THE principal of a cash-strapped college has accused "troublemakers" among the staff of "seeking to do damage" to the institution.

Martin McGuire, principal of New College Lanarkshire, claimed some workers are spreading rumours that college campuses are to close and jobs are being axed.

While the college had an underlying deficit for 2016-17 of £560,000, he stressed the financial situation is improving.

Mr McGuire told MSPs on Holyrood's Public Audit Committee: "For some staff at the minute, it doesn't matter how many times I tell them that there will be no compulsory redundancies, that no campuses are closing.

"I think there is a rumour mill, I think there are people actively seeking to do damage within the organisation and upset people.

"I think if people are putting rumours out that we're closing campuses in spite of the fact I continually say we are not, I think somebody is obviously starting those rumours."

Airdrie and Shotts MSP Alex Neil told the college boss: "That was a pretty incendiary statement."

Committee convener Jenny Marra also challenged him on the remarks - before going on to ask if he is the best person to take the college forward.

She told him: "You said there are troublemakers amongst your staff. I'm very concerned by that statement and the relationships you will have to foster to take the college forward in difficult times.

"Are you really in a position to take staff forward and to take the college forward?"

Mr McGuire told her: "I think I am. I think there will be people watching this just now that will be quite happy I have said that, because a lot of staff are getting fed up with the constant rumours and the constant undermining that is happening."

But he also stressed the need to get a "solid, sustainable financial model" for the college - which was formed from the merger of three local institutions and has around 17,000 students.

Mr McGuire said it is "important to remember the deficit has come down", adding that "whilst the £500,000 deficit is not anything we would want, it has been a marked improvement".

He spoke about issues affecting the college sector, saying strikes over the last year had "caused division in staff rooms".

With some 130 jobs lost in the wake of the merger, he conceded "workloads have increased right across the board".

He went on to argue the college's financial situation is also impacting staff, saying: "Morale is affected, there's no doubt about it. There's a whole load of rumours going about campuses closing or whatever. I had to put an email out to staff last week to assure them there were no campus closures.

"There is a fear amongst staff when colleges go into deficit and they look at other organisations that are looking at compulsory redundancies. So we have tried to assure staff that that certainly won't be the case in our situation."

However, a written submission to the committee from the EIS-FELA teaching union raised concerns about the culture at the college.

It said: "With regard to the current deficit, our principal made staff aware there were financial pressures on the college due, he maintained, to under-funding by the Scottish Funding Council, but despite repeated requests would not provide details.

"The impact of the financial difficulties on the daily operations created an extremely stressful working environment and has led to strained relationships at all levels.

"Teaching workloads are unmanageable, and conflicts arise daily over job roles and related tasks. Staff absences, often due to stress-related illnesses, can lead to further stress on remaining staff."

"We are further concerned by the statements by the Auditor General regarding a potential management re-structure and potential review of the number of campuses from which we operate. Both these measures have the potential to significantly impact on our members."