University talks to Government about costs beyond insurance

Monday 16th May 2011

The University of Canterbury is in talks with the Government about meeting the difference between insurance and costs it faces after the earthquakes in Christchurch.

The university is keeping bondholders informed by making statements to NZX where its bonds are listed.

It said that as at May 8 it had 15,566 students, which is about 90% of the number at the same time last year.

The university said it had sufficient resources to manage its immediate obligations, and as at March 31 it had $67 million of working capital.

"We are well insured and will rely on our insurers to make good damage to our infrastructure, lost revenue and increased costs to the extent of our policy," the university said.

It did not provide detail about the talks with the Government about "the resources required to meet the difference between what our insurers will pay towards reduced revenue, increased costs and the costs of remediation and meeting new code requirements in Christchurch".

Insurance payments would be counted as revenue, while costs of remediation were met from the capital budget. There would be differences in the timing of cash receipts and payments and in the impact of insurance proceeds and expenditure on the university's financial statements over a number of years.

Teaching programmes had been delayed, and research had been impacted but the remediation of laboratories and libraries was well advanced.

"Staff have proved themselves to be resilient and flexible. They have re-designed teaching programmes, worked from home, provided advice to students from a caravan and taught in tents during the first term. Tents are now part of our history," the university said.

NZPA

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