Response

Dear Editor:
I have read the response to my article by Ms. Janine Bandcroft, and I wish to offer a brief rebuttal.

If tuition fees for post-secondary education were eliminated, post-secondary education would become a public good. With public goods, market failure often results because the end user does not have any economic incentive to conserve the resource. I respectfully submit that this would be exhibited by larger numbers of students treating their education frivolously (i.e. not working hard enough in class, or dropping classes mid-way through the term).

As outlined in the original article, it is likely that the increased demand for post-secondary education resulting from free tuition would result in higher admissions standards. If we want to ensure accessibility to post-secondary education, do we want to preclude all but the very brightest students from attending?

Even though post-secondary education is already highly subsidized (60-70 percent), I agree with Ms. Bandcroft that a need exists to improve the accessibility of post-secondary education. However, I differ from the assertion that the most efficient way to do this is by simply providing free education. Rather, it is far more efficient to target resources to those who need them. Our student loan system is a prime example of this.

Ms. Bandcroft also claims that the additional funding that would be required to finance a policy of free tuition could be obtained by increasing taxes on corporations. In Canada, the combined federal/provincial tax rate on public corporations is 43 percent. First, I submit that this amount is hardly below a corporation’s “fair share of tax.” Second, at first glance, it may seem as if this rate could be increased to a higher amount in order for the government to realize additional revenues. However, given that this rate is among the highest in the G8 countries, significant increases in this amount would undoubtedly result in the departure of many corporations to other countries. As such, a large hike in this rate would not result in higher revenues.

While accessibility to post-secondary education is an important objective, a policy of free tuition is neither an efficient nor an effective way to achieve this goal. Any responsible government seeks to achieve a balance between various interests within society. Free tuition would do little to accomplish this end.

—Jonathan Denis, Law, University of Saskatchewan

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Last Modified: Wednesday, October 20, 1999.