ECONOMIC opposition to a controversial scheme by a Scottish university to open a campus in New York "could gain greater purchase", the institution's principal has warned.

Glasgow Caledonian University (GCU) made its case for the £10 million campus to receive degree-awarding powers last week at a hearing in New York and a final decision is expected in July.

However, in a message to staff principal Professor Pamela Gillies warned fears over competition from local rivals was a growing issue.

She said: "The arguments presented by the objectors covered areas such as governance, finance and negative press coverage in Scotland, but focused primarily on the issue of competition.

"We had previously been advised that competition was not an acceptable ground for objection. It is our understanding that this should technically remain the case, but it may be that arguments which could be interpreted as economically protectionist can gain greater purchase today than they would have previously.

"Despite this, I believe that the Regents were fair in their overseeing of what was a challenging and rigorous hearing, and that we posited a truly robust and exhaustive case."

Nick McKerrell, a trade union convener at GCU, said: "As staff hear more about the New York hearings more is being revealed that we were ever aware of.

"With an expenditure of £10m so far it is now clear that proper due diligence was not done when this scheme was launched four years ago and the unions at GCU will continue to campaign for an independent audit of the whole project."

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