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Council

COUN96-M5

[Minutes]

Minutes of the 240th Meeting of the University Council held on Monday 16 December 1996.

                                 Dr S C Miller                                      
                                                                                 
            Mr. H. Barber (ab)                 Dr. T. Higgins                    
            Mr. J.B.C. Blood                   Professor J.R. Hough              
            Mr. R.H. Boissier                  Professor D.J. Hourston           
            Dr. W.R. Bowman                    Professor M. Hutchinson (ab)      
            Professor L.M. Cantor              Mr. M. Jackson                    
            Professor S.J. Cox                 Professor R. McCaffer             
            Dr. J.A.W. Deboo (ab)              Professor J.N. Miller             
            Mr. S. Dorrell (ab)                Professor I.C. Morison            
            Dr. A.M. Duncan (ab)               Mr. D'A.T.N. Payne (ab)           
            Dr. A.S. Durward                   Dr. A.C. Pugh                     
            Mr. D. Eacott                      Professor P.H. Roberts            
            Dr. D.W. Edwards (ab)              Sir Denis Rooke                   
            Professor M. Evans                 Professor M. Shaw (ab)            
            Dr. A.N. Fairbairn                 Mr. M. Shuker                     
            Professor J.P. Feather             Mr. N. Slater (ab)                
            Mr. K. Foreman                     Mrs. C. Stephens (ab)             
            Mr. G.P. Fothergill (ab)           Mrs. J.A.M. Strong (ab)           
            Sir Frank Gibb(ab)                 Mr. A. Thacker (ab)               
            Dr. M. Gilbert                     Mr. E. Waite                      
            Mr. S.J. Gorton                    Professor D.J. Wallace            
            Dr. J.K. Green                     Professor C. Williams             
            Mr. P.W. Harrisson                 Mr. C.S. Woodruff                 
            Miss J.E.L. Harvatt (ab)           Mrs. H.M. Woodward (ab)           
                                                                                    
            By invitation:  Professor J.V. Dawkins                                  
                            Professor H. Thomason                                   
                                                                                    
            In attendance:  Dr J E M Elliott                                        
                            Dr. D.E. Fletcher                                       
                            Ms. E.A. Howarth                                        
                            Mr. N.A. McHard                                         
                            Mr. H.M. Pearson                                        

Apologies for absence were received from Mr. Barber, Dr. Edwards, Mr. Fothergill, Sir Frank Gibb, Miss Harvatt, Mr Payne, Professor Shaw, Mr. Slater, Mrs. Stephens and Mrs. Strong.


96/73 Minutes [COUN 96:M3]

It was RESOLVED to confirm the Minutes of the 238th Meeting of the Council held on 17 July 1996 , subject to the following amendment to Minute 96/38.2:
`Fellowship of Engineering' to read `Royal Academy of Engineering'.

96/74 Vice-Chancellor's Business

The Vice-Chancellor reported that:
(i)
The University had regretfully not been successful in its submission for the award of the Queen's Anniversary Prize for the achievements of Loughborough Students' Union. Loughborough students continued to excel in sporting events, with the swimming team achieving more points than the total next five universities at a recent event.
(ii)
The consortium bid for the British Academy of Sport, involving the University, the University of Nottingham's Queen's Medical Centre, Nottinghamshire County Council and the Lilleshall consortium, had reached the long list of 13 from an original total of 26 bids. The final outcome should be known by early Spring 1997. Informal feedback indicated that the bid was a strong contender. The Registrar had negotiated with the Trustees of the Garendon Estate and its agents for 150 acres on the Estate for the Academy. Outline planning permission was to be considered by Charnwood Borough Council on 19 December.
(iii)
Work had commenced on the Business School/Economics building for completion by December 1997. The Pro-Chancellor and the Director of Works were to be thanked for their considerable efforts to ensure that the costs did not exceed Council's approved total of £3.9M.
(iv)
The University had recently responded to requests for input to the `Dearing Review' (appended to these Minutes) and to the HEFCE on the future funding of teaching and research.
(v)
The Chancellor's November budget had been more encouraging for Higher Education than that of the previous year. There was a small cash increase of 0.5-1.0%, which taking into account inflation represented a cut of 1.5% in real terms. This was less severe than had been feared. The University's funding allocation for 1997-98 would not be known until February 1997.
(vi)
Following an actuarial assessment, USS, the Universities Superannuation Scheme for the `old' universities, had recently agreed a 4% reduction in the amount to be paid by institutions from 18% to 14% of salary. The Funding Council, however, had subsequently announced a reallocation of this 4% saving across the whole HE sector, which was likely to result in a net saving for the University of about 2% in the total cost of academic and related salaries. The Vice-Chancellor had responded to the Chief Executive that this was not a matter for Funding Council involvement. Council concurred with this view. It was recognised, however, that there was the danger in any public conflict on this matter that the windfall be effectively clawed back by the Treasury.
(vii)
The salary dispute for academic, academic-related and technical staff remained unresolved. An offer of 1.5% prior to the budget had been unacceptable and a recent offer subsequent to the budget of 5% over 2 years had also been rejected. The University's input into UCEA's (Universities and Colleges Employers Association) negotiations had advised a higher offer. The University was keen that the dispute was ended and that the co-operation of staff was not put in jeopardy. The University had therefore announced that staff would receive a payment equivalent to 2.5% of salary in January 1997 as payment on account. This was not a local settlement.
A member informed Council of the salary position of academic, academic-related and technical staff which had fallen far behind that of other professional groups, at a time of marked increased productivity. Staff morale was suffering and UCEA was failing to serve the interests of the CVCP. The Vice-Chancellor reminded Council, however, that UCEA was required to take into account the very variable financial positions of institutions across the sector.
(viii)
The results of the Research Assessment Exercise 1996 would be announced on 19 December 1996, though the true financial outcome for the University from it would not be known until the end of February 1997 when funding would be announced. A summary of the RAE results would be circulated to members as soon as these became available.

