Higher Education and Research Bill (Fourteenth sitting)

Debate between Gordon Marsden and Roger Mullin

Committee Debate: 14th sitting: House of Commons
Tuesday 18th October 2016 Public Bill Committees

[Roger Mullin]

What a pleasure it is to see you, Mr Hanson —my favourite Chair—[Hon. Members: “Ah!”]—for a Tuesday afternoon.

The Minister is such a reasonable person that I am sure he is keen to accept amendments 180 to 185. They would place a duty on the Secretary of State that in giving direction to UK Research and Innovation regarding research priorities, it is incumbent upon UKRI and the Government to ensure that the needs of the entire United Kingdom are met and to consult with Ministers in all the devolved jurisdictions.

The Scottish, Northern Irish and Welsh Governments must have a formal role in providing input to the UK Government. Too often, the needs of Scotland, Northern Ireland and Wales are forgotten. Allow me to give two examples related to the Bill—neither of which, I hasten to add, arose out of malice. My hon. Friend the Member for Glasgow North West and I noticed a few days before oral evidence sessions were due to start that every major institution in Scotland had been omitted from the list of those being called to give evidence. I know the Minister, and I know the Whip. They are reasonable people. I know they did not exclude us out of malice, but that omission demonstrated that we were an afterthought in a Bill Committee where they knew there would be representation from Scotland. For Scotland to be treated as a mere afterthought shows the need at times to put into legislation the right to be consulted. Being an afterthought is just not good enough.

Let me give another example. Later today, we will discuss an amendment relating to post-study work visas—a matter that has been raised many times by Scottish Members in this House and by the Scottish Government as it is of great concern to us and of great importance to our economy and our universities. What happened a few short weeks ago? Suddenly, the UK Government announced a pilot that involves no university in Scotland, Wales or Northern Ireland, nor any consultation with the Governments in the devolved Administrations. That is another example of us not being treated with any respect whatsoever. The amendment calls for formal recognition in the Bill that we will not be consigned to the role of a mere afterthought at the whim of this or any other Government.

The Scottish research sector has different priorities from much of the rest of the UK, and there is a concern that those priorities will be missed within the new UK-wide research body. For example, Scottish higher education institutions have been pioneers in research collaboration since the establishment of the first research pools in 2004. One of the key principles behind research pools was that they should support research excellence “wherever it is found”, which is sometimes in relatively small research groups in less research-intensive institutions. We are concerned that initiatives to encourage collaboration between mere institutions can sometimes exclude such pockets of excellence through, for instance, threshold criteria dependent on scale. Scotland’s higher education sector, as the Minister will know, is worth more than £6 billion to our economy, and we must ensure that that continues. As it stands, the Bill has the potential to harm Scotland’s world-renowned research.

The Minister and his Government need to ensure that devolved Administrations have an equal say and that their voices are heard within UKRI to ensure that this Bill will be of no detriment to any part of the United Kingdom. It is also critical to be able to take account of the different economic and social priorities of devolved Administrations. Mention was made of Brexit this morning—by the Minister, if memory serves me correctly—and it immediately brought to mind not the example of Scotland but that of Northern Ireland, where there are going to be particular challenges, not least in how cross-border trade, cross-border research collaboration and the movement of people will be handled. That presents a context in Northern Ireland that is not present in any other part of the United Kingdom. Its voice needs to be heard as well. Not to have proper input on these and other matters would potentially be not only disrespectful, but damaging. In Scotland our drive for innovation and growth and our highly distinct social agenda need to be factored in. I have no confidence that that will be possible without ensuring that a statutory duty is placed in the Bill. I beg to ask leave to move the amendment.

[Gordon Marsden (Blackpool South) (Lab)]

I wish to elaborate on my Scottish colleague’s comments, first by saying that you are my favourite Chair of all time, Mr Hanson, and not just for Tuesday—at least until someone else comes along and makes me a better offer.

