African National Congress
Youth League
PRESENTATION TO THE COMMISSION OF INQUIRY INTO
HIGHER EDUCATION FUNDING AND OTHER MATTERS
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 CLASS
MARXISM 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 MIDDLE
THESE ARE CLASSIFIED AS THOSE WHO DO NOT QUALIFY FOR NSFAS BUT CAN NOT
AFFORD THE COST OF HIGHER EDUCATION
WHO QUALIFIES
THE R 600 000 HOUSEHOLD BAROMETER WAS A QUICK FIX TO THE PROBLEM AND IS
NOT 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 AN
AVERAGE HOUSEHOLD INCOME OF BELOW R 122 000 IS FLAWED BECAUSE THERE IS NO
PERSON IN SOUTH AFRICA WHO CAN LIVE COMFORTABLE AT HOUSEHOLD EARNINGS
OF 122 000.
SOLUTION – FORMULA CONSIDERATIONS
ASCERTAIN AFFORDABILITY ON THE BASIS OF NET EARNINGS OF THE HOUSEHOLD.
THE QUALIFICATION THRESHOLD SHOULD INCREASE FOR EACH FAMILY ON THE BASIS EACH
PERSON WHO MUST UNDER GO HIGHER EDUCATION AND TRAINING.
THOSE AFFORDING TO PAY FOR EDUCATION MUST BE TAXED RATHER THEN ESTABLISHING A
CUMBERSOME UNIVERSITY ADMINISTRATION PROCESS TO ASCERTAIN AFFORDABILITY.
THE ADMINISTRATION OF QUALIFICATION FOR NON TAXATION SHOULD NOT BE LEFT TO
INSTITUTIONS BUT TO THE SOUTH AFRICAN REVENUE SERVICES.
FINANCIAL IMPLICATIONS
KEY 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 SOURCES
A 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.
END
THANK YOU