Dundee University handed access to £15m emergency loan

Dundee University is getting up to £15 million in a Scottish Government bridging loan to help keep the troubled institution afloat.

The emergency package was unveiled by Finance Secretary Shona Robison, the MSP for Dundee City East, in the SNP administration’s spending plans at Holyrood today.

Dundee University is struggling to deal with a £30 million blackhole in the finances which emerged last November.

Some fear as many as 500 jobs are on the line as bosses try to balance the books.

Staff began a strike on Monday, condemning management for their handling of the crisis.

Jo Grady, general secretary of the Universities and Colleges Union, said the money is a step in the right direction.

‘Take compulsory redundancies off table’

“For Dundee University, this gives a financial injection that should allow the employer to take compulsory redundancies off the table,” she said.

“Doing that would allow UCU to stop the current strike at the university and the ball is now in managers’ hands.”

It is understood the new £15 million package will help the university bridge the gap while an action plan is put in place for a longer-term solution.

The money has to first go through formal channels at the Scottish Funding Council, but the bulk is likely to go straight to Dundee.

The Courier revealed in January that the university was trying to negotiate a bank loan to fund a redundancy scheme.

A Dundee University spokesman said: “We welcome the announcement of extra funding for the sector.

“We understand that it will be for the Scottish Funding Council to make decisions about how the additional funding is allocated, and we are continuing to engage closely with them on the development of our financial recovery plan and moving to a more sustainable future.”

Rescue package still needed

Professor Shane O’Neill, the Interim Principal, was updating the university court on Tuesday but is not yet presenting the full recovery plan.

Former principal, Iain Gillespie, abruptly quit last year after anger grew at the threat to staff.

Dundee-based Labour MSP Michael Marra welcomed the new funding but said there is still no full rescue package.

“What we have here is an illustrative case of the SNP fixing one symptom of a much greater problem that it has helped to cause,” he said.

Tory education spokesman Miles Briggs said: “Our world-leading educational institutions deserve better than last-minute stopgaps, and there must be action to ensure their security and stability.”

The SNP criticised Labour for continuing to refuse to back the budget package despite the help for Dundee University.

Dundee City West MSP Joe FitzPatrick, whose constituency covers the university, said: “Having asked the first minister to intervene, I’m pleased that Shona Robison was able to announce this vital funding.”