This plan was developed as a response to the agreement between the commonwealth and the states to streamline arrangements for higher education and provides a framework for future development. Victoria now has seven universities, each with an enhanced capacity to manage its own affairs. The role of VPSEC within this plan is discussed. A major problem is the increasing demand for entry to higher education and inability to provide places. An added feature is the lack of growth funding for institutions. Universities need to address resource problems by developing approaches to make better use of existing resources