In a closed session ahead of the regular meeting, Senators discussed the resignation date of the Vice-Chancellor and assessed the impact of publicity of recent weeks surrounding the stepping down of the two most senior officers of the University following the discovery of enrolment irregularities. A progress report on recruitment of the next V-C was heard. Resolutions to appoint an Acting VC and SDVC were passed.
Standard items were dealt with, including:
This item was raised in general business by the Deputy Chancellor, following letters to her and a number of Senators from two former members of Senate expressing concern at the pending closure of the Club. Other internal Senators, including myself, had also been lobbied by staff and were concerned themselves in any case. Unfortunately, debate was truncated because a number of Senators needed to attend a dinner with the recipient of an honorary doctorate, forcing the early closure of the meeting.
The Club has been running at a loss for some years and the committee of management recently recommended to members that it cease trading on 23 December 2011 to avoid becoming insolvent, and then to wind up the operations. There are different views of the causes of the Club's financial woes, but a key one seems to be a decline in the lucrative functions trade. One response to this has been to suggest refurbishment of the Club building, but funding from the University would be required. Senior management of the University, who control allocation of building funds via the Infrastructure Sub-Committee of the University Senior Management Committee, are unwilling to make such an investment.
A number of members of Senate are concerned that a University of UQ's stature and particular location will lack a facility where business visitors to the St Lucia campus can be offered restaurant-standard hospitality, and are concerned also at the loss of a facility that encouraged collegiality, staff morale and work-life balance.
Management was on the front foot in the debate however. The Chancellor suggested up-front that it was a matter for management rather than Senate. The Executive Director (Operations) said that the letters from the former Senators and staff members contained inaccuracies. He was adamant that UQ owns the Club building and that even with the investment proposed, the business was not a going concern. The V-C said that it would be irresponsible to spend $6M on refurbishment, given the University's other building priorities.
The EDO said that the current Club committee of management had inherited debt which he said appeared to have arisen from poor past management. He denied that the loss of parking spaces in the vicinity of the Club was a relevant factor, claiming that a $300K debt existed before any parking changes. The University is owed money by the Club but is willing to write off the debt in return for any funds left over after the Club winds up and meets its other liabilities.
The EDO said that discussions had been held with the Club in recent years about running just a restaurant or just a bistro, but this could not be done without making a loss. It was claimed that the facility is used by a relatively small number of staff and that a subsidy was inappropriate.
It was pointed out by the EDO that the UWA Club had collapsed some years ago and been replaced with a $22M facility which handled conference trade. The UNSW Club had collapsed for lack of custom. It was argued that the UQ Club in its current form is an old model that is not sustainable.
Lack of time precluded further debate.
Following the meeting, a number of Senators proposed informally that the matter be relisted for the first Senate meeting of 2012, to talk about models that might work.
