Universities under increased scrutiny

The government has called for reduced spending in universities and criticised those third level institutions that are in debt.

In recent weeks, the Higher Education Authority (HEA) has imposed a recruitment ban on third level institutions and indicated that colleges which fail to comply will be likely to suffer a loss in funding.

Both UCC and UCD have amassed deficits totalling millions of euro and have been told that losses of this scale will no longer be tolerated. UCD has a cumulative deficit of €20 million, while the loss at UCC is over €15 million.

In a letter to the heads of universities on April 1, the HEA said: “There should be no filling of vacancies by recruitment, promotion or the payment of an allowance for the performance of duties at a higher level”.

Any exception to this rule relating to recruitment must be agreed with the HEA, whose policy has been directed by the Department of Education and the Department of Finance.

In response to government criticisms, UCD sources have defended their spending and claimed that €7 million of their deficit is a result of their under-funded veterinary hospital.

DCU is one of four universities to have achieved a financial position that is within budget. However, the others - Trinity College

Dublin, NUI Maynooth, and NUI Galway - have forecast deficits for the coming year.

Meanwhile the College View has learned that the Helix, a performance venue on DCU campus, has amassed debts of €7.2 million.

UAC Management, responsible for the operation of the venue, has reported operating losses of approximately €1 million for the past two accounting years.

DCU President Ferdinand Von Prondzynski, a board member of UAC Management, has defended the company, saying: “We never expected the Helix to be profitable during the early years. No performing arts centre ever is.

“Our intention always was that it would build up its business so that, eventually, it would become self-sustaining. On the whole this is what has been happening. The deficits have declined significantly year-on-year, and we are on course to break even over the next number of years.”

Von Prondzynski insists that losses incurred by UAC Management will not impinge on the financial standing of the university. “No money is being diverted from DCU to the Helix. The Helix will, over time, pay back the start-up deficits.” he said.