One of Scotland's leading universities could pull out of a satellite campus set up to help regenerate the south of the country after a row over funding.
Glasgow University last night warned that its involvement in the Crichton Campus in Dumfries was under threat because it was running at a loss of £800,000 a year.
Officials said talks had taken place with the Scottish Funding Council (SFC) to increase the number of funded places at the campus - set up seven years ago with Paisley University, Bell College and Dumfries and Galloway College - but that the organisation "does not share this view".
It was unclear whether the move would lead to redundancies. A spokeswoman for the university said: "At present, our costs at Crichton significantly outstrip the income we generate, making Crichton the only part of the university that has an underlying deficit.
"Options for the university range from the reduction of our presence, with the possible transfer of some courses and facilities, to an eventual measured and phased withdrawal from the site."
In a letter to campus staff, Sir Muir Russell, university Principal, said: "Glasgow embarked on the Crichton project in the expectation that funded student places to support this new activity would follow from the Scottish Funding Council. While we have consistently maintained that we need further funded places to maintain our provision at Crichton on a break-even basis, the SFC does not share this view. Therefore, regretfully, the university is having to reconsider its level of activity at Crichton."
Last night, a spokeswoman for the SFC denied a lack of commitment to the site.
She said: "We remain committed to developing the Crichton campus which has a vital role to play in helping to sustain and grow the regional economy, particularly in developing skill levels for all post-school age groups, particularly adults already in work."
Dr Elaine Murray, MSP for Dumfries, said: "It would be an irony of the highest proportion if Glasgow pulled out at the same time as Dumfries and Galloway College move up to the Crichton site in order to enhance interactions between further education and higher education by providing a tertiary education centre which is unique in Scotland."
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