THE storms that buffeted Scotland in recent weeks seem to have abated, but dark clouds can still be found over the university sector. The Scottish Government's Higher Education Governance (Scotland) Bill has provoked sharp debate on such touchstone issues as equality, diversity and accountability. Yesterday we reported on the soaring salaries and inflation-dwarfing increases enjoyed by university principals, which have antagonised students. academics and support staff. Today the focus is on financial sustainability. Dundee University's, in particular.

Professor Sir Pete Downes, Principal and Vice-Chancellor, who incidentally received the largest overall salary increase last year, fears a deficit in its 2016/17 finances of between £8 million and £10 million, thanks to a 3.3 per cent reduction in government funding and rises in pension and NI contributions. Sir Pete spoke of several positive measures already in place but said the growth they would bring about would not ease the financial situation. Significant cost savings need to be made. In words that will give many staff members pause, he warned: "We are doing too many things that have an adverse effect on our financial position and we are not as efficient as we could be in the delivery of some of our research and teaching."

It is of course important to point out that Dundee's situation does not necessarily apply to every other university in Scotland. The wider reasons for its plight - the delivery of research and teaching - might not be replicated on other campuses. But every university is now studying the impact of the reduction in government funding imposed by the Finance Secretary, John Swinney. This is clearly a serious issue that will trouble the sector for the foreseeable future, and one which might potentially raise the spectre of tuition fees and other contentious matters. Those dark clouds are not going to be replaced by endless blue skies anytime soon.