University Financial Position

Monday 14 February 2005

The University of Newcastle Council met today to consider the University's financial position.

The 2004 end of year deficit is reported at $28.0M.

Recently appointed Vice-Chancellor, Professor Nick Saunders, said that the shortfall represents about nine percent of the University's annual budget.

"The deficit has been caused by a number of factors including the need to make adequate provision for the University's liabilities, spending in excess of budget across the University and a change in payment practice by DEST necessitated by legislative requirements associated with the implementation of the Higher education Support Act 2003 (HESA). This change has resulted in the deferral of an anticipated payment of $13.0M from 2004 to 2005."

2004 is the fifth year in a row that the University of Newcastle has recorded a deficit and the University is projecting another shortfall (approximately $15.5M) in 2005.

"The situation is very serious for the University and efficiency measures will have to be introduced which will unfortunately include the loss of staff positions," said Professor Saunders.

"The University is currently reviewing its administrative processes and its academic programs. The outcomes of these reviews will be known over the next few months and will determine the nature and extent of the required staff redundancies," he said.

"The University will need to operate on a very tight budget for at least the next two years and there will have to be changes to the way we operate. Job losses are, regrettably, inevitable, however we are doing all that we can to minimize the impact on staff and students."

"The University's motto is "I look ahead". As the University's community addresses the current challenges, it is important to keep in mind the bright future of the University and to continue to build on its strong history of achievement," said Professor Saunders.

For interviews contact Leigh Wallis at the Media unit on 02 4921 5473.