Statutes Amendment (Universities) Bill

Second Reading

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Climate Change) (16:46): I move:

That this bill be now read a second time.

I seek leave to have the second reading speech and explanation of clauses inserted in Hansard without my reading it.

Leave granted.

This Bill would make a series of amendments to the University of Adelaide Act 1971 and the Flinders University of South Australia Act 1966 intended to improve the governance arrangements for these universities.

The relationship between state governments and universities is complex. Universities are of enormous importance to a states' economic development. They educate a large proportion of the workforce, including future leaders of industry, labour and the professions. Many of the members of this chamber would not be here but for their university educations.

Universities bring tens of thousands of students from overseas here to study. International students are a key contributor to the South Australian economy. More than that, they internationalise us while they are here and remain connected to us once they return home.

Universities also undertake research that advances our understanding. The commercialisation of that research often creates further economic and employment opportunities.

For these reasons and many others, I am sure all members of this parliament want to see South Australian universities succeed.

At the same time, much government interaction with these institutions occurs with the Australian Government. The Australian Government is responsible for universities' regulatory environment. The Australian Government is responsible for higher education funding. And the Australian Government is the primary source of funding for the research that the universities undertake.

South Australia's universities are operating in an increasingly challenging environment. That environment is characterised by:

A need to respond to policy and funding changes by the Australian Government

Increasing competition for the best students, best teachers, and best researchers, and

Higher expectations from the communities they serve.

It is in that context that the University of Adelaide and Flinders University approached the Government seeking amendments to their Acts. The specific measures in this Bill include:

Reducing the size of the university Councils from the current levels of up to 21 members, by reducing the number of staff, student, independent appointed, and—in the case of the University of Adelaide—alumni members of Council

Extending the tenure of student members of university Councils from one to two years

Allowing for the presentation of annual reports, and subsequent tabling in Parliament, by the Minister for Higher Education and Skills instead of the Governor

Extending the existing statutory liability protections by replacing the current immunity from civil liability for Council members with an indemnity that also includes other senior officials

Allowing for the establishment and administration of common investment funds

Strengthening and expanding the Councils' existing powers of delegation

Changing the name of the Flinders University of South Australia Act 1966 to the Flinders University Act 1966, and

Making associated consequential amendments.

The most significant measure in the Bill is the proposal to change the size of the Councils. This has been sought following recommendations made in reviews of the governance arrangements at both the University of Adelaide and Flinders University. The universities have made representations to the Government that the current size of the Councils is unwieldy and inefficient, and that smaller Councils would allow Council members to more fully engage in the governance of the universities.

The reduction in size of the university Councils will bring the University of Adelaide and Flinders University into line with the University of South Australia, and is consistent with Universities Australia's Voluntary Code of Best Practice for the Governance of Australian Universities. Importantly, this will be achieved while broadly maintaining the existing proportions of staff, student, and appointed independent members on university Councils.

I acknowledge that some staff and students have expressed concerns about the reduction in staff and student members of Council. This concern comes from a genuine desire to have staff and students play a constructive role in university governance.

Recognising the importance of this matter for each university community, the Minister for Higher Education and Skills sought advice on what form of communication and consultation had occurred.

The Minister was advised by the Hon Kevin Scarce, University of Adelaide Chancellor, that he had engaged with branch representatives of the National Tertiary Education Union in the course of developing the proposal. Further, the proposal was discussed at a meeting of the University of Adelaide community. This meeting was open to all staff and students.

Prof Colin Stirling, President and Vice-Chancellor of Flinders University, advised that an email describing the proposed changes was sent to all staff and students, who were then invited to a public forum to discuss the proposal. Flinders University then invited written submissions in response to the proposal, and has subsequently responded to all those submissions.

Being satisfied that the universities have made this request for amendments to their Acts after careful deliberation, and that the staff and student bodies of the universities are now aware of the proposed changes, the Government sees no reason to delay or indeed refuse the request.

