Valerie Vaz Portrait Valerie Vaz
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Q A quick question about clause 2, which is on general duties. Subsection (1)(c) refers to

“the need to promote value for money”.

Do you know what that means and do you think it would help to include a public interest amendment there?

Professor Simon Gaskell: That covers a lot of things. I think universities absolutely do know the value for money. Certainly my finance and investment committee is very keen on value for money and we work on that all the time. In a sense, this addresses a general point—the fiction that the universities do not work in a competitive environment. The current environment is highly competitive. Talk to my colleagues who worked like Trojans a couple of weeks ago on confirmation and clearing—hugely competitive. All this adds up to a very significant current demand for value for money. So, yes, universities do understand what that means.

Alex Chalk Portrait Alex Chalk (Cheltenham) (Con)
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Q This is about seeing if we can have new providers in the sector. Mr Proudfoot, what is your assessment of the level of demand for new providers?

Alex Proudfoot: The level of demand is clearly significant because already between 250,000 and 300,000 students are currently studying with alternative providers. I do not foresee a deluge of new providers opening up the day after the Bill passes. At the moment we have 700 institutions in the UK which are not considered part of the mainstream framework. We need to be able to bring them into the mainstream framework and provide effective regulation for the benefit of students and taxpayers and provide information that students can use to make choices between the providers.

I think there will be some new providers interested in coming into the sector and some interesting innovations. Already we have seen in the past few years, for example, large employers starting their own colleges and higher education programmes, simply because they were not finding the graduates they needed to take the jobs they had available. That should be encouraged and the opening of overseas higher education institutions could, of course, be a positive effect.

Professor Joy Carter: Current demand requires an environment where bold, innovative, new higher education flourishes. The Bill allows us to do that, but we have to maintain the reputation of UK higher education and the autonomy which leads to that reputation.

Roger Mullin Portrait Roger Mullin
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Q The way in which discussions about diversity have been confused with the need for new entrants has been very unhelpful. I come from a Scottish tradition where I would say that quality enhancement of existing institutions is the way to create diversity. When I look at the landscape in Scotland with everything from the University of the Highlands and Islands to traditional universities such as Edinburgh and newer universities such as Stirling, there is plenty of diversity through quality enhancement.