A struggling Australian university has enlisted an old hand as interim vice-chancellor as it battles a funding crisis and governance concerns.

Stephen Parker has accepted a short-term role at the helm of the University of Canberra (UC), where he spent almost a decade as vice-chancellor until 2016. He will replace deputy vice-chancellor Lucy Johnston as interim leader.

Professor Parker will occupy the post until former federal opposition leader Bill Shorten arrives as substantive vice-chancellor in February. “Stephen will work closely with council, the UC executive, senior leaders and all staff across the university as we continue to adapt to external settings and make key decisions on our strategy and organisational design,” chancellor Lisa Paul told staff in an email. 

She said Professor Parker would “add his expertise to our university-wide approach to achieving financial sustainability”.

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His appointment marks the second change of leadership in 10 months at Canberra, whose former vice-chancellor Paddy Nixon left abruptly in December.

Professor Nixon’s departure was announced a month later and the institution’s published accounts subsequently put his final year’s pay at A$1.785 million (£915,000) – an all-time record in a university sector in which Canberra is the third-smallest institution.

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In an August “town hall” meeting, Professor Johnston described Canberra’s financial prospects as “scary”. Staff were told that the institution faced a 2024 deficit of at least A$33 million – around A$9 million more than the figure “reluctantly” approved by the council – despite “extraordinary” savings achieved this year.

The National Tertiary Education Union has asked candidates in October's Australian Capital Territory (ACT) election to commit to a “comprehensive and transparent review” of University of Canberra governance by the territory’s legislative assembly.

“UC is a great university,” Lachlan Clohesy, secretary of the union’s ACT division, wrote in a letter to the contenders. “However, in recent times, questionable management processes and decision-making have compromised UC’s ability to deliver on its core mission.”

Dr Clohesy described the latest leadership change as a “vindication” of his members’ concerns. He said Professor Johnston had “inherited many of the issues” but staff had lacked confidence that they were being adequately addressed.

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The issues included the former vice-chancellor’s resignation, an “unexplained” 71 per cent hike in his pay, a surge in spending on consultants “and a budget deficit blowout”, he said.

“We still believe an ACT legislative assembly review is necessary to provide transparency and accountability around how we’ve got to this point, and to allow for lessons to be learned. This interim appointment shows that UC is well aware that there have been issues,” he said.

Professor Parker, who led Canberra between 2009 and 2016, subsequently worked as national education lead with consultancy KPMG Australia.

He attracted attention in 2014 as the only Australian vice-chancellor to openly oppose then education minister Christopher Pyne’s proposal to deregulate university fees.

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john.ross@timeshighereducation.com