From the VC

Dear colleagues

I’d like to take this opportunity to update you on how the University is currently travelling - and correct certain misleading claims made in the media recently.

In the last month or so we’ve had a series of very positive developments – we’ve had unprecedented student demand, we topped every university in Australia in the latest round of ARC grants and we were rated by the National Union of Students as one of the leading universities in the country for supporting the student experience.

Times have been difficult and the delay in any significant increase in federal funding until 2012 does mean we need to exercise budget restraint. But quite contrary to the press report this morning, we did not post an operating loss of $87.3m in 2008, but rather an operating surplus of $51.3m; we are not “slashing” millions from our staff budget to cope with operating overruns; and our financial outlook for 2010 is looking healthy. This is being reflected in the University’s 2010 budget: Faculty budgets will rise by an average of more than 10% and Divisional budgets by 3%.

It is true, and you would be aware of this from previous communications, that we are seeking to marginally reduce the numbers of our professional and technical staff to bring us more into line with other GO8s and allow us to grow the number of academic staff. This is a long term strategy: in 2010 Faculties and Divisions have been asked to reduce professional and technical payroll costs by 2%. Staff reductions will be minimal, will only occur in areas where there have been administrative efficiencies, so that support services will not be affected, and will be achieved mainly through attrition.

It is also true that we are offering voluntary redundancies in certain areas. This is for very specific reasons. The actions we are taking are not part of any university wide redundancy program and there will be no impact on staff and student services. These are:

The Faculty of Science has been exceeding its operating budget for the past three years and has been advised that it must reduce its people costs by $3.5m so that the current overspend does not continue into 2010. Offers of voluntary redundancy to 29 staff, predominantly professional and technical, have been accepted.  

There is a proposal to close the School of Risk and Safety Science. This follows the review of the Faculty of Science earlier this year by an eminent international panel, which recommended that the Faculty focus resources on its core strengths - in particular mathematics, physics, chemistry and psychology. A workplace change proposal has been presented to the staff: we are committed to exploring any opportunities for redeployment and will of course have a transition process in place to support all current students.

The University has recently brought its four child care centres under the one umbrella, and this has provided the opportunity for a more rational approach to staffing. We are currently considering applications for three voluntary redundancies - they will only be accepted if the Director of the Centre concerned is assured it will not impact on the quality of child care. Our centres have traditionally had higher staff to child ratios than the industry standard and this will continue.

Finally, the figures quoted in today’s media report supposedly relating to our expenditure on consultancies are misleading. The figures actually include both consultancies and contract services. As you’re aware, we have over the past few years outsourced our cleaning and security services and had a major IT Change program underway, which accounts for the apparently significant increase. The figure is expected to drop in 2010.

Returning to a more positive note, I believe we can look forward to an exciting year in 2010. Major capital works projects, such as the Lowy Centre and the new student accommodation, will be officially opened, the new Energy building and the COFA redevelopment will be underway, we hope to continue our success in research grants and we have a number of innovative student initiatives in the pipeline. I look forward to sharing those challenges and opportunities with you.