Amendment 326 would allow Research England to co-ordinate with its devolved counterparts. I am very much in tune with the sentiments just expressed by the hon. Gentleman: nobody likes to be treated as an afterthought, though sometimes people are pleased just to be noticed. In these circumstances, the hon. Gentleman has put forward a powerful case. It is not a question of omission by design, we hope, but it is certainly omission by amnesia, to put it kindly. Rightly, he did not just put the case for Scotland, which he is bound to do, but referred to the situation in Northern Ireland. Those of us who can just about remember back to that steamy day of Second Reading, before the summer recess, will remember that there were representations from Northern Ireland Members on the Bill, not just about issues such as the teaching excellence framework and the future for Northern Irish students, but on some of the border issues. Since then those issues have come further to the fore.

It is a question of looking back as well as looking forward. The reality is that Research England will be inheriting, and will be challenged to perform on, the existing system. At the moment, the UK’s dual support system underpins an excellent research base. As Committee members probably know, it consists of two complementary streams: one targets specific discipline areas; the other is a block grant to institutions. Currently the former is disbursed by the seven research councils and the latter through the Higher Education Funding Council for England and its devolved counterparts, the Scottish Funding Council, the Higher Education Funding Council for Wales and the Department for the Economy in Northern Ireland.

As we heard this morning from the Minister, the proposed reforms will bring the seven research councils and the England-only research functions of HEFCE in the form of Research England—if the Committee has not been lost by this point, it will be shortly—into UKRI. The Scottish Funding Council, the Higher Education Funding Council for Wales and the Department for the Economy in Northern Ireland will remain sitting outside UKRI. Therefore, as the hon. Member for Kirkcaldy and Cowdenbeath rightly pointed out, it would be helpful to probe how UKRI will work with institutions in Scotland, Wales and Northern Ireland in providing strategic oversight of UK research.

I say gently to the Minister that the hon. Member for Kirkcaldy and Cowdenbeath has made it fairly clear—I support his view, and if I was a Member from one of the devolved Administrations, I would feel the same—that on this occasion simply rehearsing the line that we can be assured that UKRI will take such things into account is not going to be adequate, either practically or symbolically. If the Minister is in any doubt, since we have mentioned Scotland and Northern Ireland, I am now going to mention Wales and quote the written evidence that the Committee received from Universities Wales about three or four days ago. I refer to the section about UKRI governance and operation. Very much in the same spirit as the hon. Member for Kirkcaldy and Cowdenbeath, Universities Wales says:

“In the past the legislation has relied heavily on the Secretary of State and the Research Councils to act in the interests of the UK as a whole. With the increased divergence as a result of devolution, however, we question whether this will continue to be effective in appropriately reflecting devolved policy and interests. We welcome the UK Government’s proposed amendment”—

that is referred to as new clause 3, which we will come to—

“to enable joint working between relevant authorities where this is more efficient or effective. We would like the legislative framework to be strengthened, however, so that it not only facilitates joint working but ensures”—

I think there is a difference—

“that interests of devolved nations are catered for appropriately. In particular we agree with Universities Scotland that the legislation as a minimum must ensure there is appropriate representation on UKRI’s Council and on the Councils’ boards. The legislation must also include appropriate duties for UKRI and the Secretary of State not only to consult with devolved administrations but also to have due regard to devolved policy.”

That is the nub of it, and that is what we have tried to embody in amendment 326, which would give Research England the facility to co-ordinate with its devolved counterparts. That is the basis on which we have a great deal of sympathy with the amendments tabled by the hon. Member for Kirkcaldy and Cowdenbeath.

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[Gordon Marsden]

Again, I thank the Minister for using the opportunity of our probing amendment to say a little more about how he envisages the Haldane principle being enshrined in the Bill. That has been helpful. On that basis, I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Amendment made: 265, in clause 94, page 56, line 25, at end insert—

‘( ) The Secretary of State may give a direction under this section in respect of functions exercisable by Research England pursuant to arrangements under section 89, only if —

(a) it relates to requirements to be met before financial support of a specified amount or of a specified description is given by Research England in respect of activities carried on by an institution, and

(b) it relates to every institution, or every institution within a specified description, in respect of whose activities that support may be provided.”—(Joseph Johnson.)

