Chris Whelan: Universities NZ Executive Director on the concerns that university funding isn't keeping up with costs

There are concerns that university funding is not keeping up with costs. 

A Tertiary Education Commission briefing paper suggests the financial books of Massey University and Wellington's Victoria University are deemed high risk. 

RNZ reports eight universities had forecast a combined deficit of $42 million. 

Universities New Zealand Executive Director Chris Whelan told Mike Hosking the Government controls about 70% of funding. 

He says they are making choices on expenditure, but it comes down to a conversation with Government. 

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Episode Transcript

Speaker 1 (00:00):
Some question marks around the financial health of our universities.
This s morning paperwork from the Tertiary Commission to the
Tertiary Minister suggests, among other things, Massy and Victoria, for example,
the books are seen as high risk Universities New Zealand
Chief Executive Chris William with us on this Chris Morning
to you, Good morning. They don't agree how open to interpretation.

Speaker 2 (00:17):
Is all of this looked like everything. These are large,
complex organizations. There's a lot of leavers that they can pull.
The one leaver they can't pull as government funding, and
of course government controls about seventy percent of their funding,
so they've got a lot of choice around expenditure and
they're making those choices. But like most of these things,

(00:38):
that comes down to a conversation with government.

Speaker 1 (00:39):
Correct me if I'm wrong, because I can see that
I can believe figures right, eight universities with a collective
debt of forty two million?

Speaker 2 (00:45):
Is that right? That'd be right. You're talking about un Yeah, well,
that's right. You're talking about universities that are turning over
about four billion dollars a year. But doesn't mean they're
not under a lot of pressure. Their costs are continuing
to go up, and funding unfortunately isn't okay.

Speaker 1 (01:02):
So for a budgeting a deficit to a break even
to a surplus, some of them paperwork suggests that this
is heroic in their estimations. Do you accept that or not? Really?

Speaker 2 (01:13):
Look hard to tell. Every university has a council. Councils
contain independent members, and you know, their job is to
ensure that there is a realistic financial view of how
universities are fairing. Of course they're running upside and downside scenarios,
good and bad, you know, and they're all trying to
manage their way through what is a very tough financial situation.

Speaker 1 (01:33):
Exactly how much of this is about international students and
they haven't come back and the money didn't come with them.

Speaker 2 (01:39):
Actually, it's less about that the international students have come back.
We had a few problems earlier this year with real
bottomnecks around immigration visa processing, and it looks like they're
going to be fixed for future years. So there are
some students that just couldn't get here. But actually the
numbers are looking good. We're almost back to pre COVID levels.

Speaker 1 (01:58):
Okay, nice to talk to you, appreciate it very much
Chris Wiel, I'm glad we got that number right. Eight
universities think of the science of the universe and they've
got forty two million dollars worth of dinner. Mean, really,
is that a problem?

Speaker 2 (02:06):
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