The Hon Josh Frydenberg
MP
Treasurer
PO Box 6022
House of Representatives
Parliament House
Canberra ACT 2600
By email: josh.freydenberg@treasury.gov.au
Dear
Treasurer,
Re: Economic Response to the Coronavirus
The Community and Public Sector Union (CPSU NSW) is writing
on behalf its members employed as Professional Staff in Universities. The union
is particularly concerned of the economic impact that travel restrictions
resulting from the COVID-19 epidemic is having on universities.
The Government’s Economic
Response to the Coronavirus released today recognised the significant effect
that COVID-19 is having on the education sector. Despite this, there was no
additional funding announced for the university sector. The CPSU NSW finds this
omission to be extremely short-sighted, and seeks that the Federal Government
urgently steps in to provide adequate additional funding to Universities
experiencing, or likely to experience significant losses in revenue because of
COVID-19.
Leading economists, international rating agencies and the
industry’s peak commercial body, Universities Australia, have all raised the
potential vulnerability the sector faces in any prolonged restriction on
international student travel in response to the rapid spread of coronavirus,
particularly in China.
Standard & Poors estimate Australian universities stand
to forfeit around $3.1 billion in lost revenue. For example, the University of
Sydney recently announced a $200 million financial short fall as a result of
the travel restrictions.
Education is our third largest export. For decades
Governments have pushed public universities to build business models based on
expanding their international fee paying student numbers to supplement cuts in
public funding.
Universities have been turned into businesses and in doing
so exposed them to market vulnerability. Many are now either highly dependent
on revenue from international students, or cash-strapped to the extent they
can’t easily sustain a further decline in income. They have become among the
most critical employers in our regions and generate enormous economic activity
in other parts of the economy.
For these reasons the CPSU NSW seeks that the Federal
Government urgently provides additional funding to the University sector.
Yours faithfully,
Stewart Little
State Branch Secretary
March 2020