CDU on financial brink as deficit climbs to $21 million

CHARLES Darwin University is in a world of pain, with its finances in serious strife, the NT News can reveal

Charles Darwin University will struggle to maintain viable into the future without ‘reducing costs’

CHARLES Darwin University’s finances are “not (in) a sustainable position” according to the university’s Vice Chancellor.

Just weeks after it cut more than 20 courses and dozens of staff, the NT News can reveal CDU recorded a growing net deficit of $21 million in 2018, crippled by shrinking revenues from lower than expected student enrolments.

Despite its dire financial position, CDU Vice Chancellor Simon Maddocks said the university’s deficit would have “no impact” on the $500 million Darwin City Deal.

The Darwin City Deal, announced last November, will see a new CDU campus constructed on Cavenagh St catering to 1100 students.

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Chief Minister Michael Gunner said the deal would not be jeopardised and was already “signed and sealed”.

“Moving CDU facilities into the CBD will make CDU more sustainable going forward and a more attractive destination for local kids and international students,” Mr Gunner said.

Prof Maddocks and the NT Government both pointed the finger at the Commonwealth Government for the university’s struggles, claiming the 2017 cap on the Commonwealth Grant Scheme, which froze university funding at 2017 levels from 2018-20, was crippling the university.

Prof Maddocks said the cap “directly impacts (CDU’s) capacity to grow domestic undergraduate student numbers”.

And as university funding remains frozen, CDU’s running costs continued to climb, Prof Maddocks said.

“While our income has been constrained, the costs of delivering education and training have continued to rise,” he said. “Staff salary costs are CDU’s biggest single cost item.”

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Acting Education Minister Eva Lawler said the cuts were forcing universities into submission.

“The Federal Government’s cuts to university funding have hit regional universities such as CDU hard,” she said.

Prof Maddocks said a review was underway to find cost cuts.

Asked if more staff and course cuts were on the way, he said it was “not appropriate to comment further on potential changes until the (review) process (was) complete”.

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“These measures are being taken to ensure the university’s sustainability and future growth,” he said.