Education: Conservatoires

Viscount Younger of Leckie Excerpts

Wednesday 10th October 2012 Lords Chamber

[Viscount Younger of Leckie]

My Lords, I am grateful to the noble Lord, Lord Lipsey, for this opportunity to set out the Government’s position on the funding of conservatoires—or “conservatories” as I noticed was displayed on the screen today. First, let me put on record my wholehearted support for the excellence of our conservatoires. They are a crucial part of our national cultural heritage and in this year which has seen the Olympics, Paralympics and the Queen’s Jubilee we have seen how these events have drawn on the talents of our creative sector and the amazing skills and determination cultivated by our conservatoires. Who can forget the sight of the Royal College of Music chamber choir singing in the rain at the Jubilee pageant?

The Olympics saw conservatoire alumni at their best. The contributions of stars such as Dame Evelyn Glennie, Annie Lennox and Kenneth Branagh showcased Britain and British talent around the world. The Paralympics witnessed the inspirational David Toole, the dancing star of the closing ceremony, and Errollyn Wallen, a teacher from Trinity Laban, whose work contributed to the amazing spectacle. Noble Lords have alluded to their own areas and I have taken note of the contribution from my noble friend Lord Lexden, who rightly highlighted the position as regards a Northern Ireland conservatoire, and the noble Lord, Lord Grocott, who focused on Birmingham. I also noted the reference to Aldeburgh and Britten, where I have been myself, as noted by the noble Lord, Lord Haskel. The contributions from that beautiful part of the country are clearly invaluable and well renowned.

My own commitment to our conservatoires and the arts is sincere, although my participation in the Parliament choir, along with the noble Baroness, Lady McIntosh, may not be of a sufficient standard to meet the entry requirements for some of these highly prestigious institutions, where there is often only one place for every three or four applicants.

As has been clearly articulated this evening, notably by the noble Lords, Lord Lipsey and Lord Aberdare, and my noble friend Lord Maclennan of Rogart, our conservatoires are a significant national asset and their impact is felt beyond these shores. They, including Trinity Laban, are worth more than £130 million to our economy and are a force for good. I recognise that there are concerns for conservatoires, as there are within the broader higher education sector, to do with the impact of the Government’s higher education funding reforms.

However, I welcome this chance, if not to resolve all funding concerns, at least to place them in context. That context is, of course, the tough decisions that have been forced upon us by the global downturn. We have had to reform our higher education finance system and to rebalance funding between the state and the student while ensuring that those from lower-income backgrounds have no barriers to access.

This month, the first cohort of students will arrive at English universities under the new tuition fees regime. While UCAS reports an overall drop in entrants this year, some of which is due to a demographic dip in the number of 18 year-olds—I take note of the views expressed by the noble Baroness, Lady Jones—there are of course still very many more applications than places both at our conservatoires and across higher education. Competition remains fierce.

I know the noble Lord, Lord Lipsey, recently met the Universities Minister to discuss the position of Trinity Laban. They had a productive discussion in which the Minister was able to provide some assurances that the unique challenges faced by conservatoires will continue to be reflected by the funding council. Despite all the controversy, the financing changes that we have introduced are in the best interests of universities, students and the nation in the long term. They will provide a sustainable funding system for institutions, underpinned by a solid student support system.

Public funding will continue to flow to our conservatoires through the government-backed tuition fee loans for students and the continued central funding to support the extra costs of running high-cost specialist institutions, such as conservatoires. In addition, support for strategically important and vulnerable subjects will remain. The funding council and research councils will continue to support the conservatoire network.

I have certainly noted the comments made by the noble Lord, Lord Lipsey, on funding. In England, Higher Education Funding Council funding alone for conservatoires will amount to more than £40 million in 2012-13, which includes support for teaching, research and widening participation. My noble friend Lord German has highlighted the importance of consistency and I hope that he finds this information helpful.

