GLASGOW Caledonian University's plan to offer degree-level courses at its New York campus has suffered another blow after objections were lodged by two US-based organisations.

The institution has also agreed to revise its business plan for the troubled project, which has no degree students due to problems getting a license.

Dr Nick McKerrell, a trade union convener at the University, said: "Time is running out on the GCU New York scheme - which is now two years behind schedule.

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“Questions must be asked on how this could have happened when the University is facing a difficult financial environment in Scotland.”

Fronted by principal Pamela Gillies, the University earmarked a maximum loan of $15million for opening and running a “satellite” in Manhattan.

As of July 2015, around $8.75m of the funds had been drawn down by a subsidiary in charge of initiative.

Former First Minister Alex Salmond officially opened the branch at a glitzy launch in April 2014 and the University applied to the New York authorities in the same year about operating programs and higher education services.

Gillies said at the launch: “As a University for the Common Good, GCU’s presence in New York will be underpinned by its commitment to achieving transformative change for individuals and the communities it serves through delivering access and excellence in education and applied research.”

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However, no degree-awarding license has been granted, despite the University entering into a long-term lease on a property in the city’s upmarket Wooster Street.

The Herald can reveal that other bodies in New York have complained about the proposal.

A spokesman for the New York State Education Department (NYSED), which is considering the application, said: “We have received objections from a couple of NYS institutions.” He declined to name the organisations.

A University insider said it was unclear “when, if ever”, a degree awarding license would be granted.

In a press release marking the campus launch, the University promised a “range of non-credit and non-degree related executive education programmes and masterclasses”, but added:

“This will be extended to include a range of full-time and part-time Masters degree programmes, subject to approval by the education authority NYSED.”

According to a minute of the March meeting of the University Court, the project was to be subject of a rethink: “The progress of the development of GCU NY against the original objectives for the campus was discussed.

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“The range of activities and purposes envisaged for GCUNY had been captured in the initial business case although it was recognised that the emphases should be revisited.”

It added that a paper would be submitted to a future Court meeting: “The paper would present a revised business plan focussed on obtaining the optimal balance of educational, recruitment and commercial priorities for GCU NY.”

McKerrell, the Convenor of the Glasgow Caledonian Combined Union Committee, said:

“The trade unions rejected our management's business plan in 2012 as being far too risky. However, even that was based on getting a teaching licence in 2014.

“Formal objections to the project mean that this will further delay the process. Unfortunately our management chose to sign a 15 year lease for the New York building, which is a big financial commitment in a time of austerity.”

The University did not provide a comment for the article.