World financial crisis and the days ahead

Dear Colleagues,

Not surprisingly, the financial crisis around the world has been the focus of much media and attention. In the last couple of days, the impact on universities has been raised. Some universities have very large investment portfolios. The fall in stock markets around the world has meant that earnings will be far lower than in recent years, with less funding available for use. Some of the larger universities in Australia are saying that their income from this source will be halved.

As far as JCU is concerned, our investments are not so large and the impact for us of the stock market crash is far more modest. Our earnings will inevitably be less than before, but because this is a relatively small source of income for us (albeit a welcome one) the impact for us is not so significant.

Indeed, to look for a silver lining in the deepening world financial gloom, the weaker Australian dollar makes Australia a more attractive proposition for international students. And a tighter labour market often encourages people to consider studying to enhance their education and skills.

No doubt, it is a tough time in the financial world and no institution (or person) is immune.

As I mentioned at the Staff Forums this week, we are facing a couple of tight years in a budgetary sense – the world financial crisis isn’t helping, we are still managing the impact of the drop in student numbers in 2006 and 2007, and the funding model for universities in Australia needs significant improvement.

There isn’t a lot we can do about the financial crisis, but there is a lot we can do, and we are doing, to enhance our position as Australia’s University for the Tropics. We are in investment mode, looking to make some signal research appointments and reviewing and refreshing our curriculum. There is an internal job being done too aimed at freeing up resources to apply to teaching and research.

The good news is that ours is a strong university with a unique position in Australia. What we do matters. Even though we will experience some bumps in the road, we know that our position is fundamentally sound, our mission enduring and immensely worthwhile, holding in prospect, as it does, a brighter future for life in the tropics worldwide.

Cheers,
Sandra