An ageing workforce coupled with overseas universities' poaching staff and students is placing pressure on the University of Otago, and the growing disparity over tertiary funding is the primary cause.
Universities operated in a competitive environment, and high-achieving staff and students were increasingly being targeted by big-spending institutions overseas, University of Otago vice-chancellor David Skegg said.
"It is a different world from 20 years ago," Prof Skegg told Radio New Zealand National's Nine to Noon programme yesterday.
New Zealand universities could not match the facilities, salaries, research funding and teacher hours offered by overseas universities, particularly those in Australia, Asia and North America.
Talented science and clinical medicine staff and students were most likely to be the targets of poaching, but it occurred across all disciplines.
"We employ staff to head-hunt as well."
He said the university had lost staff to Singapore institutions. One staff-member continued to work part-time at Otago as well as in Singapore.
Australian institutions were able to offer salaries and superannuation schemes more than a third higher than that of their New Zealand counterparts.
Funding for enrolled students was also double, he said.
"It doesn't matter how clever we try to be . . . we are not going to compete."
If the Government wanted to transform the economy, investing in higher education should be a priority, as education and research were key to a prosperous future, he said.
Another growing concern for the university was the number of academic staff in their late 50s and early 60s who were approaching retirement age.
"I tremble [at] what is going to happen in the next 10 years."
A collaborative project across New Zealand's eight universities, which is expected to be released later this year, is expected to highlight the sector's staffing shortage for the next decade.
A request by the Otago Daily Times to interview Prof Skegg was declined yesterday.
- hamish mcneilly@odt.co.nz