The Council of Victoria University of Wellington is responsible for its governance and therefore has concern for the structure, processes and relationships for making decisions at the highest level of the institution.

In June, the Council embarked on its most significant governance process in recent years, the selection of a new Vice-Chancellor and Chief Executive, after accepting with regret the resignation of Professor Stuart McCutcheon, who was appointed as Vice-Chancellor of the University of Auckland with effect from 1 January 2005. The Council engaged a recruitment agency to assist in the selection process and sought the advice of an internal University Advisory Group, established by the Academic Board to work with the Council in making the appointment. The Council was very pleased to be able to offer the position to Professor Pat Walsh, Dean of Commerce & Administration and Pro Vice-Chancellor (Research) at Victoria University. Staff were informed in late November that Professor Walsh had accepted the position and I wish to congratulate him formally on his appointment.

In another major decision of the year, the Council, along with the Council of the Wellington College of Education, accepted a business case for the merger of the two institutions. After consulting with their respective Academic Boards, the two Councils formally requested the Minister of Education, the Hon Trevor Mallard, and the Associate Minister of Education (Tertiary Education), the Hon Steve Maharey, to disestablish the College and incorporate it into the University. The Ministers announced the Government's approval of this request in November and the merger will take effect on 1 January 2005.

Having revised its Charter in 2003, the Council embarked on a review of the University's Strategic Plan. The new Plan, adopted in December, envisages the University being in the top echelon of universities in the Asia-Pacific region with enhanced research performance and a focus on producing graduates marked by three key attributes: creative and critical thinking; leadership; and communication skills.

The Pro Chancellor, Shaan Stevens, other members of Council and I began dialogue with Māori and iwi with the assistance of the Pro Vice-Chancellor (Māori), Professor Piri Sciascia. The purpose of the meetings was to discuss a strategic direction towards increasing the participation of Māori in tertiary education. So far the Council have met with Te Atiawa, represented by the Wellington Tenths Trust, Ngāti Toa Rangatira and Ngāti Porou. It is anticipated these meetings will be broadened to include other Māori and iwi interests in 2005.

The Council also set itself goals for the year, each with agreed actions and performance indicators. Those goals covered: Monitoring the performance of the Vice-Chancellor; Vision and Planning; Fees Setting; Financial and Risk Management; Governance Review; Council Processes; the Treaty of Waitangi; and Research and Teaching. The Council also clarified its position on conflicts of interest and created a more specific policy to guide the Council.

The Council conducted its usual induction workshop for new members early in the year. The membership of the Council and its officers also altered substantially during the year. Shaan Stevens was elected as Pro Chancellor and James Ogden was appointed as Chair of the Finance Committee. Gowan Pickering was appointed to Council after consultation with Business New Zealand and Te Mākao Bowkett was appointed after consultation with the New Zealand Council of Trade Unions. In anticipation of the merger with the Wellington College of Education, the Council co-opted Mary Bruce, a member of the College's Council. Patricia McKelvey and the Secretary to Council, Christine Turner, attended the Australian Conference on Governance in Sydney in October.

A key Council responsibility is the setting of domestic student fees and Victoria University was the first university to set its fees for 2005. After considering a range of options and deliberating for three hours, the Council adopted a new schedule that increases fees by an average by 4.5 percent. The decision was reached reluctantly but the Council believed it was necessary to ensure the future quality of teaching and research at the University.

Together with the Senior Management Team, the Council has led a number of significant and strategic initiatives that came to fruition this year. The upgrade of the Wellington Railway Station West Wing was completed and the University now occupies two-thirds of this substantial building. Rutherford House was fully refurbished and the addition of two large lecture theatres provides an attractive space that is well located for the University to build upon its strengthening relationships with the city and central government. On the Kelburn Campus, it was with pleasure that we welcomed the Malaghan Institute of Medical Research on to the site, and the Council looks forward to the increased research and teaching benefits that will flow from this partnership. The year also saw the University celebrate the centenary of the laying of the foundation stone of Victoria’s iconic Hunter Building and we used the occasion to thank those supporters who saved the building from its planned demolition in the 1970s. On a future occasion, I hope the University will be able to celebrate the birthday of a special purpose building for the New Zealand School of Music, which the Council agreed to form with Massey University.

As Chancellor, it was a particular pleasure to attend the graduation ceremonies in May and December and to confer honorary doctorates on nine people who have contributed much to New Zealand's intellectual life. In May, Weta Workshop director and designer Richard Taylor and novelist Witi Ihimaera were awarded honorary Doctor of Literature degrees; economist Sir Frank Holmes and lawyer and former Cabinet Minister, the Hon David Caygill, received honorary Doctor of Commerce degrees; former Wellington Mayor, the Hon Fran Wilde, received an honorary Doctor of Laws degree; and astronomer Albert Jones received an honorary Doctor of Science degree. In December, Māori academic Koro Dewes received an honorary Doctor of Literature degree, philanthropist Sir Roy McKenzie received an honorary Doctor of Commerce degree, and inaugural Supreme Court Justice Sir Kenneth Keith received an honorary Doctor of Laws degree. As well, the Council conferred an honorary Doctor of Literature degree upon distinguished University academic Emeritus Professor Ian (I.A.) Gordon. Professor Gordon received the degree in September, the day before he died aged 96. Professor Gordon made an indelible mark on the study of language in New Zealand and his passing marked the end of an era for the disciplines he promoted. The Council also bestowed a further five Hunter Fellowships on people who have made a substantial contribution to the University's advancement through a variety of activities. They were: Mark Blumsky, James Ogden, John Shewan, Andrew Thomson, and Beverley Wakem.

On behalf of the Council, I would like to thank Professor Stuart McCutcheon for his substantial contribution to Victoria University since taking up his appointment in November 2000. In his four years with the organisation, he has played a vital and significant role in leading the University to be in a strong position and fulfilling its role as one of New Zealand's leading research and learning centres.

Finally, I would like to thank my fellow Council members for the support they have given the University in 2004.

Rosemary Barrington
Chancellor, 2004