Economic Activity of Public Bodies (Overseas Matters) Bill Debate

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Department: Cabinet Office
Lord Hannay of Chiswick Portrait Lord Hannay of Chiswick (CB)
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My Lords, I, too, will speak to this amendment and do so, like the noble Lords, Lord Wallace and Lord Johnson, in relation to universities and higher education. I had some experience of that: I was on two university councils—those of Birmingham and Kent—and I chaired the Birmingham council for five or six years in the early part of this century.

I have to say to the Minister that, as a result of a lot of extremely desirable reforms, the decision-making at universities was concentrated quite heavily on the council. The council did not micromanage every decision, but it was responsible for every decision taken at the university. That responsibility was clearly focused on a much-reduced size of council, down from the 30s or 40s to the 20s, and it meant that a quite a lot of responsibility came on to its members, who were a combination of academics and lay persons—with a majority, on the whole, of lay persons. The lay persons on the council were volunteers and were not paid a penny. Now, if the vagueness in this bit of the legislation is retained, I would not like to be out there trying to recruit new members to university councils, if they thought they were going to be liable for any of the sorts of problems that could arise under this legislation.

I suspect that this is just one of many pieces of this legislation that reinforce the case for simply taking higher education and universities completely out of it. I think that is what we will come to when we get to Report. This is just the first illustration that it will have a remarkably chilling effect on the conduct of councils and the way in which people are prepared to serve—for nothing and as volunteers—on university councils, giving up many hundreds of hours of their lives to making sure that the university is properly administered and decisions properly taken.

Baroness Randerson Portrait Baroness Randerson (LD)
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My Lords, I preface my remarks by declaring an interest as chancellor of Cardiff University. I apologise that my duties at Cardiff University prevented me attending the whole of Second Reading—so I could not speak, although I attended a significant part of it.

Before I was chancellor of Cardiff University, I was a member of the council of Cardiff Metropolitan University, so I have a background in both executive and non-executive roles at universities. What I have to say very much follows neatly from the noble Lord. My experience is that university councils—and other bodies doing the same job but sometimes with different names—are very highly regulated already. They involve a great deal of training and responsibility and absolutely no financial reward—but there is great satisfaction for those who participate.

In both universities I have mentioned, our problem is always trying to get the suitable range of highly skilled, highly experienced people to participate. If you add another unnecessary layer of responsibility on to those people, you will deter very worthwhile recruits and you will make life more difficult again for our higher education sector. So can the Minister give us examples of universities—and individuals within universities—that have made these inappropriate decisions, so that we can see why universities are included? Otherwise, if there are no examples at the Minister’s fingertips, could the Government give further thought to whether they should be included at all?