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An independent economist is warning the University of Tasmania faces future financial strife because of its high debt and low earnings and cash reserves. The university denies that it has an unusually high level of debt and says it's on track to return to financial sustainability by 2029.

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00:02Two years after the University of Tasmania scaled back its plans to shift from Sandy
00:07Bay to the Hobart CBD, an independent economist says UTAS is in financial trouble.
00:14Last week John Lawrence told a closed hearing of a state parliamentary inquiry the University's
00:20cash and other liquid assets have fallen from $530 million to $112 million.
00:26They've got plenty of assets, they're solvent, but they don't have a lot of usable assets
00:31and there is a danger that in the next few years that they will run into real strife.
00:38He also says UTAS has one of the highest debt levels of any Australian university.
00:43They currently have about $350 million of debt borrowing, green bonds, which is quite high
00:51for an entity that size.
00:52The union that represents UTAS staff says Tasmania's only university needs to rein in spending
00:59on executive salaries and new buildings.
01:01What we're seeing is a real underinvestment in staff and students and that's got to change.
01:07UTAS Finance Chief Ben Rose blames the COVID pandemic and government policy change for the
01:13university's tight finances.
01:15He says debt levels are close to the average for the sector and he expects UTAS to be financially
01:21sustainable by 2029.
01:23If you look at our results over the last couple of years from 2023 through to now, you'll see
01:28a steady rate of improvement and we do expect that to improve again this year.
01:31Mr Rose and other UTAS executives will give evidence to the parliamentary inquiry at an open
01:37hearing next week.
01:40Mr Rose and otherused
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