The Council

COUN06-M1

Minutes of the meeting of the University Council held on Friday 31 March 2006.

Members:

Sir Bryan Carsberg (Chair); Dr Memis Acar; Dr Jim Blood; Roger Boissier; Dr Sandie Dann; Peter Davenport; Gareth Davies; Venu Dhupa (ab); Peter Haslehurst; Norma Honey; Sir John Jennings; Rob Kirkwood; Mansoor Moghal (ab); Dr Bill Moss; Jim Mutton (ab); Professor Richard Parry-Jones; Professor Shirley Pearce; Simon Proffitt; Professor Phil Roberts; Dr Fytton Rowland; Gab Stone; Jackie Strong; Professor Rachel Thomson (ab); Margaret Tomlinson; Professor Peter Warwick; Phil Wilkinson-Blake; Bob Wilson; Dr Cyril Woodruff; Alan A Woods

In attendance:

Professor Chris Backhouse; Professor Morag Bell; Mr G M Berezi; Sir John Gains; Professor Terry Kavanagh; Professor Ron McCaffer; Professor Ken Parsons; Michael Pearson; Miranda Routledge; John Town; Jon Walker

Apologies for absence were received from:

Mansoor Moghal, Jim Mutton, Professor Rachel Thomson

06/1 Opening Remarks from the Chairman

The Chairman welcomed Professor Shirley Pearce to her first meeting of Council. He also welcomed Mr Berezi, who was attending as an observer.

It was with great sadness that the Chairman reported the death of Professor Peter Smith who had been Head of the Department of Electronic and Electrical Engineering and a member of the Council.

06/2 Minutes

The Minutes of the Meeting of Council held on 20 December 2005 [COUN05-M7] were CONFIRMED.

06/3 Strategic Development of the University/New PVC Position

COUN06-P1

The Deputy Vice-Chancellor (DVC) presented a paper which outlined progress on the strategic development of the University since the last meeting of Council. A group of consultants would shortly be reporting on the marketing and promotional activities of the University. This was an area which, in view of the changing environment in which the University operated, required a more strategic approach than had hitherto been adopted.

A draft timetable for the development of the next Strategic Plan had been prepared, including a Joint Senate/Council Away Day on 19 June 2006. The Away Day would be a major consultation exercise based around key themes and questions. All members of Senate and Council would be expected to contribute to discussions from which the basic substance and structure of the next Strategic Plan would emerge.

Research and Teaching/Learning were established and well-structured streams of activity. Although there was a significant amount of activity in the “Enterprise” stream, it was less well structured because, previously, it had not been regarded as essential core business. A more focussed enterprise stream would bring together aspects of commercial exploitation but would also include good citizenship/social responsibility. To achieve this structure and focus, the Strategic Review Working Group proposed:

i. The creation of a PVC (Enterprise) post which would enable better institutional direction, leadership and management in this area. Activity would be distributed across all three faculties with co-ordinated support from relevant support services.

ii. The creation of a senior post in marketing and promotional activity.

iii. The establishment of a new joint Senate/Council Committee to oversee enterprise activities.

iv. The development of performance-related promotion mechanisms to encourage participation in enterprise activities across the University.

During discussion, the following points were raised:

· The proposed structure was, to some extent, a re-organisation of existing resource. In time, it was hoped that there might be an element of self-funding for the posts.

· The reorganisation of existing structures and activities would need to be handled carefully.

· Risk would be monitored by the joint Senate/Council Committee.

· The proposal was supported by a significant number within the academic community.

· If approved, it was intended to advertise the PVC(Enterprise) post externally although this would not rule out internal candidates.

It was acknowledged that more work was required to bring forward detailed proposals but timing was crucial and job descriptions for the proposed posts and Terms of Reference for the joint committee would be needed before the next meeting of Council. Therefore, Council APPROVED the proposal in principle and DELEGATED authority to the Chair of Council to approve more detailed proposals.

06/4 Financial Matters

06/4.1 Financial Report 2005/06

COUN06-P2

The Bursar reported that the projected surplus, before exceptional items, for 2005/06 had improved from £2,374M to £4,390M. This was due to several factors, but it was worth recording that international student recruitment had been close to the budget target and Council recorded its thanks to all those involved.

