University revealed to be a wealth generator

SCOTLAND's oldest university contributes more than £300 million each year to the nation's economy and supports more than 9,000 people.

The University of St Andrews, which has 7,400 students and 2,100 staff, creates more than four times as many jobs as it has staff on its payroll, according to the report produced by Midlothian-based BiGGAR Economics.

The report - Economic Impact of the University of St Andrews - found that for every 1 of public money invested in St Andrews, the university returned more than 7.50 to the Scottish economy.

University leaders said the study showed universities are net generators of wealth, rather than consumers of public funds.

They warned that if investment was withdrawn from the sector, the knock-on effect for the economy would be considerable.

The authors looked at the impacts of core university spending, student spending, commercialisation and spin-out activity, tourism, capital projects and community projects in financial year 2008-9.

The university receives approximately 40m a year in public funding from the Scottish Funding Council - but returns 305m to the Scottish economy, according to the report.

Derek Watson, the university's Quaestor and Factor, said: "At a time of increasing economic uncertainty and pressure on the public purse, we believe it is important to be able to clearly demonstrate that our universities are not just generators of vital knowledge, but wealth generators in the widest sense.

"Whatever higher education funding solution is found for Scotland, this evidence shows that the country should continue to invest in its higher education sector if it hopes for stability and the prospect of new growth in the wider economy."