Nissan: Sunderland

Mark Pawsey Excerpts

Monday 31st October 2016 Commons Chamber

[Mark Pawsey (Rugby) (Con)]

This great news continues the work of this Government to rebalance our economy. It also provides an incentive to continue to improve skills and to encourage innovation. Does the Secretary of State agree that our catapult centres, including the Manufacturing Technology Centre in my constituency, have a big part to play in that role?

[Greg Clark]

I do indeed. One of the enticing things that we can offer companies looking to locate here is the excellence of our research and our science, whether it is in universities or, increasingly, in institutions such as catapults that help translate those skills into the wider market. Through our industrial strategy, we want to increase the focus on this very important area of strength, so that other firms can invest and see Britain as the go-to place for advanced manufacturing and for other sectors, too.

Higher Education and Research Bill (Seventh sitting)

Mark Pawsey Excerpts

Committee Debate: 7th Sitting: House of Commons
Thursday 15th September 2016 Public Bill Committees

[Gordon Marsden]

The question of what is or is not a secret is a matter for a lot of discussion, no doubt. What is not a matter for discussion is the fact the Government did not put the mechanism for this increase in the Bill until the last day before the summer recess started. In my view, they did that quite deliberately in the hope it would be smothered in public interest by the other 28 statements that went round. It is a common practice of Governments to do that, but it is reprehensible. It is particularly reprehensible when we now know that the consequences of it are that a number of universities have implemented it for existing students, and not simply for students enrolling from 2017-18.

As this subject is clearly irritating and frustrating the Minister quite a lot, I will move on to talk about the issues that affect the relationship between teaching quality and fees. We are going to talk about the detail of the TEF in regards to clause 25, so again I will comment in more general terms. The National Union of Students has made it clear that it firmly opposes statutory links between teaching quality and the level of fees being charged for that teaching. My hon. Friends and I made that clear on Second Reading. I remind colleagues of what I said in the summer Adjournment debate, when I came to inform the House that this had been done in what I regarded as an irregular manner. I said:

“I think that the way the Government have dealt with this matter is thoroughly reprehensible…We engaged in a vigorous discussion”

on the Bill, as to

“whether it was right to link fees to the Teaching Excellence Framework, but at no time during that process did Ministers take the opportunity to say anything about the issue.”—[Official Report, 21 July 2016; Vol. 613, c. 1056.]

I am saying that today because I want it to be put on record that we are talking about the discrepancy in procedures.

It is a question not just of increasing the fees, but of increasing the loans by 2.8% to match that increase in fees. That will have all the knock-on effects on students from disadvantaged backgrounds. Apart from the principled point that the NUS is making, as the Minister knows there is at least a degree of scepticism about the outcome for universities of linking the TEF with tuition fees, and scepticism on the part of one or two or them about linking it. Inevitably, however, students are on the hard end of this and they want to know what the evidence is for the measure.

The NUS rightly says:

“Since tuition fees were trebled in 2012, there is no evidence”

as a direct result of that process

“to suggest that there was a consequential improvement in teaching quality.”

It goes on to say that, broadly,

“There has been no change in student satisfaction with the teaching on their course, while institutions have instead been shown to spend”

in many cases

“additional income from the fees rise on increased marketing materials rather than on efforts to improve course quality.”

We will want to return the question of what this money will be used for when we talk about the obligations laid on new providers. Of course, if they sign up for the full-fat version of the fees, they will have to abide by the teaching excellence framework as well.

[Mark Pawsey (Rugby) (Con)]

Does the hon. Gentleman accept that the ability to increase fees based on improving excellence is a massive incentive for institutions to do exactly that, by putting on better courses?

[Gordon Marsden]

There we have it—the consumer-obsessed view of Government Members. That is not to say the consumer element is not an important part of the Bill—it is—but they are obsessed with the idea that consumerism and competition are the be-all and end-all of the way in which these fees will be raised and judged by university students. Actually, there is a very strong case for saying—a number of universities have already said it in their evidence—that linking the TEF with fee increases is pernicious because there is no evidence base that it will improve quality and because of its controversial nature. Certainly this year the Government have allowed an inflation-rated increase of 2.8% that is not linked in any meaningful form—this is no criticism of higher education institutions—with any major evidence of teaching quality improvement.

I think back to the general election of 1918, when Lloyd George famously issued a coupon to candidates to say that they were bona fide and to be voted for. The way in which the Government have tried to take this forward reminds me of that.

