Exclusive:Why 'very worried' John Swinney will not step in to save crisis-hit Dundee University

The First Minister said he was “wholly committed” to the university and wanted to ensure it continued to thrive both domestically and internationally.

The university is grappling with a £30 million black hole in its finances and last year it said it was planning to cut jobs.

In an exclusive interview with The Steamie, The Scotsman’s politics podcast, Mr Swinney said: “I am really concerned about the situation at Dundee, I don’t like what I’m hearing.

“I am very worried about the situation there and worried for the staff who are having an anxious time. What we have in place is the Scottish Funding Council, which acts essentially on the Government’s behalf on engaging with universities.

“I know the funding council is actively engaging with the university on these issues and they will advise me on the impact of the situation.”

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Dundee University staff have even been warned the university could close in as little as two years if spending is not drastically reduced. Both its principal Iain Gillespie and international vice-president Wendy Alexander resigned over the financial crisis.

Mr Swinney said: “Dundee has an absolutely phenomenal international reputation in so many aspects, particularly life sciences, and is a huge generator of research. I am wholly committed to making sure Dundee is able to continue to do that.”

However, Mr Swinney said he, as First Minister, was not able to step in should the university collapse.

Earlier this month Higher Education Minister Graeme Dey refused to say whether or not the Scottish Government could step in if Dundee University was at imminent risk of closing down.

When asked by The Steamie if he would step in, Mr Swinney said: “The law prohibits me from doing that. But the funding council, they are the interlocutor with Dundee and we talk to the funding council on a regular basis.

“But I absolutely value and cherish Dundee University and its significance within Scotland, the Scottish economy and its international reputation, and I want to make sure that continues.”

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There have been some criticisms the way of funding Scottish students’ tuition fees has contributed to the financial crisis engulfing Dundee. However, the First Minister said his Government had no plans to revoke free tuition fees any time soon.

He said: “I am wholly committed to maintaining a tuition fee free environment in Scotland. It’s the right model of access to higher education in Scotland, it is a firm part of Scottish society and it matters to me.”

Mr Swinney dismissed the impact free tuition fees were having on university finances, saying: “I don’t think that’s the case - universities to a varying extent have varying levels of contribution to the overall finances from government.

“For some, the level of government contribution is very much the minority of their finances and then there are others at the other end of the spectrum. But I think the way in which we fund universities is robust and I want to make sure we maintain free access to university.”