23 May 2001

See also Special Report and Full Report-Financial Sustainability Group

A package of measures designed to reshape the University of Dundee and invest in its future was agreed in principle this week by the University's governing body, the University Court. The move includes the creation of a strategic investment fund to finance new initiatives and capital investment of at least £20m over the next 3 years. The steps being taken will place the university on a firmer financial footing, positioning it to build on its strengths and respond to the changing demands and aspirations of staff and students.

Principal and Vice Chancellor Sir Alan Langlands outlined the strategy: "The higher education sector as a whole has suffered from year on year financial pressures although, with growth running at 6%, there is some relief this year. Dundee has remained in the black through prudent management but we have been living from hand to mouth for too long. In order to plan for the long term we must create some financial 'headroom' to allow us to invest in new areas of development like information sciences, digital imaging and environmental sciences.

"To direct our investment to areas of greatest opportunity we must look again at some of our activities which no longer suit the current education climate. Some hard decisions have to be made. Some activities will have to be restructured - with resulting staff reductions - but the University will maintain its current policy of no compulsory redundancies.

"Staff costs have risen steadily over recent years to an extent that the university's room for manoeuvre and capital investment programme has been restricted," said the Principal. "There is wide consensus that we must take action now to achieve the flexibility a successful university requires within the highly competitive education marketplace. We are aiming to develop a strategic investment fund of around £500,000 - £800,000 and a revenue surplus of about £1.2m to support capital investment."

The agreement follows a prolonged consultation process and was endorsed in principle by the University Court on Tuesday.

The change programme to be implemented as a rolling programme over the coming months, will take as its starting point over 90 recommendations made by the university's financial sustainability group who have carried out a faculty by faculty analysis of current activity. Their recommendations include the development of more post graduate courses, increasing the number of overseas students and the development of commercially related income streams as well as staff reductions.

The hard edge of the change process will be seen first in a period of selective constraint on new and replacement staff appointments. A small number of selected posts is also likely to be shed through natural wastage, early retirement, transfer and other voluntary severance measures.

"The University has a strong commitment to its staff. Where changes have to be made, we will aim to find solutions which match the circumstances and aspirations of individuals," said the Principal. "But this is not a 'cuts' exercise. Every penny that is saved will be reinvested in the University to ensure that we maintain our competitive position in research and teaching."

That competitive edge extends to the range of good quality student facilities on offer. Among the capital projects already approved and due to get under way this summer is a £2.9 million refurbishment of student residence Belmont Hall, adding en suite facilities to 84 bedrooms, introducing some self catering and upgrading disability and fire and safety compliance. Other projects already in the pipeline include the building of geography laboratories and the creation of 180 new IT workstations for students. Future priorities include new facilities to enhance the capability of the university's internationally renowned medical and life sciences work; the Queen Mother Centenary Research Centre harnessing information technology for the benefit of older people; new research facilities in engineering and pump priming projects to enhance important new developments in healthcare informatics, population geography and neuroscience. These capital developments will draw on the University's own resources and a sum of £8.2m allocated from the national Science Research Infrastructure Fund.

The Court also endorsed a visionary new long term strategy for the development of the city campus. Developed in association with Dundee City Council and Scottish Enterprise Tayside, it links the university and the city and will create an attractive and effective working and living environment for the 21st century.