John Swinney is under pressure from his own party to intervene in the financial crisis at Dundee University amid fears there could be up to 500 job losses.
Dundee MSP Joe FitzPatrick has written to the first minister asking him to consider what support can be made available.
Last week the university engaged accountancy firm PwC to assist with the development of its plan to recover from a £30 million budget shortfall.
University sources told The Courier they believe the “best case” scenario is around 200 job losses, though some fear it could be as high as 500.
One insider said previously the deficit could only be reduced through a “significant” reduction in the 3,000-strong workforce.
They point to Cardiff University which has announced as many as 400 redundancies as it battles a £31m deficit.
We revealed last month that Dundee University was in talks with its bank to secure a loan to allow it to run a voluntary redundancy scheme.
Mr Swinney is being briefed on key developments at the institution, reflecting the Scottish Government’s level of concern about the situation.
‘All options’ must be on table
In his letter to the first minister, following an update from interim principal Shane O’Neill, Mr FitzPatrick said he remained deeply concerned about the challenge facing Dundee University and the potential for significant cuts.
The SNP MSP described the challenges as “unprecedented” and insisted “all options” must be on the table during the university’s bid to recover.
He added: “Significant staff cuts, be they voluntary or compulsory, would have a hugely detrimental impact, not only on the University but on the city as a whole.
“Every effort must be made to minimise these.
“I would therefore be very grateful for your consideration of what support the Scottish Government may be able to provide to the university at this time as it works to identify a path to sustainable finances.”
Meanwhile, the Scottish Funding Council’s new chief executive has pledged to carefully consider requests for financial aid for Dundee University.
Speaking to The Scotsman, Francesca Osowska claimed no other Scottish universities were believed to be under as much financial pressure as Dundee.
First minister ‘closely engaged’ on Dundee University crisis
A Scottish Government spokesman said the first minister understood the significance of the concerns raised by Mr FitzPatrick.
He added: “The first minister and education ministers are closely engaged on the issues at the University of Dundee.
“Whilst universities such as Dundee are autonomous institutions with responsibility for their own strategic and operational decision making, the Scottish Government and Scottish Funding Council will continue to offer support to individual universities as they develop their own plans to mitigate their financial challenges.”
University ‘committed’ to explaining what prompted crisis
A Dundee University spokesman said that while job losses are inevitable, they could not provide a definitive number until their recovery plan is approved.
He added: “While there are challenges facing the entire higher education sector, there are also factors that are unique to each institution.
“Job losses at any particular university are not a reliable predictor of numbers at other institutions.
“As well as working to secure the long-term future of the University, we have also committed to explaining fully the various factors that led to these circumstances and to ensuring we never find ourselves in this situation again.”
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