At the end of last year, a couple of opinion pieces crossed my desk about the function that universities are supposed to perform in society (The Australia Institute, 2025; White, 2025). Richard Denniss, a plain-English speaking economist and co-CEO of The Australia Institute, explained that "at the moment [universities]'re in the worst of both worlds [...as] they're all quite poorly regulated" (0.25). Australia's universities are "not companies and they don't have directors and they don't report to the share market" "but they're also not government departments and they're not showing up at [select] committees and [...] having ministers and opposition and crossbenches grilling them" (0.58), which is also true of New Zealand universities.
He went on to say that universities are "not getting investor scrutiny. They're not getting parliamentary scrutiny. They are getting a lot of public money" through government fee funding arrangements and now they are also "paying their vice chancellors up to $1.5 million a year" (The Australia Institute, 2025, 1:08). So we begin with poor governance, and a potential lack of accountability. Then we add in the complication of overpriced executives who ARE NOT WORTH TWENTY TIMES A LECTURER SALARY, let alone three times a PM's salary; particularly when claiming unjustifiable financial hardship within the sector. Ah, those wealthy universities which lock away "multibillion dollar accumulated surpluses" (1:16), and still "cry poor" and use financial pressure as an excuse to sack staff and cut popular courses. In New Zealand it is the same: tertiary institutes are continuously cutting jobs, closing courses and departments, often requiring a government 'lifelines' simply to stay afloat (White, 2025).
Hmm. What is wrong with this picture? How do we manage to get glory projects like flash new buildings and flights of fancy when no one is watching, and why do the people in charge start to think like they are gods? And why do the people on the ground get less and less to do more and more?
But wait, there's more. We also have got our priorities out of whack: our universities have become obsessed with chasing revenue - being business-like and chasing international student full fees - at the expense of their core mission: education. Our tertiary institutes are supposed to deliver good quality undergraduate education and, in the process of that, those two teach also deliver ground-breaking research (The Australia Institute, 2025). Education is a social good, lifting the skills and critical thinking abilities of the national population. It is not primarily for businesses to make money: that may happen as a multiplier of education.
Here in New Zealand, we are worse off than our Aussie cousins: we have truly neglected research: two good quality government reviews by Sir Peter Gluckman have been ignored, and crucial research funding - such as the Marsden Fund being withdrawn from humanities and social sciences, despite a vital need to address societal challenges - has been axed (White, 2025).
So we have no oversight; super high pay for twats; chasing money, not education; reducing research; and then the last twist: less public money to pay for education. Government funding is not keeping pace with the rising cost of living, so effectively over time, universities are forced to seek alternative revenue to keep the lights on, and once we get into that way of thinking, we start to see how we got to the super high pay for twats situation (The Australia Institute, 2025; White, 2025).
And even worse in New Zealand, our current government has ACTUALLY cut funding, despite significant operational cost increases. So we really do have less to do with less. And less.
Can't think why this is a problem... can you?
Sam
References:
The Australia Institute. (2025, November 9). Decades of neoliberalism have broken our universities [Ebony Bennett interviews Richard Denniss; video]. YouTube. https://youtu.be/dSbKSqD-JR0
White, L. (2025, November 10). We’ve forgotten what universities are for. The Spinoff. https://thespinoff.co.nz/society/10-11-2025/weve-forgotten-what-universities-are-for