Perhaps to the surprise of many of your Lordships today, the latest assessment of the financial health of English higher education institutions showed the sector reporting strong surpluses, large cash balances and healthy reserves. It is a sector financially well prepared for the new funding system. The study showed the majority of the key financial indicators as the best on record. This will help institutions to manage the challenges arising from the transition to a new funding regime where the coalition has been able to cut public spending without reducing the overall funds reaching our universities. The withdrawal of the block grant will bring a healthy market to the sector and student choice will drive up quality as institutions strive to attract students. Overall, the total public investment in the English higher education sector remains significant—some £14 billion this year.

If we focus for a moment on capital projects, we have to manage our financial resources prudently. However, this evening, I am delighted to announce that the Chancellor was able to say that there will be an additional £200 million for the Research Partnership Investment Fund for supporting long-term university capital projects. This fund, launched in the 2012 Budget with a government investment of £100 million, will support universities to develop infrastructure projects if they can match the funding by at least double from private companies or charities. That might partly answer the concerns of the noble Lord, Lord Lipsey, as regards the peeling paint at Greenwich.

I now turn to the importance of philanthropy. I understand that it is a challenge in these financially strapped times for every institution to diversify its income streams. Conservatoires already do well in this and do not rely solely on central government funding. Indeed, for some, their public funding is a minority income stream. But although our universities have made progress in recent years and funds raised by voluntary giving in the UK in the past five years have increased from £513 million to £693 million, I am sure all institutions will find there is more that they want to do to generate an increase in philanthropic giving. All will want to develop strategies to stimulate donations in order to position their institution as an attractive proposition to enable them to draw in funding to support their goals.

This Government salute our philanthropists and we think the work that they do is incredibly important. We want to do everything we can to recognise it. I know that many of our conservatoires have been highly successful in attracting donations and endowments. Just last month the Royal College of Art opened the Dyson building, which was built with a £5 million donation from the James Dyson Foundation.

Of course, elsewhere the arts are well supported. Taking account of lottery as well as government funding, the Arts Council will receive some £2.3 billion over the next four years.

I move on to the question of US loans for students, highlighted by the noble Lord, Lord Wills, and the noble Baroness, Lady Warwick. I understand that there have been changes to the terms of United States federal loans for US students who are studying abroad. The new requirement is that foreign institutions must have their own degree-awarding powers, in their eyes, in order for their US students to be eligible for US federal aid overseas. That affects some, though not all, of our conservatoires—I believe Glasgow was mentioned this evening. My honourable friend the Minister for Universities is continuing to pursue this matter with Martha Kanter, under-secretary at the US Department of Education, to explain the problem posed for these distinctive institutions. A further discussion is due to be held next week, but of course this is a decision taken by our American cousins and not something for which Her Majesty’s Government can take responsibility. I urge all noble Lords with any contacts to use their influence in the United States to press this case.

Many comments have been made, mainly by the noble Lords, Lord Low and Lord Wills, as well as my noble friend Lord Geddes, about international students and post-study. I will need to get back to noble Lords on those because time is running on.

This has been a stimulating debate and I welcome this opportunity to hear from the many noble Lords whose experience with conservatoires and universities is richer than my own, but I want to conclude by assuring your Lordships that our higher education sector is in good health, and that our conservatoires are recognised as beacons of excellence nationally and internationally. It is an unfortunate truth that it is never possible in a publicly funded system that every funding need for every priority can be met. Government must balance its priorities. We are entering a new age of uncertainty, with the bulk of funding following student choice, but I hope your Lordships will appreciate the significant steps that have been taken by the funding council, and by the Government, to recognise the unique nature of the conservatoires, to fund them appropriately, and to support their valuable contribution to our nation’s cultural health, well-being and heritage.

On international students and post-study, the unique contribution made by international students cannot be overstated. While the Government are clear that they cannot tolerate abuse of the visa system, make no mistake that they are committed to continuing to welcome bright, creative people to our institutions. London Metropolitan was unfortunate, but our top priority has been to support legitimate students to continue their studies. Replacing the post-study work route was essential, but those in creative occupations can still apply through Tier 5 by applying from overseas. Twelve months’ leave can be granted and extended to two years without a salary threshold. On that note I will finish.