Atticus on Irish Universities
Limerick University has a lot to learn about leases
Unlike the hotel group Tetrarch, which was paid €25m to rent Citywest to the HSE, Limerick University isn’t getting a cent for giving over its sports arena for use as a field hospital.
Health authorities have paid €1m to kit it out, and the arena could not have been used as a sports facility in the next academic term anyway. The initial deal runs until September, but the university says there is an extension facility to let the HSE have it until November, “but again no rent will be charged”.
One wonders why the university didn’t ask for a few bob, given its parlous financial position, as reflected in a set of accounts presented recently to its management council. These suggest it could run out of cash by the end of 2020. Student fees are down €2.5m in this academic year, and set to be down €17.4m in the next one, with the expected disappearance of international pupils.
There will also be an extra €7.7m in costs to deal with Covid, such as cleaning, and technology for online classes.
Cutbacks on payroll, including not filling vacancies and not renewing contracts that expire, are projected to save only about €3m. Maybe it’s time the university called on the expertise of its chancellor, Mary Harney?
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