The Scottish Government is being asked to provide a £75 million “industrial style bailout” to Dundee University to save jobs.
North East MSP Michael Marra says a huge increase in support is needed for the institution after it was confirmed 632 jobs are at risk.
Speaking in Holyrood, he asked the government to increase its current offer of a £15 million loan to £45 million – repayable over 15 to 20 years.
In addition he says they should also underwrite a £30m credit facility to help the university obtain bank financing.
Proposal would ‘stop bleeding’ that threatens Dundee University
If accepted, the proposal would increase the total potential support available from government to £75m.
“This would allow the university to open a voluntary severance scheme far sooner and at long last stop the bleeding that threatens the existence of my city’s most important institution,” Mr Marra said.
In response, higher education minister Graeme Dey said: “We are willing to explore and engage with the University of Dundee on all matters.
“If they have a reasonable ask we will explore that.”
Other questions put to government included potential support for an innovation hub focussed on new technologies such as Artificial Intelligence.
Mr Dey told North East Conservative MSP Maurice Golden he was willing the explore the option.
SNP MSP Joe FitzPatrick told government that the current proposal to slash over 600 jobs were “not acceptable”.
The minister said believes that job losses are “unavoidable”, but said it was essential the “everything is done to manage down the number being talked about”.
Can the SNP government intervene to save Dundee University jobs?
Scottish universities are not just private bodies like any other business. As well as being registered charities, their classification as a university relies on independence from government.
Funding is channelled through the Scottish Funding Council (SFC), which makes its own decisions.
Higher education minister Graeme Dey said previously: “We have to be very careful about the role of ministers in that regard.
“There has to be a separation between ministers, the SFC and institutions, not least because of the institutions’ Office for National Statistics classification.
“Ministers will not be directly involved in directing the SFC as to how to allocate moneys and on what basis.”
While £15 million in emergency cash has been made available, it will be the SFC that determine where that money goes.
Education Secretary Jenny Gilruth told parliament she has commissioned advice on what more the government can do.
But some politicians think more should be done.
Conversation