06/4.2 HEFCE Recurrent Grant for 2006/07

COUN06-P3

Council NOTED the HEFCE Recurrent Grant for 2006/07. The Secretary of State’s letter to the Head of the Funding Council had given a clear steer that resources should be directed towards employer-led provision, life-long learning and widening participation. These strands of activity did not match completely with Loughborough’s core mission which helped to explain why the overall increase in the grant had been relatively low. The nature and direction of government funding should be one of the topics for discussion at the Senate/Council Away Day. ACTION: Planning Office

06/4.3 HEFCE Financial Health Indicators

COUN06-P4

The Bursar presented the latest set of HEFCE Financial Health Indicators and drew Council’s attention to the University’s position in relation to the rest of the sector in terms of historical cost surplus as a percentage of total income, net liquidity and external borrowing as a percentage of total income. The data showed that the University was recovering well from the high levels of borrowing necessitated by the purchase of the Advantica Building.

06/4.4 Additional Fee Income

Chairman’s Advisory Group (CAG) had met to discuss a range of issues including a proposal, recommended by the Resources and Planning Committee, for expenditure on additional academic posts. The Chair of Council had called the meeting of CAG so that the proposals could be considered in the context of the overall budget. Investment in new staff ahead of the RAE was important and carried an acceptable financial risk. Therefore, CAG endorsed the recommendations of the Resources and Planning Committee. Council APPROVED the expenditure on staff.

06/5 Capital Programme

06/5.1 Progress Report

COUN06-P5: NOTED

A member commented that, in view of rising energy costs and social responsibilities, the Strategic Review Working Group should consider developing a CO2 footprint and a CO2 footprint target.

06/5.2 Richard Morris Extension: progress report

COUN06-P6: NOTED

06/5.3 Development of Residential Accommodation

COUN06-P7

The Steering Group was making progress in appointing a private sector partner. Some time had been lost on the project but this had been necessary to ensure that the contractual position was clearly understood by, and acceptable to, the University. However it was necessary to demonstrate, particularly to the local community, that action was being taken to move the project forward as soon as possible. Therefore, Council AGREED to DELEGATE authority to the Steering Group to appoint a preferred bidder before the next meeting.

In response to a query, it was confirmed that provision for warden accommodation had been included in the project brief. The President of the LSU was on the Steering Group and had been effective in ensuring that all aspects of the hall experience were incorporated into the project.

It was noted that several developers in the town were building student accommodation and there were some concerns that this would be in direct competition with the planned new residential accommodation on campus. University Officers reassured Council that they were mindful of the third party provision and were working closely with Charnwood Borough Council. The University and the Students’ Union would keep a careful watch on the pricing, student welfare and town/gown aspects of the student accommodation provision in town.

06/5.4 Sports Park/Village

COUN06-P8

Following acquisition of an additional 23 acres of land (see 06/5.5 below), consultants were starting to approach potential tenants for the Sports Park/Village. There would be a series of tough negotiations to go through and it was likely that the University would need to underwrite the project. The building would be adjacent to a new entrance to the University. This entrance would be important for the West Park and for arrivals from the M1. The design of the new building would influence first impressions of the campus and, consequently, the University needed to retain control of the project.

06/5.5 Land Acquisition

COUN06-P9

The University had successfully acquired an additional 23 acres, funded by an emda grant. emda's
funding contribution reflected their expectations that the land would be developed to include a 'Sports Village' (see 06/5.4 above) and elements of the Loughborough Science Park'.

Discussions were ongoing with Advantica regarding the release of additional space on Holywell Park for various University activities including housing the jet nozzle rig which had featured in earlier discussions at Council.

06/5.6 Finance System: progress report

COUN06-P10: NOTED

The project was expected to take at least two years to roll out and therefore required robust planning during the change-over period. The Steering Group existed to oversee the management arrangements and controls and ensure that the project remained on track. A member commented that it was advisable to change internal systems to meet software capabilities rather than vice versa. This represented an ongoing challenge for the Steering Group.

