Cardiff University pushing ahead with plans to open a campus in Kazakhstan while slashing jobs and closing courses at home would be a "national disgrace", the Senedd heard.
Cefin Campbell criticised last week's bombshell announcement from Cardiff University that 400 jobs were at risk, with courses including nursing and music facing the chop.
The shadow education secretary said it is not the only institution treading troubled waters, with a combined deficit of £70m based on 2023/24 financial statements.
He warned that Welsh universities face further pressures, including extra national insurance costs of around £20m and a loss in income from international recruitment of £70m to £80m.
Leading a debate on Wednesday, the Plaid Cymru politician said Aberystwyth University's most recent financial report notes the "increased use of a revolving credit facility".
'National disgrace'
He told the Senedd: "It beggars belief that the Welsh Government have let the situation get to the stage where one of our higher education institutions is, effectively, using something akin to a credit card to help balance the books."
"Furthermore, due to budgetary pressures, Trinity St David's has announced the closure of the historic campus at Lampeter for undergraduate degrees. We cannot let the birthplace of higher education in Wales be the beginning of the end for our university sector."
His party's motion called for a new higher education strategy, an assessment of the impact of plans to close the nursing school and an evaluation of the pressures faced by universities.
Natasha Asghar, the Conservatives' shadow education secretary, warned the Cardiff cuts would be catastrophic for staff, students, the economy and the country as a whole.
Ms Asghar questioned the university's plans to open a campus in Kazakhstan, saying: "It would be a national disgrace if these closures and job cuts go ahead while the university pushes ahead with its plans for an overseas outlet."
'Technocratic shambles'
Warning of a crisis in funding, Labour's Julie Morgan said: "I've also been told that the university has offered staff at risk of redundancy a range of mental health support services to help with receiving these letters saying that they are at risk of redundancy."
"However, when members of staff are contacting these services, they're being told that the services are booked up until March, which is a bitter pill to take."
The former minister said she has heard some staff have been told to prepare to teach from the campus in Kazakhstan next year.
Mick Antoniw, also a Labour backbencher, criticised the university's "short sharp shock"-style approach which "drives a coach and horses through the whole process".
He quoted a constituent as saying: "This centralised technocratic shambles has been driven by bureaucrats at the centre. It is certainly not co-created as the vice-chancellor claims."
'Riddled with flaws'
Hefin David, who declared an interest as his partner Vikki Howells is universities minister, criticised Mr Campbell's "mean-spirited" contribution.
Dr David, a former lecturer and a member of the University and College Union (UCU) for 25 years, criticised Cardiff University's "unforgiveable" strategy.
He warned wider challenges and the Welsh Government are being used as cover to pursue an elitist agenda.
"A smaller university is more likely to become an elite university," he said.
Lee Waters, a fellow Labour backbencher, said: "I'm afraid they [Plaid Cymru] call for more money for one department without being willing to confront the trade-offs from others."
"And attacking the minister, Vikki Howells, is not fair – she is not to blame for a higher education system riddled with flaws."
'Short sighted'
Questioning a "short-sighted" strategy of focusing on international students, he criticised Cardiff University leadership's "poor" handling of a foreseeable deficit crisis.
Ms Howells rejected claims universities are underfunded as she criticised "irresponsible" opposition members for suggesting some institutions are on the brink of collapse.
"We also need to be frank," said the universities minister. "Even if we were to cut grants for students or divert funding away from the NHS, schools or local government to increase funding ... universities would still need to change."
Ms Howells, a Cardiff University graduate, pointed to a significant drop in international postgraduate enrollments and the loss of millions of pounds in EU structural funding.
Senedd members voted 43-12 against the motion, with the Tory amendment also falling before the Welsh Government's amended version was agreed 29-12 with 14 abstaining.

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