Uni fund to restore services lost in student union overhaul

THE Government wants the $500 million one-off Renewal Fund for Universities to be used to finance services stopped by the Howard administration's Voluntary Student Unionism laws.

Youth Minister Kate Ellis said the money was allocated to universities and could be directed to IT, library, laboratory, places of study and "student amenity projects at their discretion".

"Student organisations may choose to work with universities to encourage funding for amenities that have been run down as a consequence of VSU," she said.

Ms Ellis has finished a consultation on the impact of the Howard government's VSU laws, which she used to identify solutions to the campus funding crisis in line with Kevin Rudd's promise last year not to resurrect compulsory student unionism.

"The introduction of voluntary student unionism by the previous government has impacted negatively on student services, amenities and representation," she said.

"We've heard students loud and clear on this. And we are responding. In addition to the $85million VSU transition fund, which is being administered until late 2009, the Government's $500million Better Universities Renewal Funding will substantially benefit students.

"Grants distributed to universities by June 30 this year will be used to upgrade infrastructure such as IT, libraries, laboratories, study places and student amenities. We are focused on a sustainable, long-term solution to address the impacts of VSU and will be outlining further plans shortly."

The Government said it was intended to help universities "rebuild their campus infrastructure after 11 years of Howard government neglect". Under the VSU legislation, which came into force on July 1, 2006, universities are banned from charging a fee for any non-academic service.

It represented the realisation of a long-held Liberal Party article of faith to dismantle compulsory student unionism.

The student unions had traditionally been controlled by the Left, and were seen as a training ground for Labor politicians.

After dissent from within its own ranks, notably from Queensland Nationals senator Barnaby Joyce, the Coalition government provided $80million to institutions over three years to help cover the shortfall in fees of about $160million.

Membership of student unions has fallen since the legislation was brought in, costing Australian campuses a combined total of $167million.