Selling at below fEC

The basic rule is that public money should only support work for the public good. Therefore it is unlikely that selling services at below fEC to the private sector can be justified.

From the University’s point of view, pricing at below fEC puts a demand on resources. In the graph “Cost and Price by Sponsor Group”, the red areas indicate the income shortfall that requires a top-up.

This shortfall must be met from other funds, principally the Quality Research (QR) fund. (The level of QR funding is determined by performance in the last Research Assessment Exercise (RAE) of 2001.)

Using QR as a subsidy
Costing and Pricing