The financially troubled University of Canberra faces an investigation into its governance by the ACT Auditor-General.
An ACT Government spokesperson said Chief Minister Andrew Barr has written to the ACT Auditor-General suggesting a performance audit of the University’s governance arrangements.
“The Chief Minister has raised concerns with the Chancellor about the financial situation of the University and has sought a briefing from the Council on strategies to reduce the anticipated deficit,” the spokesperson said.
On Monday the university’s interim Vice-Chancellor, Professor Stephen Parker, quit the role, saying he had lost confidence in the University Council, only a little more than two months since he was appointed.
The news has prompted the tertiary education union to call for proposed job cuts to be stopped and for the ACT Legislative Assembly to immediately establish its promised governance review.
However, the university said the organisation review would proceed as planned.
A previous Vice-Chancellor, Professor Parker was brought in to get the university’s financial house in order before Bill Shorten takes up the position at the start of the 2025 academic year.
However, Professor Parker’s departure only adds to the turmoil surrounding the university since former Vice-Chancellor Paddy Nixon left suddenly earlier this year amid a row over a $1.8 million pay package in 2023.
It was also revealed that the UC budget had blown out by $10 million. Professor Parker announced in October plans to axe 200 jobs as part of a $50 million cost-cutting exercise designed to bring its budget back into balance by the end of 2025.
On Monday (2 December), a UC spokesperson said Chancellor Lisa Paul had announced the resignation of Professor Parker with immediate effect.
Deputy Vice-Chancellor Professor Michelle Lincoln would take on the role of acting Vice-Chancellor until Mr Shorten arrives.
“Professor Parker’s principal role was to prepare a 2025 budget to address the university’s financial position, which will be considered at a meeting of the council on 6 December,” the spokesperson said.
“Ms Paul thanked Professor Parker for the work he undertook to develop a plan for the university’s return to a sustainable financial position by the end of 2025. An important part of this work was the university’s organisational restructure, which will continue as planned.”
UC had preferred that Professor Parker stay on for a few more weeks to work with the council to finalise the budget process, but he asked to depart immediately as he had lost confidence in the council.
“The council has acknowledged its obligations in relation to the governance of the university,” the spokesperson said.
“Changes have been made to council and the executive team, and council has committed to a governance review, which will build on the previous positive review by former TEQSA Commissioner Michael Wells in 2023.”
National Tertiary Education Union ACT Division Secretary Dr Lachlan Clohesy said the promised ACT Legislative Assembly Review of UC Governance must happen without delay and the proposed job cuts shelved.
“If UC’s leadership can’t sort itself out, we cannot have confidence in their ability to sort out the rest of the university. Job cuts should cease immediately,” he said.
“The NTEU has been raising governance issues over the last year. We’re concerned that poor governance has an impact on staff, students, and the broader Canberra community.”
Dr Clohesy called on Chief Minister Andrew Barr to immediately take steps to bring on the review.
“The consequences for our region are too serious for this to wait any longer,” he said.
ACT Labor committed to work with UC to undertake a governance review to ensure the university was positioned to deliver the best education and research outcome.
This review was to be done in the context of the national Universities Accord process that the Commonwealth is leading. If changes were required to UC’s governing legislation, the changes would be looked at by the Assembly.
Dr Clohesy said the NTEU welcomed recent announcements by the Federal Education Minister Jason Clare on university governance.
“However, this is one more example of why an Expert Council on University Governance is not enough. We need a parliamentary inquiry into university governance.”
NTEU UC Branch President Dr Craig Applegate said this announcement would do nothing to reassure UC staff who have put up with the chaos and confusion of governance issues for the last year or so.
“By the time Bill Shorten commences in the role in February, he will be the fifth University of Canberra Vice-Chancellor in the space of 14 months,” he said.
“Last year, UC set the record on Vice-Chancellor remuneration. This year, it appears UC is setting unwanted records for leadership changes.
“How can job losses continue with this turmoil at the top?”