Dr Andrew Cubie addressed MSPs

Dr Andrew Cubie told a Holyrood inquiry that students and staff could be lured away from Scotland if English universities are better funded.

Dr Cubie chaired the inquiry into student finance four years ago.

It led to the scrapping of up-front tuition fees in Scotland and the introduction of the graduate endowment scheme.

Overseas students

He told MSPs that plans in England to let the best universities charge fees of �3,000 a year would give them more money to improve facilities and attract staff.

Scotland could also lose out on the lucrative overseas market, with a warning that foreign students who pay up to �10,000 a year could be drawn to better funded English universities.

Dr Cubie He told Holyrood's Enterprise & Culture Committee: "The overseas student population contributes about �195m to the Scottish sector and economy presently.

"Indeed, in a competitive market it is one we require to be in. Not just for financial purposes but also for the diversity of experience of our students in Scotland."

He said the government, graduates, universities and businesses must all play their part to meet the shortfall in Scottish higher education funding.

He also told MSPs of his fear that English universities would be able to offer more attractive pay and facilities than those in Scotland.

Students face rising financial pressures

"If that were to be so, then it is not just a matter that teaching and research would suffer, but other areas of funding, one of which is clearly commercial income - spin-outs, consultancy - and reputation in the field, would be lost, with potential damage to other sources of income beyond governmental income."

He said: "I do believe there needs to be further allocation of resources for the sector."

Dr Cubie said that if top-up fees were introduced that the Executive would have to increase higher education funding and should seek to raise spending to match average OECD levels.

"One of the issues in this is not about playing catch-up, but actually leading, so that we are seen to have an edge and an advantage because of the way we regard higher education."

Dr Cubie, acknowledged that graduates also had to help provide some of the core costs for higher education.

He said the level at which graduates should begin to make a contribution to the graduate endowment should be considered, as well as the amount which they pay.