As for the other measures contained in the Bill:

Extending the tenure of student representatives will similarly improve corporate governance by providing additional professional development opportunities.

Providing for the establishment of common investment funds will simplify the management of monies held in trust by the universities.

Finally, expanding the ability of the university Councils to delegate functions to officers or committees will streamline university administration.

In the context of the environment our universities are operating in, the reasonableness of their request, and the efforts undertaken to engage with the university communities, I commend this Bill to members.

Explanation of Clauses

Part 1—Preliminary

1—Short title

2—Amendment provisions

These clauses are formal.

Part 2—Amendment of Flinders University of South Australia Act 1966

3—Amendment of section 1—Short title

This clause makes a consequential amendment to section 1 of the principal Act.

4—Amendment of section 2—Interpretation

This clause makes a consequential amendment to section 2 of the principal Act.

5—Amendment of section 3—Establishment and incorporation

This clause amends section 3 of the principal Act to change the name of the university to Flinders University (currently the Flinders University of South Australia).

6—Insertion of section 3A

This clause inserts new section 3A into the principal Act, providing that references in existing documents etc to the Flinders University of South Australia will be taken to be references to Flinders University.

7—Amendment of section 5—Council

This clause amends section 5 of the principal Act to reduce the number of members of the Council as specified.

8—Amendment of section 6—Term of office

This clause amends section 6 of the principal Act to increase the term of office for student members of the Council from 1 year to 2 years.

9—Amendment of section 18—Conduct of business in Council

This clause amends section 18 of the principal Act to provide that a quorum of the Council is to be one half of the total number of members of the Council (ignoring any fraction resulting from the division) plus 1.

10—Substitution of section 19A

This clause substitutes the delegation power in section 19A of the principal Act with one that is consistent with those conferred under similar Acts.

11—Substitution of section 27

This clause substitutes the annual reporting requirements under section 27 of the principal Act so that they are consistent with those applying to other universities.

12—Substitution of section 29

This clause substitutes the provision conferring immunity from civil liability under section 29 of the principal Act, replacing it with a provision that is consistent with the legislation of similar universities in other jurisdictions.

13—Insertion of sections 30 to 33

This clause inserts new sections 30 to 33 into the principal Act. Those new sections facilitate the establishment, management and distribution of funds from common investment funds and are based on provisions applying to the University of Melbourne.

14—Amendment of long title

This clause makes a consequential amendment to the long title of the principal Act.

Part 3—Amendment of University of Adelaide Act 1971

15—Substitution of section 10

This clause substitutes the delegation power in section 10 of the principal Act with one that is consistent with those conferred under similar Acts.

16—Amendment of section 12—Constitution of Council

This clause amends section 12 of the principal Act to reduce the number of members of the Council as specified.

17—Amendment of section 12A—Term of office

This clause amends section 12A of the principal Act to increase the term of office for student members of the Council from 1 year to 2 years.

18—Substitution of section 25

This clause substitutes the annual reporting requirements under section 25 of the principal Act so that they are consistent with those applying to other universities.

19—Substitution of section 29

This clause substitutes the provision conferring immunity from civil liability under section 29 of the principal Act, replacing it with a provision that is consistent with the legislation of similar universities in other jurisdictions.

20—Insertion of sections 30 to 33

This clause inserts new sections 30 to 33 into the principal Act. Those new sections facilitate the establishment, management and distribution of funds from common investment funds and are based on provisions applying to the University of Melbourne.

Schedule 1—Transitional provisions

1—Certain members of Council of Flinders University to continue to hold office for remainder of term

This clause allows the specified members of the Council to continue to hold office until the end of their current terms, despite the operation of clause 7 of this measure.

2—Members of Council of University of Adelaide to continue to hold office for remainder of term

This clause allows the specified members of the Council to continue to hold office until the end of their current terms, despite the operation of clause 16 of this measure.

Debate adjourned on motion of Hon. S.G. Wade.