§ Mr. Aspinwallasked the Secretary of State for Education and Science whether he has any proposals to help universities to make better use of their land and buildings in the light of the adjustments that may be needed as a result of the Government's expenditure plans for higher education.
§ Sir Keith JosephFor some years, where a university has wished to sell property acquired with assistance from public funds, and to replace it by a new building or to carry out adaptation work intended to allow existing buildings to be used for the same purposes, it has been possible, with Treasury agreement, for the whole of the cost, up to the amount of the net proceeds surrendered to the Consolidated Fund, to be met by a special grant for the purpose.
Over the next few years most universities will be experiencing some reduction in student numbers or some change in the distribution of students between subjects. Some greater flexibility in the rules about the surrender of the proceeds of the sale of land or buildings acquired with assistance from public funds may help in this process. Following discussions with the University Grants Committee it has therefore been agreed that, in addition to the existing arrangements described above, the following arrangements shall apply for an experimental period with a view to encouraging universities to make the most economic and efficient use of accommodation and to identify property that is not being fully or effectively used and might be surrendered.
- (a) Where a university disposes of sites or properties where the proceeds of sale are not more than £100, 000 the university will be allowed to retain the proceeds of sale provided these are used within two years of the sale for the purpose of building or adaptation work. The UGC will have to be notified of the disposal and of the purpose for which the proceeds are to be used. Any proceeds that are not used for this purpose will be surrendered to the Consolidated Fund.
- (b) Where a university disposes of sites or properties where the proceeds of sale are more than £100, 000 the university
- (i) will be allowed to use up to £100, 000 as in (a) above provided the balance is surrendered, or
- (ii) subject to the agreement of the UGC, may be allowed to use up to half the proceeds—where this is greater than £100, 000—on building or adaptation work or the acquisition of property, provided this is carried out within three years of the proceeds of the sale. Not more than half the proceeds of sale may be used in this way and the university will be required to surrender all of the proceeds of sale that are not used for purposes approved by the UGC.
The operation of these arrangements will be monitored and will be reviewed after about three years.