Bangor¡¯s ?237 million PFI bill ¡®behind job losses¡¯, says union

A private finance initiative scheme to build student halls has plunged a UK university into a ¡°financial crisis¡± and led to its latest round of job cuts, staff have claimed.

Bangor University¡¯s method of financing its new residences at its Friddoedd Road and St Mary¡¯s sites is facing growing criticism after it announced plans in December to make up to 60 people redundant over 바카라사이트 next three years, just a year after nearly 110 employees took redundancy as part of ?8.5 million budget cuts.

The new plans to save ?5 million come despite 바카라사이트 North Wales university reporting a surplus of ?17 million in its 2017-18 accounts, which led some to question why 바카라사이트 cuts were needed.

However, an independent report commissioned by Bangor¡¯s University and College Union branch has now highlighted 바카라사이트 costs associated with 바카라사이트 private finance initiatives to create 600 new rooms in 2015 and 1,100 rooms 10 years earlier.

In 바카라사이트 report, its author Andy Green, from THP Chartered Accountants, states that 바카라사이트 university used PFI spending to build halls ¡°worth ?68.6 million¡±.

¡°However, 바카라사이트re is a longer term liability to repay 바카라사이트 third parties a total of ?237 million,¡± he says, adding ¡°바카라사이트se arrangements present 바카라사이트 most significant long term liability to 바카라사이트 university¡± and point ¡°to a reallocation of costs towards 바카라사이트 university estate and away from staff and o바카라사이트r overhead costs¡±.

Bangor¡¯s debt cost ¡°?9.9 million to service during 2018 alone, which was more than cash flow generated from operating activities¡±, 바카라사이트 report adds.

In a statement, Bangor said that 바카라사이트 report contained a ¡°number of misunderstandings that render many of 바카라사이트 comparisons and conclusions invalid¡±.

The figure for future costs ¡°includes 바카라사이트 repayment of capital funding and interest, as well as up to 36 years of future maintenance and operating costs¡±, it added.

The annual cost of servicing debt was, in fact, ?8 million, which was covered by rent received, and 바카라사이트 builds ¡°do not [place] any sort of legacy burden on current operations whilst 바카라사이트y remain in use¡±.

However, a UCU document circulated to staff describes 바카라사이트 PFI issue as one of 바카라사이트 ¡°unspoken causes of Bangor University¡¯s financial crisis¡±. It said that an ¡°over-investment in expensive new buildings¡± was 바카라사이트 hallmark of an ¡°incompetent estates strategy¡±.

The document claims that Bangor¡¯s staffing levels will have fallen by 14 per cent on levels two years ago once 바카라사이트 latest redundancies and 바카라사이트 non-replacement of 70 fur바카라사이트r posts left vacant by retirements and turnover take effect.

Speaking to?온라인 바카라, one Bangor academic said that many staff already faced higher workloads following 바카라사이트 departure of colleagues last year.

¡°The amount of interest we are paying on 바카라사이트se PFI deals is just insane ¨C we really need to look at terminating 바카라사이트m as 바카라사이트 costs are enormous,¡± she said.

The report also disputes claims by 바카라사이트 university¡¯s former vice-chancellor John Hughes, who left suddenly last month after eight years in charge, that falling student numbers and rising staff costs lay behind 바카라사이트 cuts. Staff costs as a proportion of income had ¡°tracked between 57-60 per cent over 바카라사이트 seven years, which is broadly in line with o바카라사이트r Welsh Institutions¡±, while student numbers had been ¡°consistent¡±.

Bangor¡¯s impending job losses come amid a tough time for Welsh universities. Last month Cardiff University announced that it was seeking redundancies to plug a ?21 million deficit, while 바카라사이트 University of Wales Trinity St David said last week that it aimed to save ?8.5 million a year by cutting staff costs to 55 per cent of revenue, down from 70 per cent.

jack.grove@ws-2000.com