Higher Education and Research Bill (Sixth sitting)

Mark Pawsey Excerpts

Committee Debate: 6th sitting: House of Commons
Tuesday 13th September 2016 Public Bill Committees

[Joseph Johnson]

Let me try to explain clause 7 and provide some of the clarity that the hon. Lady seeks. As we have said, risk-based, proportionate regulation is at the heart of how the OFS will operate. The particular characteristics of the higher education sector mean that proportionate regulation is needed to protect the interests of students, employers and taxpayers. We need a single regulatory system that is appropriate for all providers, and to stop treating institutions differently based on incumbency—how long they have been around—and corporate form, and instead ensure that the regulation is tailored to fit their individual needs and demands.

[Mark Pawsey (Rugby) (Con)]

The Minister is talking about risk-based regulation, but we heard in our evidence sessions—forgive me, I cannot remember where the point came from—that if we always look at the bad, and if regulators do not look at the good, we will not be familiar with what good looks like. Is the Minister satisfied that the risk-based regulation means that that will be identified?

[Joseph Johnson]

Yes—helping to spread best practice throughout the sector will be at the heart of the OFS. That is why this system of proportionate regulation will enable all institutions to see the advantages that come from being a high-quality provider and the diminished regulatory burden that high-quality providers live with, and see all the advantages of moving up and enhancing the quality of their provision.

This clause underpins clauses 5 and 6, ensuring that the OFS operates a fair and flexible regulatory system. It specifies that the OFS must ensure that the initial and ongoing conditions of registration are proportionate to the OFS’s assessment of the regulatory risk posed by the provider. The OFS will also have a duty to keep under review the initial and ongoing conditions of registration that it applies to institutions. That means that where and when the OFS considers it appropriate, it will adjust the level of regulation to which a provider is subject, to reflect the level of risk it presents at a given point in time. Accordingly, where the OFS considers that a provider is of particularly low risk, the effect of the clause should be that the OFS will make appropriate changes to their conditions to reflect that and to ease the burden of regulation. Similarly, where the OFS considers that a provider, through its performance and behaviour, starts to present a greater degree of risk, the clause should ensure that the OFS will increase the extent of regulation.

This approach will enable and incentivise high-performing, stable and reliable providers to start and grow, increasing student choice of high-quality higher education. It will mean that institutions that pose little risk to students or the public purse can spend more time focusing on doing what they do best. Equally, institutions that present a higher risk will undergo more scrutiny and be subject to more measures to protect students, the public purse and English higher education. I move that this clause stand part of the Bill.

Higher Education and Research Bill (Fourth sitting)

Mark Pawsey Excerpts

Committee Debate: 4th sitting: House of Commons
Thursday 8th September 2016 Public Bill Committees

I return to the amendment of the hon. Member for Walsall South. Changing the name of the organisation to the “Office for Higher Education”, as she suggests, implies that the market regulator that we are explicitly creating with the office for students is in fact a creature of the sector that answers to higher education providers, rather than one focused on the needs of students. It would achieve the very opposite of our objectives for the organisation.

[Mark Pawsey (Rugby) (Con)]

Does the Minister agree that the Opposition are focusing far too much on the institutions themselves? The whole point of the Bill is to focus on students. By calling for such a change, the hon. Member for Walsall South is missing the entire point of the Bill.

[Joseph Johnson]

I thank my hon. Friend for his point. That is right. HEFCE is a brilliant body. As we discussed this morning, it was set up in 1992 as the successor body to the Universities Funding Council. It is in the tradition of being a funding council at a time when the Government no longer principally funds the universities, so it is doing its job in a regulatory environment that reflects a bygone era. We need a regulatory structure that reflects the fact that students are now the primary funders of their education through the student loan system. This is a market, as recognised in law, so we need a market regulator. The office for students is the body that we believe is best placed to do that.

A change of name of the kind that the hon. Member for Walsall South suggests would go against the main principles that we are trying to achieve through these reforms. I note that none of the stakeholders who gave evidence to the Committee on Tuesday or today asked for a change of name.

As a regulator, the OFS will need to build relationships across the sector. Part of its duties will be thinking about the health and sustainability of the HE sector. However, that does not change the fact that the new market regulator should have students at its heart, and I believe that the name of the organisation needs to reflect that. For that reason, I ask that the hon. Lady withdraws her amendment.

