The legacy of Bangor University vice-chancellor John G. Hughes (2010–18)

Bangor University is running a redundancy programme, and is proposing to shut its Chemistry department. Its VC, John G. Hughes, will retire at the end of 2018. UUKspin investigates.

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I. The Hughes Identity

On 30 November 2018, Bangor University announced that its Vice-Chancellor, Professor John G. Hughes, would ‘retire next August after nine years in charge’. On 11 December 2018, Bangor University then announced that Hughes would retire ‘at the end of December 2018’.

At the same time, Bangor University staff are under the threat of compulsory redundancies and is proposing to close its Chemistry department. What is going on?

Before we dive deeper, here is the ‘official line’ from Bangor. Bangor’s Chair of Council Marian Wyn Jones (former Head of Centre for the BBC in North Wales) said:

I am extremely grateful to Professor Hughes for his remarkable contribution. He has overseen tremendous change at the University, and has always ensured that students remain at the heart of everything we do.

According to the official line, John Hughes’ reign from September 2010 to 2018 has been full of glorious achievements. These included:

  • The new £38m St Mary’s Student Village
  • The first ever collaboration between Wales and China to establish a new college in China
  • The opening of the £20m Menai Science Park
  • The opening of the £5.5m Marine Centre Wales at Menai Bridge, which was part of the £25m SEACAMS project
  • The completion of the £50m Pontio project
  • The first university in Wales to be rated ‘Gold’ by the new Teaching Excellence Framework (TEF)
  • The latest Research Excellence Framework (REF 2014) also recognised that more than three-quarters of Bangor’s research is either world-leading or internationally excellent
  • Enhanced its research expertise in the areas of materials science and predictive modelling in 2017 through a collaboration with Imperial College London and the formation of the Nuclear Futures Institute at Bangor with the award of £6.5m in funding under the Welsh Government’s Sêr Cymru programme

However, by 11 December 2018, Bangor University’s tone rapidly shifted. The following is Bangor’s Chair of Council Marian Wyn Jones again:

Given the number of challenges currently facing the University, many of which affect its strategy, direction and long-term success, we concluded that it would be in the university’s best interests for those issues to be dealt with by a team which will be able to see through the changes, not only during the forthcoming months, but crucially also into the next academic year.

How come a vice-chancellor with a catalogue of ‘remarkable contributions’ is not a suitable ‘leader’ to deal with the ‘challenges currently facing [Bangor] University’?

II. The Hughes Supremacy

Under the leadership of John Hughes, Bangor University constructed many shiny new buildings at tremendous cost — Pontio Centre, Bangor College China (in Changsha and jointly established with the Central South University of Forestry and Technology), Menai Science Park, St Mary’s Student Village, and Marine Centre Wales. However, it is hard to find any mention of these buildings being profitable in any of Bangor University’s literature, including Bangor University’s Annual Accounts. There are plenty of references to their strategic importance (Pontio, Bangor College China), or to them negatively impacting cashflow (Menai Science Park), or to them being very long-term commitments (St Mary’s), or to them being financed by the European Investment Bank (Marine Centre).

For example, the Pontio Centre:

We have recently invested in a number of new developments including the £50m Pontio Centre which has lecture rooms, social learning spaces, a theatre, cinema, innovation space and a new home for the Students’ Union. (Bangor University Annual Accounts 2016–17, p.2)

Finally, in respect of civic engagement, it has been a very exciting year and the recently opened Pontio building is providing an artistic programme of the highest quality which is innovative, ambitious and one which resonates with and is relevant to our communities and audiences. (Bangor University Annual Accounts 2016–17, p.4)

Bangor University’s materials, of course, do not mention the widely known mismanagement of the Pontio project, and its timeline of delays and ballooning costs:

2007 — Plan for performing arts centre announced to replace the 30-year-old Theatr Gwynedd which closes a year later
2010 — £35m Pontio plans unveiled to ‘put Bangor on the map’, with hopes of opening in 2012 with theatre, cinema and centre for innovation and creative industries
2011 — Official launch in January; Pontio chief executive Robert O’Dowd resigns in August after only a year in the job
2012 — Work due to start in summer, delays blamed on EU purchasing processes. Cost is now estimated at £40m
2013 — Foundation stone laid in January, with expectation of opening in 2014. Cost now estimated at £44m. Pontio events begin at other venues and in the community
2014 — Bryn Terfel visits site, with main theatre to be named after him. Opening date due to September but postponed two weeks before with building work not ready. ‘Difficult and painful’ decision until February 2015. Contractors blame ‘challenging’ schedule; cost is now £49m.

