GLASGOW Caledonian University will tomorrow attend a crunch meeting with US education authorities over its troubled £10 million New York campus.

The institution, which has faced criticism over a project that has no degree students, will make a vital presentation to the state’s Board of Regents.

However, Dr Nick McKerrell, a trade union convener at GCU, said: "This extravagance in an age of austerity cannot go on."

Glasgow Caley officially opened its Manhattan satellite in 2014 at a event attended by former First Minister Alex Salmond. However, the project has still to be granted a degree-awarding license, despite soaking up around £10m in costs, including leasing expensive accommodation in New York.

The University was also criticised after it emerged that Cara Smyth, one of the senior figures on the project, received a remuneration package of £267,500 in 2014/15 despite the lack of students.

Glasgow Caley staff staged a protest earlier this year about what they regarded as the lack of “accountability” in the initiative.

However, defenders of the project say that higher education bodies have no choice but to grow their income base, which is the aim of the New York project. Supporters say the pursuit of overseas money is common in Scottish universities and should be seen in the context of public funding reductions for GCU.

It is understood that members of the Board of Regents, which is part of the New York Education Department, will meet Smyth tomorrow. She will make the University’s case and a final decision is expected in June.

According to minutes of a Glasgow Caley Court meeting in November the University “recognised” that obtaining a degree-awarding license was the “only option” that would allow the full recovery of costs.

GCU is initially proposing to offer four business-related programmes in Luxury Brand Management, International Fashion Marketing, Risk Management, and Social Business & Microfinance.

McKerrell said: "The Executive of the University have a lot riding on this hearing. Meanwhile courses are cut and staff are not replaced here at Glasgow Caledonian. There seems to be no questions asked by the people running GCU on the endless millions of expenditure given to Manhattan. It is almost beyond belief."

Professor James Miller, Deputy Vice-Chancellor of GCU, said: "Since launching in 2014 and as we await the final decision from the New York State Education Department on the award of our education licence our four staff have been engaged in research and policy development opportunities securing income commitments of $1.25m from bodies such as the Rockefeller Foundation and the United Nations. GCNYC has also been the base for Town Hall lectures, consultancy work, hosting visits from Glasgow students and accommodating the business and cultural communities seeking to showcase Scotland at its best.

"In undertaking due diligence we were advised that the application would take 18-24 months and that we would have to invest in a building before we were awarded the licence as the State Education Department's assessment process would involve a site inspection. Enrolling students to credit-bearing programmes before the licence is granted is strictly prohibited.“