Higher Education and Research Bill (Third sitting)

Mark Pawsey Excerpts

Committee Debate: 3rd sitting: House of Commons
Thursday 8th September 2016 Public Bill Committees

[Roger Mullin]

Q A quick follow up, particularly to Professor Nelson. You will be aware, having consulted with the Administrations in Scotland and your partners there on the research side, that there is some anxiety about the Bill and the lack of formal representation in some of the architecture described in it. Would you like to comment on that?

Professor Philip Nelson: We did absolutely acknowledge the existence of those anxieties and said we would make it clear that we needed to do something about it. I know there have been proposals about representation on the board of United Kingdom Research and Innovation. I would have thought at the very least one would want to have a clear point of contact within United Kingdom Research and Innovation.

I do not know how we would do this but we certainly need to absolutely manage it, and those anxieties were very clearly expressed, but from the research councils’ point of view there is no need for concern. We place huge value on the Scottish universities’ contributions. There are some great institutions there doing great work, and we would continue to fund excellence wherever it is across the UK.

[Mark Pawsey (Rugby) (Con)]

Q I have a question—mainly, I think, for Dr McKernan, but I am interested in other views. The UK has traditionally had a reputation for cutting-edge research, brilliant innovation and coming up with ideas, with the commercial exploitation taking place in other countries. Does the Bill mean that the UK manufacturing sector is more likely to benefit from the research that takes place here?

Dr Ruth McKernan: I do not think the Bill specifically addresses that, but indirectly I think there is a benefit from having business close to research such that the benefits of research and innovation could be more easily adopted in business and provide a competitive edge.

Some 50% of productivity growth comes from innovation, so to the extent that we can help businesses grow more quickly because we can help them innovate, they have a chance to be more globally competitive, although many other factors in terms of access to capital and the competitive environment come into that. The Bill can only ever relate to a small component of your question.

Professor Philip Nelson: An awful lot of our work is focused on doing exactly what you are asking and I think that we will continue to do that. I think, frankly, this country has got an awful lot better at converting its scientific output into application in the last 20 years, and I would hope we will continue on that upward path.

[Mr Marsden]

Q My question is principally for you, Professor Nelson, but perhaps Professor Leyser will want to comment on the thrust of it.

You spent your academic life in acoustics, engineering and technology, but of course your position as chair of the board means that you have to recognise the needs and aspirations of non-science areas, and particularly the humanities and social sciences. Does it worry you that in the whole thrust of the Bill, and certainly the thrust of the White Paper, there seems to be little to say about the role of the social sciences and arts? Does it worry you that the Academy of Social Sciences is concerned that the Bill gives the power to do away with research councils by statutory instrument, which is often a rubber stamp? Are you concerned about that, and, if you are, what representations have you made to the Government?

Professor Philip Nelson: We are concerned about that. In fact, we absolutely hold dear the continued existence of those seven disciplinary councils. We have made it very clear to the Government that we felt that what we had was an effective base from which to work and that we did not want to abandon that in any regard. Personally, I have a huge sense of support for social sciences, arts and humanities. Those councils are extremely well read—sorry, well led.

--- Later in debate ---

[The Chair]

We will reach those very shortly. I call Mark Pawsey.

[Mark Pawsey]

Q Minister, why should institutions treat students as informed consumers?

Joseph Johnson: They are required to by the Consumer Rights Act 2015. That is the first thing. They are required to by law. Universities are governed by consumer legislation in this country, so that is a starting point. Questioning whether this is a market completely misses the point. It is a market by law.

[Paul Blomfield]

Q You really do not seem to have lamented the lack of part-time education. Part-time student numbers have obviously collapsed since the funding arrangements changed in 2012. What do you think the Bill does to address that?

Joseph Johnson: It does a lot. It builds on measures that we have been taking over recent months. As you know, we have introduced maintenance loans for part-time students with effect from 2017-18. That is an important provision that will facilitate access to part-time education. That built in turn on access to tuition fee loans that we introduced just before. We have extended the equivalent or lower qualifications exemption so that more people can take a second degree on a part-time basis in science, technology, engineering and maths subjects. The bigger picture is that by allowing new providers into the system, we are more likely to get providers who are providing part-time provision. Alternative providers, as they are known, have a much higher proportion of part-time students in their student cohort than traditional providers. It follows therefore that allowing a greater diversity of providers into the system will benefit part-time students and people who want to study later in life.

