News

The revelation in last Tuesday’s Executive meeting that the University is directing how OUSA spends its reserves is significant, but unsurprising.

OUSA is known to have large reserves, which it could in theory use to purchase a bar with or without the University’s approval. However, given that the majority of OUSA’s income is earned through its Service Level Agreement (SLA) with the University, and the University is under no obligation to sign the SLA, OUSA has little option but to acquiesce if the University chooses to put its foot down.

Until recently it was not known whether and to what extent the University had been using its powerful bargaining position to direct OUSA’s non-SLA spending. However, at the last Executive meeting on Tuesday 3 September it was revealed that the University had threatened to withdraw from SLA negotiations should OUSA purchase a bar.

The revelation highlights the vulnerable position in which OUSA has been placed following the passage of Voluntary Student Membership (VSM) in 2011. OUSA can no longer require students to join, but retaining as many members as possible is crucial for its continued legitimacy as a voice for Otago students. This means the association has little option but to charge zero membership fees and to instead earn most of its income through contracts with the University. This gives rise to the SLA, whereby all of OUSA’s major services are funded through a single, giant agreement.

As Critic went to print on Thursday, University figures were unavailable for comment on the recent revelations, whether they believed that OUSA had become too financially dependent on the University, and whether the University supported the repealing of the VSM legislation.

The University’s position on OUSA ownership of a bar is a slap in the face to the association given previous statements by the University. In February, when reports of the Cook’s closure first began to arise, Vice-Chancellor Prof Harlene Hayne told Critic that “the University appreciates the importance of the Cook to our student community. We would be delighted to see it continue as a pub under responsible host management.”

Apparently, in the University’s eyes, OUSA does not qualify as “responsible host management,” despite the association’s strong recent record on safety at events such as Hyde Street and O-Week. The University of Canterbury Students’ Association (UCSA) owns a bar, the Foundry. This precedent was pointed out to the University at the time, but made no impression.