The annual tuition fee-setting exercise for the University of Otago council yesterday followed a now-familiar pattern.
The two student representatives argued against the proposed increase and suggested a lower figure; vice-chancellor Prof Sir David Skegg and others said they did not want to increase fees but the university was under-funded and they had no choice; and when it came to the vote, everyone but the student duo was in favour.
The end result yesterday was a 6.3% increase in fees for domestic undergraduate and postgraduate students next year, plus a modest increase in student levies and administration fees.
Of the tuition fee increase, 4% will be retained by the university to help meet costs in an "income-constrained environment" and the rest is required to cover GST rising to 15%.
Fees for international students were decided in June; they will rise 4%-7%, including GST.
Otago University Students Association (OUSA) president Harriet Geoghegan, one of the student representatives on the council, had already indicated she would not support the proposed fee increases.
As she had done first at a university finance and budget committee meeting last month, yesterday she moved an increase of 2.72% on fees excluding GST, which together with the 2.3% required for GST would take the overall rise to just over 5%.
The motion was seconded by the other student representative, Victoria Nicholson, but did not gain the support of other council members.
When the original recommendations were put to the vote, the only voices against were Ms Geoghegan and Ms Nicholson.
Introducing the recommendations, Prof Skegg said fee-setting was never a part of the year he looked forward to.
Compared with Australian universities, New Zealand institutions were under-funded, he said.
Otago's income from all sources, including Government funding, tuition fees, research grants and commercial activities, was $29,000 per student, whereas the range for Australian universities was between $44,000 and $87,000.
New Zealand universities continued to lobby for more Government funding but the Government was "clearly not able" to provide a rapid funding increase, he said.
"I don't believe this institution has any choice but to increase fees ... I wish we didn't have to. I'm sure it won't be welcomed."
Ms Geoghegan said large fee increases would put students off studying, would influence where they studied and would add to their student loans and debt levels.
They might force students from outside Otago to "stay and home and study", and could result in underrepresented students such as Maori and Pacific Islanders and those from low-decile families' choosing not to go to university.
