The White Paper on Higher Education has failed the university sector, according to rector Sir Richard Sykes.

Released on 22 January, the paper, cited as offering the biggest and most controversial changes in higher education for a generation, falls significantly short of providing universities with the means to compete internationally as world-class institutions.

"We're moving from education, education, education to regulation, regulation, regulation," he said. "An historic opportunity has been missed and it means we will not be able to raise sufficient funds to compete internationally. The whole thing has been stitched up."

The reforms fail to address the real needs of universities and Imperial will continue to lose around £1,000 per undergraduate student per year despite the rise in fees, he added.

"We've already lost five years since the Dearing report. The new fees don't start until 2006 and we won't feel the benefit until 2010. We will immediately charge the maximum £3,000 allowed but it's too little too late."

The rector also condemned the creation of the Access Regulator as a measure that makes universities responsible for failures in the education system at an earlier stage.

"An 'Access Regulator' is designed for party political purposes. Regulation is a blunt tool. Too often regulation further distorts a system rather than rectifying it.

"Imperial College's admissions policies and procedures are based on academic merit whatever the background of the student. The issue at Imperial, as elsewhere in the UK and abroad, is that of quality of the supply. Universities should not be expected to address problems of schooling, peer pressure and family expectations found in some parts of society.

"Imperial has many projects designed to raise aspiration and achievement in city schools. We will continue to welcome able students but admitting students onto our science, engineering and medical courses without them having the proper skills and prior knowledge to succeed would be unfair to them as well as others on the course."

Sen Ganesh, the President of Imperial College Union, agreed. "The proposed Access Regulator will compromise academic standards and increase university drop-out rates. Admissions standards in universities must not be diluted because of failure in the secondary education system, he said.

Very few could be happy with the package promised by the White Paper, the rector concluded. "This fee level is too low at this stage. If they had introduced it in 1997, then they could have set it at this level and we wouldn't have been in this dire situation now.

"If we want top-quality universities, then we have to be prepared to pay for it."

The White Paper's key points are:

• The cap on tuition fees will be raised to £3,000 from the current maximum of £1,100, paid after graduation once income reaches £15,000
• Students liable for the whole sum will be those whose parents earn over £30,000 - those who pay nothing now will pay a maximum of £1,900
• Students from families with an income of less than £10,000 will receive a grant of £1,000 each year
• An 'Access Regulator' will be appointed to monitor the proportion of students from poor backgrounds each university admits
• Best departments rated 5* in 2001 RAE to get 6* rating with boost in funding over next three years.

In the Commons ...
Charles Clarke, education secretary, said in the Commons: "The British system of student support will be amongst the most generous in the world. The fact that we're asking individual students to contribute, all be it after they've graduated, does mean that their potential debt is increased... I believe that taken as a whole, my student finance package is positive through access to universities.

"On average, graduates earn 50 per cent more than non graduates over their lifetime. I believe it's only fair for students to make some contribution to the cost of the education which gives them significant economic benefits.

"The truth is that without investment our universities will slip behind in the world rankings - damaging the economy and prospects for students."

Prime Minister, Tony Blair spoke of a six per cent real term rise in education which allowed more students from poorer backgrounds to go to university because no fees would be paid up front. The higher education budget will have risen by £2.4bn to £9.9bn by 2005-6.

Iain Duncan-Smith , conservative leader, rallied against him, claiming the White Paper's proposals would lead to higher student debt and more and more regulation. Others feared the most prestigious universities would be the most expensive, and the least prestigious the cheapest, putting off poorer students from applying to better places.