A SCOTTISH university has come under fire after a campus it opened in New York has no degree students two years after it opened.

Glasgow Caledonian University (GCU) has spent £5.6 million developing a campus in Manhattan, but its application for a licence to teach and award degrees has yet to be approved.

The Scottish Labour Party said the campus was "a very expensive white elephant", but the university has argued it has a long-term future.

Professor James Miller, the university's deputy vice-chancellor, said he was "confident" degree-awarding status would be granted by New York State.

He said: "We've been told that as far as they're concerned there are no particular issues with our application.

The New York state education department said it had several pending requests and its "first priority" was to register courses run by existing New York colleges and universities.

A spokesman added: "There is no established timeline for the completion of the review and consideration of those applications."

Jackie Baillie, Labour's public services spokeswoman, said: "What we have here is a university's ambition going far ahead of what they can deliver in reality and what we're left with is a very expensive white elephant."

Mr Miller said Labour's criticism was "grossly unfair" adding: "It's a good investment as far as we're concerned. The business case was robust. We assessed the risks at the time and decided that it was a risk that was worth taking. We will generate that money back. I've got no doubt about that."

University chancellor Mohammad Yunus launched GCU NY in September 2013 when a 15-year lease on premises was agreed. The original intention was to offer courses in fashion and risk management.

Dr Nick McKerrell, the union convener at GCU, said: "It's worrying in an age of wage restraint and austerity that money's being used in quite a speculative project which the unions have always thought was too high-risk to get involved with."

The campus was formally opened in April 2014 by the former First Minister, Alex Salmond, and has attracted a number of high profile speakers and seminars.

First Minister Nicola Sturgeon visited the campus in June this year and described it as an "absolutely fantastic development" praising the "foresight" of university leaders.

The Herald:

First Minister Nicola Sturgeon and GCU's principal Professor Pamela Gillies during her recent visit to the New York campus. 

In a recent staff address, GCU's principal Professor Pamela Gillies, said: "New York is firmly established and beginning to thrive."

A university spokeswoman said they were "disappointed" by the criticism from Ms Baillie.

She added: "We are surprised at her unsubstantiated and inflammatory comments and that she should seek to undermine the legitimate ambitions of the university, which remains committed to deliver for our students, staff and the communities we serve throughout Scotland and beyond.

“The business plan for GCU New York has been fully approved by the university Court which includes external governors as well as staff and student representatives."

She said the university had a successful track record of delivering programmes overseas in Oman, Bangladesh, South Africa and London.