Present

Members

The Chancellor, Sir Edward Woodward (in the Chair)
The Deputy Chancellor (Dr N G Curry)
The Deputy Chancellor (Ms F S Marles)
The Vice-Chancellor (Professor A D Gilbert)
The President of Academic Board (Professor S A Walker)
Professor J A Angus, Mr T L Anning, Mr L J Carden, Ms A Chinn, Mr J S Doyle, Hon B Forwood, Dr B H Lochtenberg, Ms E M Proust, Mr I A Renard, Associate Professor M R Theobald, and Ms C Walter.

Others Attending

The President of Convocation (Dr T Latham)
The President of the Postgraduate Association (Ms S Roberts)

The Deputy Vice-Chancellor (Academic Management) (Professor C B Schedvin)
The Vice-Principal (Administration) (Mr I Marshman)
The Vice-Principal (University Development) (Mr R Peacock)
The Vice-Principal (Corporate Services) (Mr D R Percival)
The Vice-Principal and Academic Registrar (Ms C Vardon)

The University Secretary (Mr L N Currie)
The Deputy Principal, Administration (Ms J Stephens)
The Director of Policy, Planning and Projects, ITS (Mr S Young)
The Manager, Human Resources Systems, (Mr S Bottomley)
The Manager, Employee Relations (Ms W Cooper)
The Manager, Central Secretariat (Mr J A Goodwin)

Business

1. Leave of Absence (Item A.01)

Apologies were received from Mr Allen, Mr Justice Chernov and Mr Crawford.

Leave of absence for this meeting had been granted to Lord Dearing and Professor Lim Pin.

Leave of absence for the November meeting was granted to Dr Curry, Lord Dearing and Professor Lim Pin.

Leave of absence for the December meeting was granted to Associate Professor Theobald.

2. Returning Officer's Report

The University Secretary, as Returning Officer, advised that voting for the student elections would commence on 11 October 1999.

3. Minutes of Meetings 6/99 (Items A.1[a])

The minutes of Council meeting 6/99, held on 6 September, 1999, copies of which had been distributed, were confirmed.

4. Starring of Additional Items (Item A.2[a])

Items A.6(4), B.1(a).8, B.2 (a).1, B.2 (a).12 and B.6.1 were starred for discussion.

5. Motion to Adopt or Receive "Unstarred Items of Business" (Item A.2[b])

In accordance with established procedure, it was formally agreed that the items of business that were not to be specifically discussed should be adopted where containing recommendations or received where containing reports.

6. Chancellor’s Matters (Item A.3)

Nil.

7. Vice-Chancellor's Report (Item A.4)

7.1 Council received the Vice-Chancellor's Report, together with a tabled paper - A.4(a).7, Master of Business, and a tabled supplementary paper on General Staff Turnover

Council adopted the following recommendations:

7.2 Re-appointment of Deans

that Professor Ross Williams be re-appointed as Dean of Economics and Commerce for the period January 2000 to 31 December 2002; and

that Professor Warren Bebbington be re-appointed as Dean of Music for the period January 2000 to 31 December 2002.

7.3 Universitas 21 Limited

Council noted that it was planned to register Universitas 21 Limited in the United Kingdom as a company limited by guarantee.

Because Council is of the opinion that membership of the company is in the interests of the management or conduct of the affairs or concerns of the University, the Vice-Chancellor was authorised, on behalf of Council, to register the University as a subscriber to Universitas 21 Limited, on being satisfied that the University's interests are adequately protected.

The reason for the establishment of the company is to carry on business as a general commercial company for the purpose of advancing the teaching, research and service missions of its member universities.

7.4 Hawthorn Campus

At the July 1999 meeting, Council adopted a recommendation from the Finance Committee that the Hawthorn campus be sold, a recommendation based on a confidential paper which had been submitted to the Finance Committee. At the time, Council received an assurance that no public action would be taken by the University pursuant to that decision until a further report had been submitted to Council. The timing of any possible sale was not spelled out.

The Council decision and details of the confidential paper had since been reported in the press.

The Vice-Chancellor advised that the possible sale of the Hawthorn campus was not any longer under active consideration in the University.