Higher Education and Research Bill (First sitting)

Mark Pawsey Excerpts

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

[Carol Monaghan (Glasgow North West) (SNP)]

Q Professor Carter and Professor Gaskell said that student representation is important and beneficial. Can I ask you to give us a quick example of how student representation has been beneficial and why we should have it?

Professor Joy Carter: It is about not so much representation, but the holistic sense of student engagement, of which representation is a part. If I can answer the question from a more holistic perspective, in my own institution—to give you one example—we have a student fellows scheme. Students work in partnership with members of staff on projects of their choosing to enhance the quality of the higher education that they are receiving. At any one time in my institution we have got 60 to 100 of those enhancement projects—real partnerships between students and staff—going on. The quality of enhancement that is achieved is beyond measure.

[Mark Pawsey (Rugby) (Con)]

Q To ask a broader question, how important do you think this piece of legislation is, given that there has not been any legislation for more than 20 years? Which part of the Bill, from your perspective, is the most important?

Paul Kirkham: As an independent provider, working with a very fragmented regulatory system for many, many years has been an absolute nightmare, so having a simple, straightforward, single regulatory system is absolutely crucial. The most important part is that we have a level playing field whereby providers are treated equally and correctly.

Pam Tatlow: I think we should be looking at the Bill in a holistic way. There is a real risk that we look at the Bill in terms of a silo—the office for students, and then UK Research and Innovation. What we have got at the moment through the Higher Education Funding Council for England is some holistic oversight over the whole of the sector, in terms of reporting. Therefore, there are issues around OFS, and some of the hard corners need to be taken off the regulatory framework. We look at the Bill as a whole, because one impacts on the other. Teaching impacts on research and innovation, and vice versa.

[Mark Pawsey]

Q How important is the Bill?

Pam Tatlow: The Bill is very important because the Government want to table it. It would not have been our most immediate priority, but there are regulatory things that need to be sorted out, as colleagues to my left have pointed out. You can undertake the teaching excellence framework without this Bill—we should be clear about that—and HEFCE is already making preparations to do so. We do not necessarily need the Bill to deliver the Government’s commitment to teaching.

Gordon McKenzie: I agree with Mr Kirkham that the Bill is essential. It was essential from 2011, when the Government made substantial changes to the fee regime. I think it is important to look at the Bill holistically. The essential part is the creation of the office for students and the ability to regulate all providers on a fair and equal basis, whatever their background and history. I have concerns that, in the approach taken—having the office for students on the one hand and UKRI on the other—some of the benefits of having a single body looking at higher education as a whole might be lost, but there are perhaps ways around that.

[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.

--- Later in debate ---

[Mr Marsden]

Q May I put one further brief question to the panel? It relates to the new institutions that have been developed and the Bills around research: there has already been concern about the overlap of responsibilities between the new institutions and UKRI—UK Research and Innovation. The devolved Administrations have raised that as well. Is this an issue for the competition between English-only funding and UK funding, and the impact on the UK brand internationally?

Professor Sir Leszek Borysiewicz: I can only reflect back on my own time in the research councils and therefore the bearing that this has on the matter. There is a long-standing issue, which was identified in the Nurse review, of ensuring that there is an overall view and perspective taken of where the individual siloed research councils actually sit. There is a lot of sense in having a body that will scrutinise, and ensure that we can take a wider purview of the UK R and D effort. By R and D, I do not just mean science and technology. It is just as important for the humanities, bearing in mind that this is a major source of income for humanities research. There is a lot of sense in what is being proposed. The key things are always going to be the key things. How is this managed at an individual and personal level? You must not degrade the authority of individual research councils—you must make sure that those individuals have standing, because they are well recognised by the research community.

The addition of Innovate UK is welcome, because it means that industry and the translation to industry has skin in the game at the very basic level. That is really important, as is the proposal that Research England play a huge part in ensuring that we can sustain credible international competitiveness for the United Kingdom’s very enviable research position. So it looks quite good.

[Mark Pawsey]

Q Again, I would like to go the general and ask if you would tell us which are the most important parts of the Bill as far as you are concerned, and why the Bill is so important right now.

