INTO Story: The University’s response

1.       What is being proposed?

We are considering the creation of a joint venture owned by the University of York and a commercial partner (INTO Ltd.) which will offer foundation programmes for students who wish to enter degree programmes at UK universities but who do not yet have the necessary language skills. The foundation programmes would feature different strands geared to specific subjects or groups of subjects.  The foundation programmes would welcome about 700 additional students to York at steady state; we expect about 60% of them would continue into our degree programmes while others would move on to other UK universities.

2.       Why is the University considering this?

The programmes would increase the throughput of well-qualified overseas students, especially for undergraduate courses but also for some postgraduate programmes. This in turn would improve the University’s financial position, generate funds for reinvestment in staff and facilities, and raise our profile overseas.

3.       What is INTO?

INTO is a private, Brighton-based company with seven years’ experience in this market. It has 17 joint venture partnerships with universities in the UK, US and China. Its UK partners include Newcastle, East Anglia, Manchester, Exeter, Queen’s and St George’s Medical School.

4.       Why should we partner with INTO?

INTO is regarded as the market leader at the present time. It would provide both capital to build new facilities and recruitment of students through its network of overseas agents who specialise in recruiting students to foundation courses.

5.       Isn’t this just privatisation of higher education?

Far from it.  We already partner with external providers to fund capital investments on campus; likewise, we make use of recruiting agents around the world to attract students to York.  Under this proposal, the University would retain complete academic control of entry, programmes and progression, and would have a 50% stake in the joint venture.

6.       What are the main risks from the University’s perspective and how would these be addressed?

The key risk concerns the ability to recruit high-achieving students who would be able to benefit from York degree programmes.  We would address this by retaining full academic control.  The University would:

a)      set the standard required of students entering into the foundation programmes

b)      quality assure the programmes to guarantee that these were well designed and at an appropriate standard

c)       maintain absolute control over which students it admitted to its degree programmes.

In terms of financial risks, we would negotiate a contract which minimised the University’s exposure. We would undertake full financial and legal due diligence before signing any contract.

7.       Is there a risk that this enterprise will impact disproportionately on certain disciplines?

It is undoubtedly easier to recruit overseas students for certain disciplines. However, the business plan would set robust targets for the numbers of students we would seek to recruit to specific disciplines. The targets would be discussed and agreed with academic departments.

8.       Why would the University not simply recruit overseas students through its own recruitment team and overseas agents?

We will continue to recruit overseas students by these means and in fact we are in the process of expanding our recruitment team. However, the joint venture would allow us to attract a wider pool of students and to prepare them thoroughly for study at York.   The collaboration with INTO would also allow us access to a much wider network of agents, some of whom are based in countries where the University has yet to establish a presence.

9.       Where would the joint venture be located?

The proposal is to construct a state-of-the-art facility on Heslington East; this would house teaching and study space together with a refectory which could be managed by the University and would be open for use by other members of the University community.  Additional residential accommodation would be required as the initiative reaches full capacity.

10.   What are the implications for University of York staff?

The joint venture would employ its own staff who would be given associate staff member status by the University.  If any staff were transferred into the joint venture, we would guarantee their existing terms and conditions, including pension rights.  We have also proposed to the trade unions that we negotiate over pay and conditions of staff in the joint venture.

As international students move into undergraduate and postgraduate programmes, we would use the additional fee income generated to enhance student : staff ratios and to increase support for students through central services.

11.   What would happen if the joint venture failed?

If the joint venture failed, the University would have an option to acquire the building on Heslington East and to reallocate it for other purposes.  We would redeploy staff in other posts where possible.

12.   What are the next steps?

The proposal is under consideration by both Senate and Council – we may or may not decide to go ahead.  If approved, we will finalise a contract and recruit students for academic year 2015-16.  The numbers will then build up gradually over five years.