06/6 Council Review of Effectiveness

06/6.1 Recommendations

COUN06-P11

Council APPROVED the prioritised list of recommendations from the Executive Management Group, subject to recommendation 12 of the original report being moved from category 5 (low priority) to category 2 (to be implemented in the near future). Therefore, an annual agenda plan would be produced and published. Members wishing to add items to agendas should contact the Chair of Council or the Registrar. ACTION: Registrar & Asst Secretary to Council

06/6.2 Council: Added Value

COUN06-P12

A lay member presented a paper suggesting that Council explicitly consider how it could add value to the functioning of the University. Ideas included half days for staff/students to meet with members of Council and ask them questions, student presentations and introducing ways of measuring Council’s performance. Members felt that there could be an interesting debate on this topic and AGREED to add it to the list of themes for the Senate/Council Away Day. ACTION: Planning Office

On a related topic, the DVC had been working on the development of “performance, quality and sufficiency of provision indicators” (PQSIs) for the University. He wanted to move away from purely financial indicators and progress to a more holistic way of appraising (and measuring) the University’s performance. This would be done according to five themes of i) research, ii) teaching & learning, iii) enterprise, iv) infrastructure and v) status, esteem and reputation. Identifying the relevant indicators was a subtle and complex task but it was expected that draft proposals would be brought forward to the next meeting of Council. ACTION: Deputy Vice-Chancellor

06/7 Nominating Committee

06/7.1 Membership

Council NOTED that Professor Peter Smith had been appointed as the elected staff member of Council and Norma Honey as the lay member of Council to the Nominating Committee for the period 1 April 2005 to 31 March 2006.

It was AGREED that, in future, membership periods should run for three years instead of one. Council APPOINTED Norma Honey as the lay member until 31 March 2009. The elected staff member would be appointed by Chair’s Action. ACTION: Registrar

06/7.2 Recommendations to Court

Council NOTED that, on the recommendation of the Chair of Council, Court had resolved that Roger Boissier and Professor Richard Parry-Jones be re-appointed as Pro-Chancellors until February 2007 and February 2009 respectively, and that Alan A Woods be reappointed as Treasurer until February 2009.

06/7.3 Procedure for the Appointment of DVC, PVCs and Deans

COUN06-P13

Council APPROVED the amended procedure but referred back issues regarding the election of Senate members for further consideration. ACTION: Registrar

06/8 Delegated Authority

06/8.1 Approval of Appointments

Council DELEGATED authority to the Vice-Chancellor to approve, on the recommendation of Senate, the appointment of Associate Deans, Heads of Departments, Directors of Research Schools and the Director of the Graduate School.

06/8.2 Senior Staff Salary Review

COUN06-P14

Council was presented with proposals to streamline the process of approving senior staff salaries as outlined in the agenda paper. The Chair of Council was anxious for the new committee to be established as a sub-committee of Remunerations Committee which would meet first to develop a framework within which decisions would be taken. This would help to ensure that all salary reviews were considered within the context of the overall budget and lend more transparency to the decision making process. Council APPROVED the proposals in principle and DELEGATED authority to the Chair of Council to approve more detailed proposals.

A member expressed concern that the new sub-committee consisted entirely of EMG members with no external moderation. The Director of Personnel Services would be asked to comment on the introduction of an appropriate appeal mechanism. Alternatively, the membership of the sub-committee would be extended to include a lay member of Council.

06/9 Audit Committee

COUN06-P15

Council considered a report of the meeting of the Audit Committee held on 24 February 2006 and APPROVED revisions to the Constitution and Terms of Reference.

06/10 Vice-Chancellor’s Report

i. The Vice-Chancellor presented Council with some of the views and impressions she had gathered from visiting departments and talking to colleagues in her first few months at Loughborough. The presentation included reflections on “what made Loughborough successful”, the challenges that lay ahead and what the University needed to do to respond to its ever changing environment. A copy of the slides would be circulated to all members. ACTION: Asst Secretary to Council

ii. Council NOTED the success of Loughborough University students at the Commonwealth Games and the fact that a former student, Mr Monty Panesar, had recently joined the English Cricket Team.

06/11 Matters for Report

06/11.1 Pro-Vice-Chancellor (Research)

i. Research Grants and Contracts

COUN06-P16: NOTED

ii. Update on RAE 2008

COUN06-P17: NOTED

06/11.2 Pro-Vice-Chancellor (Teaching)

i. Recruitment for 2006/07 entry

COUN06-P18: NOTED

International recruitment procedures had improved. All those involved in the process took it very seriously and worked hard to meet targets.

ii. British University in Egypt

COUN06-P18a

The VC and PVCT had attended the opening ceremony of the British University in Egypt (BUE). BUE had grand ambitions for its development but in order to succeed, it needed to be linked to a prestigious university in the UK. Loughborough University Enterprises Ltd. had already been involved with the BUE in an advisory capacity. The University had been approached with a view to entering a more strategic partnership. The initiative presented both opportunities and risks which needed to be balanced at the right level. The BUE was looking for a partnership involving research, teaching (including the validation of BUE programmes) and knowledge transfer. Before entering any agreement, the University would reassure itself that:

· The project would be managed and led to ensure that both institutions benefited. From Loughborough’s perspective, this needed to go beyond merely validating BUE programmes.

