27 February 2004
HEFCE discusses restructuring of e-Universities' activities
The Higher Education Funding Council for England is holding immediate talks with e-Universities on restructuring its activities and services.
On 25 February the HEFCE Board considered a review of the company's plans - in the light of changes in the global financial market, and the fact that student recruitment had not met planned targets in the first year.
The Board decided that in future HEFCE funding should support the development of e-learning in universities and colleges. The new arrangements will place greater emphasis on public good rather than commercial objectives.
HEFCE will review with the company which activities should be maintained and possibly transferred to other organisations.
Sir Howard Newby, Chief Executive of HEFCE, said: 'A main concern is that the new arrangements should protect the interests of existing students. We are also keen to ensure that the many successful collaborative programmes of e-learning in the UK and overseas should continue.'
Notes
1. The e-Universities project was launched in 2000 as a new vehicle for the delivery of higher education to students across the world over the Internet. The Government allocated £62 million to HEFCE for the project over the period 2001-04. Further information is given in the attached statement.
2. HEFCE, which was responsible for initiating the project, published a business model in October 2000. This was widely supported by the universities and colleges. The plan envisaged establishing the UK as a leading player in the market for online learning, building on its international reputation for quality and innovation.
3. The business model envisaged the formation of an e-learning holding company owned by the HE sector. An operating company, operating under licence from the holding company, would undertake the activities of the e-Universities project. Appointments to the board of the holding company (eLearning Holding Company Ltd) were made in 2001. Directors and senior managers of the operating company - UK eUniversities Worldwide (UKeU) - were appointed in 2002.
4. One of the conditions of grant was that the business should seek 50/50 public/private funding to put commercial drive and accountability into the venture.
5. In October 2001 a strategic alliance was signed with Sun Microsystems to build the technology platform which would deliver programmes and services for the e-Universities project.
6. UKeU launched its first pilot courses in March 2003 in preparation for a full launch in September 2003. In November 2003 UKeU announced that it had recruited nearly 900 students from 38 countries studying online courses from 16 UK universities. This recruitment was below the planned numbers.
7. As is standard practice, HEFCE conducted a review of the company in the autumn of 2003. The conclusions of the review have led to the Board's decision to seek a restructuring of the company's activities.