An Oxford college founded by a former bishop on Christian principles is to be investigated after making its chaplain redundant as part of a cost-cutting drive.

St Peter’s College, which has made a number of staff redundant after experiencing financial difficulties, faces an inquiry by the Right Rev Colin Bennetts, the Bishop of Coventry, into new arrangements for the chaplain’s role.

Andrew Moore, the chaplain, was made redundant this year and has taken the college to an employment tribunal claiming unfair dismissal.

Staff and students at St Peter’s are said to be concerned by the move because religion has been at the heart of the college since it was established in 1929. Its founding principles include a pledge to “diffuse sound information and teaching of and in Christian principles and doctrine”.

The bishop holds the position of Visitor of St Peter’s, a quasi-judicial oversight role used by academic institutions to deliberate on grievances against their governors.

St Peter’s statutes state that “it shall be lawful for him, as he may deem just, to confirm, annul, or vary” decisions made by its master or governing body. Visitations do not have to be made public, but are extremely rare.

Since Dr Moore’s departure in March, Bernard Silverman, the master of the college and an ordained priest, has taken on the role of chaplain in an unpaid capacity. It is thought that the Visitor is to examine whether the statutes of the college permit a person to fill both roles.

Professor Silverman confirmed yesterday that a visitation would take place. “A visitation does not necessarily involve an actual visit,” he said. “It is a legal term for looking into an appeal or other matter. This is in connection, I understand, with the office of chaplain.”

The college also made redundant its deputy bursar, head porter, catering manager and a butler after its 2005-06 accounts showed a fall from a £500,000 operating surplus to a deficit of more than £350,000.

Professor Silverman said: “The college realised that if it did not take action to reduce its staff and other costs it would lead to financial difficulties. The vice-master reviewed a number of posts in order to avoid such difficulties. We have made a number of posts redundant and have decided not to fill a number of vacancies that have come up.

“The college is in full control of its affairs and keeping a tight rein on its employment. Had we not made redundancies we would have made larger and larger deficits and then we would have got into greater and greater financial difficulties.”

The chaplain’s role at an Oxford college encompasses not just the taking of chapel services, but also a wider pastoral remit. Chaplains are regarded by students of all faiths as friendly confidants whose doors are always open.

Students at St Peter’s have lobbied the governing body to revoke the decision. One member of the college said: “People were angry about how Andrew was treated. In addition, many do not feel that the master will be able to objectively fill the role of the chaplain because of a conflict of interest with regard to pastoral issues.

“Andrew took a real interest in the welfare of students and was valued by students, irrespective of religious belief. This is quite a sensitive issue and some members of staff were also very angry about the situation.”

Professor Silverman said that the college had a tutor in charge of student welfare, and that there was “no conflict” on welfare grounds. The Bishop of Coventry refused to comment on the situation at St Peter’s. Dr Moore could not be contacted. He is thought to be overseas.

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