What will Australia look like whenÌýwe emergeÌýfrom the crisisÌýin the spring, or later?Ìý
It’s not too extreme to say the recovery willÌýbeÌýmore challenging than the Global Financial Crisis. It may be equalÌýto, orÌýevenÌýworseÌýthan,Ìýthe challenges Australia facedÌýafter World War II. After all, never haveÌýcountlessÌýindustries shut down overnight.Ìý
The task will be to get our economy moving again. To reinstate jobs for theÌýhundreds ofÌýthousands,Ìýif not millions,Ìýof those stood down.ÌýToÌýimagine andÌýcreateÌýnew industries that will guarantee a bright future.ÌýTo do all we can toÌýrepair the damage to our communities.ÌýAustralia’s universities stand ready toÌýplay a central role inÌýthe nation’sÌýpost-coronavirus economic recovery.Ìý
In normal times,ÌýuniversitiesÌýdriveÌýgrowth in productivity andÌýprosperity –Ìýthrough their research and innovation, and the skilled graduates they supply to the labour market.Ìý
Universities contributed $41 billion to the Australian economy and supported a total of 259,100Ìýfull-timeÌýjobsÌýin 2018.Ìý
TheÌýreturn on investmentÌýis compelling. For everyÌýdollarÌýinvested by the Government in university teaching, $3 is generated in additional tax revenue.Ìý
Every $1 invested in higherÌýeducation research and development, $5Ìýcomes back into the economy.Ìý
TheseÌýare not normal times.ÌýAnd it may be sometime before we return to normal.Ìý
We have seen unprecedented, but entirely necessary, levels of government stimulus to support Australia through this crisis.ÌýButÌýtheÌýstimulusÌýcan’t last for ever.Ìý
Australia will needÌýeven moreÌýnew ideas, new skills and new jobsÌýtoÌýpowerÌýthe economicÌýand socialÌýrecovery. UniversitiesÌýare theÌýengine rooms ofÌýprosperity.ÌýDuring such a traumatic time for the whole community,Ìýthe engine is slowing, but we want to beÌýthereÌýto fire it upÌýas quickly as possible once the pandemic has passed.ÌýÌý
As a vital component in national recovery, it is crucialÌýuniversities remainÌýviableÌýtoday so they are able to maximise their contribution to Australia’s economic recovery tomorrow.Ìý
Universities are where the race to develop faster and more accurate tests for COVID-19ÌýareÌýoccurring. ResearchersÌýneed the lights to stay on while theyÌýwork tirelessly to create new anti-viral treatments andÌýhopefullyÌýdevelopÌýthe vaccine thatÌýwill stop this virus in its tracks.Ìý
Like every other sector of the economy, universities and the communitiesÌýweÌýsupport are suffering financially from theÌýcoronavirus pandemic.ÌýVeryÌýdifficult choicesÌýare being madeÌýto cope with the fallout and to put the education of future generations of young Australians first.Ìý
But it won’t be enough.Ìý
TheÌý130,000ÌýstaffÌýwho work in universities to keepÌýstudents studying through this crisis,Ìýmoving to deliverÌýwholeÌýcoursesÌýonline, teachingÌývia screen from their lounge rooms and garages.ÌýGovernment has worked side by side with usÌýcutting red tape,Ìýgiving universitiesÌýroomÌýto focus on theÌýimportant task of keeping students inÌýuniversity, and off the job queues.Ìý
But we don’tÌýjust teach students fromÌýhome, we teach students from all corners of the globe, 144Ìýcountries in total. Many of those students areÌýhereÌýand adapting just like theirÌýAustralianÌýfriends to studying online. Just like our kids,Ìýthey will wait out the pandemic,Ìýstudying from a dorm, or rentedÌýflat,Ìýeager to get back on campus as soon as it is safe. But many overseas studentsÌýstart mid–year, and,Ìýno matter what we do,Ìýlarge numbersÌýofÌýthem will not be able to get here and will not enrol.Ìý
ThisÌýposes a hugeÌýchallenge to universities,Ìýnot only operationallyÌýbut financially.ÌýÌý
