Tony Sheldon (NSW, Australian Labor Party) Share this | Hansard source

The final report of the university governance inquiry has revealed deep cracks in the institutions that are so key to our economy and the economic empowerment of the next generation of working Australians. The Universities Accord identified:

In recent times, our regulatory and university governance arrangements have been too slow to recognise and respond to several important issues …

The Fair Work Commission told the inquiry that it had recovered $176 million for 80,000 underpaid higher education staff between 2019 and 2024, and the figure has gone into the tens and hundreds of millions of dollars more. The inquiry heard evidence that up to 70 per cent of teaching is delivered by casual or seasonal staff, many of whom work under precarious conditions, with low pay and no job security.

The final report called on universities to embed a staff voice mechanism in their governance structures so there is centralised oversight over wage compliance. Staff voice is a critical part of reform of the sector. The voice is an asset for the running of universities, not a token role that helps university councils manage the expectations of their staff. These staff are among the smartest and brightest in the country at some of the world's top universities, but universities are not using them or their talents. Last year the National Tertiary Education Union released a report which examined the experience of staff representatives who sit on university councils. That report found that only 17 per cent of participants were very positive when asked to describe their board cultures, while 59 per cent were very negative.

At the same time, vice-chancellors are outsourcing their responsibilities through consultancy firms that have vested interests. These firms are advising universities on how to restructure their organisations and—surprise—the result is the use of more consultants. Vice-chancellors are handing over the keys to the safe. Consultants should add value and not replace the expertise that is already at universities. The inquiry heard evidence that one in three universities have someone from a consultancy firm on the board. According to recent reporting in the Australian, the sector spent roughly $1.5 billion in external consultants and contractors in 2024.

Universities self-govern themselves like a corporation, but without the corporate accountability. I'm not saying these organisations don't need to be successful—a successful university sector is a key to our national interest—but universities are public institutions whose core purpose is for the social good. But the structure and make-up of the university boards have been going in the exact wrong direction. Too many vice-chancellors and chancellors have ducked and weaved when their decisions have been put under scrutiny.

There was a report in the Saturday Paper on the weekend that TEQSA chief executive, Mary Russell, had written to ANU's chancellor, Julie Bishop, outlining a series of concerns, including that ANU's governing council was not receiving information that was needed for effective governance, and the same members were not enabled to participate in the governance of ANU because of the impact of others' conduct.

This is on top of the shocking spending habits of Julie Bishop herself. She had the university spend $800,000 on a new office for her in Perth, billed ANU $150,000 in a year for travel expenses and has two employees of her own consulting firm working simultaneously in her ANU office. At the same time, ANU were cutting jobs, cutting courses and handing big contracts to Nous Group consultancy firm. More than 95 per cent of ANU staff, when surveyed, said they had no confidence in either the chancellor or the vice-chancellor.

The government undertook the Universities Accord to do the investigation into these matters at the same time. That's why Minister Clare has moved to strengthen the powers of TEQSA and introduced a new set of government principles that will be put into law and universities will have to report against them. Minister Clare has reached an agreement with education ministers around the country to establish an independent process for the salaries of senior executives.

It is a condemnation of our public institutions that 306 senior executives are earning more than the premiers of the states the universities reside in. I want to thank NTU for their relentless pursuit of high standards in this sector, and dedicate this government to have your back. I seek leave to continue my remarks later.

Leave granted; debate adjourned.