This amendment provides that the Secretary of State can only give a direction about the allocation of grants to UKRI in respect of the functions exercisable by Research England if the direction relates to requirements to be met before the financial support is given and if it relates to all institutions or institutions of a particular description.

[Roger Mullin]

I beg to move amendment 285, in clause 94, page 56, line 25, at end insert—

‘(1A) Within six months of this Act coming into force, the Secretary of State shall give a direction to UKRI to commission an independent evaluation of the matters under subsection (1B) and shall lay the report of the evaluation before the House of Commons.

(1B) The evaluation under subsection (1A) shall consider—

(a) the effect of the absence of post study work visas for persons graduating from higher education institutions in the United Kingdom to be granted leave to remain in the UK on completion of their studies to work for up to two years for an employer on—

(i) the economy, efficiency and effectiveness of the higher education sector, and

(ii) the UK economy, and

(b) how post study work visa arrangements, applying either broadly or to classes of students, disciplines and institutions, could operate in the UK and their effect of each on—

(i) the economy, efficiency and effectiveness of the higher education sector, and

(ii) the UK economy.”

This amendment would require the Secretary of State to commission research from UKRI on the effects of the absence of arrangements for post study work visas and how such arrangements could operate in the UK and their effect on the higher education sector and the UK economy.

I could easily spend the next two hours discussing this subject [Hon. Members: “Oh no!”]—but perhaps I will not. This is a probing amendment, but it is important none the less, particularly for Scottish representatives. It would require the Secretary of State to commission research from UKRI on the effects of the absence of arrangements for post-study work visas, how such arrangements could operate in the UK and their effect on the higher education sector and the UK economy.

If ever there were an issue before this Parliament that demonstrates the completely different economic and social priorities of Scotland and the rest of the UK, this is it. Historically, Scotland’s problem has been not immigration but emigration. In my own family, both my brother and sister emigrated many years ago. My brother could not find a job after graduating in the early 1960s, but by the age of 30 was secretary of the Science Council of Canada and went on to be vice-president of the International Development and Research Corporation. He wrote the first science and technology paper for the free Government in South Africa after meeting Nelson Mandela but could not find a job in his own land. He was only one of thousands of people over many generations who had to emigrate.

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[Roger Mullin]

I am happy to say I have made my point and I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Amendments made: 266, in clause 94, page 56, line 26, leave out “But”.

This amendment is consequential on amendment 265.

Amendment 267, in clause 94, page 56, line 34, at end insert—

“( ) In this section “specified” means specified in the direction.”.—(Joseph Johnson.)

This amendment is consequential on amendment 265.

Clause 94, as amended, ordered to stand part of the Bill.

Clause 95

Balanced funding and advice from UKRI

[Gordon Marsden]

I beg to move amendment 329, in clause 95, page 57, line 4, leave out “reasonable”.

This amendment seeks to establish what a reasonable balance between Quality Related funding and project-specific funding is and to clarify how the dual support system will be protected by this legislation.

The amendment might seem perverse, but it is a mechanism to explore with the Government what a reasonable balance is between quality-related funding and project-specific funding, and to clarify how the dual support system will be protected by the legislation. Again, as with the Haldane principle, which we just discussed, the Bill seeks to enshrine dual support in legislation for the first time. This is welcome; it has been welcomed by many people in the sector. This is a probing amendment to clarify how it will be protected by the legislation or, in other words, to invite the Minister to comment on what he, his officials and any others who he would expect to make judgments would expect a reasonable balance actually to look like.

The dual support system underpins our excellent research base, and I will not go into all the ways in which it is disbursed—we have dealt with that previously—but it would be helpful to understand what would be a reasonable balance between the two funding streams.

As the hon. Member for Kirkcaldy and Cowdenbeath has asked, how will the principle operate in Scotland, Wales and Northern Ireland? The Government’s October paper on UKRI says:

“The Bill requires the Secretary of State to consider the balance between these two funding streams ensuring that the dynamic balance that stakeholders have supported is protected and preserved.”

