Ex-minister ‘paid NZ$1 million’ by university on ‘hunger rations’

A former New Zealand tertiary education minister, who has criticised the current government for keeping higher education on “hunger rations”, reportedly pocketed almost NZ$1 million (£488,000) in consultancy fees from a university embroiled in staff cuts and pay disputes.

The University of Waikato paid NZ$966,000 for strategic recruitment and marketing advice from the firm of former National Party minister Steven Joyce between December 2019 and December 2022, according to Radio New Zealand.

The payments occurred as the university reduced its costs by offering voluntary redundancies and restructuring financially troubled areas. This included proposals to scrap jobs in the management and science schools, and reportedly now in information technology and mathematics.

The university also triggered a full three-day strike last November by opting not to pay staff who had refused to record marks during a pay dispute.

Waikato did not confirm or deny the reported consultancy payment figure, but credited Mr Joyce with boosting its share of a declining pool of school-leavers. “This is a notable success in the current environment and has helped ensure the university’s financial and operational sustainability,” vice-chancellor Neil Quigley said in a statement.

He said Mr Joyce’s company had been contracted to lead a brand campaign and student recruitment strategy by “selling the wider university story and its unique offerings”. Subsequent roles included chairing an enrolment review credited with boosting “application-to-enrolment conversion rates”, promoting the Waikato Management School – including chairing its business advisory board – and “providing continuity of leadership” to the marketing team.

Mr Joyce had also contributed to groups overseeing recruitment, marketing and website and intranet changes. His work did not include government relations.

Professor Quigley said the university lacked a deputy vice-chancellor for engagement or a project management office to undertake strategic work of this type: “Steven Joyce’s demonstrated and extensive experience in business and marketing has made a significant contribution to the university, in parallel with our executive team.”

The Tertiary Education Union said it was “appalled” that the university had spent so much on a consultant while failing to replace staff who had left – despite the extra workload caused by the pandemic – and offering “very low” pay rises on the rationale that it “couldn’t afford” more.

“The university has paid Steven Joyce almost a million dollars for a part-time advisory role that makes him the highest-paid individual on [its] books…when many staff can’t afford to pay their mortgages or put food on the table,” said Waikato branch organiser Shane Vugler.

Mr Joyce did not respond to Times Higher Education’s request for comment. His earnings from Waikato emerged 10 days after he accused the current Labour government of “starving the universities” in a column for the New Zealand Herald.

The article censured Labour for failing to offset inflation or border closures in its funding decisions. “This government is not even properly funding the current activities of universities, let alone expanding them,” he wrote.

“You might think all this is a bit rich coming from someone who rails against the excesses of too much government spending. But it is also about what you choose to spend money on, and in this case you don’t have to look far to find pots of money being wasted.”

In recent years, Waikato has earned revenue of less than NZ$270 million and spent more than NZ$20 million on “professional services”. Its 2022 financial accounts are expected to be published next month. The seven other New Zealand universities have already released theirs, with five reporting deficits. 

john.ross@timeshighereducation.com