The University of Ulster’s multi-million pound plan to centralise in Belfast was in doubt today after the Employment and Learning Minister raised serious concerns over funding for the project.

In an interview with the Belfast Telegraph, Sir Reg Empey warned the UU that its intentions to expand the Belfast campus could run in to serious planning problems and that Government funding was not guaranteed.

We revealed UU’s shock plans to move the majority of its Jordanstown courses to the Belfast campus in the city’s Cathedral Quarter last December.

In February the university confirmed that the project would be funded out of its capital budget.

Sir Reg warned that although funding for the university increased this year, this is likely to stop.

“I have made it clear to the universities that they must not make assumptions that funding for either capital or revenue is going to be available on the current pattern,” he said.

“Sammy Wilson has said that the Chancellor (Alistair Darling) expects a reduction of 6.9% per annum in capital from 2011 to 2014. That is roughly a quarter in three years.”

The minister added that he has not yet taken a decision on the University of Ulster’s proposal. “They have a very ambitious plan and think they can handle a fair bit of it out of their own resources which is fine.

“But we would not be making a decision on it until we consider the business case.”

The UUP leader predicted there will also be “huge planning issues” with the project.

“The big problem is accommodation. Currently a lot of Jordanstown students are in the Holyland.

“If they build a significant Belfast campus over and above what they already have, where are those students going to go? I would have thought that the planners would have a fair bit to say about that and it may be that part of the development will have to be significant student accommodation in that area. At present there is absolutely nothing in that area you could remotely describe as suitable student accommodation. If nothing is done about it, this would increase the pressure in the Holyland.”

Sir Reg drew attention to tensions in the Holyland area caused by anti-social behaviour from students living there. This came to a head on St Patrick’s Day earlier this year when drunken students went on the rampage.

“In light of what has happened in the Holyland, it wouldn't make sense to concentrate more students in there. In fact we would want to be moving in the opposite direction,” Sir Reg added.

In response to the minister’s comments on the Belfast campus expansion, a UU spokesman said there are no plans for any net increase in full-time students in the greater Belfast area as a consequence of the relocation of courses.

Accordingly, there is no expectation of any additional net housing demand in the city attributable to the relocation, he added.

Last month the UU’s vice chancellor launched a surprising attack on Sir Reg, accusing him of “playing games” with the future of the university.