policy & reform
Cuts hit overseas student push
The South Australian decision to slash funding for a successful marketing organisation makes no financial sense, writes Malcolm King
The South Australian government will slash $ 3 million from Education Adelaide’ s budget in 2015-16, ending the agency’ s role in bringing international students to the state.
While SA’ s international students fell from a peak of 34,000 in 2010 to 28,000 in 2012, due to the tightening of visa regulations and the high Australian dollar, last year international students still contributed $ 925 million to the state’ s economy.
Education Adelaide was established in 1998 to promote the state’ s international education industry, which under the leadership of chief executive Denise Von Wald, has seen a 23.5 per cent growth in international student numbers since 2005.
SA has a 5.6 percentage share of the Australian international student market. It punches well above its weight by offering student travel discounts on public transport, special events and a secure environment in which to study.
When I returned to Adelaide in 2008 after working in Melbourne in higher education and the media for 20 years, the greatest change I saw was the number of international students, living and studying in the city. They were a breath of fresh air.
They also added millions of dollars to the local economy in rents, tourism and retail purchases. Overseas students are the nucleus of a vibrant inner-city life with thousands engaging with the broader population. Indeed, they are key players in the state’ s multicultural economy and a potential solution to Adelaide’ s woeful CBD nightlife.
The chairman of Education Adelaide, Bill Spurr, said recently on ABC radio in Adelaide that the organisation depended on the government for 60 per cent of its budget, with the rest provided by the universities and Adelaide City Council.
“ Everyone’ s seen the impact of international students, not only on the economic fabric of the city and the state but also the social and cultural fabric of South Australia and particularly of Adelaide itself,” Spurr said.
I helped establish and promote Carnegie Mellon University and the students we garnered fell in love with Adelaide and its people. As a part of their study, they project managed major IT and public policy initiatives for charities, NGOs and local businesses – all for free.
The timing of the funding cut is staggering considering the state government will launch South Australia’ s new brand campaign during the Tour Down Under cycle race in February. The campaign will focus on restoring the state’ s reputation for innovation and creativity but these two qualities appear to be missing from the Weatherill government.
Adelaide is getting a taste of what has been happening in America for 15 years. People are moving from the east coast to the south, south-west, and far west in search of jobs.
Those cities that have failed to make the transition from a manufacturing-based economy to a service-based economy are in decline. The residents of Flint in Michigan, Cleveland in Ohio and Buffalo and Rochester in New York, are battling brain drain, falling population numbers and contraction or closure of their traditional manufacturing bases.
The combination of employment collapse and population drain, even before the
Adelaide is getting a taste of what has been happening in America for 15 years. People are moving from the east coast to the south, south-west, and far west in search of jobs.
global financial crisis, has meant that whole blocks of these cities are now abandoned. This will not be Adelaide’ s fate as long as the economy diversifies. That is why international students are so important.
In December, University College London president Professor Malcolm Grant, said the South Australian government had“ walked away” from its vision to make Adelaide a renowned university city.
Grant said UCL established its Adelaide campus in 2009 by the vision outlined by former premier Mike Rann, with promises of support and access to policy makers.
“ It seems the state has walked away from its global visionary policy because the local politics got too hard,” Grant told The Advertiser.“ We see no plan for how Adelaide will fulfill its‘ University City’ vision,” he said.
Education Adelaide is the one agency that is fighting to fulfill the promise of the University City plan, increase retail sales and bring new brains to the state. ■
Malcolm King works in the area of workforce generational change. He was an associate director in DEEWR labour market strategy in Canberra and has worked in higher education and as a journalist.
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