If the Rudd-Labor government subsidised the lost revenue from fee places, the university would still be able to give the department the same framework of fees and thus the places would be converted to CSP as they would be able to sustain their resources and adequately pay the teaching staff.
But you haven't addressed the question of why can't you have both.
Why must it be that you must ban fee places?
Why can't you allow universities to have the the freedom to offer fee places and subsidize more CSP places.
CSP Places are allocated by the Commonwealth Govt using quotas. Yes that's right the system is run like the Soviet Union.
On the international issue –
This is a completely separate debate. International places are expensive, however they still take into account your university entrance rank.
And domestic fee-places don't look at your ENTER?
not all revenue collected from fee-paying places is invested directly into the department.
Why must it be necessary for them to be?
It is simply absurd to suggest that there is simply a fixed number of spots at a university, and that no matter what happens to demand, and no matter how much people are willing to pay, that supply cannot and will not change.
Even then, this debate is a lot like "How many times should you beat your wife?"
I do not believe that the Government should be meddling with the affairs of individual universities to such an extent as they currently are.
By all means, provide income-contingent-loans (HECS-HELP, FEE-HELP) but at the same time, there is no justification for the Government dictating to universities whom they can and cannot admit, what courses they can and cannot provide, etc.
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