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A prominent member of the Dearing inquiry into ÖйúAƬ, this week predicted that cash pressures could force universities into privatisation, with the Government losing its ability to influence the sector for the public good.

John Arbuthnott, principal of Strathclyde University, warned: "He who pays the piper calls the tune. If society wants a publicly responsive and accountable ÖйúAƬ system, there has to be sufficient public funding to support that."

Speaking at the university's bicentenary celebrations in the House of Lords, he said that with privately funded institutions, the Government would lose the right, to set important national goals such as manpower requirements and to enhance the science base.

Strathclyde now receives only 55 per cent of its income directly from the public purse.