Tuesday, June 2, 2026

No Governance Crisis in Australian Universities

Julie Hare writes "It's a governance crisis, but why now precisely?" (The Hare Report, May 31, 2026). But is there a governance crisis? Some universities have very public problems, but only a tiny number. Other public & private organisations fail every day. Companies go into receivership, local government bodies are taken over by an administrator, public officials & private individuals are investigated for corruption. Provided these problems are addressed, no one says there is a "governance problem", just ordinary everyday hubris, incompetence and greed. Universities in Australia are almost all public non profit institutions, so more subject to public scrutiny. Perhaps that is why there seem to be more problems: they are more visible and we are expecting more of universities. 

In the mid 1990s, I looked at how Cambridge University did innovation (Cambridge live from a Double Decker Bus, 1999). In the process I talked to students, staff & leadership. One thing which struck me was that people who worked for the same institution had very different views, & in some cases a deep dislike for, each other. However, the place still worked, perhaps because, not dispute, this.

Australian universities had international students before the Dawkins reforms. However, these were on government scholarships, invited to Australia as part of a cold war hearts and minds campaign. More recently international students became a revenue source for universities, as well as a source of shovel ready migrants. This proved useful for government, offloading some cost of universities onto international students & providing a source of quality overseas workers. Universities failed to treat the international student fees as a windfall and bank the money for future need. 

There is no way to create a governing body for a university which will create harmony & perfect decision making. Be it federal cabinet, a company, or the bowls club, there is always conflict. Traditionally the VC ran the university, & the council grumbled about it. If you have a more active council, there will be more conflict. There is no solution, as such, except to select good people. But more staff & student representatives would be a start. 

COVID-19 and government controls on international student numbers have been challenges to universities. However, these will seem minor compared to shocks to come. In 2016 I warned that conflict in the region could result in most international students having to leave Australia. AI is challenging the way research and educaion are done. This may see the potential of online educaion, to be finally realized. These will require university councils to make difficult, rapid, existential decisions.