He advised that it was possible that at some time in the future the University would look again at the question of whether or not divestment of the Hawthorn campus would be a proper option for the University. At that time the University would go through all the proper processes, but the judgment to be made would be about whether the University's need for the Hawthorn campus and its facilities, and the things that are done there, were best located at Hawthorn or better located at Parkville, where they would be contiguous with cognate university activities. He stressed that the University did not have the option of relinquishing Hawthorn, and relocating the Hawthorn facilities cost-free.

The Vice-Chancellor stressed that further public discussion of the matter would not be in the best interests of the University. He also referred to the conflicting needs, on the one hand, to keep Council fully informed, and on the other hand the need to protect confidential information. He suggested that the question of confidentiality of Council proceedings be given systematic consideration at the Council Planning Conference, to be held in February 2000.

7.5 Master of Business

The Vice-Chancellor referred to Minute 13.3.2 of the September meeting:

Graduate Diploma in Management

A recommendation for the introduction of a Graduate Diploma in Management in the Faculty of Economics and Commerce was deferred for further consideration.

The Vice-Chancellor reminded members that the use of the word "Business" in the proposed title of the Master of Business award had raised the question of demarcation with courses provided by the Melbourne Business School. He referred to the compromise solution to this problem recently proposed by the Board of the Melbourne Business School, as set out in his tabled paper.

He further advised that, subject to agreement by the Faculty of Economics and Commerce to the proposed solution, he intended to approve the proposal on behalf of Council.

7.6 Staff Turnover

Council noted that, after consideration by the Human Resources Committee, a further report would be presented to Council before the end of 1999.

8 Administrative Committee (Item A.5[a])

8.1 Council received the report of Administrative Committee meeting 16/99, held on 15 September 1999.

8.2 Council Meeting Date - December 2000

Council adopted the recommendation that the December 2000 meeting of Council be held on Monday 4 December 2000.

8.3 Occupational Health and Safety Policy

Council approved as a matter of policy the amendments to the Occupational Health and Safety Policy as set out in draft Regulation 17.1.R5, as shown in Appendix A to the report.

9. Planning and Budget Committee (Item A.6)

9.1 Council received the reports of meeting 8/99 of the Planning and Budget Committee, held on 8 September 1999.

9.2 Chairs of Medicine at Austin and Repatriation Medical Centre

9.2.1 Council resolved that the following Council decisions be rescinded:

that provision be made for one Chair of Medicine (fully University-funded) in the Department of Medicine at the Austin and Repatriation Medical Centre from 1 January 2000;

that the forthcoming vacancy in the Chair of Medicine (Regulation 7.1.R2, Schedule A Item 70) not be re-filled and that the Chair be discontinued;

that the Chair of Medicine (Austin and Repatriation Medical Centre) (Regulation 7.1.R2 Schedule B) be transferred to Schedule A from 1 January 2000 as a continuing fully University-funded Chair of Medicine; and

that the Chair of Medicine (Austin and Repatriation Medical Centre) (Regulation 7.1.R2 Schedule B) be discontinued.

9.2.2 Council adopted the recommendation that the vacancy from 1 January 2000 in the Chair of Medicine be re-filled, that a Chair Selection Committee be established as soon as possible, that the Chair be styled the Chair of Medicine (Austin and Repatriation Medical Centre) and that a candidate be sought to provide leadership in teaching and research in the discipline of internal medicine.

9.3 Chair of Surgery (Western Hospital)

Council adopted the recommendation that the forthcoming vacancy in the Chair of Surgery (Western Hospital) be re-filled, and that a Chair Selection Committee be established as soon as possible.

Council noted the intention to re-style the Chair of Surgery (Western Hospital), to Chair of Surgery (Western Hospital/Sunshine Hospital) at the appropriate future occasion.

9.4 Affiliation Agreement with the Victorian College of Optometry

Council approved the amendments to the Affiliation Agreement between the University of Melbourne and the Victorian College of Optometry, and Statute 9.21 - The Victorian College of Optometry, as shown in Attachment 3 to the report.

9.5 Capital Projects Committee

Council approved the addition of the Deputy-Principal (Property and Buildings) as an ex officio member of the Capital Projects Committee.

9.6 G.L. Wood Chair in Accounting

Council adopted the recommendation that the G.L. Wood Chair in Accounting, be filled in the area of Financial Accounting. .

9.7 Adjustment to Teaching Dates

Council noted that this item had been withdrawn at Academic Board.

