Paul Starick: Adelaide and UniSA merger is Premier Peter Malinauskas’s biggest political test

A significant roadblock is emerging for Premier Peter Malinauskas’s university merger plan, which looms as his biggest political test yet, Paul Starick writes.

Whatever the Adelaide and UniSA university councils decide on merging, Premier Peter Malinauskas faces the fight of his life to make it happen.

The fate of merger talks will be revealed on the weekend and it is widely anticipated that a historic agreement to combine will be struck.

But there is a significant roadblock emerging as momentum builds for a parliamentary inquiry into the merger, which would probe the economic justification but delay the process by up to a year.

Mr Malinauskas has herded the universities into the merger outcome, having put an amalgamation commission with powers to effectively compel them to combine on hold until July 1.

An unprecedented deal was inked last December to start a merger process. This included agreement that the combined institution would be known as Adelaide University, start operating from January, 2026 and be backed by “significant” state government funding aimed at forging one of the world’s top 50 universities within a decade.

University of Adelaide vice-chancellor and president Professor Peter Hoj, Premier Peter Malinauskas, University of South Australia vice-chancellor and president Professor David Lloyd. Picture: Paul Starick

As The Advertiser revealed on Monday, staff at both universities were told that morning work was “now concluding” on a comprehensive feasibility assessment of the merger plan, which both councils would meet separately to consider.

If they reject a merger, the amalgamation commission will be revived. Under the Labor policy revealed by The Advertiser in October, 2020, this would involve “an eminent commissioner with higher education experience” and the three leaders of the state’s universities.

The more likely path, though, is Adelaide and UniSA agree to a merger. The amalgamation commission would be jettisoned and the two universities steam ahead with their plans.

But a parliamentary inquiry looms as a significant roadblock. Universities are set up under state legislation and, as such, merging them requires law changes.

Negotiating their smooth passage through the upper house will be a huge test of Mr Malinauskas’s political skill – probably the biggest he has faced yet in office.

The merger is a linchpin of his agenda – he brands it a critical jobs and economic development generator. The weekend decision is the culmination of more than three years of policy development.

Mr Malinauskas set the bar high in parliament on Wednesday when outlining the stakes of the passage of necessary legislation.

“It … will be an important test for everybody in this parliament – an important test of whether or not we are committed to making the bold decisions into the future that set the state up for the long term, whether or not we’re going to only contemplate the sort of holdback mentality that could deprive a new institution being formed in a way that they both want,” he said.

“That would be an extraordinary thing for people in this place to actively consider doing.”

Applauding the signing of university merger documents at Government House last December are (L-R) UniSA chancellor Pauline Carr, UniSA vice-chancellor David Lloyd, Deputy Premier Susan Close, Governor Frances Adamson, Premier Peter Malinauskas, University of Adelaide chancellor Catherine Branson and University of Adelaide vice-chancellor Peter Hoj. Picture: Naomi Jellicoe

But consider it they are – or at least they’re considering holding back the merger process. Greens co-leader Robert Simms says he is open to the prospect of a parliamentary inquiry, something the two SA-Best crossbenchers and the Liberals are likely to support.

Mr Malinauskas is likely to focus his efforts on convincing the Opposition to back the merger, ensuring the legislation’s passage, by arguing the economic case.

Liberal deputy leader and education spokesman John Gardner on Wednesday in parliament picked holes in the merger, particularly over predicted lifts in rankings and student accessibility. But he left the door open to support the move, despite accusing Labor of having “utterly botched this process”.

“We do not come here desiring to oppose this plan if it is in South Australia’s best interest, but it is in taxpayers’ interest for their government to be upfront and clear about how much money this is going to cost and what taxpayers are going to get for their money,” he said.

Too right. This is the crucial public exam that Labor must pass if any merger is to succeed.