Dundee University must reveal how it allowed a multimillion-pounds deficit to balloon to the point where jobs are at risk, SNP education chiefs said on Wednesday.
SNP universities minister Graeme Dey expects the university’s recovery plan to include transparency and an “explanation” about the £30 million shortfall.
And Education Secretary Jenny Gilruth, a former teacher, appeared to accept the city institution is “too big too fail”.
University staff were dismayed at the institution’s financial management when it went from a modest surplus to significant budget crisis.
Universities minister expects report
Mr Dey and Ms Gilruth were both questioned by MSPs on Holyrood’s education committee on Wednesday.
Dundee-based Scottish Labour MSP Michael Marra, who worked at the university for over a decade, asked if a report detailing what had gone wrong will be produced.
Mr Dey said that senior managers, including interim principal Shane O’Neill, should provide answers once they identified what went wrong.
“I am anticipating there will be a report because I think there needs to be an explanation provided,” he told the committee.
It comes after Mr Dey refused in a Courier interview to commit to a government bailout if the university faced closure.
Staff should be involved in recovery plan
North East Greens MSP Maggie Chapman raised the prospect of an overwhelming vote of no confidence by staff in the universities management.
Trade unions say they are excluded from the recovery process and demand to be included.
Mr Dey said he expects staff unions to be actively involved in putting the recovery plan together.
During the committee session, Education Secretary Ms Gilruth was asked if the government considers Dundee University “too big to fail”.
She said: “I agree very much with the importance of Dundee University.
“We will do all that we can to facilitate that support via the auspices of the Scottish Funding Council.”
Asked by Mr Marra if the funding council would consider providing a “bridging loan” to the university to help with its financial strife, the Mr Dey said: “The SFC would want to satisfy itself that the plan is robust and that it gets the university to a sustainable position.
“Part of sustainability is ensuring that it is a vibrant, viable concern going forward, there may be short-term pain but it is still a thriving university.”
Mr Marra said: “The Cabinet Secretary’s admission that the University of Dundee cannot be allowed to close is both welcome and a statement of the obvious.
“Now the SFC needs to match the Cabinet Secretary’s words with material action to support a recovery plan that does everything possible to minimise the damage and that commands the support of the University community.
“The Minister’s clear instruction that a full report must set out what mistakes were made is a very significant development. This will ensure that staff, students and the community receive the answers that they are demanding but which have so far been withheld by management.”
A Dundee University spokesman said: “We have already shared the key elements of the budget deficit and how it arose, including with the Scottish Funding Council, and we will share further information and analysis on the background to the situation we are in, and lessons learned for the future, as we move forward with our recovery plan.”
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