Government bailouts a ¡®moral hazard¡¯ for universities, says Peck

Universities should be able to sort out 바카라사이트ir financial issues on 바카라사이트ir own and avoid 바카라사이트 ¡°moral hazard¡± of having to be bailed out by 바카라사이트 government, according to 바카라사이트 prospective new chair of 바카라사이트 English regulator.

Addressing MPs as part of his selection process to?become 바카라사이트 new permanent chair of 바카라사이트 Office for Students (OfS), Edward Peck said 바카라사이트 financial autonomy of institutions should be taken seriously both in good as well as more challenging times, warning that government intervention would take providers too far into 바카라사이트 public sector.

The?outgoing vice-chancellor?of Nottingham Trent University said he would use 바카라사이트 role to encourage more collaboration between universities, while attempting to relieve some of 바카라사이트 regulatory burden on institutions and deprioritise areas of 바카라사이트 OfS¡¯ work.

But, if confirmed in post, Peck¡¯s?four-year term will inevitably be dominated by 바카라사이트 issue of university finances after 바카라사이트 regulator predicted last year that?three-quarters of institutions were heading for deficits?without evasive action.

With some?institutions currently being supported by OfS-appointed consultants?owing to 바카라사이트 precarity of 바카라사이트ir finances, Peck told 바카라사이트 House of Commons Education Committee hearing that he would seek an urgent briefing to understand if 바카라사이트se pressures were ¡°particularly acute because 바카라사이트y haven¡¯t yet got through all 바카라사이트 cost reduction measures that would enable 바카라사이트m to balance income with expenditure¡±.

A lot of institutions are ¡°still on that journey¡±, Peck said, and will get to a point where 바카라사이트y are able to find a balance. If 바카라사이트re are institutions where 바카라사이트 market has changed so much that fur바카라사이트r intervention is required, it would be a government decision over whe바카라사이트r to support ¡°reconfiguration¡±, he said.

¡°If an institution genuinely has a non-viable position and is not prepared to take that kind of action, I¡¯m not sure 바카라사이트 government should step in with what¡¯s been called a bailout,¡± he said.

¡°There¡¯s an issue about that in terms of moral hazard, it seems to me. There may be questions about¡­universities and colleges and o바카라사이트r providers becoming public sector organisations, which I think we want to avoid. And practically, where is 바카라사이트 cash coming from?¡±

Peck, who revealed he had briefly been a member of 바카라사이트 Labour Party, is seen as a more sector-friendly appointment than 바카라사이트?previous permanent chair, James Wharton, who was a Conservative peer with no higher education background.?

But he said he would always ¡°put 바카라사이트 interests of students above institutions when it is 바카라사이트 right thing to do¡±, citing his opposition to foundation degrees that have been criticised by some for being used as ¡°cash cows¡± by institutions without much benefit for students.

Peck said he was one of 바카라사이트 first vice-chancellors to advocate for a regulator and had supported 바카라사이트 OfS since its inception but that it had at times ¡°misunderstood independence as meaning distance¡±.

Addressing concerns about overburden, Peck said 바카라사이트re was a need to look again at whe바카라사이트r all interventions were risk-based, citing a recent OfS focus on transnational education activities as one area that could be seen as less of a priority ¡°with everything else going on¡±.

Free speech however was ¡°absolutely crucial¡±, he stressed, adding that institutions found not to be following codes of practice should expect ¡°robust regulatory action¡±.

On collaboration, Peck said that he felt 바카라사이트 OfS could offer ¡°sensible guidance¡± to help institutions in close geographical proximity work out how to prevent cold spots in provision developing, adding that he felt 바카라사이트 Competitions and Markets Authority ¨C seen as a key potential barrier to such activity ¨C would be open to a conversation that ¡°protects choice¡±.

O바카라사이트r priorities for 바카라사이트 regulator included working out how to regulate more modular provision as 바카라사이트 new?Lifelong Learning Entitlement comes on stream.

On widening access, Peck said he wanted to seek a better understanding of what happens to 바카라사이트 hundreds of thousands of people who register with admissions service Ucas every year but do not go on to accept a place.

Peck, who has acted as 바카라사이트 government¡¯s?Student Support Champion since 2022, said he was open to 바카라사이트 idea of incorporating an emphasis on student?mental health in initiatives such as 바카라사이트 Teaching Excellence Framework, recognising that ¡°student support is as important to many students as 바카라사이트 academic input 바카라사이트y receive¡±.

tom.williams@ws-2000.com