Leaked UTAS letter exposes funding uncertainty fears due to legislation

A leaked letter from the University of Tasmania’s chancellor has expressed concerns about legislation on selling land at its Sandy Bay campus. Find out what it revealed.

University of Tasmania building and signage, Sandy Bay Campus. Picture: Richard Jupe File

The chancellor of the University of Tasmania has expressed serious concerns about legislation to ban the sale of land at its Sandy Bay campus saying it creates funding uncertainty.

In a letter leaked to the Sunday Tasmanian, Alison Watkins AM, said the legislation, which requires both houses of parliament to approve any land sales, would “in practice deter virtually all prospective development partners”.

“The legislation thereby impacts the University’s ability to secure its financial sustainability and allocate its resources in a way which creates maximum benefits for Tasmania,” she wrote.

“…..it is highly unlikely any development partners would contemplate a transaction dependent on parliamentary approval.

“The chilling effect will be further reinforced, according to the short summary, by the requirement that any sale motion include ‘details of the amount of payment or consideration, or any other benefits that the University is to receive if the sale is approved as required under this section’.

University of Tasmania building and signage, Sandy Bay Campus. Picture: Richard Jupe

“This could require disclosure of much of the ‘usual’ parts of the contract, eg purchaser indemnities, purchaser waiving rights to claim for problems with the property and so on.”

The letter was written on June 18 and sent to Liberal Clark MP Madeleine Ogilvie just days before the legislation was introduced into the House of Assembly. It is yet to be debated.

While commending the government for seeking funding for a southern STEM facility, Ms Watkins said the university was “disappointed” it was not given a draft of the bill “to enable proper consultation to occur ahead of its tabling in parliament” but rather a short summary from the Education Department.

Ms Watkins said she was “very concerned” the legislation would impede University Council members from making the best decisions and could potentially expose them to liability.

She said the legislation created “uncertainty with regard to our ongoing funding arrangements” which is of “considerable concern to the council”.

The chancellor points out that the land for the Sandy Bay campus was originally commonwealth land and questions whether the federal government was consulted on the legislation.

Ms Ogilvie confirmed Ms Watkins’ letter and said the government would ensure “community perspectives are considered when it comes to the University of Tasmania selling or leasing the land comprising the Sandy Bay campus”.

“We will continue to work with the University as the legislation progresses through parliament,” she said.

Madeleine Ogilvie. Picture: NIKKI DAVIS-JONES

“Importantly, we will work with the University, and key stakeholders, to seek Federal Government investment in the University of Tasmania’s important proposal for a STEM focused Sandy Bay campus upgrade.”

The Liberals promised the legislation during the March state election and after a Hobart City Council elector poll of ratepayers in 2022 in which 75 per cent of those who voted opposed the university’s move to the CBD.

Originally published as Leaked UTAS letter exposes funding uncertainty fears due to legislation