Coronavirus: Top two University of Adelaide chiefs walk as fee losses mount

Losses in the university sector due to COVID-19 travel bans have claimed the jobs of the two top officials of the University of Adelaide.

Kevin Scarce has resigned as chancellor of the University of Adelaide. Picture: Roy VanDerVegt

University losses due to COVID-19 travel bans have claimed the jobs of the two top officials of the University of Adelaide, who left following a heated row over a financial rescue plan.

Chancellor Kevin Scarce, a former governor of South Australia, resigned on Monday afternoon with immediate effect after a special meeting of the university’s council, its highest governing body, was called to discuss the university’s deteriorating finances.

On Tuesday morning the university announced vice-chancellor Peter Rathjen, effectively the CEO of the university, would be taking indefinite leave, replaced by his deputy, Mike Brooks.

The university has refused to say why its two top officials have departed but, according to one source, the pair were forced out by the council. Neither Rear Admiral Scarce or Professor Rathjen ­responded to requests for them to comment.

The departure of the pair is the first sign of upheaval in senior university ranks as a result of the COVID-19 crisis, which has cut international student fee revenue by up to $4.6bn this year, according to Universities Australia.

Universities are desperately hoping health authorities will come down in favour of readmitting international students to Australia next year. If not, the 2021 financial hit will be worse, with fees lost from students in next year’s intake, as well as those who would have come this year and will be unable to start in 2021.

The University of Adelaide ­depends on international students for 30 per cent of total revenue and, although it has not yet ­released budget shortfall forecast this year, the drop in international students is hitting it hard.

The university announced Rear Admiral Scarce’s abrupt ­resignation in an email sent late on Monday without giving a ­reason.

Then Professor Brooks emailed university staff on Tuesday morning to say Professor Rathjen had taken special leave “for an indefinite period”. “Council has asked me to assume the position of acting vice-chancellor during this time,” Professor Brooks said.

“I look forward to working with the university community over the coming period as we further ­respond to the challenges posed by COVID-19 and continue to ensure our university provides a world-class quality of education and ­research.”

Former University of Adelaide council member Chris Schacht said on Tuesday that the univer­sity needed to explain the departure of its two top figures. “The university council has to give reasons and explain why the chancellor and the vice-chancellor have effectively left their positions in the space of 12 hours,” said Mr Schacht, a former Labor senator.

“They have to give a response to staff, students and the South Australian community.”

The University of Adelaide has long had the weakest finances of any of the Group of Eight sandstone universities because it lacked the large student numbers of eastern state universities, and the fundraising ability of institutions such as the University of Western Australia, which benefited from the minerals boom.

Rear Admiral Scarce was the key voice behind the plan to merge the University of Adelaide with the University of South Australia that was proposed in 2017 but failed when UniSA pulled out months later after the universities could not agree on which vice-chancellor would lead the new institution.

There is speculation that, with the departure of Rear Admiral Scarce and the standing aside of Professor Rathjen, the merger could go ahead with UniSA taking the lead role.