Updated: Adds KSU reaction

Students' bodies from both sides of the political fence this afternoon expressed concern over comments by the Governor of the Central Bank advocated a trimming of stipend support for University students, limiting it to those truly in need.

Speaking at a dinner hosted by the Institute of Financial Services last night, Michael C. Bonello said Malta needed to invest more, and more efficiently. Malta’s educational attainment levels in particular, though improving, remained low. In 2009 just over one quarter of adults aged between 25 and 64, much less than half the EU average, had completed at least an upper secondary level of education.

"The solution here does not lie solely in allocating more resources. It is also a question of how the money is spent."

According to a recent study, he said, public spending on education in Malta amounted to around 5.5% of GDP, which wasabove the EU average. But the study also showed that this spending was not very efficient, especially in the case of tertiary education. Despite the significant amounts spent, Malta’s tertiary educational attainment level, at 21.1%, was well below the EU average of 32.3% and the Europe 2020 target of 40%.

This situation had to be reversed because well-remunerated jobs could not be created in the absence of high-quality post-secondary education. As the recent Browne report in the UK stressed, higher education drove innovation and economic transformation.

"The University of Malta, however, is short of funds. One way of tackling this deficiency would be to limit stipend support to students who are truly in need. This would ensure that access to a university education remains open to everyone with the potential to benefit from it, while releasing funds for improving its quality. It would also address an issue of equity: since a tertiary level education is the key to better-paid jobs and higher lifetime incomes, it is appropriate that those who benefit most from it should contribute at least part of the costs involved," Mr Bonello said.

SDM, PULSE, CONCERNED BY GOVERNOR'S COMMENTS

Studenti Demokristjani Maltin (SDM) in a statement expressed concern over the Governor's comments.

While agreeing that students in need of additional financial assistance should be given extra assistance, something which is already present in the current system, SDM said the stipend system should remain in place since it is of great help to Maltese students and their families.

"SDM feels that the stipend system should be viewed as a welfare issue and an issue of solidarity and social justice.," it said. "Malta's only resource is the human resource and thus it is of utmost importance that the State directs investment in this direction. SDM believes that this financial aid to student does not impede or come into conflict with increasing the efficiency of our education system and the attainment of higher standards."

Pulse said it had already expressed its concerns when similar proposals were suggested by the Central Bank Governor in 2009.

"The existing stipend mechanism is a form of financial assistance to students who choose to pursue a particular profession within the local and European labour market. Pulse believes that stipends are an investment in our students and the society and should not be sacrificed for cost-cutting purposes," the left-leaning organisation said.

The group said it fully supports the concept of maximum efficiency in the allocation of resources in the public sector.

"Pulse believes that despite the country’s dire need of performing a series of responsible reforms to address the challenges in the area of public expenditure, the state should not ignore the social impact certain measures could have. Making stipends less available to students is certainly an example of the negative ripercussions such measures would have."

It called upon the relevant authorities to finalise the setting up of the University Trust Fund as soon as possible. The government, it added, should provide incentives to companies investing in this trust fund.

A special task force should also be set up to address these important issues "which so far have only been tackled by random warnings and threats to reduce stipends".

KSU REACTION

KSU, the University Students' Council, said that most students are currently getting €83.86 per month, with those students who are reading for degrees which are listed in the prescribed schedule, getting €146.75 per month.

"This is barely enough to make good for expenses which are ancillary to the student’s studies, but which are nonetheless essential for the continuation of a course at University. Students have a number of daily expenses, namely amongst which transport and living costs which, at least for some part are minimally alleviated through the stipend," the council said.

"The stipend is not making students any richer. In fact, this stipend can only make good for a small part of the living expenses of students. As a matter of fact a very large portion of students have part time jobs even during semester times to make good for their expenses. All this greatly impacts the social dimension of the students’ studies, and this, KSU believes, should be the main scope of these discussions, above anything else."

It stressed that the stipend is the major and single most important measure that allows for greater participation in higher education in Malta.

"It is through the stipends that students from all socio economic backgrounds can participate in higher education and read for a course at University. Thus to say that the stipend should be done away with goes against not only the promises found in the Electoral programmes of both major local political parties, but it also goes against the state’s obligations towards increased participations which were agreed to through the different Bologna Process declarations over the years and the main thrust of the European Union over the need to emphasise the social dimension of one’s studies."

More importantly, the KSU said, the attainment rates of higher education in Malta would be much lower should the stipends be removed.

The council agreed, however, that a re-evaluation needed to be made on the way the money was being spent.

"At present there is no one coherent policy with regards to the strategic development for higher education within the coming years. Indeed, this policy has been missing for quite some time, and the measures and the financing which was made available to University within the last couple of years was used mostly to make good for the immediate needs of University."