University council approves department mergers

Two previously signalled departmental mergers at the University of Otago, to apply from next year, were approved by the university council yesterday.

One involves merging the two departments within the university's college of education and the other joining two departments in the commerce division to form a new department of accountancy and finance.

Vice-chancellor Prof Sir David Skegg said the existing education arrangement, established in 2007 from the former Dunedin College of Education and the education faculty, needed to be reconsidered to ensure the viability of the new college.

The level of support required by the new college had been substantially higher than anticipated, this year's budget providing for a cross-subsidy of $1.3 million.

The university has previously advised the merger would result in the loss of between 15 and 20 full-time equivalent positions by the end of 2012.

The council also agreed the departments of accountancy and business law, and finance and quantitative analysis should merge from January 1 next year.

Prof Skegg said the university planned to begin recruiting for new professors of accounting and finance within the next few days and candidates needed to know what they were coming to. (The heads of both of the existing departments resigned for personal reasons earlier this year, something merger proposer School of Business dean Prof George Benwell said was coincidental.)

The existing departments had required cross-subsidy and as enrolment funding continued to reduce in real terms, it was critical the commerce division increase its external research income. (Accountancy and finance had the lowest scores of seven departments within the division for performance-based research funding [PBRF] in 2006, and their overall research performance was described as lagging far behind what was expected.)

Tertiary Education Union Otago branch co-president Dr Brent Lovelock said job losses would not be apparent until the change management process was undertaken in the coming months, but it seemed likely there would be reductions.

Dr Lovelock said the union was disappointed the restructuring, in common with others within the university, appeared to have been driven by the PBRF model.

A consequence of this ranking of universities was that teaching staff who were experienced practitioners were devalued.

elspeth.mclean@odt.co.nz