A NORTH-EAST university has agreed in principle to charge students the maximum £3,000 per year tuition fees from 2006 - if Parliament approves the Government's controversial proposals for variable fees.

The University of Newcastle yesterday informed its 4,200 staff of the decision by its ruling council. Until now, the university had refused to commit itself on the fees issue.

Council members said they noted the concerns of students and agreed that the university would plan for "very significant" bursary support for students - most likely in the form of cash aid to students from poorer backgrounds.

The university said its hardship support schemes for students may also be beefed up.

Full-time undergraduate students currently pay up to £1,125 in tuition fees.

The Government plans to transfer the fee from an upfront contribution to a scheme of repayments starting when a student is earning £15,000 a year.

The university's Vice-Chancellor, Professor Christopher Edwards, said: "This is obviously a very difficult issue. It is already the case that most of our students graduate with significant debts.

"However, the Government has made clear that the extra income to be generated from the top-up fee represents the most significant element of additional funding coming into the higher education system for the foreseeable future.

'The higher education system remains grossly under-funded.

"If we do not increase our income from this source, then the university will not be in a position to address the serious problems of under-investment."