The Pontio Centre eventually opened in December 2015, and the total cost became £50m (the delay added another £1m to the £49m mentioned above). While there is no reference in Bangor’s Annual Accounts, anecdotal reports suggest hat Pontio makes a loss, incurring very large running costs.

Bangor College China is mentioned in Bangor University 2017 Annual Accounts (p.2) as ‘strategically important’, but again there is no reference to any profit generation:

Approaching 400 students are now studying in the strategically important Bangor College China, a collaboration between Bangor University and The Central South University of Forestry and Technology in Changsha, China. Our teaching input began in the 2015/16 year, and we have recently welcomed over 130 students into the UK to continue their studies in this country ahead of their graduation. (Bangor University Annual Accounts 2016–17, p.2)

We shall continue to develop our international reputation, to offer high-quality international education, to integrate international students with domestic students, and to provide a relevant modern curriculum that is locally situated but globally applicable. This ambition will be facilitated by building links with partners, as evidenced in the case of Bangor College China, that allow two way physical exchanges of staff as well as students, leading to a broadening of individual experiences and cultural integration.(Bangor University Annual Accounts 2016–17, p.4)

Marine Centre Wales at Menai Bridge was new in 2016. We cannot find any reference to how much it costs, but it is funded by loans from the European Investment Bank.

On St Mary’s Student Village:

On 23 July 2014 the University entered into a 40 year contract with a third party provider for the provision and maintenance of accommodation to 602 students. The assets and liabilities relating to this scheme are recognised on the University’s Balance Sheet. The service commenced on 25 September 2015 and the contract will finish on 24 September 2055. (Bangor University Annual Accounts 2016–17, p.31)

Unfortunately, Menai Science Park seems to generate significant cash flow problems:

Finally in relation to cash flow, the reduction in operational cash generation this year is explained by the timing movements around the receipt of Capital Grant monies relating to the Menai Science Park in particular, where payments have exceeded receipts by £4.5m (Bangor University Annual Accounts 2016–17, p.7)

Investment into shiny new buildings coincided with rounds of restructuring and ‘voluntary redundancies’ in 2017 (BBC News, 7 June 2017; Wales Online, 14 June 2017). In an all-staff email from mid-November 2018, John Hughes indicated that Bangor was still in financial trouble. The University would need to lose 50–60 posts and a £5m reduction in its cost base; hundreds of staff then received emails that their jobs were at risk of compulsory redundancy.

In my message to staff last month, I indicated that the University faced a deficit of the order of £5m this year, with a risk of this growing significantly over the next two years. This risk could lead to a shortfall of the order of £15m by 2020/21 unless corrective actions are taken now. The focus of the Executive has been to explore and consider a range of measures to ensure that Bangor University does not face deficits of this nature. This is a very prudent approach to adopt, particularly in the light of recent media speculation that some universities in England are on the point of financial collapse.

Bangor University is not in this position because, although we are faced with rising costs and reduced income, the steps we are taking to manage our finances will deliver a stable financial future for our University.

No decisions other than the 10% reduction in non-pay expenditure have yet been made. Over the next two weeks, the Executive will continue to develop further proposals that will enable us to reduce expenditure while maintaining our core strengths as a university. Any potential staff reductions that may arise from these proposals will be consulted upon. We will also examine ways to increase revenues wherever feasible.

The Executive is working to finalise our proposals ahead of the next Council meeting on November 30th, and no decisions will be made before that date. We will continue to keep staff, the Trades Unions and students informed of the situation as it develops over the coming weeks and months. Once Council has met, we will, near the beginning of December, circulate consultation documentation, which will provide details of proposals.

