Originally posted by Gordonator:
National University of Singapore (NUS) and Nanyang Technological University (NTU) announced an increment of 5% for university fees starting next July.
The increase will bring tuition fees for laboratory and non-laboratory undergraduate courses to $5,930, and for medical courses, to $17,010. Tuition fees for postgraduate courses at both universities will also be increased, with annual fee hikes ranging from $500 to $1,600.
If administration follows private sector practice, without all the super-scale officers- simple three tier system - there will be immediate saving in salaries of administrators.
If lands are acquired under the Land Acquisition Act, paid for by tax payers and are not charged again, there will be tremendous cost savings.
Take away these two major cost components, university education will be much cheaper with no need for so-called subsidies or fee increases.
It is all a matter of creative accounting whether university fees subsidised as land costs can be considered zero at the point of acquisition.
SIA and PSA must have reduced their administrative costs by cutting back of higher superscaled officers due to transfer or importing of officers from public sector.
Other governments may lack the sweeping power to acquire lands, transfer them to state land office or consolidated accounts of government and have them re-sold back to government departments or insitutions at full market prices.
In Singapore, government departments, HDB and educational institutions are provided with lands acquired under the Land Acquisition Act where even the minimal acquisition costs were already paid by tax payers.
If government departments provided with such acquired lands do not charge for land or rental again, they will not lose monies or has to worry about subsidies in most cases as land costs are zero.
However acquired lands are normally transferred to the state land office with profits taken into the consolidated accounts and land later re-sold to respective departments like HDB at full market price again.
This kind of costing is creative acounting. Furthermore, market wages are lower during the past years due to recessions. Certain tax portions should have been collected for educations and government services. So why should HDB, hospitals and many government departments claim they are subsidising any costs and what are they comparing with?
So institutions of higher learning should only be justified in charging for consumption, and lower the administration costs and avoid charging on lands. Such details of costings should be provided to the students for accountability and transparency before asking for higher tuition fees.
