News Archive

It is that time in the annual political and financial cycle when we are reminded of the importance of remaining actively involved in trying to influence Government policy on higher education.

Federal and State Budgets are a time too when we look for political signals that there is an understanding of our sector beyond the short-term political cycle.

And it is a long-term view that is driving our own financial agenda to ensure that our University remains in the strongest position to argue for additional resources to pursue our ambitious goal of being counted among the top 50 universities in the world by 2050.

Every so often, it is vitally important that we look at our own activities to confirm that our substantial expenditures are properly aligned with our priorities.

Beyond our significant core activities of teaching, learning and research, the University has a major program of strategic capital works, such as the new medical research centres at the Queen Elizabeth II Medical Centre and the new Fiona Stanley Hospital, as well as the development of the Indian Ocean Marine Research Centre on campus.

These are big investments for the future of the University and the State. And while we make these investments in the knowledge of the benefits they will bring, we must also ensure our operations are supported by a strong financial foundation which provides capacity to support all our strategic and priority activities.

As has been noted in the University's annual report for 2011, the University's operating result has been impacted by global economic conditions with investment portfolio performance below anticipated returns for the year. The annual report also notes reduced growth rates in international student enrolments and the impact of State economic conditions on mature-age student enrolments.

Were the University to continue on its current spending trajectory - with commitments including major capital works - we risk making more permanent an underlying negative operating margin that will eventually be unsustainable.

A strong focus on budget management in the short to medium-term will allow growth in the University's financial capacity in the long-term which will allow us to deliver an improved operating margin, increased funding for capital and strategic commitments and improved levels of ‘unrestricted' funds required to provide financial flexibility for future needs and initiatives.

Building a strong financial foundation based on continuing prudent and responsible financial management is imperative to the future growth and the overall strategic objectives of the University.

From our firm financial position, we can continue to highlight the importance and value of the university sector to politicians and bureaucrats at both State and Federal levels.

We must be sure that we continue to build our position of financial strength to deliver the performance - at international standards of excellence - that justifies continued broad support from the government, the private sector and the community.

Paul Johnson

Vice-Chancellor