University of Adelaide, UniSA sign ‘historic’ merger agreement

Leaders have even agreed on the name of the new institution, which would instantly become the biggest in the land for domestic students.

University of Adelaide vice chancellor Peter Hoj, Premier Peter Malinauskas and UniSA vice chancellor David Lloyd.

An unprecedented deal has been inked to start a merger process for the universities of Adelaide and South Australia, including agreement on name, leadership and starting date.

To be known as Adelaide University, the combined institution would start operating from January, 2026, backed by “significant” state government funding aimed at forging one of the world’s top 50 universities within a decade.

Premier Peter Malinauskas and the two universities’ officials on Wednesday night signed a statement of co-operation, hailed as a “historic agreement” to “pursue the creation of a university of the future” that would maintain a global top 100 ranking and instantly become Australia’s largest for domestic students.

The statement’s terms include no net job losses, a new brand and an immediate initial “co-leadership model” for two vice-chancellors (one from each university) until the combined university appoints one in an open and competitive process.

The level of agreement between two of the state’s three universities goes far beyond their scuttled talks in 2012 and 2018. It triggers a feasibility study, business case and financial plan phase lasting up to six months, ahead of any final merger deal.

UniSA’s Bradley Building.

Mr Malinauskas branded the agreement “a historic moment for our state”, declaring a combined university would be globally competitive and put SA at the forefront of education in Australia.

“The combined university would make South Australia a magnet for domestic and international students and a global leader in research – unlocking incredible benefits for our state’s economy,” he said.

In a joint statement, universities of Adelaide and South Australia vice-chancellors Peter Hoj and David Lloyd said they were committed to building on their institutions’ proud heritage and accomplishments to create “a global higher education powerhouse, transforming lives and society for the better”.

Adelaide and UniSA chancellors Catherine Branson and Pauline Carr said they believed a future institution could deliver “teaching of the highest quality, further address educational inequality, underpin social cohesion” and boost the economy for generations.

Mr Malinauskas, who revealed Labor’s university merger policy in October, 2020, told The Advertiser an amalgamation commission with powers to effectively compel unis to combine would be put on hold until July 1 next year.

He said the state would make a “significant” financial contribution to establishing the new university, but did not specify an amount, revealing Treasurer Stephen Mullighan had been in “active discussions” with the institutions.

“This is about transforming higher education for the benefit of the state. So, there’s a dividend here to the people of South Australia and, therefore, it’s only reasonable that the state government invests in that effort – in fact that’s the whole idea,” Mr Malinauskas said.

The University of Adelaide. Picture: Kelly Barnes

Talks between the Premier and the two vice-chancellors were continuing as late as Sunday afternoon, when The Advertiser photographed them meeting in an airconditioned, upmarket shipping container at the South Australia Suite at the VALO Adelaide 500.

A Transition Council of up to 14 members – half nominated by each university – would be created, with a chancellor of this council nominated by UniSA, subject to consultation with Adelaide.

The Transition Council would oversee the appointment of a chancellor for the combined university by the second year of operation.

The combined university would be created and governed by new state legislation, substantially modelled on the University of South Australia Act.

Modelling provided to The Advertiser shows the new Adelaide University would have 36,123 domestic students, ranked first in Australia, and 48,918 in total, ranked fifth in Australia. These are equivalent full-time student load – actual headcount would about 1.5 times higher.

Total research income is forecast to be $321m, ranked seventh in Australia, and the merged uni would have 3271 academic full-time-equivalent staff, ranked sixth in the nation.

Opposition education spokesman John Gardner said the Liberals had always been happy to support a merger if universities were willing participants but did not recall Labor including a big bill for taxpayers in election costings.

“If it needs substantial state government investment to get the universities to agree, then it is only fair that South Australian taxpayers know how much they’re on the hook for, and see the cost-benefit analysis as soon as possible. We look forward to the government providing those details,” he said.

Adelaide University in October was ranked in the world’s top 100 universities for the first time by the prestigious education section of The Times, a renowned UK newspaper.

Adelaide was at number 88 – 23 places ahead of 111 last year. Flinders University and the University of South Australia were ranked within a range of between 300 and 350.

Adelaide and UniSA scuttled merger talks in late October, 2018, jointly declaring they were “unable to reach agreement on the threshold issues and strategic risks”.

The governing councils of the two universities had agreed to a six-month project to discuss a potential amalgamation. Professor Lloyd was UniSA’s vice-chancellor then.

Earlier merger talks between the same two universities were abandoned in 2012 after Adelaide abandoned the idea and elected to move ahead with appointing a new vice-chancellor. Professor Hoj was UniSA’s vice-chancellor at that time.

The catalyst for those discussions had been the movement of the Royal Adelaide Hospital to the city’s West End, adjacent to the South Australian Health and Medical Research Institute, along with the open VC position.

Premier Peter Malinauskas. Picture: David Mariuz

Paul Starick analysis: But will it make a passing grade?

A merger between the universities of Adelaide and South Australia is much further advanced than two previous aborted attempts but the path ahead has numerous hurdles.

This is the signature reform of Peter Malinauskas’s government, at least thus far. The Premier has been working on this policy since at least April, 2020, along with his deputy Susan Close.

Creating an academic powerhouse to drive innovation, research, jobs and top-ranking educational outcomes is at the heart of the Malinauskas Labor government’s vision.

But some important questions remain. At what price to taxpayers is the merger achieved and is the public and educational dividend in return sufficient?

Unless there is a direct benefit to the state that is not outweighed by the cost, is there any point pushing through a merger?

The feasibility study, business case and financial plan will need careful scrutiny. If state money is to be invested, the government has an obligation to make them public, at least in part.

If the University of Adelaide has already achieved a top 100 ranking, has Labor’s policy objective been achieved – even if there is an argument this position is not necessarily sustainable.

Tertiary unions are likely to question the promise of no net job losses. Some staff, clearly, will be axed, creating the prospect of significant white-anting of the merger process.

Adelaide and UniSA have been here twice before, although those talks did not go as far down the road.

The agreement forged thus far is historic. But full marks in the first section of an exam does not necessarily mean passing with flying colours.

As The Advertiser predicted in mid-November, the Premier has preferred to forge a compromise deal with Adelaide and UniSA, rather than force a merger commission inquiry – a mechanism outlined in Labor’s policy.

But he and Dr Close have reserved their right to ignite this process after July 1 next year if a satisfactory deal cannot be achieved by talks with the two universities.

Dr Close makes the salient point that these talks are further advanced than ever before, not least because government is an active participant rather than a bystander.

Ultimately, though, the government will have to determine whether the price of a merger deal is worth one going ahead.