If staff wish to provide ideas or suggestions to the discussion on cost savings, please share with your Head of School, Dean of College or Head of Professional Service. Alternatively, suggestions can be forwarded to HR or to your Trade Union representatives.

I fully appreciate that our need to achieve further cost savings is coming at a time when staff in many areas of the university are already working under constrained circumstances. Actions we take now to meet these challenges will help to ensure that we will have a successful and sustainable future.

Hughes largely blamed this financial situation on there not being enough students, and on there being too many staff. He gave an interview to Bangor’s student newspaper, Seren (19 November 2018), where he mentioned falling student numbers (due to the ‘demographic dip’ and fierce competition from neighbouring universities). Tellingly, the knock-on effect of this is not just fewer students’ fees to collect, but empty beds in the student halls that the university is locked into until 2055. From the Seren interview:

A university’s main source of income is tuition fees. Bangor weathered the storm for a number of years, in fact we saw a large increase in students 2013/14. But in the last few years, the numbers have dipped. Not hugely, about 6% or 7% percent. If you couple that dip with the fact that there’s going to be empty beds in student halls, the accumulative effect of that meant we needed to cover costs of around £5m.

One of the things we did was cut non-pay by 10% — money that departments spend on equipment and travel. That alone is a saving of £4m as our non-pay is around £40m a year. And what we’ve said to heads of schools is that they are there to protect the student experience at all costs. Many of the student facing areas will be protected and have been protected for the last few years.

Reduce the number of staff. There’s 2,100 members of staff in this university, we’re talking about downsizing by 50, so it’ll only be a tiny proportion of the staff. As far as we possibly can, we’ll do it by natural wastage — people retiring and won’t be replaced — or by voluntary redundancy.

However, Hughes was very keen to emphasise to students that the university’s financial difficulties were relatively small. His interview continued:

What we’re doing is taking prudent steps to make sure we don’t get into a serious situation. There was a headline in The Times about three English universities being close to bankruptcy. An important point is that Bangor is nowhere near that. We have a relatively small problem, but it could become a big problem if we don’t deal with it.

Students don’t have to worry at all about the financial situation. We’re not in significant financial difficulties. We have a short term financial deficit that we have to deal with. Students shouldn’t see any of the effects of the cuts that we’re making.

The picture at Bangor, however, is complicated by the University’s 2017–18 Annual Statement, released in mid-December 2018. According to graphs presented in the Strategic Review (pp.2–8), contrary to John Hughes’ statements:

  1. Bangor University has had a stable trend in both domestic and international student numbers over the last 6 years (p.5)
  2. Bangor University has significantly decreased its staff costs as a percentage of income over the last 2 years (p.7)
  3. Bangor University has significantly increased its cash flow and liquidity position over the last two years (p.8)

Also of note (p.28):

  1. Total staff numbers (FTE) have decreased from 1,812 in 2016–17 to 1,685 in 2017–18.
  2. Key management personnel and key management personnel staff cost has remained stable from 2016–17 to 2017-18, i.e. 10 staff with a cost of £1.44m in 2017-18 (£1.5m in 2016-17). This is an average cost of £144,000 for each key management staff.

The Annual Statement also shows that Bangor University has accumulated a surplus of £19.97m (2017-18), compared to a deficit of £8.03m (2016-17) (p.16). Bangor has total reserves of £238m, of which almost £230m are unrestricted (p.19).

III. The Hughes Ultimatum

According to an all-staff email dated 30 November 2018, John Hughes ran out of ideas. He stated his intention to retire in August 2019, and:

Having recently had my 65th birthday, I consider now to be a good time to hand over to a new Vice-Chancellor who will bring a fresh perspective and new ideas.

Marian Wyn Jones then wrote (also on 30 November):

The process of appointing a successor will begin immediately, and will be led by a Committee of Council. I very much hope that we’ll be in a position to appoint a new Vice Chancellor in time for the new academic year, bringing a fresh perspective and renewed membership.