9.8 Report from Capital Projects Committee

Council noted that Attachment 5 to the report - University Square - Fit-out of Building C, was inaccurate and would be replaced.

10. Committee of Convocation (Items A.7])

Council received the report of meeting 7/99 of the Committee of Convocation, held on 15 September 1999.

11. Academic Board (Items B.1[a] and B.1[b])

11.1 Council received the report of meeting 6/99 of the Academic Board, held on 23 September 1999, together with a supplementary report.

Council adopted the following resolutions:

11.2 Chair Selection Committees

Council approved the establishment of Chair Selection Committees for the following Chairs, as set out in the Appendices to the report:

Chair of Medicine (Austin and Repatriation Medical Centre) (Appendix A)
Chair of Surgery (Western Hospital) (Appendix B)
G L Wood Chair of Accounting (Appendix C)

11.3 Renamed Course

Council adopted the recommendation that the existing Social Work stream of the Postgraduate Diploma in Arts be renamed as the Postgraduate Diploma of Social Work.

11.4 Student Awards

Council approved the establishment of the following new student awards, as shown in the appendices to the report:

• Australian Securities and Investments Commission Prize (Appendix D)
• TAC Law Prize (Appendix E).

11.5 Honorary Degree of Doctor of Laws

Council approved the award of an honorary degree of Doctor of Laws to the person whose career statement was tabled at the meeting of Council.

11.6 Oral Report by the President of the Academic Board

The President of the Academic Board, Professor Sally Walker, gave a brief oral report to the Council.

12. Finance Committee (Item B.2)

12.1 Council received the report of meeting 7/99 of the Finance Committee, held on 28 September, 1999.

12.2 2000 Budget

Council approved the 2000 Budget, subject to some spelling and grammatical corrections, and the following amendments:

1. (a) On Page 10, under the heading "Multimedia Penetration", amended as follows:
   1. $1.5 million to be allocated on an EFTSU basis.
   2. $1.5 million to be distributed on a competitive basis.
2. On Page 17, under the heading "Faculty of Law - Building C Fit-Out' the third line should read:
   Estimated Cost: Contribution to fit-out cost is $11,000,000.
   

Council noted that this sum had been put aside for the premises previously occupied by the Law Faculty.

Council noted that the Institute of Land and Food would have a significant budget deficit in 1999, and that $2 million had been allocated from the Structural Adjustment Reserve to enable the Institute to take steps to rectify its situation.

It was noted, that given the limited funds available each year for capital projects, it would take many years to complete the projects listed in the Capital Projects Priorities Report.

A request was made, that in future the Capital Projects Priorities Report include a break-up, showing for each project the proposed year of expenditure, and the estimated total expenditure on Capital Projects for each calendar year.

12.3 University Square

Council noted that the cost of the University Square project had increased to $164.909 million. The amount that Council had previously authorised for the project totalled $161 million, consisting of $150 million plus $11 million for the Law School Fit-Out. Council adopted the recommendation that the sum of $3.909 million be allocated from University Reserve Funds to meet the shortfall.

Council noted that the Project Review Group, appointed at the Council Meeting in July 1998, had approved the following recommendations:

1. that the Vice-Chancellor be authorised to finalise contractual arrangements for the University Square Project to proceed to construction, at a modified base building cost (excluding the Car Park) of $134.909 million for the delivery of 50,000 square metres of useable space in Buildings A, B and C;
2. that no construction may commence until all necessary planning approvals have been secured, all necessary site acquisitions completed and satisfactory long term arrangements finalised for access to the Car Park site, excepting in relation to access to the Car Park from Bouverie Street;
3. that in addition to the agreed base building cost of $134.909 million, and estimated fit-out cost (including necessary building modifications) of $28 million for Building C, and financing costs being the discount on bank bills of $2 million, any variation to fit-out costs for Building C shall, when aggregated with other project-related expenses which are the University's responsibility (including cabling, communication, landscaping, traffic control measures and similar items) and any additional expenditure required under Resolution 4, be capable of being satisfied within the University Square provision (Priority No. 5) recommended by the Capital Projects Committee on 6 September 1999.
4. that an ESD (Ecologically Sustainable Development)-related variance of not more than $1 million may be authorised from the Capital Projects allocation (provided for under Resolution 3) for possible changes to the modified base building design of Building A;
5. that the Project may proceed prior to final determination of arrangements for access to the Car Park from Bouverie Street; and
6. that the Chairman of Finance Committee be given the discretion to approve any minor changes to these recommendations, or otherwise to refer such proposed changes to Finance Committee for determination.

