Mr Garry Hunt.

Nil.

Senate resolution S/35/2005, noting the Vice Chancellor’s declaration of interest regarding the merger proposal from Curtin University of Technology, remains in effect.

The Vice Chancellor spoke to his written report to Senate. Key issues covered included:

• Recent developments in relation to the Federal Government’s Research Quality Framework (RQF), ‘Third Mission Funding’ and the Higher Education Workplace Relations Requirements (HEWRRs).
• The availability of funding under the Federal Government’s Workplace Productivity Programme.
• Impending amendments to the Education Services for Overseas Students Act which will enable overseas universities and education providers to establish an Australian branch and extend the availability of Australian Government assistance to eligible students of such branches.
• The approval of funding for the laying of a fibre optic cable from Perth to Mandurah, in conjunction with construction of the rail link. Murdoch has been represented in this by the Director of Information Technology.
• Cabinet approval of funding for the Department of Agriculture’s headquarters and Bio-security operations, including discussions with representatives of the Treasury and the Department. Space has been identified on the eastern side of the campus (along Murdoch Drive) where the Department’s needs could be accommodated consistently with the University’s master plan.

Resolved: S/56/2005

To authorise the Vice Chancellor to negotiate and execute a heads of agreement between the University and the Department of Agriculture, providing for allocation of land and sharing of facilities to enable location of the Department’s headquarters, Bio-security and research functions on the South Street campus.

The PVC (Corporate Services) spoke to his written report and a PowerPoint presentation. Key observations included:

• The IT review has been deferred whilst merger discussions have been taking place. However, the consultation process to date has provided valuable information and also obtained a substantial element of support from staff that, hopefully, will facilitate the implementation of strategies that result from the finalisation of the review process.
• Changes to workplace practices consistent with the University’s intention to comply with the HEWRRs.
• The integration of the Office of Corporate & Public Relations within the Division, in particular development of a focus on revenue generation opportunities, e.g. graphic and web design and print shop functions.
• A review of the University’s position under a 10 year forecast. This has been undertaken as part of the Senate priorities for 2005 (i.e. understanding the impact of changing higher education policies) and as a necessary piece of work in considering any merger proposals.
• The forecast is based on a number of assumptions to provide a picture of the University’s position if the expected changes in higher education policy are implemented and the University continues to operate its current business model unchanged. The model is a first step in establishing a baseline position that management can use to assist in developing strategies to create revenue generating opportunities and efficiencies for the University.
• The forecast clearly demonstrates that the University’s position is not favourable (assuming that federal funding remains as forecast) over the period unless it makes substantial improvements in respect of its revenue and/or its cost base. The most significant contributor to the forecast decline in financial performance of the University is the difference between the indexation rate applied by the Federal Government to funding and the historical increase in the University’s expenses above the indexation level.

A general discussion followed, including the following points:

• The University is no different from other Australian universities in terms of its long term financial sustainability. On the contrary, there are a number of universities that are already in deficit. Due to the sound financial management of the Vice Chancellor and the executive over the last few years, the University has time, albeit limited, to develop new strategic initiatives and to make operational changes to address these issues.
• As has been anticipated, at some point it may be necessary to consider allocating a part of commercial net income towards supporting high priority initiatives to deliver improved efficiencies and financial sustainability.
• The University is continuing to make ongoing changes to improve the baseline efficiency of many of its systems and process, particularly in the Administration area. New strategies for improving revenue opportunities, efficiencies and other possibilities in the areas of Teaching & Learning and Research & Development are still to be considered.
• Under impending Federal Government reforms, it will be vital that the University is not only efficient, but also visibly successful in its Teaching and Research functions.

Resolved: S/57/2005

To note the annual management report and to express the Senate’s appreciation of the endeavours of the Pro Vice Chancellor (Corporate Services).

The PVC (Research) tabled the attached written report and spoke to a PowerPoint presentation. Key observations included:

• The University is reviewing its designated areas of research strength and it is expected, over time, that the list will grow. The existing areas of strength align closely with the University’s involvement in cooperative research centres (CRCs).
• From 2005, all CRCs will be incorporated entities with boards comprised with a majority of non-academic directors, increasing the focus on seeking commercialisation of intellectual property.
• The University’s results across a number of measures show continued growth and we compare favourably against other members of the Intensive Research Universities of Australia group. The University’s results also compare favourably with the GO8 when results are adjusted to take into account the substantial funding advantage of having a medical school.
• The strong level of growth in 2004 is not expected to continue in 2005 as there was one particularly large research grant awarded in 2004.
• The potential impact of the RQF on the University is a continuing concern and the Pro Vice Chancellor is monitoring developments and lobbying Canberra constantly. Of particular concern is the fact that whatever rating is assigned will apply for 5 years with no opportunity to seek any adjustment.
• It is also a concern that early indications are that the RQF rating scale favours internationally recognised research, whereas much of the University’s research is aligned with national priorities which may not necessarily receive international recognition.

