Wes Streeting Portrait Wes Streeting (Ilford North) (Lab)
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made a declaration of interest as a member of the advisory panel for the University Partnerships Programme Foundation.

Valerie Vaz Portrait Valerie Vaz (Walsall South) (Lab)
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asked whether there had been any discussions about how the change in the machinery of government would affect the Bill, given that it would be split between two Departments.

Lord Johnson of Marylebone Portrait Joseph Johnson
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stated that the machinery of Government changes had gone through in July and that the lines of ownership were clear.

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None Portrait The Chair
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Q Does any member of the panel have a view that is different from that?

Witnesses indicated dissent.

Valerie Vaz Portrait Valerie Vaz
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Q I think the UK leads in the league table of Nobel prize winners, so we need to protect that.

On the split between education and research, do you think there is enough protection for, for example, postgraduates who do some of both? What are your views on the split between the two departments?

Paul Kirkham: I think some consideration should be given to how those two arms of the regulatory system will work together.

Pam Tatlow: We are at risk of forgetting that HEFCE has funded postgraduate students and undertakes the research excellence framework exercise. There are implications for the devolved Administrations as well. There has to be on the face of the Bill a very clear idea of joint working, because some things are not referred to. The section on UKRI very much concentrates on what are currently the research councils. We have to do better on what we think those responsibilities are.

One final thing is that I have no idea why students should not be on the board of UKRI as well. I do not agree with the idea that students have no interest in it. We want not only the great and good scientists there, but people who deliver innovation and who are very engaged.

Gordon McKenzie: I agree with that. There is an opportunity to make it clearer on the face of the Bill that both the office for students and UKRI have a joint responsibility for the sector as a whole.

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.

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None Portrait The Chair
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Order. I apologise, Sir Alan, but we have very limited time and a number of Members wish to ask questions. Does any other member of the panel wish to respond to Amanda Milling’s points?

Professor Quintin McKellar: I support Sir Alan in what he said, and would say essentially the same things, with one exception—perhaps not an exception, but I emphasise that the Bill looks at too granular a level, in the sense of looking at courses within universities. We develop our own courses according to their popularity and according to the expertise within our institutions. Having the autonomy to develop those courses has helped our institutions become great, if I am allowed to say that, so I think removing it at that level would be a mistake.

Professor Sir Leszek Borysiewicz: If you remove that ability, you remove the ability of institutions to innovate and to remain at the cutting edge. It is therefore important to retain that right at the autonomous institutional level; it is also right to scrutinise it to make sure that it is appropriately continued. The powers seem a little over the top at times in relation to what is going on, because most institutions could not continue courses that were not financially viable.

Valerie Vaz Portrait Valerie Vaz
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Q To touch on the split between research and education—you have made your views clear—is there anything that would help the collaboration between the two parts? Obviously, there is still a big gap about where postgraduates fit between the two. We would like people, rather than having lots of discussions and meetings, to just get on and do their work. This is not a leading question, but is it your view—this is to all of you—that it would be better if it sits in one Department?

Sir Alan Langlands: I think it may well be better if it sits in one Department. There have been instances in the past where the educational activity in higher education has been in one place, and science and research has been in another place, but not since 1992 have the questions of funding for teaching and quality-related funding for research been separated. That would be a big thing, and something that we have to be careful of. The Government are very clear about wanting to protect dual support, and that is welcome. We are dealing not just with quality-related funding for research. At the moment in HEFCE, there is funding related to charity support, support for research degrees, and businesses research and innovation. All those things need to be resolved. It needs to be very clear between UKRI and the Government who is doing what in those areas.

None Portrait The Chair
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Does any other member of the panel wish to comment on that?

Professor Sir Leszek Borysiewicz: May I just comment—

None Portrait The Chair
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Professor McKellar first.

Professor Quintin McKellar: Can I emphasise that while we have, to some extent, focused on the contribution that research makes to postgraduate teaching, it also makes a huge contribution to undergraduate teaching? We must not forget that. Ensuring that there is an appropriate relationship between UKRI and the office for students is going to be critically important. I cannot answer your question about whether it is important at a departmental level, but certainly at the level of the organisations it is going to be absolutely critical. We have suggested that there be commonality in membership between the two.

Professor Sir Leszek Borysiewicz: That is the point that I was going to make. If the two Secretaries of State can work together, this can be made to work, but it requires an awful lot of collaborative work between those two versions. Continually scrutinising it is going to be an important issue for Select Committees and other bodies.

Valerie Vaz Portrait Valerie Vaz
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Q Briefly, on science, technology, engineering and mathematics subjects, there is a great opportunity to put things into this Bill to protect certain subjects. You do not operate on a basis on which you can make a profit on things like that, because all those subjects operate at a deficit. There are laboratory issues that you have to work with, and medicine is a long degree. What can we do that is not already in the Bill to protect those subjects? To the best of your knowledge, how can we protect the strategically important vulnerable subjects—for example, chemistry and physics?

Sir Alan Langlands: We probably should not get into the funding argument, but there is, I think, a funding shortfall in the top-up for STEM subjects, and that should be registered very clearly. I think people are aware of that. You struck an important point in focusing on the health of subjects. That is where the research community and those who oversee it and the education community need to come together. If you want to worry about the health of physics and chemistry, or other subjects, such as foreign languages, in the UK higher education sector, you need to do so from an educational and a research perspective. The two things have to work hand in hand. That is why the office for students and UKRI have to work together. At the moment, HEFCE is able to fulfil that role, but often it does so with reference to the wider research community and the charitable community.

None Portrait The Chair
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Order. I must remind the Committee that five Members have indicated that they wish to ask questions and we have 16 minutes left before I have to call order, so we need brief questions and answers.