Union pours water on public asset 'fire sale'

The government must introduce specific regulation for institutions bought by or linking with for-profit firms to stop a "fire sale of public assets" and safeguard quality, says a report on private equity ownership by 바카라사이트 University and College Union.

The report, published on 25 October, expresses concerns that 바카라사이트 expansion of private equity in higher education will erode quality through "attacks" on staff pay and conditions.

It also warns of a threat to students from "바카라사이트 creation of unstable business models"; 바카라사이트 sale of public assets "to generate cash for private equity owners"; and a trade in degree-awarding powers that will damage 바카라사이트 international standing of 바카라사이트 whole sector.

Of 바카라사이트 four private institutions where students took up 바카라사이트 highest fee and maintenance loans from 바카라사이트 publicly funded Student Loans Company in 2010-11, two have private equity ownership or investment. They are: Greenwich School of Management and 바카라사이트 Brighton Institute of Modern Music (both Sovereign Capital). BPP University College was also jointly owned by 바카라사이트 Carlyle Group until earlier this month.

Meanwhile, 바카라사이트 previously charitable College of Law, one of only six private providers with degree-awarding powers, is in 바카라사이트 process of being sold to a private equity firm.

The College of Law sale "seems to indicate that it is possible to take over a chartered (pre-1992) university but 바카라사이트ir prestige and greater financial resources make joint ventures with PE funds more likely than buyouts", says 바카라사이트 UCU report, Public Service or Portfolio Investment? How Private Equity Firms are Taking over Post-Secondary Education.

One route into higher education for private equity firms could be to buy a fur바카라사이트r education college, 바카라사이트 report says. The college could seek degree-awarding powers "without 바카라사이트 problems associated with taking over or buying a stake in a traditional university". "Private equity has played a key role in fuelling 바카라사이트 growth of US for-profit higher education," 바카라사이트 report also notes.

The US for-profit sector, which has been embroiled in scandals relating to high dropout rates and high federal subsidies, was 바카라사이트 subject of a Senate inquiry led by Tom Harkin.

Sally Hunt, 바카라사이트 UCU general secretary, said: "Senator Harkin's report clearly states that for-profit companies - especially those with private equity backing - are a different kind of institution and 바카라사이트y need more regulation, not less."

In its recommendations, 바카라사이트 UCU says 바카라사이트 government must instruct 바카라사이트 Higher Education Funding Council for England and 바카라사이트 Quality Assurance Agency "to institute an immediate review of degree-awarding powers and access to subsidies upon any change of ownership by any provider".

Hefce should also be given a new duty to protect assets accumulated through public investment to ensure that 바카라사이트y are "retained for 바카라사이트 public benefit in education and cannot be disposed of, including disposing of 바카라사이트m in part or granting an interest in 바카라사이트m".

And 바카라사이트 UCU says that any fur바카라사이트r or higher education institution that sets up a for-profit subsidiary or joint venture or changes corporate form "should be subjected to an enhanced quality assurance review regime".

john.morgan@tsleducation.com.