendticns
fromi the Comittee on the Future of Tortiary Education.
Mlain Provision of the Bills
The Univritics ( Finncil Assistance) Bill
The trms are simil. r in moot respects to those of
oxisting-legislation in this ficld. As thsec are fa--iliar to
honourable member, I shanll confine myself to pointing out some
of the more significant changes.
It bins been found posciblo to simplify the legislation
in scom imzportant respects. The m. oot important of these is
in Section 3 and the related First Schedule. The C: LeiSsion
has recommended, the a-bolitiion of the system! of first and scond
level grrmnts for cneral recurrent expniture. This system ims
introduced oririnolly to ensure a inimum level of funds for
State universitie s. ' 2e concur in the Comrision's reco= enddation
for its abolition. Vlith the now lon-estCablishol rolationships
betwcon the Com-. onwealth and Statos in university ma! iLttcrs, we
re confident that the-ned fcr such a scf rua rd no longEr exists.
The reforencec;. -to sa laries in Section 4-rer based on the
figurs usc' by tho Co-' mmission whc-n calculating the levels of
recurrent expnditure,, wichh-the Comonwalth should support in
each yea-r of the tricnniuri. As I hCve alredy indicated, the
Gvorn"' ent h'-s decided to support hig-hcr salary lvels ran d
therfcrc rreator recurront expendliture, but has not rooched
finality on the levels it vill support over the trienniu. It
has not been practicable in the tie vonilcable to r calculate
the figures in the Firt Schoed: ule, nor, in view of the arrangcrients
we haive in m-iind was it thoug,, ht worthwhile to do so -t this
stage. In due course, opproprinte2 oning legislation -ill be
introduced. The most uignificant cha, nge in Section 5 and, the
related Second Schedcule dealing, with g-rants for expenditure on
univorsity building projects etc., is thart for each building
project the Sur.-specified contain on appropriate llowance for
furnishing nd equipping the buildlin. The Commission is givcn
the power to op1) provc the, proprtion spe) cnt on the actual building
and on furnishing andl equippin[ g it. It sjhould olso be noted that
provision for conmputing, fa. cilities appears in the Second
Scheulo. As I ha-; lrerOdy me. ntione, Section 6 ande the Third
Schedule 1oling with special pest-grnouo t rssorch activitis
aro tenta-tive in that they alloc,-te only 21 pending a final
decision on the Comision's proposals for resea-) olrch grnts
totalling 5 : o.
I 9.
Section 7 tlhe Fourth Schcdule Cel with hll1S of
reidecnce anJ OffilitoCC rsi-dential collegecs. The eX-tent of
Comm--onwalth support for alls of resideonce anJ affilitedo
residentia colle. cis io ccbined in the Fourth Schedulo. In
each insta--nce, the provision of Comm__ Y-onwea-'-jlth money within any
one univrcity is conitinal on approval by the Conisicn for
ch amount spent and. the purpo; for which it is spent.
Becausec of the Cif-ficulty in forecasing precisly the
,. ctu-1 need s as betvc-n univrs ities anCd betwen typos of
student residences, this S ; ction provids that thll.; Minioter may
r. srkc certain variaticmn in the amounts provided for rsidences.
Honourable :: cibors will be c; lc6 to not--, that increasedc
provision is 1-. rlade fo-r recurrent expcndlituro incurred by those
c stab. lislr'. c nt s
The Stctes Granto ( Univeritie2s) Bill No. 3 1963.
This is C sim-_, ple c',. o. euro -iving affoct to the decision
that E150,000 of Connulonwcavclth m:: oney originally maCo available
for exponditurc on affilited rintcntial cclleges nt the
Univcrsity of New Scuth 1712ales, ndO not re-quired for that purpose,
is to be d'istributd among other reidelntirl colles on a basis
to be approved,. by the M'initer on the recomi-ndtion of the
Comnic sion. Conclusion.
I rc. % arO the Comm.-ission's report Ln the presont Bill as
i: mportant mlilestoncs rmrkin!-the-route of Comm,. onwelat-h anod Stato
Govrnmont ausistanc for St: te universities. The deomnd for
univrsity educa tion i; grcwing_ not omly by reas on of our
steadily r: rowing population but bcause a steadily increasing
pro-: Drtion of cur young-eople are qualifying-for hiher e ducation
adl are looking; to the universiti. js to providec it. Further, fro-,
theo national point of vie-, w, it is ven mior'. true t-dy than in
1957 when the IMJurray Coyittee rema-rklr dl " The proprtion of
the bpopultian which is calledc upon to ive professional or
technical service rf onc kind . r tnother is incresin-evory
day!;-and the proportion of such cople who have to be grad60. uate s
is increasingf also."
ProDblemsiz r . iain to be solved a-nd it m-ay well be that,
when we hve the Comr:',. i sin'sz r concnc! dtions following completion
of its co;-, mitteec's study of the future of tertiary
ducation in Aurstralia we sha-ll be called on to support ovolopmnt
in the3 torticry field aditionl to those the Conimonwcalth
now supports. In the me. ntime, we are confident of the ncc tco
pledgo-c support for the univerities to the extent provided in
this Bill nd ind icated, at vairious p? oints Curing my remiark.
I warmly comel: ndn the Bill to the House.