Universities warned over fee fixing
Representatives from Oxford University have supposedly held meetings with other top British universities about issues surrounding top-up fees, leading to possible allegations of price fixing.
The discussions of the Russell Group of 19 British universities concluded that the proposed maximum annual cap of £3,000 should be lifted to £5,000.
This has, however, brought lawyers surging forth with warnings that, should the meetings result in their fees policies falling in line, universities could face charges of price fixing, under competition law. The Department for Education and Skills (DfES) hopes that universities will create a dynamic market, setting their fees in accordance with the cost, prestige and demand for courses. However, Blake Lapthorn Linnell, specialists in education law, have written to clients explaining that universities charging the full amount, as expected, could be penalised by the Office of Fair Trading.
The letter, presented to The OxStu by Derek Elsey, a solicitor with the company, says: "A dishonest agreement to fix prices now amounts to a cartel offence rendering the institutions that have taken part and their directors or governors liable to criminal action", which can result in fines of up to ten per cent of three years' turnover.
Sir Michael Sterling, chair of the Russell Group, dismissed allegations that a flat fee rate of £3,000 (should that be the eventual cap) would be evidence of unlawful price fixing, on the grounds that the extra fee still fails to meet costs.
A spokeswoman from the Oxford University Press Office told The OxStu: "Oxford University will not be making any decisions about the level of fee we will charge... until the final shape of any legislation is clearer."
Student activists should take heart, as the DfES has rejected the proposed increase, saying: "are we going to introduce more competition by raising the fee cap to £5,000? Clearly not". Under the new education act, any increase in the fee threshold would have to be endorsed by a Commons vote.
12th Feb 2004