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The number of Australian universities operating at a loss was a cause for concern, Britain's Lord Dearing said last week. Attending his final meeting as a member of the 51¹ú²úÊÓƵ of Melbourne council, Lord Dearing said world-class universities did not come "on the cheap". Australia had to realise a strong higher education sector was fundamentally important to its own economic future. Continuing to cut resources would only damage research quality and the experience of students, he said.