· BUE would provide sufficient resources to make the partnership viable.

· Commitment to BUE would not distract from research performance, especially in the period leading up to the 2008 RAE.

· Loughborough could withdraw from the agreement if the need arose.

Ideally, Council would have liked more time to consider how the initiative fitted in with the overall strategic direction of the University, in particular the International Strategy. Unfortunately there was not enough time for the decision to be delayed until after the Senate/Council Away Day. However, it was clear that any future strategy for the University would include mechanisms for becoming trans-national and this could well include the creation of international partnerships, such as this.

Having been reassured that the University was giving appropriate consideration to the risks as well as the opportunities, Council AGREED that the partnership should be pursued on the basis of developing an acceptable agreement.

06/11.3 Director of Business Partnerships, Innovation and Knowledge Transfer

COUN05-P19: NOTED

06/11.4 Director of External Relations

COUN05-P20: NOTED

Significant changes were needed to enhance the marketing and promotional activities of the University. Work was ongoing to identify the structural and strategic changes necessary.

06/12 University Ordinances

06/12.1 Confirmation of Amendments

Further to Minute 05/128 and paper COUN05-P121, Council CONFIRMED amendments to:

i. Ordinance III: Substantive Awards and Honorary Degrees, with immediate effect

ii. Ordinance IV: Titles of Degrees and Conditions of Award, with effect from 2 October 2006

iii. Ordinance XVII: Conduct and Discipline of Students, with immediate effect.

06/12.2 New Amendments

COUN06-P21

On the recommendation of Senate, Council APPROVED amendments to Ordinance XVII, Conduct and Discipline of Students, with immediate effect.

06/13 Senate

COUN06-P22

Council received reports from the meetings of Senate held on 25 January and 1 March 2006 and APPROVED the following recommendations:

i. Information Strategy

ii. Programme Proposals

iii. Postgraduate Certificate and Diploma Awards on MRes Programmes

iv. Establishment of New Prizes, Amendments to Existing Prizes and Discontinuation of Prizes

06/14 Resources and Planning Committee

COUN06-P23

Council RECEIVED the report from the meeting of Resources and Planning Committee held on 10 March 2006 and APPROVED the following recommendations:

i. To adopt the Estates Strategy

ii. Framework for achieving long-term sustainability

06/15 Reports of Committees

Council RECEIVED reports from the following Committees:

i. Health, Safety and Environmental Committee - 22 February 2006 [COUN06-P24]

ii. Performance Monitoring Group – 2 March 2006 [COUN06-P25]

06/16 Any Other Business: Industrial Disputes

The University was currently involved in two national disputes.

AMICUS/UNISON

The two unions represented members of the clerical, technical and manual staff who were members of the Local Government Pension Scheme. Industrial action was taking place across the country in response to proposals to withdraw the right for staff to retire at 60. Nationally, a series of one day strikes had been planned, one of which had already taken place on 28 March 2006. The strike had not caused major disruption to the University but arrangements needed to be in place to ensure that the health, safety and security of people on campus was not compromised by any further action.

AUT/NATFHE

The unions were keen to see wages of academic and academic-related staff rise substantially, noting in particular the additional income to institutions through tuition fees from 2006/07. The unions had requested a pay offer at an earlier stage than the normal negotiating cycle and, as no offer had been forthcoming, had voted to take industrial action. The action was national and involved a series of one day strikes, the first of which had taken place on 7 March 2006. In addition to the one day strikes, members had been asked to boycott examinations and assessments and this was potentially very serious. The impact of this action would start to take effect in the next 3-4 weeks, unless an agreement was reached before then. The Chair of Council would be kept informed of the situation.

06/17 Dates of Future Meetings in 2005/06

Tuesday, 18 July 2006 (2.30 pm)