As you will be aware, the University and the Unions have begun the negotiations which will lead to a new Enterprise Agreement. There are a number of important matters under discussion and it is apparent that the Agreement is unlikely to be finalised until later this year or early in 2004.

At the same time, the announcement only this week of the Government's Higher Education Workplace Relations Requirements, and the timing of their consideration by Parliament, makes it very hard for the Universities and the Unions to finalise their positions.

The Bill ties $404 million in increases for the sector (2.5% in Year 1; another 2.5%, totaling 5%, in Year 2; and another 2.5% in Year 3, totaling 7.5% in that year and later years) to compliance in two areas. The first area is governance: universities have to comply with respect to National Governance Protocols. This doesn't depend on us; it's up to the NSW Government to decide what it wishes to do in this regard, since State legislation spells out the size and composition of the University Council.

The second compliance area intervenes in enterprise bargaining: it spells out 13 criteria (in effect, 17 criteria) with which universities have to comply before they can receive these long-awaited increases under the Commonwealth Grant Scheme.

As I've said in the media, this degree of intrusion by the Government into university affairs, and the extensive monitoring in which Canberra would be engaged every year to check on compliance, would increase the regulation of universities to unprecedented levels. It would be much better if the Government concerned itself with outcomes, rather than prescribing how we should or shouldn't conduct our workplace relations.

There is general concern in the sector about the new workplace relations requirements, and we need time to consider the full ramifications including the content of Enterprise Agreements.

I do not want to see staff disadvantaged by the delays and the consideration of these requirements. I have therefore approved an increase in all salaries under the Enterprise Agreement by 4% commencing from the next pay period, which is 2nd October. This increase will form part of the eventual offer for the new Agreement.

Best wishes,