Education Secretary has confirmed up to £40
million funding in principle for the Scottish Funding Council
(SFC) to support the University of Dundee's recovery.
Funding will be provided to the SFC over two academic years or
three financial years. This is in addition to the £25 million
funding announced by Ministers in February for the SFC to support
universities facing financial challenges, of which the University
of Dundee received £22 million. This means total additional
funding made available for the University by the Scottish
Government via the SFC is up to £62 million.
The SFC and Scottish Government will work together to develop
appropriate conditions for the funding, which is subject to
further due diligence. Funding will only be released once a
sustainable, long-term recovery plan is put in place by the
University that leverages commercial and private investment.
The statement follows Professor Pamela Gillies' Independent
Review into the University of Dundee's finances, which
highlighted that the University had failed to operate in line
with the SFC's Financial Memorandum and Code of Good Higher
Education Governance. Ministers have held early discussions with
SFC to consider options to strengthen governance in institutions.
Confirming the funding in a statement to Parliament, Ms Gilruth
said:
“The Scottish Government is determined to do everything we can to
secure a positive and thriving future for Dundee University.
“Since issues at the University came to light in November, the
thoughts of Ministers have continued to be with staff and
students who have faced a period of real anxiety and uncertainty.
This additional £40 million funding support will help return the
university to the thriving institution it should be.
“Scotland's universities are independent and autonomous
institutions. In normal circumstances, decisions on the
allocation of funding to individual institutions are the
responsibility of the SFC. However, this is a unique and
unprecedented set of circumstances, which requires a unique and
unprecedented response.
“It is vitally important that the University works to secure a
sustainable, long-term plan which will allow for commercial
lending to support some, or all of the remaining liquidity ask.
We will consider all avenues and other support we can provide to
achieve that end.”
Background
Scottish Ministers have powers under
section 25 of the Further and Higher Education (Scotland) Act
2005 to direct the Scottish Funding Council Ministers to target a
direct settlement to the University of Dundee, and to place
specific conditions on that funding. This is the first time that
these powers have been used. Ministers will work closely with the
SFC on the provision of the funding.
£40 million in-principle funding is subject to further due
diligence prior to provision of the funding. The Scottish
Government is in the process of procuring expert auditors to
assist with due diligence, which is due to conclude in the coming
days.
Additional funding provided to the SFC for Dundee University will
not impact on the funding available from the SFC to other
institutions.
The Strategic Advisory
Taskforce established by Ministers is now undertaking a
series of workshops to engage in detail on themes including
income generation, shared services and the city, region and
community.
