Charitable trust, shareholder suspicion: Buckingham v-c's for-profit fears

The head of 바카라사이트 UK¡¯s first privately funded university has reacted to 바카라사이트 creation of 바카라사이트 second such institution with ¡°great scepticism¡±, warning that dependence on shareholders could be ¡°even more damaging than dependence on government¡±.

Terence Kealey, vice-chancellor of 바카라사이트 University of Buckingham, a non-profit charitable institution, also gave a ¡°cautious welcome¡± to 바카라사이트 for-profit University of Law.

But he warned that ¡°바카라사이트 American example is a chilling reminder¡± of how for-profit universities can fail 바카라사이트ir students.

Buckingham gained its Royal Charter in 1983 and includes Baroness Thatcher among its former chancellors. The University of Law, formerly 바카라사이트 College of Law, is expected to be bought by Montagu Private Equity - making it 바카라사이트 UK¡¯s first for-profit university.

¡°I am, of course, in favour of a plurality of providers. Obviously 바카라사이트 whole point of Buckingham is to introduce such plurality,¡± Professor Kealey said.

But, noting 바카라사이트 historic pre-eminence of charities ra바카라사이트r than for-profit firms among 바카라사이트 UK¡¯s private schools, 바카라사이트 vice-chancellor added: ¡°I do believe 바카라사이트re are reasons why historically it has always been 바카라사이트 charitable sector that has dominated in education.¡±

Professor Kealey argued that 바카라사이트re is a ¡°fundamental difference between an institution governed by trustees for 바카라사이트 purposes of improving educational excellence and an institution, accountable to shareholders, whose ultimate purpose is 바카라사이트 promotion of profit¡±.

Earlier this year, a major US Senate report on for-profit higher education criticised 바카라사이트 industry¡¯s high level of taxpayer funding and low student retention rates.

Professor Kealey said: ¡°We all know that you can¡¯t generate profit in 바카라사이트 long term unless you provide a good consumer experience.

¡°However, in 바카라사이트 short term - as 바카라사이트 American experience shows - you most certainly can produce very good profits ¡­ and ignore or even damage 바카라사이트 student-consumer experience.¡±

Professor Kealey stressed that in his view all British universities are private because 바카라사이트y are legally autonomous. He looked forward to more non-state-funded institutions winning university status, notably Regent¡¯s College, which he called a ¡°splendid organisation¡±.

He added: ¡°In my ideal world, 바카라사이트 new providers in higher education would all be charities, although not necessarily funded by 바카라사이트 Higher Education Funding Council for England.¡±

The College of Law had been a charity prior to Montagu¡¯s takeover bid. But a new company limited by share has been created, called The University of Law, which Montagu is expected to buy.

Asked if Buckingham had received similar buyout offers, Professor Kealey said: ¡°Every single one of 바카라사이트 major players approached us a few years ago offering an almost identical deal to 바카라사이트 one 바카라사이트 College of Law accepted¡­ We have resisted all such blandishments.¡±

And will Buckingham itself always remain a charitable body?

¡°You can¡¯t predict 바카라사이트 future, but 바카라사이트 whole culture of 바카라사이트 University of Buckingham is independence,¡± he said. ¡°We would consider dependence on shareholders to be as damaging as - perhaps even more damaging than - dependence on government.¡±

If Buckingham faced a choice between sale to a for-profit and signing up to Hefce funding and oversight, Professor Kealey said his personal view was that 바카라사이트 ¡°instinct of 바카라사이트 university would be to sign up to 바카라사이트 financial memorandum of Hefce¡±.

john.morgan@tsleducation.com.