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Ministers are putting forward a plan to bracket universities with further education colleges to make a single upper education sector, BBC Scotland has learned. They would be collectively called Specified Tertiary Education Providers (Steps). College and university leaders, who learned of the proposals on Thursday, were taken by surprise as they believed that the Scottish Executive was merely planning to merge the funding quangos for each sector. Scotland's universities, which have a global reputation, are concerned that if the proposed restructuring goes ahead, they will lose their distinct identity and ability to attract research contracts and overseas students.

One education chief, Universities Scotland director, David Caldwell, said the move would be damaging. Mr Caldwell said it was vital to preserve the tradition and mission of higher education in Scotland. He added: "International reputation is a large part of it. If we fudge the difference between distinct missions of higher and further education, then we would buck a significant international trend. "It's a distinction made all over the world which is vital. Anything that damaged our international reputation and limited our ability to attract international students to Scotland would be a problem." The executive distributed the plan to principals across Scotland late on Thursday advising them that it would be published on Friday. We want someone who is studying the same course in college to be treated the same way as someone in university Rami Okasha National Union of Students Scotland But on Friday an executive spokeswoman said she was unable to specify when the document would be published. She stressed that restructuring does not mean full merger of colleges and universities and dismissed claims from some university principals that universities would effectively "disappear" . She added: "There will be no change in the legal status of universities or the names of institutions." The proposed new system is designed to give the further education college sector, traditionally the Cinderella of Scottish education, greater status and encourage more people from poorer backgrounds to progress from a college qualification to university. Colleges will also receive better funding to allow them to tackle crumbling buildings and introduce better facilities. Under the single system, it would be easier for students to move up to university after gaining a college qualification. Consultation document They had expected simply to receive details of executive plans to merge the funding quangos for each sector. Universities are not disputing the long-heralded plan to merge the two sectors' funding quangos. But many principals are angry at the surprise extra proposal to bracket universities with colleges under the collective title Steps. Dr Ian Johnston, principal of Glasgow Caledonian University, said he was concerned that the proposed restructuring would diminish his institution's distinctive characteristics. He said he was opposed to the proposal to divide old and new universities in the new framework and added: "But we do object strongly to the Specified Tertiary Education Provider (Steps) idea, reintroducing the binary line - we simply can't believe ministers or officials mean that." But there have been voices of support for the possible change. One was from Rami Okasha, president of the National Union of Students Scotland. He said: "We think the great divide in Scottish education is between compulsory and non-compulsory education rather than between students who go to college and university. "We want someone who is studying the same course in college to be treated the same way as someone in university." Scotland's university system dates back to the early 15th century, when the University of St Andrews was founded, and has a worldwide reputation. The plan to end centuries of tradition and excellence seems certain to meet with opposition. There would be four grades of the new Steps institutions, with new universities graded below older ones. Principals also fear that under the proposals they may lose some of their autonomy and be faced with greater competition from the private sector.