Bass Liberal MHR Andrew Nikolic told The Examiner on Monday that Commonwealth cash for the project was contingent on its controversial plan to deregulate university fees.

Mr Nikolic said increased student numbers and the need for additional facilities were inextricably linked to deregulation.

But UTAS chief operating officer David Clerk told an upper house inquiry that plans for a new, $200 million campus needed to go ahead either way.

‘‘We would be seeking federal funding for this to happen regardless of deregulation going ahead or not,’’ he said.

Mr Clerk made it clear to MLCs that shifting the campus would require Commonwealth cash.

‘‘Funding provided by state government, along with funding the university puts in, would be enough to undertake a phase one of a move from the current Newnham campus to Inveresk,’’ he said.

‘‘Federal funding is certainly required to move the whole campus – it is a massive undertaking.’’

UTAS chief financial officer Craig Barling said the Newnham campus was losing a significant amount of money.

‘‘A move to Inveresk will stimulate some growth and bring with it a level of profitability that will help sustain that precinct,’’ Mr Barling said.

Mr Clerk told MLCs that deregulation would leave the University of Tasmania in a ‘‘very difficult’’ situation.

He said some large, well-established universities interstate may stand to gain from uncapping course fees.

‘‘Your fees are inelastic – you can charge whatever you want – and you will still fill the classrooms because you have a good reputation and large catchment area,’’ he  said. ‘‘But if you’re down in Tasmania, and you operate in a low socio-economic environment where a large chunk of your students are mature age, you don’t have the luxury of having that inelastic demand as your student base is price sensitive.’’