Mr. Ned Costello:

I might talk about the technological university the Senator mentioned. However, as a sequitur to what Mr. Purser said, the Senator correctly adverted to the variation in non-progression rates across the higher education system as a whole. There is evidence that they are worst in the institutes of technology sector. While it is not for me to speak for the IOT sector, representatives of the sector would say that obviously the socio-economic profile of entrants to that sector is different and that inevitably has an effect. The same pattern is evident with computer science in the IOTs as in the universities. The more difficult courses, particularly those with lower points requirements, tend to be the ones that people come into. They tend not to have the capability to succeed in the course and then they drop out of it.

On the question of technological universities, our position has always been that it is one of standards. If an institution deserves the title of university, then it should look, walk and talk like a university. Therefore a technological university should be of a university standard, but with a different disciplinary focus from a comprehensive university.

Inevitably, however, if technological universities are created, there will be bits of the technological aspect of comprehensive universities that look like a technological university, if I can put it that way. I think we want that because we want universities to be as engaged with technology and with companies as technological universities are. However, there is also a regional dimension, which the Department's policy would require to be stronger in the case of technological universities. There is an SME element that the Department would maintain needs to be stronger as well.

I hate bringing everything back to resources, but as Mr. Boland did it last week, I am probably allowed to do it. The big worry is that creating new universities will not be a cheap process. Where will the money come from?

There is also significant challenge on the employment contract on the TU side. The employment contract is very different because in the IOT sector, as the Senator knows, it is predominantly a teaching hours-based contract. As the sector wants to do more research, it is struggling with that.

Fundamentally it is not a question of principle. It is really a question of more practice. If we have institutions of university standard, they should be universities. However, we have to find a way to pay for it and then we are back to the sustainability piece.

I will ask Mr. Casey to talk about the diversity of income that the Senator and Deputy Cannon raised.