The Council have considered the remarks made at the Discussion of this Report on 13 June 2006 (Reporter, p. 770). They endorse the remarks made by the Pro-Vice-Chancellor for Planning and Resources, and draw attention to his comments on the effect on future allocations from the Chest of the proposed pay settlement over the next three years.
Professor R. J. Anderson commented on reserves, and on the result of the revised Terms of Agreement between the University and the Colleges regarding College fees. On reserves, the £3m figure mentioned is a reallocation only of unexpended income in Schools from 2005-06 for expenditure in 2006-07. The Council note the comments made on the relationship between the University and the Colleges but do not agree with them. There is an agreement between the University and the Colleges, which will be robustly monitored as the Colleges deliver on their obligations.
Dr D. R. de Lacey expressed concern about the depletion of the Quinquennial Equalization Fund (QEF). The Council believe that it is indeed strongly in the interest of the University for strategic reserves to be built up, as the Chest moves back into surplus.
Dr M. R. Clark and Mr D. J. Goode referred to the recent proposed pay settlement. The Council in their Report made it clear that the level of pay settlements in future years was uncertain and that they would continue to monitor developments carefully through the Finance Committee and the Planning and Resources Committee. The Allocations Report for 2007-08 will present the forward position.
The recommendations of the Report are for the approval of the allocations from the Chest for the coming financial year. The Council are accordingly submitting a Grace to the Regent House (Grace 6, p. 797) for the approval of the recommendations in the Report.