Charles Darwin University projects to reduce debt despite coronavirus impact on international admissions

CHARLES Darwin University’s projected coronavirus debt has dramatically reduced

• Report shows CDU recorded lowest deficit in five years in 2019
• CDU chief takes pay cut as pandemic bites

CHARLES Darwin University’s projected coronavirus debt has been reduced to $6m.

COVID-19 had threatened to blow the debt out to $10m because of international students unable to continue studies, lower demand for student accommodation, and a decline in research and investment.

However, an ongoing cost containment program established before the pandemic has put restraints on expenditure that will offset the proposed $10m deficit.

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A CDU spokeswoman said the university had already begun reducing the deficit and creating revenue to address the financial hit.

“We are reducing costs by delaying any non-essential activity and spending, restricting recruitment, senior executives electing to take a salary cut for a period of time, some staff volunteering to reduce their working hours for a limited period of time, staff being encouraged to take leave,” she said.

“At the same time, the university has also increased its revenue through growth in domestic higher education student enrolments … (and) CDU responded swiftly to the Australian government’s Higher Education Relief Package that encouraged universities to deliver discounted six-month online short courses.

“CDU’s awards generated 1131 first-preference applications, of which 902 were for postgraduate options. CDU also introduced 54 fee-free VET short courses for Territorians, which attracted 2512 enrolments.”

CDU recorded a 58 per cent increase in domestic students who started studying in Semester 2. However, the spokeswoman said the ongoing impact of coronavirus on international enrolments remained uncertain.

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“CDU is continuing to market overseas and, at the same time, we continue to support our international students who are studying with us online onshore, and online in their home countries,” she said. “CDU’s total international student enrolments were up 8.24 per cent in Semester 2, 2020, compared with Semester 2, 2019.”