UCD to cut costs over concern that debts may reach €20m

UCD IS set to embark on a vigorous cost-cutting programme amid fears that its accumulated debt could reach €20 million this year…

UCD IS set to embark on a vigorous cost-cutting programme amid fears that its accumulated debt could reach €20 million this year. In a meeting with over 1,300 staff, UCD president, Dr Hugh Brady outlined the financial crisis facing the college.

He blamed this on cuts in Government funding and the recent national pay awards that cost €15 million in 2008/9.

Dr Brady stopped short of signalling jobs cuts among UCD’s 3,500 staff, but he proposed a range of possible options to cut costs including a voluntary pay freeze; a freeze on recruitment; voluntary early retirement; voluntary leave of absence or reduced hours; voluntary redundancy; redeployment, deferred promotions and the restricted use of agency staff.

Dr Brady said non pay costs will also be subject to tighter controls. There will be a reduced use of consultants and agency staff and further negotiation with suppliers of services about cost cuts. UCD management will embark on a process of consultation with staff on proposed cutbacks.

READ MORE

Dr Brady said the UCD community faced a difficult balancing act to put the university on a firm financial footing while maintaining the quality of its teaching and research programmes and contributing to Ireland’s recovery.

Dr Brady faced questions from Siptu representatives at the meeting who say the bloated management structure at UCD contributed to its problem. Dr Brady’s reform programme has seen the appointment of 15 vice presidents and a series of controversial bonus payments for senior staff. These have now been suspended.

One Siptu representative questioned the very sudden decline in UCD’s financial position and what she called the lack of transparency and accountability on financial issues. Dr Kieran Allen of Siptu questioned the bloated managerial culture in UCD.

Defending his record, Dr Brady said research income had tripled over the past five years and the university climbed 111 places (to 108) in the Times Higher world university rankings in the past two years.

UCD has an annual turnover of over €380 million. According to Dr Brady, the accumulated deficit of €15 million (4.6 per cent of turnover) will increase by up to €20 million in the current year due to further reduction in Government funding (€13 million this year already); underfunding of specific academic disciplines such as veterinary medicine and Irish folklore; underfunded overhead costs combined with a major increase in research activity and the implementation of UCD’s change programme and the national pay awards. Dr Brady also stressed the need to “do even more with less resources”.

He outlined other means to address the deficit. These included UCD maintaining its share of undergraduate students, increasing graduate student numbers, recruiting more international students and raising income from commercial activities.

On State funding, he said UCD offers a high proportion of high-cost courses like medicine, veterinary medicine, chemical engineering and architecture. These courses attract less core funding relative to their cost than less costly courses like arts and commerce.

Seán Flynn

Seán Flynn

The late Seán Flynn was education editor of The Irish Times