PRESENTATION TO THE COMMISSION OF INQUIRY INTO HIGHER EDUCATION FUNDING AND OTHER MATTERS

African National Congress Youth League

INTRODUCTION & BACKGROUND

THE ANCYL IS THE BIGGEST YOUTH FORMATION IN SOUTH AFRICA. IT WAS ESTABLISHED TO

RALLY THE YOUTH BEHIND THE BANNER OF THE ANC AND CHAMPION THE INTEREST OF YOUNG

PEOPLE.

THE ANCYL BELIEVES IN THE FACT THAT THE LACK OF FREE AND QUALITY EDUCATION IMPACTS

MOSTLY ON YOUNG PEOPLE OF THIS COUNTRY.

IT IS THE VIEW OF THE ANCYL THAT TO BUILD A NATIONAL DEMOCRATIC SOCIETY AS

ENVISAGED BY THE NATIONAL DEVELOPMENT PLAN EDUCATION REMAINS A CRITICAL PILLAR.

WE STRONGLY HOLD A VIEW THAT AN UNEDUCATED NATION CAN NEVER BE ABLE TO GROW

ECONOMICALLY.

THE SITUATION WHERE OUR PARENTS ARE MORE EDUCATED THAN US CAN NEVER BE

DISCOUNTED EASILY AS IT POINTS TO A FUTURE CRISIS FOR THE COUNTRY.

OUR UNDERSTANDING OF THE ROLE OF THE COMMISSION

ESTABLISH THE FEASIBILITY OF MAKING EDUCATION FEE FREE IN

SOUTH AFRICA.

THE PROCESS OF FEASIBILITY SHOULD BE A SOLUTION DRIVEN

PROCESS.

THE PROCESS OF FEASIBILITY SHOULD CONSIDER WAYS ON HOW TO

MAKE EDUCATION FEE FREE IN SOUTH AFRICA

INVESTIGATE THE ISSUE OF INSTITUTIONAL AUTONOMY VISA VIE THE

FUNDING MODELS THERETO.

FEE FREE HIGHER EDUCATION AND TRAINING

FEE FREE EDUCATION SHOULD NOT BE DESCRIBED AS TUITION FEE EDUCATION

FEE FREE EDUCATION SHOULD CONSIDER THAT HIGHER EDUCATION FEES INCLUDE THE FOLLOWING

TUITION FEES

ACCOMMODATION FEES

BOOKS AND STUDY MATERIAL

ACCOMMODATION (BOARDING AND LODGING)

TRAVELLING (RESIDENCE TO CAMPUS)

A FEE FREE HIGHER EDUCATION SYSTEM SHOULD THEREFORE HAVE NO FEE IMPLICATIONS ON ISSUES MENTIONED ABOVE.

THE CALCULATION OF A FEE FREE HIGHER EDUCATION AND TRAINING SHOULD THEREFORE INCLUDE THE 5 COMPONENTS.

INSTITUTIONAL AUTONOMY

INSTITUTIONAL AUTONOMY IS THE FIRST BARRIER TO FEE FREE EDUCATION.

INSTITUTIONS DETERMINE THEIR OWN COSTS OF STUDY

INSTITUTIONAL AUTONOMY FURTHER ENTRENCHES THE LEGACY OF APARTHEID OF BLACK AND WHITE EDUCATION.

IT COMMODIFIES EDUCATION TO THOSE WHO CAN AFFORD AND THOSE WHO CAN NOT

PLACES VALUE ON THE BASIS OF PRESTIGE IN QUALIFICATIONS

THE FIRST STEP TOWARDS MAKING FEE FREE EDUCATION SYSTEM WORKABLE IS TO PASS LEGISLATION TO END INSTITUTIONAL AUTONOMY.

THE POOR, THE WORKING CLASS AND THE MISSING MIDDLE

THE POOR THE OXFORD DICTIONARY DEFINES POOR AS "LACKING SUFFICIENT MONEY TO LIVE AT A STANDARD CONSIDERED COMFORTABLE OR NORMAL IN A SOCIETY.”

POOR IS THEREFORE RELATIVE TO THE NATURE AND THE STANDARD OF LIVING IN SOCIETY IN SOCIETY AND WHAT SOCIETY DEEMS COMFORTABLE.

THE WORKING CLASSMARXISM TEACHES US THAT THE WORKING CLASS ARE THOSE WHO HAVE TO SELL THEMSELVES PIECEMEAL FOR A WAGE OR SALARY. THE WORKING CLASS IS NOT JUST FACTORY WORKERS.

THE USE OF THE WORKING CLASS TO DETERMINE WHO MUST AND MUST NOT GAIN ACCESS TO FREE EDUCATION IS DANGEROUS.

THE MISSING MIDDLETHESE ARE CLASSIFIED AS THOSE WHO DO NOT QUALIFY FOR NSFAS BUT CAN NOT AFFORD THE COST OF HIGHER EDUCATION

WHO QUALIFIESTHE R 600 000 HOUSEHOLD BAROMETER WAS A QUICK FIX TO THE PROBLEM AND ISNOT ACCEPTABLE.

