Why vice chancellors may be forced to justify their pay packets

The state’s universities have “swung too far towards corporatisation” at the expense of education, research and serving communities, a NSW parliamentary inquiry has found.

Universities across NSW have embarked on controversial cost-cutting in the face of financial pressure, with many axing jobs, restructuring courses and spending big on external consultants.

The final upper house report into NSW university governance noted power over such decisions was often concentrated in a small group of managers and council members, with limited transparency over how decisions were reached.

It made 23 recommendations to boost transparency, including that universities justify vice chancellor’s pay packets, and disclose bonuses, incentive arrangements and spending on consultants.

“The governance structures for NSW universities are not fit for purpose, nor implemented in such a way as to enable public confidence,” it said.

It noted how universities’ governing councils have become dominated by figures from the corporate world at the expense of academics with in-depth knowledge of the institutions.

The report called for legislative change so elected academic staff, professional staff and students represent a minimum of 50 per cent of governing councils.

Federal Education Minister Jason Clare earlier this year announced a suite of transparency measures including requirements to disclose the outcomes of governing body meetings and decisions, and consultancy spending.

That the NSW government, as part of its review of university enabling acts, consider amendments to the legislation to require university governing bodies to have regard to the wellbeing, health and safety of staff and students when exercising their functions and making significant strategic, organisational and operational decisions.

That, in order to better protect the psychosocial safety of staff and address fears of reprisal, the NSW government, as part of its review of the enabling acts, consider how the legislation can provide checks and balances on the very significant power held by heads of school, deans and other senior leaders.

That the NSW government consider establishing an independent external mechanism through which university staff can confidentially raise governance, integrity and maladministration concerns, with appropriate whistleblower protections.

That the NSW government amend the enabling acts for all NSW universities to strengthen representative governance by increasing minimum requirements for 50 per cent elected academic staff, professional staff and student representation on university councils.

That the NSW government amend the enabling legislation for each NSW university to require the establishment of an independent university council secretariat at each university, accountable to and operating under the direction of the university’s governing body rather than university management.

That, to improve transparency in university council decision-making, the NSW government require NSW universities to publish the minutes of university council meetings, including the rationale for major decisions affecting staff and students, subject to appropriate confidentiality re