That is an interesting phrase, “the dynamic balance”. I am not sure what I think it means, but I know that concerns have been expressed not about the enshrining of the duty in the Bill but about precisely what teeth the enshrinement will have.

Chris Hale, the director of policy at Universities UK, wrote “The Higher Education White Paper—all you need to know” in May 2016, in which he said:

“At face value we will see for the first time dual support enshrined in a legislative arrangement (to date dual support has been largely a matter of convention), but the critical question is does this go far enough? While the Secretary of State may have to consider the balance under this new duty, this provision does not necessarily secure the health and dynamism”—

that interesting phrase again—

“of dual support. This is one to watch carefully and there may be scope to strengthen this in the Bill.”

Similarly, the Council for the Defence of British Universities has said that

“while the White Paper contained an undertaking…the requirement in clause 95 of the Bill that the Secretary of State should ‘have regard to…the balanced funding principle’ appears vague”.

The CDBU refers to my right hon. Friend the Member for Oxford East (Mr Smith)—both Oxford constituencies are getting a mention today—and his excellent speech on Second Reading, in which he aired some of the concerns of his constituents and, if memory serves, although I stand to be corrected, the University of Oxford on how the principle will be enacted.

The Minister referred to the Stern review earlier, and the CDBU says:

“An approach to strengthening the wording in the Bill is suggested by a passage in the Stern Review of the REF…which states that, in addition to competitive grant funding, the capacity of universities to sustain excellent research depends on ‘a long-term, stable block grant that allows universities to invest strategically in research in ways which foster its future development’. If all funding streams are administered through one body (i.e. UKRI), as currently proposed, this endangers the separate purposes of the two funding streams.”

The Minister may or may not wish to dissent from that view, which is put another way by the Royal Society in its commentary. It says:

“The ‘balanced funding principle’ is the principle that it is necessary to ensure that a reasonable balance, suitable for maintaining the long-term excellence and efficiency of the UK research base, and preserving the values, customs, partnerships and practices that have underpinned these, including allocation based on both retrospective and prospective assessment is achieved in the allocation of funding…However, we are not convinced that the ‘balanced funding principle’ as currently defined in the Bill includes sufficient content to fully embody the dual support system. The ‘balanced funding principle’ should be defined to make it clear that it entails substantial portions of research funding being allocated both via the block grant and via Research Councils. We would suggest the definition of the principle of balanced funding should be strengthened to make explicit reference to maintaining the values and customs of the research base, including a balance of retrospective and prospective assessments.”

Those sentiments and that terminology are not far away from the concerns that the CDBU expressed or, indeed, that my right hon. Friend the Member for Oxford East mentioned on Second Reading.

I would be grateful if the Minister could muse—if that is the right word—on the appropriateness of the word “reasonable” and on what it means, and give us a bit more chapter and verse on how he envisages the dual support being carried out in practice through legislation, as opposed to the statement of good intent, which we welcome.

Higher Education and Research Bill (First sitting)

Debate between Gordon Marsden and Roger Mullin

Committee Debate: 1st sitting: House of Commons
Tuesday 6th September 2016 Public Bill Committees

[Roger Mullin (Kirkcaldy and Cowdenbeath) (SNP)]

made a declaration of interest in that he is an honorary professor at the University of Stirling.

[Mr Marsden]

made the point that the Government’s failure even to consider students’ presence in the evidence sessions before being pressed to do so was deplorable, and that they could have accommodated students on the Thursday, as they had the SNP at late notice.

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[Roger Mullin]

Q In terms of the panel members who have already commented on the regulatory framework, some people have been criticising the proposals as being overly summative and not formative enough to enable or encourage proper development. Would you like to comment on that?

Professor Simon Gaskell: I will come to your question in a moment. I just want to say, in terms of the need for the Bill, that clearly it is essentially replacing the 1992 legislation, which was appropriate at the time, although the times were quite different then. The argument for an upgrading of the regulatory framework for higher education is compelling.

