Higher education - excellence in danger

Nil I would guess - or very near it. Yet, less than 50 years ago Celtic did win the equivalent competition. In a different era with local players, the biggest crowds in Europe, local owners and sensible money, Scottish clubs were right up there competing in the top flight. Now, we are also rans in the word of football, we barely even get in to the top competition. Irritating? Yes. Upsetting - for some undoubtedly but not a crucial failure for our economy condemning us to the second division in terms of economic growth and prosperity.

There is, however, a key sector of Scotland’s economy - vital to our future prosperity where there is a real risk that the same thing could happen as happened to our football clubs. That sector is Higher Education.

Our Universities have worldwide reputations for excellence. Part of that is proud history and the positive effect of the Scottish Enlightenment and the impact of Scots around the world. Part of that is also real fact today. Edinburgh really is world class in Veterinary Medicine. Strathclyde really is top notch at Business. These are just two examples. Scotland today competes at the top table, not just in the UK but internationally. My worry, however, is that despite excellent efforts by many talented and passionate people we are quietly starting to slip. The reasons are an unhelpful intertwining of politics and money.

The fact is that if you want to play in the top league over the long-term you need to be able to spend as much as your competitors. The Malaysian student with, literally, a world of choice expects to come to a University with excellent facilities and the best teaching staff. To get these things you have to pay. We do have some excellent new facilities - but more are needed and we run a big risk if we believe it is so good to work in Scotland that we do not have to pay the going rate to attract the very best talent.

Despite the Scottish Government’s focus on education the squeeze is on, budgets are being cut not increased. Universities can and should and do innovate to make-up the shortfall but in the end money will tell. The political issue is that we have set our Universities at an economic disadvantage relative to those in our nearest, and rather good, competitor - England. We do not charge domestic students fees, they do. Result? - our Universities have less money. I understand the social and political reasons which drive this policy - laudable - but we will wring our hands in 50 years’ time if we do not grasp the nettle before it is too late.

The answer isn’t higher taxes - that’s another road to ruin for our economy. The answer is that those who benefit from Higher Education have to pay something. Why should the person who leaves school and gets a job subsidise the education of a University student who is likely to earn a lot more than them over their lifetime? If we want to keep our Universities where we want them to be we need to charge Scottish Students for what they receive. Yes, there should be means tested support, for both tuition fees and living expenses, so that access to Higher Education is not narrowed but we need to start the debate on how not whether we should do this or we will do our nation a disservice.

Pinstripe is a senior member of Scotland's financial services community.