12.4 Melbourne IT

The Vice-Chancellor advised that the first paragraph of Report Item 12 on Melbourne IT should have read:

"The Committee considered a proposal involving Melbourne IT Ltd and noted that it would anticipate making a recommendation to Council about the sale or float of Melbourne IT at the November meeting of Council. The Committee agreed that the recommendation should be accompanied by a full report on the process followed by the Melbourne Enterprises International and Melbourne IT Boards, including assurances that all appropriate due diligence obligations had been fully discharged as part of this process. This report should also be accompanied by copies of all relevant advice from external consultants."

He reminded Council that it had delegated to Melbourne Enterprises International (MEI) and Melbourne IT, the task of deciding whether and on what basis a float of Melbourne IT would be in the best interests of both companies and, ultimately, of the University.

The Vice-Chancellor also reminded Council that he had formally instructed MEI, on behalf of the University, that the University understood the responsibility of MEI in relation to the proposed float to be to maximise the value of the company to the University. Other possible considerations, such as the potential value of Melbourne IT as a research sponsor or R & D incubator facility for the University, should not be pursued at the expense of maximising shareholder value.

The Vice-Chancellor noted that it would be undesirable for Council or its individual members to assume the responsibility of checking, validating and signing-off the detailed analysis and due diligence undertaken by MEI in its decision to recommend a float and develop a Prospectus. Clarifying this point in relation to the records of its September meeting, Council agreed that prior to making any decision to float Melbourne IT it would require confirmation that the processes followed by MEI in developing its recommendations to Council, and conducting proper due diligence evaluation of the Prospectus, had met all necessary criteria of probity, validation, and good corporate practice. Council indicated that, in providing such confirmation, MEI should append relevant advice from appropriate external consultations confirming MEI's compliance with all necessary obligations in relation to the proposed float.

13.Oral Report by the Chair of the Human Resources Committee

The Chair of the Human Resources Committee, Ms Fay Marles, gave a brief oral report to the Council.

14. Buildings and Estates Committee (Item B.4)

14.1 Council received the report of meeting 7/99 of the Building and Estates Committee, held on 20 September 1999.

14.2 Sidney Myer Asia Centre

Mr Joseph Paonessa and Mr Jason Noble, from Nation, Fender, Katsalidis Pty Ltd, Architects, gave a brief presentation on the design of the Sidney Myer Asia Centre

14.3 Capital Commitments and High Priority Works

Council adopted the recommendation by Dr Curry, the Chair of the Buildings and Estates Committee, that the two recommendations from the Committee be referred to the Capital Projects Committee for further consideration.

14.4 Oral Report by the Chair of the Buildings and Estates Committee

The Chair of the Buildings and Estates Committee, Dr Norman Curry, gave a brief oral report to the Council.

15. Committee on Staff Salaries (Item B.6)

15.1 Council received the report of meeting 5/99 of the Committee on Staff Salaries, held on 16 September 1999.

15.2 Increase in Salary Scales

Council approved a further salary increase of 0.6% be paid to staff with effect from the commencement of the first pay period after the October 1999 meeting of Council.

15.3 Vice-Chancellor's Term of Office

The Vice-Chancellor left the meeting for this item.

Council adopted the recommendation that the Vice-Chancellor be offered a further term of office from 31 December 2000 to 31 December 2006.

Council noted that:

no substantial further term is contemplated by either party beyond that date, but the precise date of termination could be varied by mutual consent at any time before that date is reached.

the salary for the position will continue to be reviewed annually.

in all other respects the terms of the Vice-Chancellor's contract , contained in an exchange of letters dated 6 February 1995, and other documents then incorporated by reference, will remain in force.

Council received a summary of reports on matters dealt with by the Vice-Chancellor, as set out in Items D.2[a] and [b].

17. Melbourne Theatre Company Board of Management (Item D.5[a] and D.5[b])

Council received the reports of meetings 6/99 and 7/99 of the Melbourne Theatre Company Board of Management, held on 23 July 1999 and 20 August respectively..

18. Introduction of New Professor (Item F.2)

Professor David Simmons, Chair of Rural Health, was introduced to Council members and welcomed to the meeting.