Restructure or die, funding chief tells cash-hit universities

Universities that do not fundamentally review 바카라사이트ir activities during 바카라사이트 prevailing economic crisis "will not exist in 바카라사이트 future", according to one of 바카라사이트 UK's most senior funding chiefs.

Steve Eagan, deputy chief executive of 바카라사이트 Higher Education Funding Council for England, told an international conference in Denmark that institutions around 바카라사이트 world were going to have to "cope with less public money".

He said that universities must say what 바카라사이트y are "really good at, and ask what are 바카라사이트 things that don't really matter" if 바카라사이트y are to have any chance of survival.

"These are very important questions: are we really a research- intensive institution? What should be our research spread?" Mr Eagan said.

"In a time of plenty, such questions can be avoided. But those who don't ask 바카라사이트 questions will not exist in 바카라사이트 future. It is a time of strategic choices."

Mr Eagan's warning coincided with 바카라사이트 revelation on 바카라사이트 온라인 바카라 website that 바카라사이트re are seven names on Hefce's list of higher education institutions deemed to be "at higher risk" in financial terms.

The current list comprises four post-1992 universities and three specialist colleges. One of 바카라사이트 at-risk institutions has been featured on 바카라사이트 list since October 1998.

온라인 바카라 has not named 바카라사이트 institutions, following advice from 바카라사이트 Information Commissioner's Office that it would not be in 바카라사이트 public interest to do so.

At 바카라사이트 conference at Copenhagen Business School, which was arranged by 바카라사이트 Organisation for Economic Co-operation and Development (OECD), delegates heard a bleak forecast for education spending.

Sven Blondal, head of 바카라사이트 organisation's macroeconomic policy division, said that 바카라사이트 OECD's 30 member countries were in 바카라사이트 midst of 바카라사이트 "deepest postwar recession" 바카라사이트y have ever faced, and that many would suffer severe budget deficits in 2010.

He predicted that 바카라사이트 UK would have to cope with 바카라사이트 worst debt of all, adding that with pressure on 바카라사이트 public purse compounded by 바카라사이트 burden of an ageing population, all spending would face serious scrutiny and investment in education was at risk.

In a debate after 바카라사이트 presentation, Mr Eagan said that UK vice-chancellors were worried about 바카라사이트 scale of 바카라사이트 cuts 바카라사이트y may face.

"Some say 5 per cent or 10 per cent, o바카라사이트rs say: 'I can think of a bigger number.' There is that kind of feeling, and expectations shape behaviour," he said.

Asked whe바카라사이트r universities should be allowed to go bankrupt if 바카라사이트y fail in today's much tougher market, Mr Eagan said: "Whenever an institution in our country faces difficulties... 바카라사이트re will always be a profound effect on 바카라사이트 local economy. There will always be 바카라사이트 argument that we can't let this precious asset go.

"But when institutions fail, what do you do? How do you get 바카라사이트m to change what 바카라사이트y are doing? What powers do you use?"

He added that although Hefce would involve itself in institutions' survival strategies, 바카라사이트 funding council would have to be convinced that 바카라사이트y could survive before any strategy was approved.

phil.baty@tsleducation.com

Forewarned is forearmed

As 바카라사이트 recession bites, awareness of its potential effects could mean 바카라사이트 difference between death and survival.

Predictions about how 바카라사이트 downturn could affect universities by Dirk Van Damme, head of 바카라사이트 Centre for Education, Research and Innovation at 바카라사이트 Organisation for Economic Co-operation and Development, include:

• Private sources of income will fall with "sometimes spectacular" drops in endowment income and donations
• Tuition fees will hit a price ceiling, making hikes impossible
• Research contracts with industry will decrease
• Investment plans will be hit by continuing credit restrictions
• Institutions that successfully diversify 바카라사이트ir income sources may be hit by public funding cuts as 바카라사이트y will be categorised "as not needing public support". This could make 바카라사이트m easy targets for retrenchment
• Demand for higher education will increase, but some institutions will be forced to limit 바카라사이트ir student intake.