FINANCIAL STRESS

Evening Post, Volume CXI, Issue 104, 3 May 1926, Page 8

FINANCIAL STRESS

AT OTAGO UNIVERSITY

BUILDING ESTIMATES EXCEEDED

APPEAL TO PRIME MINISTER.

(By Telegraph.) (Special to "The Evening Post.")

DUNEDIN, This Day.

A representative deputation from th« Otago University waited on the Prime Minister regarding the financial position of the institution. The Chancellor (Mr. T. K. Sidey, M.P.) said the object of the deputation was to bring before the Prime Minister certain financial matters and to solicit the Government's help. Their general financial position had < fluctuated considerably in recent years, particularly as far as their endowments were concerned, as owing to financial stress many returned soldiers' rentals had had to be reduced. Last year the expenditure exceeded the income by £718. The salaries paid the teachers were less than were paid to those at other universities. Before the "cut," professors,were paid £900 per annum, but now it was £850, except in one or two cases. They had to obtain their teachers in the world market, and they were competing in consequence against other universities, and owing to the smaller salaries paid there was considerable difficulty in obtaining the best men. The public of Dunedin had been very generous to the university, the total amount donated being between £100,000 and £150,000, and a good deal of this had gone into buildings. Interest found locally amounted to £2000 per annum. The Presbyterian Church also relieved the Government of financial responsibility by providing £2500 a year for important chairs. THE SPECIAL SCHOOLS. Dealing with the question of the special schools, Mr. Sidey said that the University Commission, in its report, strongly recommended that these should be separate and distinct from the other departments of the' university. Speaking parenthetically, he would like to say that' he considered the Commission had misinterpreted the remarks of Professor Park. It had recommended the removal of the Mining School, but he would like to say that if this were done there would be a big outcry in Dunedin. Speaking of the Medical and Dental Schools, Mr. Sidey. said that they were debarred from rendering adequate assistance to their professors, particularly in the direction of giving facilities for research. Quite apart from anything else additional expenditure was required in connection with the staffing and equipment of the two large buildings. It was estimated that £1000 a year would be required for the maintenance of the Medical School, and £650 for the Dental School. The Dean of the Medical School estimated that to place the school in a satisfactory position they would require £13,000 a year. That looked a large sum, and it might possibly be wide of the mark. It was estimated that £2700 would be sufficient to meet the immediate needs of the Dental School, including maintenance. COSTS UNDER-ESTIMATED. It had been suggested that the University Council had misled the Department in that it had largely under-esti-mated the amount of money required for the buildings. The original estimate for the Dental School was £38,300, this having been made three years ago. Theactual cost exceeded' this by £3000. So far as the Medical School was concerned, he admitted that the estimate had been exceeded. Five years ago, when it was prepared, the estimate approximated £100,000; but they now found that the cost would run into £111,000, without the site, which cost £14,000. The original estimate was therefore exceeded by £25,000. For the shell of the building the original estimate was £50,000, but this had cost £6000 more. This was unfortunate, but the speaker considered that a contract should have been let for the whole work. It had been suggested that the Government would not accept tenders or find the additional amount. They in consequence might only, be able to complete part of the buildings. It was hoped to have the buildings ready for the Australian and New Zealand Medical Conference, which would open in Dunedin in February next. MR. COATES'S REPLY. The Prime Minister, in replying, said he understood that tlft request was for an annual grant of £15,700. Dr. Marshall Macdonald: "That is the ultimate development." The, Prime Minister went on to say that the original cost of the new building was £83,000. Now it was found that the cost would be £111,000. If the estimated cost of buildings all over the country were exceeded, what sort of a position would the Government find itself in? Could not the estimates in regard to the new wing be readjusted? . • ' ■ Sir Lin do Ferguson replied that «t the time the contract was let the. Government only faced the problem of putting up the shell of the building. If the whole contract had been let at the time they would have got it done for £10,000 less than the present demand. Mr. Coates said that that would bo about 1920, when prices were at their l^eak. The whole job would cost less now. Could not their architect readjust in some way? The' Registrar said the difference was £18,000. The Prime Minister said he" was not personally in touch with the matter, but he understood,that investigations were being made by the Department, as to what its liability would be in future. The matter was somewhat involved, and he thought he had better see the buildIt' was arranged that Mr.. Coates should visit the university buildings on Monday morning.