THIS IS HOUSEHOLD GROSS INCOME BEFORE TAXATION AND DEDUCTIONS.

IT DOES NOT TAKE INTO ACCOUNT HOW MANY STUDENTS THE FAMILY HAS TO TAKE THROUGH UNIVERSITY.

IT DOES NOT CONSIDER THE LIVING STANDARDS OF AN AVERAGE FAMILY.

THE NXASANA COMMISSION’S DEFINITION OF POOR AND WORKING CLASS AS ANAVERAGE HOUSEHOLD INCOME OF BELOW R 122 000 IS FLAWED BECAUSE THERE IS NOPERSON IN SOUTH AFRICA WHO CAN LIVE COMFORTABLE AT HOUSEHOLD EARNINGSOF 122 000.

SOLUTION – FORMULA CONSIDERATIONSASCERTAIN AFFORDABILITY ON THE BASIS OF NET EARNINGS OF THE HOUSEHOLD.

THE QUALIFICATION THRESHOLD SHOULD INCREASE FOR EACH FAMILY ON THE BASIS EACHPERSON WHO MUST UNDER GO HIGHER EDUCATION AND TRAINING.

THOSE AFFORDING TO PAY FOR EDUCATION MUST BE TAXED RATHER THEN ESTABLISHING ACUMBERSOME UNIVERSITY ADMINISTRATION PROCESS TO ASCERTAIN AFFORDABILITY.

THE ADMINISTRATION OF QUALIFICATION FOR NON TAXATION SHOULD NOT BE LEFT TOINSTITUTIONS BUT TO THE SOUTH AFRICAN REVENUE SERVICES.

FINANCIAL IMPLICATIONSKEY CONSIDERATIONS

SOUTH AFRICA SPENDS ABOUT 0.71% OF GDP ON HIGHER EDUCATION AS AT 2012 (CENTRE FOR HIGHER EDUCATION)

CUBA SPENDS ABOUT 4.50% OF GDP ON HIGHER EDUCATION

FREE EDUCATION WOULD GIVE RISE TO INNOVATION RESULTING INTO HIGHER ECONOMIC ACTIVITY AND THUS INCREASED REVENUE COLLECTION FOR GOVERNMENT.

THERE MUST BE A CONSIDERATION FOR TAXATION OF CORPORATES TO FUND FEE FREE EDUCATION

STANDARDISED EDUCATION WILL RESULT INTO STANDARDISED INSITUTIONAL COSTS TO PROVIDE EDUCATION.

FEE FREE EDUCATION SHOULD BE COUPLED WITH INVESTMENT IN INFASTRUCTURE.

FINANCIAL IMPLICATIONS• TOTAL NUMBER OF STUDENTS AT UNIVERSITIES IS ESTIMATED AT 969 154

• UNDERGRADUATE IS 790 898

• POST GRADUATE 156 559

• CONTACT 596 824

• DISTANCE 372 142

• ASSUMING THAT 70% OF STUDENTS DO NOT AFFORD CURRENTLY A TOTAL OF 38.2 BILLION IS REQUIRED TO FUND FREE EDUCATION

• THIS NUMBER CAN INCREASE WITH AN ESTIMATED 15% TO 20% PER ANUMM AS MORE NON AFFORDING STUDENTS ARE INTRODUCED PER YEAR TO THE SYSTEM

• IF THE ISSUE OF INSTITUIONAL AUTONOMY IS IMPLEMENTED THAN THE TOTAL COST OF EDUCATION WOULD GO DOWN.

FUNDING SOURCESA LOOK AT OUR CURRENT FISCUS

INCREASE CORPORATE INCOME TAX

INCREASE CUSTOMS AND EXCISE DUTIES PARTICULAR ON IMPORT PRODUCTS

TAX ON RAW MATERIAL EXPORTS WHICH ARE NOT BENEFICIATED.

INTRODUCE A TAX ON HOUSEHOLDS WHO CAN AFFORD WITH A THRESHOLD DETERMINED CONSIDERING THE LIVING STANDARDS OF SOUTH AFRICANS.

CONCLUSION

• FEE FREE HIGHER EDUCATION IS POSSIBLE

• THE COMMISSION MUST BE COMMITTED MORE TOWARDS FINDING SOLUTIONS.

• EDUCATION IS A NECESSITY FOR THE COUNTRY TO GROW AND PROSPER

• FEE EDUCATION IS AN INVESTMENT TO THE FUTURE ECONOMIC GROWTH OF THE COUNTRY

• FEE FREE EDUCATION MUST NOT BE CONSIDERED AS EXPENDITURE BUT RATHER AN INVESTMENT

• THE NATION MUST WORK TOGETHER TO FIND SOLUTIONS NOT CONSISTENT CRITIQUES THAT ARE NOT SOLUTION DRIVEN.

ENDTHANK YOU