Experts warn university faces ruin unless management overhauled Published on Wednesday 25 April 2012 02:02 A DAMNING report has warned that the future of the University of the Highlands and Islands (UHI) is in jeopardy unless "radical changes" were made in the way it is run. Consultants commissioned by the institution claimed colleges forming UHI have a "distrust" in the hierarchy and fear a formation of a University of Inverness. Capita Consulting claimed maintaining the status quo would be an "unsustainable proposition" and warned that UHI would soon fall into debt, leading to jobs being scrapped. The consultants described the university's governance model as "unduly inefficient and ineffective," saying its management structure needed to be leaner and more transparent. The report stated: "In short, it needs to rapidly mature in a period of increasing economic austerity." It predicted a financial shortfall in the region of £10 million to £12m by 2014-15 if UHI continues as it is. University chiefs claimed changes were already under way as the report was being produced, saying it has updated its vision and created a new strategic plan. While stating that the financial projections by Capita did not take into account of recent funding announcements, the university could not rule out job losses in the future. A spokeswoman said: "It is not possible at this stage to say what specific impacts any changes will have on staffing, either in the university or in our academic partners." The university has 13 academic partners incorporating colleges and research centres in locations including Perth, Argyll, Shetland, Orkney and the Western Isles. However, the report highlights a "mistrust" by the partners. "Underlying some of the concern is a distrust of the University hierarchy and in particular that the formation of an institution encompassing currently independent partners will "inevitably" lead to the growth of a University of Inverness - and not of the Highlands and Islands. This, it is feared, would undermine provision based on local social and economic need and specialist provision where this is the core activity of a partner. It adds that what is put forward as a "merger of equals" could be seen as a "hostile takeover." Publication of the report comes as UHI, which became Scotland's newest university when it was granted the status last year, is currently overseeing a new multi-million campus under construction at Beechwood in Inverness. The consultants described the institution's governing body as "unwieldy" and "too large," and identified a need for better leadership, claiming there was no shared vision. They said more trust and openness was required between UHI's 13 member colleges and research institutions. Highlands and Islands MSP Mary Scanlon accused UHI of taking its eye off the ball. She said: "It is a unique model for a university and there is no doubt the focus over the last two decades has been on gaining university status. This report should be viewed as constructive comment and a wake-up call.