The Chair of the General Purpose Standing Committee No.2, the Hon Robyn Parker MLC, today tabled the Committee's report on the Governance of NSW universities. The report makes 12 recommendations to improve university governance.

"Universities are a vital part of Australia's social and economic infrastructure. In financial terms, even the smallest of universities now amount to substantial corporations. The way our universities are governed is a matter of considerable importance to NSW, particularly as universities face additional challenges posed by the global financial crisis," said Robyn Parker.

University governing bodies need the flexibility to tailor their governance arrangements to meet their specific needs.

"While we support the call for greater flexibility, this flexibility should not be unconstrained: universities must act in accordance with the fundamental principles of good governance, including transparency and accountability. The Committee is committed to ensuring the continued representation of a wide variety of stakeholders on university governing bodies, including university staff, students and alumni and our recommendations reflect this commitment," Robyn Parker said.

The Committee recommends that universities be able to remunerate governing body members and to have access to an effective mechanism to dismiss a Chancellor.

"We believe that introducing remuneration for governing body members is an important way to acknowledge the vital role they play in university governance."

"All NSW universities should be able to utilise a timely, fair and transparent mechanism to remove a Chancellor who has lost the confidence of a governing body, such as that presently available to the Senate of the University of Sydney."