International education is Australia’sÌýfourthÌýlargest export industry, contributingÌý$39 billionÌýin export incomeÌýeach year to the national economy.Ìý
The university sector, with the Government, has over the past five decadesÌýpursued a deliberate strategy of globalisation, attracting students from more than 140 countries.ÌýÌý
Now theÌýglobe has temporarily shut down,Ìýwe, like everyone else,Ìýneed helpÌýtoÌýwait out the virus.Ìý
We, too,Ìýhave feltÌýhugeÌýhits toÌýrevenueÌý– and there are more to come, as soon asÌýthe second semester this year.ÌýWe estimate a decline of $3 billion to $4.6 billion in university revenue,Ìýat a minimum,Ìýin 2020.ÌýAnd that is a very conservative estimate. At stake is the $39 billion international education market.Ìý
Because salaryÌýandÌýother employeeÌýcosts makeÌýup an averageÌýofÌý53 perÌýcentÌýof university outgoings, weÌýestimateÌýthisÌýmayÌýplace at riskÌýmore thanÌý21,000 full–time jobs.ÌýThat is over the next six months, but because there will beÌýaÌýsignificantÌýpipelineÌýeffect, that willÌýnot be the end of the job losses, with perhaps as many again,Ìýafter thisÌýfirst hit.ÌýÌý
We have been working closely withÌýtheÌýGovernment since the beginning of the COVID-19 outbreak and appreciate the collaborative approach.ÌýBut some support is required now to try andÌýreduce those losses. Not eliminate,ÌýjustÌýreduce.Ìý
As not–for–profitÌýcharities,Ìýwe welcomed the Treasurer’s announcement about amendments toÌýJobKeeperÌýthat would have seen most universities included. It would have backed our ability to reduce job losses.ÌýÌýWe are disappointed to have been excluded.ÌýWe will continue to discuss support for universities with Government.Ìý
We need toÌýengage as many people as possible during this period of social isolation in order to ensureÌýwe have a pool of skilled graduates ready to play theirÌýcritical role in getting Australia’s economy back on its feet as soon as possible post-COVIDÌý19.ÌýÌý
We want to work with the Government to support the more thanÌý335,000 international students in this country, many of whomÌýhave seen their part time jobs disappear,ÌýjustÌýlike their Australian counterparts. UniversitiesÌýhave already offeredÌýwelfareÌýfunds, but moreÌýsupportÌýwill be required.Ìý
Universities have launched hardship funds and are being swamped with thousands of applications. We ask the Government to join us in supporting these students.Ìý
How we treatÌýthemÌýnow will affect how well we retain, as well as recruit new,Ìýinternational students who contribute to the success and sustainability of Australia’s higher education industry.Ìý
We have not asked for a bailout. Rather, we have asked federal, state and territory governments to provide universities with a short-term, zero or low-interest loan facility. Anyone who has used a bridging loan between the sale and purchase of a house would be familiar with this mechanism.ÌýÌý
Just as it would be a shame to lose out on the purchase of a home for the sake of a few weeks, it would be a tragedy to do irreparable damage to our world-renowned higher education sector because of six months.Ìý
The coronavirus threatÌýwill abate. We are more thanÌýready to share the pain the whole community is bearing, we don’t want toÌýbe left only with options that mightÌýcompromise national recovery.ÌýÌý
WeÌýneedÌýto be equipped to get ourÌýtalented teachersÌýandÌýresearchersÌýback on the tools asÌýsoon as we can;Ìýstudents back to class, so we canÌýhelp Australia emerge from this crisisÌýas strongly as we can.Ìý
Professor Deborah TerryÌýAOÌýis the Chair, and Catriona Jackson the Chief Executive, of ºÚÁÏÀÏ˾»ú.Ìý
As published in The Australian on Tuesday 7 April 2020.