96/75 Statement of Accounts [COUN96-P57]

.1
Council received the University Accounts for the year ended 31 July 1996, together with the comments of Finance Committee and Financial Statistics for 1995-96. The Treasurer drew attention to the statement of the University's corporate governance arrangements and the Auditor's statement expressing satisfaction with the University's arrangements.
.2
The Treasurer reported that the Income and Expenditure account showed a surplus before transfers of £3.9M. This was less than in the previous year but that surplus had been inflated by exceptional non-recurring items. The importance of a surplus was vital for the building programme in view. The Balance Sheet remained strong and the University's investment in new buildings had led to a substantial increase in fixed assets.
.3
During the year the Treasury Sub-Committee had re-tendered the investment management service and transferred to Kleinwort Benson. A much improved and more transparent service had resulted. The Sub-Committee had also re-tendered the University's borrowing requirements to achieve a saving on interest charges.
.4
Within the Financial Statistics 1995-96 the Treasurer highlighted the achievement of the Department of Aeronautical and Automotive Engineering and Transport Studies in a total external income representing 278% of academic salary costs. The Indicators of Financial Health showed the University to be substantially above the sector mean in regard to short-term solvency and above the sector mean in regard to long-term debt. Both ratios were expected to be closer to the norm by the end of 1998 when the BES schemes had ceased to distort the accounts. The Treasurer reported on a stable and sound financial position.
.5
A member drew Council's attention to the disappointing level of increase in income from Research Grants and Contracts, which fell short of the achievements intended within the University's Strategic Plan, and in particularly the reduction in such income from the European Union. Council was informed that HUSAT, the University's prime earner of European research funds, had been through a restructuring process which was likely to have affected European earnings at that time. It also had to be remembered that appropriate overheads were difficult to achieve with European contracts, which therefore could act as a drain on finances. The University was conscious, however, that the increase in research income was flattening. Estimates of income were being revised to more realistic levels and incentive schemes had been devised for Departments. The RAE outcome was likely to be an important factor in future research income.
.6
Council RESOLVED to approve the adoption of the Accounts and congratulated all those involved in the satisfactory outcome, particularly the Treasurer and the Bursar and Finance Officer and his team.

96/76 Loan Agreement [COUN96-P58]

.1
The Treasurer introduced the recommendation of Finance Committee for a long-term loan of £31.4M from the Yorkshire Bank. The loan would be over a 20-year term, would be flexible and would take care of existing borrowing at a saving of £50K per year in interest charges. Security for the debt would be provided by mortgaging seven properties forming 20% of the University's estate.
.2
Clarification was requested on the position of the new Engineering building. It was confirmed that the project had been deferred for future consideration, but that the loan facility negotiated would permit funds to be available for a development if required.
.3
It was RESOLVED to approve the long-term loan of £31.4M from the Yorkshire Bank as presented in the Annex to COUN96-P58.

