Universities divided over English-style funding plan

Published on Sunday 15 March 2009 22:43

SCOTLAND'S universities are divided over plans to introduce a funding scheme which would match private donations with public money – amid fears it would widen the gap between richer and poorer institutions.

"Match funding" already operates in England and Wales, with some universities reporting a big rise in resources as a result. It is widely supported by long-established universities who believe they could raise substantial sums from businesses and former alumni.

But principals of newer universities fear older institutions would swallow larger amounts of cash as they have a bigger, wealthier alumni more able to contribute. They say this would be to the detriment of the newer institutions and lead to a wider gap and "two-tier" system.

Education secretary Fiona Hyslop has said she fears it would be an unfair system, but this has led to criticism that Scotland's top universities could fall behind their English counterparts if they do not have access to the same funding systems.

Glasgow Caledonian principal, Dr Pamela Gillies, said older universities had far greater access to philanthropic cash – and that fundraisers had serious doubts about the system.

She added: "Many directors of development in Scotland would share her (Hyslop's] view that matched funding may not necessarily give us the great boost to philanthropic funding that some universities in England have enjoyed from it.

"Obviously, the older universities, with the wave of history behind them, are going to have more graduates and more wealthy graduates."

She said modern universities like Glasgow Caledonian were already developing their alumni base of financial support, but added: "We are not going to turn down money if it's offered."

Her view was backed by the principal of Queen Margaret University, one of the latest institutions to gain official university status. Prof Anthony Cohen said Scotland already had a funding system which favoured older, research-intensive universities and matched funding for philanthropic donations would exacerbate the problem.

He said: "New universities have never had the financial capacity to invest, as they need to, in their research. The consequence is that they are at a significant disadvantage."

Last week, Dr Louise Richardson, the new principal of St Andrews, said: "I would certainly hope Scotland would match England in providing a match. It's certainly in the Scottish Government's interests as much as it is the university's interest for us to raise money privately.

"I know from speaking to universities in England, they have said – Bristol for example – this matching has been transformational for their fundraising efforts. The fact that some people might have access to raising more money than others is not a reason not to raise money."

The Scotsman understands Scottish principals are in discussions but remain divided.

A Scottish Government spokeswoman said the Scottish Funding Council, which distributes government cash to universities, was looking at the idea of matched funding. She added: "However, any such scheme must be capable of incentivising investment activity in all higher education institutions – not just the older universities."

Ms Hyslop told the parliament education committee last week: "The only factor that detracts from the idea is that it would benefit the more established universities, which have a greater call and reach, more than our newer universities.

"That doesn't mean that I am dismissing it out of hand, but there might be more effective ways of government investing in universities."