Uni plan to boost funding, research

The proposed merger of two departments within the University of Otago School of Business is necessary to improve their research output and financial performances, the proposal document shows.

The confidential report, written by School of Business dean Prof George Benwell, was leaked to the Otago Daily Times on Wednesday.

In the report, Prof Benwell said it was of "enduring concern" the departments of accountancy and business law and finance and quantitative analysis had poor performance-based research fund (PBRF) ratings which had shown little improvement between 2003, when research output at all New Zealand tertiary institutions was first assessed, and the next assessment in 2006.

Accounting's 2006 score of 1.2 and finance's score of 2.5 were the lowest of the school's eight departments, the report said.

Two other departments, economics and tourism, had ratings of 6 or higher.

The 2009 practice internal PBRF round indicated little improvement.

Government funding changes introduced in 2008 mean tertiary institutions are far more dependent on PBRF ratings than previously. Institutions now get about 70% of their government funding based on enrolments and the remainder from competitive or negotiated funds, including PBRF.

This year, Otago has budgeted to receive $200.75 million in enrolment-based government funding and $53.09 million in PBRF funding.

In the report, Prof Benwell said the departments' low PBRF scores meant they were attracting insufficient PBRF funding and had been subsidised by the rest of the commerce division by $2.3 million since 2007.

The aim of the merger was to create an environment focused on "excellent research and research-informed teaching", he said.

"Continuing to operate the way we have will not allow us to reach these goals."

The heads of both departments had resigned, the report said. Prof Robin Grieves (finance) would return to the United States in July and Prof Roger Willett (accounting) would return to Australia early next year.

It is understood both resigned last month shortly before the merger proposal was announced.

Prof Benwell was asked whether their departures were coincidental or as a result of the departments' poor research performance.