During the course of discussion followed, it was observed that in order to improve a RQF ranking, it will be necessary to improve relative to all other universities. This sets a high benchmark. The rating that will apply to universities in the lowest level of the RQF rating may be one tenth of that which applies to universities ranked in the highest level. This will have a substantial impact on income.

The PVC (Academic) provided an update on Murdoch’s preparations for the upcoming AUQA audit, referring to her more detailed briefing paper that accompanied the agenda. In particular she noted that:

• Members of Senate have received the University’s portfolio for the Whole of Institution Audit (WOIA), which will serve as a rehearsal for the AUQA audit in 2006.
• The WOIA panel are likely to conduct interviews in the week commencing 29/11/2005. Chairs of Senate committees are highly likely to be interviewed by the WOIA panel.
• The provisional dates for the AUQA panel to conduct interviews are 8-11 May, 2006.
• The Pro Vice Chancellor is available to assist members of Senate in preparing for the WOIA and the AUQA process.
  

Senate noted the Chancellor’s recommendations regarding Chairs of Senate committees, other than the Audit & Risk Management Committee and the Legislation Committee.

Senate noted a report from the General Counsel & University Secretary concerning action consequent upon Senate resolution S/46/2005(i).

Secretary’s note In accordance with sub-section 25(1) of the Murdoch University Act, an absolute majority of Senate members voted in favour of the resolution.

Senate noted the minutes of the meeting of the Academic Council held on 14/09/2005 and resolved in accordance with the recommendation of the committee as follows:

Senate noted the minutes of the meetings of:

• the Chancellor’s Committee held on 13/09/2005 and 28/09/2005; and
• the Chancellor's (Merger) Committee held on 13/09/2005, 26/09/2005 and 28/09/2005.

There were no recommendations requiring a Senate resolution. Discussions in relation to the merger feasibility study and the role of the Guild President in reference to Senate were held in camera and are dealt with below.

Senate noted the minutes of the decision (by circular resolution) of the Governance & Nominations Committee dated 24/08/2005 and resolved in accordance with the recommendation of the committee as follows:

Senate noted the minutes of the meeting of the Resources Committee held on 20/09/2005 and, noting that formal proposals in relation to the Lakeview Apartments complex and student accommodation generally are yet to be referred to Senate for review and determination, resolved in accordance with the recommendation of the committee as follows:

Senate noted the minutes of the meetings of the expanded Chancellor's (Merger) Committee held on 13/09/2005, 26/09/2005 and 28/09/2005. The Chancellor also provided a verbal update in relation to the status of discussions with the Chancellor of Curtin University of Technology.

Secretary’s note: Mr Daniel Narbett dissenting.

A discussion then ensued in relation to the role of the Guild President in relation to Senate generally, and its consideration of the merger feasibility study in particular. A motion that the Guild President be invited to participate in all meetings of Senate which considered any merger, subject to signing a confidentiality agreement, was not passed. Key points canvassed included:

• It was asserted that the effect of sub-section 20(2) of the Murdoch University Act is that the Guild President must have a role in Senate’s deliberations. A copy of correspondence from the Office of the Minister for Education, Science & Training dated 17/05/2005 was tabled indicating that the Senate could grant the Guild President attendance or speaking rights should it wish to. Any concerns about confidentiality could be addressed by the Guild President signing a confidentiality agreement.
• It would create an untenable conflict of interest for the Guild President to be constrained by the requirements of a confidentiality deed whilst having the obligation to be the conduit for information passing between Senate and students.
• Some formal recognition should be given in terms of the Guild President’s role.
• There are numerous measures in place to facilitate consultation and communication with the Guild and students in relation to the merger feasibility study, including general briefing sessions, website ‘Frequently Asked Questions’, an online feedback facility and a direct briefing between the University’s members of the merger feasibility team, on the one hand, and the Guild President and Mr Daniel Narbett on the other. There have also been meetings with the Vice Chancellor, the merger feasibility group and the Guild President.

Resolved: S/66/2005

Noting that the PVC (Corporate Services) and the Chancellor will each confer with the Guild President and the two elected student Senators, to request the Governance & Nominations Committee to consider and make recommendations to Senate on the future role for the Guild President in light of the National Governance Principles, the attached letter from the Minster and the terms of the Murdoch University Act.