96/77 Merger discussions with Loughborough College of Art and Design [COUN96-P59]

.1
Council received an interim report from the Joint Steering Committee. The Senior Pro-Vice-Chancellor, Chair of the Committee, reported that discussions were progressing in a very harmonious manner. The timetable for the original date of formal merger of 1 August 1997 had proved impracticable and this had now been set at 1 August 1998. Recommendations for merger would come forward to the LCAD Governors in May 1997 and to Council in July 1997. Members were supportive of the more realistic timetable which would permit greater consultation.
.2
Council was informed that LCAD Governors had accepted the proposals nem.con. Some buildings on the LCAD site were also used by Loughborough College and an uncoupling of this arrangement would be needed before merger. Council was reassured that capital work planned by LCAD would be undertaken within its own resources. It was noted that the position on LCAD's residential halls was shortly to be discussed by the Estates Sub-Group of the Steering Committee.
.3
It was AGREED that the summary of the financial review from Deloitte and Touche Corporate Finance concerning the University was in error by stating that the significant capital projects of the swimming pool and the engineering building would be implemented, when such a decision had not yet been taken. It was also to be made clear that the former project would not go ahead without the award of substantial lottery funds.
.4
Council was informed of the recent merger between Winchester College of Art and the University of Southampton. A visit to Southampton was planned in January 1997 when advantage would be taken of that University's experience.
.5
Council was reassured that the HEFCE financial indicator statistics showed that LCAD's finances were in a sound state. In regard to the repayment of European Social Fund monies, even the worst-case scenario could be accommodated from reserves.
.6
It was noted that there were staff contractual differences between the two institutions. These would be discussed by the Human Resources Working Group and it was anticipated that they would be satisfactorily resolved.
.7
Council RESOLVED to approve the recommendation of the Joint Steering Committee that, subject to a merger being agreed by the two governing bodies, the College would become Loughborough University School of Art and Design within the Faculty of Social Sciences and Humanities.

96/78 Towards a University for Peterborough [COUN96-P60]

.1
Council received a progress report from the Registrar, who reported that a meeting at Peterborough on 19 December with the Chief Executive of HEFCE would hopefully result in the University's ability to bid for funded student numbers. These would be crucial if the project was to be sustainable. If the outcome was satisfactory a detailed Business Plan would be developed for consideration by the Resources and Planning Committee. The University would need to be assured of a reasonable financial return from the venture. It was noted in response to a query that the development would be the Loughborough University (Peterborough Campus).
.2
Members expressed support for the development and it was RESOLVED to agree that the discussions and negotiations should continue.

96/79 Council Membership [COUN96-61]

.1
Further to Minute 96/45 of Council's 238th Meeting on 17 July 1996, Council considered a paper from the Registrar. Council RESOLVED to approve the proposal that the Nominating Committee which recommended the appointment of co-opted members to Council should contain one elected staff member, and that the Committee should meet to consider the process of soliciting nominations and report thereon to the next meeting of Council. It was AGREED that Professor Morison would contact elected staff members of Council with a view to coming forward with a representative for the Nominating Committee.
.2
The Nominating Committee was again urged to consider wider representation of the community in its recommendations on co-opted membership, and in particular to improve the gender balance and representation by the ethnic community. It was suggested that the new local MP, when known, should also be considered for membership.
.3
It was noted that the issue of a possible limit on the number of former members of staff in the category of Council members elected from Court would be considered again by Council at a later date.

96/80 Appointment of Treasurer

.1
Council noted that it was necessary for Council to make a nomination for the office of Treasurer to the annual meeting of Court on 5 February 1997, pursuant Statute VII.I, consequent upon the expiry of Dr A S Durward's period of office on that date. Dr Durward had served two periods of office. The Chair, on behalf of Council, thanked him for his positive and successful contribution to the University in this role.
.2
It was RESOLVED to recommend to Court that Dr T Higgins be appointed Treasurer for a period of three years from the annual meeting of Court on 5 February 1997.

96/81 Membership of Council and its Committees [COUN96-P62, COUN96-P63, COUN96-P64]

(i)
The Membership of Council for the Session 1996-97 was noted.
(ii)
Further to Minute 96/51.3 of the 238th Meeting, it was RESOLVED to approve a list of appointments to vacancies on Council Committees and Joint Committees with Senate.
(iii)
It was RESOLVED to approve nominations by the Students' Union to membership of Council Committees and Joint Committees with Senate.

