Funding crisis casts doubt over new Derry Medical School
Ulster University Vice-Chancellor warns project is "problematic" without guaranteed Executive funding amid £25m annual deficit.
Ulster University’s Vice-Chancellor has warned that proceeding with the planned medical school building in Derry could be “problematic” due to the absence of a concrete Executive budget.
Members of Derry City and Strabane District Council received a deputation from UU Vice-Chancellor, Professor Paul Bartholomew, during a special council meeting on Wednesday, July 22.
It follows a proposal by Before Profit councillor Shaun Harkin, at May’s council meeting, that he meet with council to discuss the 450 proposed job cuts across Ulster University Magee, Belfast and Coleraine campuses.
During the deputation Professor Bartholomew said UU now receives 63 percent less money in real terms compared to 2009/2010, which he described as “simply unsustainable”.
He added that reduced international student numbers due to UK immigration policy, increased inflationary costs, and changes to national insurance and wage levels have “added further pressure into our operating model”, and as a result the university has an annual deficit of around £25 million.
“Without action, our cash reserves would be exhausted before the end of the decade," he noted.
SDLP councillor Rory Farrell said members recently received “bombshell” news that plans for the medical school were paused, and asked for assurances that it would go ahead.
“It's a flagship project within our City Deal, it's a New Decade, New Approach commitment, it's a programme for government commitment," he added.
“You signed up to that commitment at the Heads of Terms and the City Deal, £30 million from this council, from City Deal and Inclusive Future Fund, is going to fund that much needed project.
“Can you give us an assurance that we are going to see a purpose-built, state-of-the-art medical school, at the site that you acquired from us next to the council offices?”
Professor Bartholomew said the medical school was essential for the planned student expansion at Magee, but warned that the £30 City Deal funding would not be “anywhere near the money needed".
“City Deal funding is an extraordinarily long, drawn out process, which absolutely guarantees that construction inflation will rob projects of its value,” he clarified.
“I think that's an enormous problem for Northern Ireland, it's an own goal in many ways.”
He highlighted a Business Case, which gave three building options: a small building, a medium-sized building and a ‘max’ building.
The ‘max’ building was accepted but requires additional Executive funding, which has been identified in the draft budget.
“But it's a draft budget and so that money is not on the table,” he said.
“In the intervening years we've had quite a lot of ambiguity from the Department of Health, whether it's prepared to meet the future workforce requirements as was originally articulated in the original business case.
“As such some of the underpinning assumptions under the OBC (Outline Business Case) are probably under threat, and all of those things means that proceeding with that project on the basis that it's conceived is problematic”.
Over £46m has been set aside for the Magee Medical School at the proposed University Square at Queen’s Quay Roundabout, in a draft multi-year Executive budget, it was confirmed earlier this year.