James, as you say, "the current level of service provided is above the market equilibrium." This is in part because, as you point out, universities failed to ask "what do their students require, and who should pay for it?"

Of course things will be more difficult at smaller universities, just as it's easier and less costly to provide facilities in cities than in small remote settlements. That's a fact of life which is too often ignored by governments in promoting or subsidising non-viable activities. If the loss of compulsory unionism is enough to render a small university non-viable (in itself or for some students), one must ask why it exists in the first place

As an Undergraduate at SCU I thank you for your article. It reminded me to make an appointment with the dentist. I cannot afford dental otherwise.

SCU SRC made a very telling video that surveyed the community and suggested that VSU would cost this area (the Northern Rivers) approx $2 million a year in lost revenue for the local business community. (You could probably get a copy from them).

Back to the dentist. Dependant on what the Uni decides I will still pay VSU, for it gives me access to the dentist, it subsidises the Co-Op bookshop, and stationary shop as well as other services, some of which I will not use but my fellow students may, such as child care.

Faustino,'it's easier and less costly to provide facilities in cities than in small remote settlements'
Toowoomba and Lismore are NOT small remote settlements rather they are thriving regional cities with no pollution, no traffic jams or road rage.

What they do have are wonderful community based learning centres, with a diverse population garnered from local, regional and international students making them truly cosmopolitan a marvelous place to live. A marvelous place to study.

Bah Humbug to the centralisation of everything in major state capital cities

Coyote, my reference to “small remote communities” was making a general point, not describing Toowoomba and Lismore as such. Nor do I believe in complete centralisation or homoegeneity. What I do believe is that if people want to live in a decentralisated, small-scale manner, they should recognise that there are costs involved (as well as the benefits you appreciate), and not expect the majority, living in metropolitan areas with their own costs and benefits, to subsidise their choice.

James - what's the primary role of student unions? Is it to represent and advance members' interests or provide services?

Alex,

The role of student organisations is a mixed one. On most campuses there has been a body or number of bodies charged with a mixture of providing support and representation as well as the provision of services.

The real question here is not what is the purpose of student unions, but what is the purpose of the student fee. That’s what all the fighting is about, cold hard cash.

Who should pay it, who shouldn’t, what should it be used for.

As most of the money went to services, from a financial perspective that was the main purpose or main activity. Student representation may be the moral heart of a student organisation, but what we became was a way of funding what universities don’t.

James J O’Brien

Coyote says "... suggested that VSU would cost this area (the Northern Rivers) approx $2 million a year in lost revenue for the local business community...". I don't believe this would be the case. The money that the students had to pay on the fees, would be spend in on things that the student values more highly - most likely in the local area, causing the VSU to be revenue neutral for the area.

Of course for some students who were well off this may be put into savings and others would simply not spend it because they didn't have the money in the first place and I think you would agree it is better for those who cannot afford it to not go into debt if they can help it.

When I went to Uni several years ago, I found I used very few of the services or other things the SU provided. I did a Computing/Accounting double degree at a regional Uni and one of the stories I remember was that it cost the department over a $1,000,000 a year in internet access costs and growing. I loved the unlimited internet but they could have improved the uni’s financial position by making the internet access prepaid - like at the high school I attended. By the time I had left, they had implemented smartcards which were used to pay for printing.

Free BBQ’s were another thing that the SU spent money on. Uni students love free food, but in reality they paid for it in the Compulsory fee. In my experience at uni, I don’t think I would notice the loss of services at all from VSU.

Finally, everyone is assuming VSU will make a big difference to the amount the SU gets. If they are providing services that people agree with and want, it is conceivable that students would still be willing to pay the fees.

James, you're right that the "the fighting is about, cold hard cash."

This is because, as you admit, compulsory student unions are not primarily representative organisations. They are instead entities entirely dependent on large amounts of unearned income. Their main objective is to protect that income. The interests of their compulsory members are well and truly secondary.

Also, I'd suggest the 'services' compulsory unions provide are not services at all. Compulsory membership means unions get lots of money, most of which is spent on so-called services. However because of compulsion there's no connection between what students want and what they pay for, ie no supply and demand. Once compulsion is removed, students are not willing to voluntarily pay for most of the 'services' proving that were of little value to students in the first place.

The problem is that compulsory unions pretended to be representative political groups but had to use provision of services as justification for their existence.

The solution is to separate the provision of services from student politics. The funding of non-academic services could still be compulsory (although the new law doesn't allow this) but there needs to be stringent rules to prevent the leakage of services funding across to political organisations.

In my opinion, it is all about how you view your University experience. I have recently finished my combined ARTS/LAW degree, and when I arrived as a fresh-faced country kid in the big city 5 years ago, I knew no-one, was absolutely sh!t scared and wanted to go home.

5 years on, and I have had the best 5 years ever. I have made some of my best friends through union-organised activities. This has allowed us to support each other through uni and what I regard is a relatively difficult degree, and make sure we got through.

Most people in my degree have gone through without barely meeting a classmate. I on the other hand, have made the most of the services provided to students. I would enjoy the bands, reading the magazines, eating the cheap food, drinking the cheap beer. I could have a good time without it costing me an arm and a leg, as my parents didn't buy me a new VW and give me 300 hundred bucks a week, like a lot of students.

Most of the VSU spouters would say 'well people shouldn't have to subsidise your activities'. Crap. Don't blame me if they didn't make the most of their experience. The fact is that now, uni is going to become a place you show up to get you piece of paper, talk to no-one, and that’s it. If that's what you think it should be, than that’s fine. But it sure will make it tough for rural and less privileged students to get through.

Surfing the internet I discovered this website that claims to have a link to a copy of a "Queensland University of Technology Student Guild Consolidated Statement of Financial Performance" from 2005.

http://www.inthehut.org/guild_statement.pdf

Interesting figures to have a look at.

James as president of a student union are these spending habits consistent with those of your union and others around the country?

Jeremy,

The given document is difficult to compare and provide a meaningful observation given the month and lack of detail on the page. I more reliably comment on a full set of end of year accounts.

However, I will note that many of their commercial enterprises may seem to be either unviable or poorly run. Which I cannot say. I will note that campus operating environments can be very harsh when most of your customers are away for almost half of the year. Additionally income is received at varied rates throughout the year, so some of those businesses currently in deficit may trade in the black by the end of the year.

Their governance costs seem particularly large, but in the absence of a realistic separated figure for administration, finance and overhead costs I would speculate that the previous are all combined into the governance item. Administrative expenses given the size of their organization and the number and diversity of their commercial operations are probably reasonable. It is particularly difficult to speculate on this item given the lack of information about how the organization accounts. Some whole of organization expenses may be included, the non-cash costs are unknown. As this is at a random point in the normal student organization operating cycle (Jan – December)and some many large expenses occur in first semester I cant accurately draw comparisons.

If complete end of year figures were available I could offer a more informed opinion, but as it is one page from a set of summary financials from a random point in the year I really cant shed to much light.

I do however invite people to examine our annual reports available from our website
www.studentguild.com.au. The annual reports are located in the about the guild / board and governance section. I am happy to answer any questions people may have

James O’Brien
USQ Student Guild President