96/82 Finance Committee [COUN96-P65]

It was RESOLVED to approve the following recommendations referred by the Finance Committee at its 95th Meeting on 29 November 1996:
(a)
Appeals Procedure
(b)
Code of Conduct for Employees and Lay Members of Council

96/83 Health, Safety and Environmental Committee [COUN96-P66]

It was RESOLVED to approve the following recommendations referred by the Health, Safety and Environmental Committee at its 65th meeting on 14 November 1996:
(a)
Health and Safety Policy
(b)
Environmental Policy

96/84 Information Services Committee [COUN96-P67]

It was RESOLVED to approve the following recommendation referred by the Information Services Committee at its 15th meeting on 25 October 1996:
Terms of Reference and Constitution: Information Policy Implementation Sub-Committee

96/85 Resources and Planning Committee [COUN96-P68, COUN96-P69]

.1
It was RESOLVED to approve the following recommendations referred by the Resources and Planning Committee at its 97th meeting on 8 November 1996:
(a)
Promotions to Senior Lectureships and to ALC Grades 3 and 4
(b)
Establishment Matters
.2
It was RESOLVED to ratify Chair's action in approving, on behalf of Council:
(a)
Tuition Fees for 1996/97
(b)
Establishment Matters

96/86 Senate [COUN96-70]

It was RESOLVED to approve the following recommendations referred by Senate at its 310th meeting on 27 November 1996:
(a)
BSc in Physics with Computing, new programme from 1998/99
(b)
BSc in Physics with Environmental Science, new programme from 1998/99
(c)
BSc in Retail Automotive Management, new programme from 1997
(d)
BA in History of Art and Design with Studio Practice, validation from 1997/98
(e)
BA in Graphic Communication, validation from 1997/98
(f)
BSc in Electronic Engineering and Physics, discontinuation after 1997 entry
(g)
BSc in Mathematics and Computation, title change to BSc in Mathematics and Computing from 1997 intake
(h)
BEng/MEng in Environmental Systems Engineering, title change to revert to BEng/MEng in Building Services Engineering with immediate effect
(i)
Ordinance VI - amendment
(j)
Ordinances XV and XXVIII - amendment
(k)
Loughborough University Disability Statement

96/87 Student Grievance Committee

In fulfilment of the requirements of Ordinance XXXVIII, established at the 229th meeting of Council on 29 March 1995, it was RESOLVED to appoint the following members to the Student Grievance Committee for 1996-97:
    Members:  Dr M Bell                 Alternate Members: Dr J A W Deboo              
              Dr T Higgins (Chair)                         Dr A N Fairbairn            
              Mr H E Jones                                 Mr J R Hinds                
              Mr C S Woodruff                              Professor P H Roberts       
              Mr. M. Jackson                               Mr. P Rhodes                

96/88 Honorary Degrees [COUN96-P71]

Pursuant Statute XVIII, on the recommendation of Senate and with the advice of the Honorary Degrees Committee, it was RESOLVED to approve the issuing of invitations to persons to receive honorary degrees at Degree Congregations to be held in 1997.

96/89 Common Seal [COUN96-P72]

It was RESOLVED to ratify the action of the Registrar in affixing the University Seal to the documents listed.

96/90 Duties and Responsibilities of Members of Council [COUN96-P73]

Council noted the duties and responsibilities of Members of Council.

96/91 University Court

Council noted that the 1997 Annual Meeting of the University Court would be held at 2.00 pm on Wednesday 5 February 1997. All members of Council were members of the University Court.

96/92 Annual Report of the Alumni Office [COUN96-P74]

Council received the Report of the Alumni Office for 1996.

96/93 Loughborough University Development Trust [COUN96-P75]

Council noted the formation of the Trust for the purpose of fund raising.

96/94 Reports of Committees [COUN96-P76]

Council received reports of the following committees:
(i)
Audit Committee of 24 October 1996
(ii)
Finance Committee of 29 November 1996
(iii)
Health, Safety and Environmental Committee of 14 November 1996
(iv)
Residential and Catering Services Committee of 26 November 1996
(v)
Information Services Committee of 25 October 1996
(vi)
Research Committee of 2 October and 31 October 1996
(vii)
Resources and Planning Committee of 4 October and 8 November 1996
(viii)
Student Services Committee of 13 November 1996
(ix)
Senate of 20 September and 27 November 1996

96/95 Degree Congregations in Summer 1997

Council noted the dates of Degree Congregations to be held in Summer 1997 as follows:

96/96 Dates of Future Meetings

(*Only if required: at least two weeks notice to be given)


Author - Dr J E M Elliott

Date - January 1997

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