Of course, it has to be admitted that throughout the coalition Government we survived on, frankly, a series of fudges, which nevertheless enabled the out-of-date legislation to allow the sector to continue. So one could not say that the Bill is absolutely essential, but it does have some important tidying-up aspects. The importance of the Bill derives largely from a measure advocated by Universities UK, which was to have a single entry into the sector through a well described and well regulated register of higher education providers. Whether one calls that a “level playing field” or some other term, that is an important aspect.

If I understood the most recent question correctly, it asked whether the Bill might perhaps be too permissive rather than directive in terms of its content. We at Universities UK and in our member institutions do have concerns about that. There are some aspects of the wording of the Bill which could be interpreted to enable directions from the office for students, or indeed from the Department for Education, that would allow measures to be taken which we think would not be in the best interests of the sector. These may be allowed rather than prescribed by the Bill. We are very aware of the need to get the wording and the detail right to make sure that something which may not be immediately intended would not be allowed by incautious phrasing in the Bill.

[Mr Marsden]

Q Since the Government presented the Bill, and indeed since it came before the House, we have had two major seismic shocks to the British political system. One of them, of course, is the impact of Brexit. The other, although perhaps not as seismic as Brexit, is nevertheless important for us: the changes to the machinery of Government which have moved this subject to the Department for Education rather than the Department for Business, Innovation and Skills. I wanted to ask the panellists if they would give us their views.

The Government have made certain commitments to underwrite funding which comes from the EU, particularly in the area of research, but have made no commitments about where we are going from there. I know very well from conversations with many university providers how concerned they are about this—not simply from the research side, but because community-based universities are worried about loss of funding from the European Social Fund and other things. I wonder if I could take a quick snapshot of whether you think that the Government are on top of this and doing enough about it already.

Pam Tatlow: There are 120,000 EU students studying in the UK. We have a commitment to access to the student loan system only for this admissions year—that is, for students entering higher education in 2016-17. Ministers are, quite correctly, encouraging us to get on the Brexit bus, if I can put it that way. We are slightly worried that the best might leave before we have got all the commitments that we need in place. I think that my colleagues in Scotland also raised this with the Minister in Scotland. The commitments we need include the commitment to EU student funding beyond this academic year, however it is delivered in each Administration. Of course, there are also fairly major issues about how those students will be classified in the future.

The final point I would raise is that there are universities which are very engaged in structural funds. We talked with one principal last week, and there is now £50 million worth of structural funding in the west of Scotland. It is very important that the Government address these things, and that they are addressed not only in DFE but in the Department for Business, Energy and Industrial Strategy, the Department for International Trade and the Home Department. We need a joined-up approach.

Professor Simon Gaskell: We could have a long debate about the effects of Brexit, which I am sure would be inappropriate in this forum. Just to add to the list of concerns, as it were, clearly we are concerned about the loss of EU students. We are concerned about the polls that indicate that overseas non-EU students now find non-EU Britain to be a less attractive place to study. I am particularly concerned not only about the loss of EU students and EU staff, but about the loss of UK students and UK staff, who are not as enamoured of the system and the environment as they were before.

Clearly there are important financial issues, but actually what is more insidious is the loss of talent, the loss of networking and the loss of engagement with European partners. That will be much less easy to quantify but, unless we are very careful, it will become quite a damaging development over the next few years.

Higher Education and Research Bill (Second sitting)

Debate between Gordon Marsden and Roger Mullin

Committee Debate: 2nd sitting: House of Commons
Tuesday 6th September 2016 Public Bill Committees

[Mr Marsden]

Q But is that the same as abolishing them?

Dr John Kingman: I cannot imagine circumstances in which Ministers would choose to exercise that power without consulting widely.

[Roger Mullin]

Q Can you confirm, Dr Kemp, in terms of access in Scotland, that over 20% of students entering HE do so through the college sector?

Dr John Kemp: Yes, and the students entering HE in the college sector more or less exactly match the population, in terms of social background.