The Australian government¡¯s plans to cut university budgets and introduce performance-related teaching funding have come under further fire from universities.

The government¡¯s plans, which include a 2.5 per cent cut in university funding and a 7.5 per cent increase in tuition fees, are aimed at addressing the national budget deficit. But they face an uncertain passage through Parliament.

The University of Melbourne¡¯s submission describes the reform package as ¡°a piecemeal policy offering¡± that would ¡°cause severe detriment across the system if implemented¡±, the reported. ¡°This is not a package representing genuine sectoral reform,¡± the submission says.

The government¡¯s package also contains plans to allocate 7.5 per cent of funding on a performance-contingent basis.

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Western Sydney University says that the proposal ¡°would throw almost any university into operating deficit¡± if applied, the Australian reported.

The Australian Catholic University¡¯s submission says: ¡°It would be a perverse outcome if, under the banner of improving the sustainability of ÖйúAƬ, the government¡¯s reforms forced some universities to shut their doors.

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¡°A quarter of all Australian universities would be in deficit if subjected to this level of funding cut.¡±

Meanwhile, Simon Birmingham, the education minister, provoked controversy when he said: ¡°Australian universities have been enjoying a serious flow of money ¨C?rivers?of?gold, if you like ¨C since the demand-driven system for universities was put in place a number of years ago.

¡°I think the university sector, while maybe wanting to cling to every revenue stream it can, needs to be realistic that it¡¯s been on an incredibly good wicket.¡±

Universities would receive funding growth ¡°a little bit slower than it would have otherwise been¡± under the government¡¯s changes, he said.?

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The reported that Universities Australia said in its submission to the Senate inquiry: ¡°The government has claimed that universities are able to absorb the proposed funding cuts based on their published accounting surpluses.

¡°This argument misunderstands the true position of universities and how they operate.¡±

john.morgan@timeshighereducation.com