Business Editor/Economy, Scotland
BBC Scotland News

A radical change in the way in which Scotland higher education students are financed by Holyrood politicians, according to the director of the University of Edinburgh.
Sir Peter Mathieson said it is a “tragedy” that the University of Duendea faces the possibility of closing if it does not make important cuts, and that it would also be a tragedy if others would find similar financial difficulties.
Sir Peter faces the wrath of the staff of the University of Edinburgh in plans to reduce £ 140 million of his expenses, equivalent to at least one expense of one month every year.
And in a broad interview with BBC Scotland, he said that Canot rules out mandatory residency in the institution of 442 years.

Sir Peter said that there will have to be a “radical re-affable” of the way the university operates, with less courses and less complexity and organizational duplication.
“There are inefficiencies about the way we deliver things. This is a gigantic university with 22 schools and a lot of duplication. We are very good to add new things, not to remove things,” he said.
“We need to seriously observe the way we do things and be an answer with the scale of operations that we can afford to provide.
“Therefore, there is a radical (necessary) rebirth of the way we do our business, but also or political imperatives.
“If it is a political priority, then it must be based properly to guarantee your future.”
He said that the number of students is likely to remain in around 50,000, while the number of academic personnel will fall from 15,000. But he refused to give a figure for the number that is expected to leave.
The warning follows a strong unplanned increase in the number and cost of personnel in the last three years, which has not matched the leg due to the growth of the students’ rates abroad.
The director says that there is no intention to close the departments, and although some courses will be closed, existing students may be sure that their current courses will be complete.
Sir Peter denied that almost £ 1 billion or financial assets controlled by the University could be used to treat the deficit.
And warned that recent budget surpluses of £ 150 million and £ 400 million cannot be sustained.
Hey, also denied that the scale of the challenge is exaggerated to boost the reform, as stated by staff unions.
Rapid growth and change
In all Scotland, rapid growth has been financed through a strong increase in the number of students abroad paid.
In the last academic year, Edinburgh obtained £ 360 million foreign students, while the Scottish government paid £ 27 million in rates for Scotland -based students.
Other £ 82 million come from rates paid by students from other parts of the United Kingdom, which amounts to almost £ 28000 for the standard four -year honors title.
Universities in Scotland say that the Scottish contribution of around £ 7500 per student per year is well below the cost of their education, and that the income from international rates of the students is demonstrating to be an unreliable way to close the gap.
In the rest of the United Kingdom, rates cost around £ 2000 more.
The University of Duende is having to throw so many employees of the 700 axis in response to a severe financial crisis, which is partly the result of a sudden fall in the number of foreign student recruits.
The one more recently was a 27%drop, and it is reported that it has fallen more abruptly into the most recent intake.
Sir Peter said that it is “a tragedy” that the interim director in Tayside says that the closure or rupture of the university is a possible result of the crisis.
“It would be a tragedy for Scotland if other universities had timbales in a similar feeling,” he said. “What we are doing here is to make sure we don’t.”
Other universities are taking measures to reduce costs, since the recruitment of students does not reach growth expectations. On Thursday, the University of Aberdeen followed the universities of Duendee, Edimburg and Robert Gordon when announcing cuts of several million pounds.

The director of the University of Edinburgh presented a challenge to the political parties of Scotland to take urgent measures on funds.
He said that the financing deficit in Scotland is worse than in England due to a narrower tight of rates per student, and because the number of recruits in Scotland is limited.
An independent evaluation of the financing of Holyrood points to a drop of at least 22% in the real value of the subsidies of Scottish ministers for higher education.
Sir Peter said the ministers will finance the registration of the students at a much higher level or reduce the number of Scottish who go to the university.
Otherwise, with the volatile revenues of fairies of foreign students, he believes that other funds should be allowed.
The suggested options of a postgraduate contribution, or allowing universities to recruit Scottish students who can and willing to pay for their rates. At present, they are forbidden to attend if they cannot obtain a place funded by the Government.
There is frustration among vice -rectors that the future of Scottish education is always framed in terms of “tariff or free”, and Sir Peter says that “not necessarily” in favor of charging for registration.
“We need more income in the system, either through some children’s or average tests or a postgraduate profit reimbursement system.
“Either we have registration fees that are suitable for paying costs, or we have another mechanism to pay for costs. If we had a hybrid system, where some people pay rates and some people do not do so, one possibility is that the means tested in
Future financing models
Responding to Sir Peter’s comments, said the Minister of Higher Education of the Scottish Government, Graeme Day:
“The sector is aware that we are open to explore the future financing model of universities, but we are clear that this government will not reintroduce the registration rates.
“Access to high education should be based on the ability to learn, not on the ability to pay.
“There are broader financial pressures facing the sector, including migration policies of the United Kingdom government and its decision to increase the contributions of the National Employers Insurance.”
Sir Peter, who was raised by his mother after his father’s early death, said he said that “he would not have gone to university if we had to pay fees.”
Hi, he also supported the free registration for low -income household students.
“Providing opportunities to less advantage people is a very important priority for me,” he added.