And as we mentioned above, by 11 December, it was decided John Hughes would instead retire at the end of December 2018. Did Bangor’s Council decide to effectively sack Hughes?

Since Hughes’ arrival at Bangor in 2010, he had faced one scandal after another:

  • Installed himself in a £475,000 mansion in Anglesey that the University purchased (BBC News, 15 September 2010)
  • Spent £267,000 on renovating the mansion, with £16,000 of Laura Ashley furnishings that included £700 on cushions (The Times, 7 August 2017)
  • Appointed his then wife, Dr Xinyu Wu, to a newly created post — Director of International Development — with a salary £75,000 (Wales Online, 19 October 2010; The Telegraph, 21 December 2018)
  • In 2015–16 financial year alone, Hughes racked up £19,670 expenses including £8,880 in hotel bills (Daily Mail, 6 August 2017). Other members of university management also appeared to enjoy lavish expenses — Sheila O’Neal, Executive Director of Development, ran up a £45,000 expenses bill in 14 months, including a £10,000 trip to New York for herself, John Hughes, Hughes’ then wife Dr Xinyu Wu, and the artistic director of the Pontio Centre Elen ap Robert (Daily Mail, 17 March 2015)
  • In 2017–18, Hughes’ emoluments amounted to £257,000 (salary of £252,000 plus ‘pension contributions to USS in relation to deficit recovery plan’ of £5,000) (Bangor University Annual Accounts 2017–18, p.29). In 2010–11, Hughes’ emoluments were £242,000 (salary of £213,000 plus pension contributions of £29,000) (Bangor University Annual Accounts 2011–12, p.27). In other words, during this time period Hughes’ basic salary increased by 13.6%.

One might argue that many of the above actions and negative coverage in the media would constitute ‘reputational damage’ to Bangor University. In the end, it was revelations of Hughes’ private life — from leaked emails and LinkedIn messages — that led to his premature retirement (BBC News, 11 December 2018; The Eye, 11 December 2018; The Telegraph, 21 December 2018).

In an email dated 30 November 2016, sent from John Hughes’ Bangor University account to his ex-wife Dr Xinyu Wu, with the subject title ‘My new love’, Hughes attaches a picture of him with his new partner — understood to be a Bangor student or alumna, originally from China — and an accompanying message that read ’10 years younger than you and we are planning a baby girl!’

On 21 December 2016, John Hughes sent a LinkedIn message to his ex-wife’s new husband, with the subject ‘Xinyu’ (referring to Hughes’ ex-wife Dr Xinyu Wu). Hughes wrote, ‘Well done mate. I had her youth and her beauty, you will have her menopause and her old age (have you seen how Chinese women age!). Meantime, I have found a much younger partner — my [redacted]’.

According to The Telegraph (see also BBC News, 20 December 2018; Wales Online, 22 December 2018), Dr Xinyu Wu stated that Hughes’ messages ‘were not only harassment but they were ageist, sexist and racist’. They indeed cast serious doubt on John Hughes’ character and judgment.

In an all-staff email dated 10 December 2018, Hughes claimed that the messages were ‘doctored’:

Dear colleagues,

This morning, some of you received an email purporting to relate to my private life. The messages attached to this email dating from 2016 have been doctored and, whilst I do not want to go into details regarding what is clearly a very personal matter, I wanted to assure you that the messages are not what they seem.

I am sorry that this has been distributed and I apologise for any distress or unease it may have caused.

Yours sincerely,

Professor John G. Hughes
Vice-Chancellor

IV. The Hughes Legacy

From anecdotal reports, John Hughes spent his final days of employment being escorted off university premises by security, to protect him from angry Chemistry students who fear that their department — one of the most highly regarded in the United Kingdom — is going to be axed. The students launched a campaign called ‘Bangor Needs Chemistry’.

Meanwhile, Bangor university staff have to face the festive season, worrying about their jobs and futures. The legacy of John Hughes is a long trail of destruction and sleaze.

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UUKspin
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