Professor Quintin McKellar: The Bill is important because we have had such a significant change in higher education over the past 20 years. We now have almost 50% of 19 to 23-year-olds going to university, which is a significant change from the situation that existed previously. Even more fundamental to our students is the fact that they are now paying through their tuition fees for that education, which creates a different relationship between universities and students—you might call them customers as well. That has changed significantly and I think that the Government’s idea to have an office for students that would primarily be interested in student wellbeing and the student experience is a good thing. Clearly, separating it from research presents some challenges; nevertheless, the idea of UKRI bringing together the majority of the research funding bodies within one remit is a good thing as long as the innovative part of that continues to be business-focused. The challenge might be linking the two and ensuring that there is commonality in membership so that the research activities continue to inform our teaching excellence, at undergraduate and postgraduate level.

[Mark Pawsey]

Q Are you happy with the Bill as it stands on that issue or would you like to see some form of change?

Professor Quintin McKellar: I do not know whether the Bill explicitly suggests that there will be commonality between UKRI and the OFS, but it might be helpful if it did.

[The Chair]

Does any other panel member wish to respond to Mr Pawsey?

Professor Sir Leszek Borysiewicz: We are broadly supportive of the recognition that the Government are giving to teaching in particular. That is really good, because for a long time the criticism has been that research gets a disproportionality to teaching. I also particularly like the implicit and explicit recognition of autonomy, as originally proposed by Robbins and Dearing, the fact that diversity in the sector is lauded and also that dual support is for the first time given real recognition for the work it does in supporting the sector.

The problems we see are brought on a little by Brexit and a little by the fact that the remits of research and teaching are now under two different Secretaries of State, so I would be looking for safeguards regarding the unity we were able to get, and in those safeguards I would be particularly looking at PhD students, because all the expertise for ensuring that there is a research environment will sit within the UKRI sector; it does not exist in the OFS sector, yet we note, for example, that higher degrees, which may be largely research-based, are going to sit with the OFS. There are some musts that need to be introduced in the Bill to ensure that there is absolute co-working between UKRI and the OFS in that area.

Sir Alan Langlands: The symbiotic relationship between teaching and research is central, and therefore the office for students and UKRI must collaborate. They need to have equal standing. It is not explicit, of course, but my sense is that UKRI is in the Bill as an independent organisation—a non-departmental public body—to advise Ministers, and the office for students is there to do what Ministers tell it to do. We have to be clear that they have equivalence. For example, the suggestion that was made by, I think, Universities UK, that UKRI provide advice to Ministers show flow to the office for students and be explicit.

My sense is that we have to be clear that the office for students is not just an instrument of Government but is an organisation that is reflecting back to Government the issues and the challenges facing the sector, and that balance has been hugely important since 1992 and has to be sustained.

[The Chair]

Q Ms Cook, do you wish to add anything?

Mary Curnock Cook: I would just say that from the UCAS point of view what we want to be able to do is make sure that students are very clear about what they are getting when they apply for higher education, what they are paying for through their loans or other means—

[Mark Pawsey]

Q Does the Bill make that more explicit? If so, does that help students who are applying to your organisation to understand more?

Mary Curnock Cook: I think it does and, in particular for us anyway, the register of providers, which sets out very clearly the status of each provider, is important, because a lot of providers want to be listed on UCAS, because it gives them a sort of credibility, and to be honest some of the providers who apply to us to use UCAS services are quite shocking in terms of how small they are, how parlous their finances are and so on. It will be very helpful for us to have that kind of regulatory support for who comes into the UCAS service.

[Dr Blackman-Woods]

Q One of the things that the Bill does is open up student data, including individual-level data, to a wider range of people, possibly taking the use of that data outside current research protocols. Do you see that as a problem and something that we should address as a Committee? Also, would it be helpful to have all the data in one place? There are lots of requirements on individual institutions to produce data, but would it be helpful to have all that data available in one place, for example in UCAS?

Mary Curnock Cook: Yes. We broadly welcome clauses 71 and 72, which require UCAS or potentially other organisations like UCAS to share admissions data for research purposes. Indeed, we have recently signed an agreement with the Administrative Data Research Network, and we will make a very large deposit of data going back to 2007, which will be available to researchers under clearly controlled conditions, including that they only have access to de-identified data, but then they can also link it to other administrative data sets.

We have proposed some amendments to the Bill because the Bill gives powers to the Secretary of State to provide those data from us or organisations like us to other parties, and we are very keen that that is done in a way that offers the same protections to students, particularly over their personal data. Some of the amendments that we have put forward suggest that it is made very clear that access to these data is for researchers and particularly only for public benefit.

UCAS is a charity and our trustees are concerned that UCAS should not have a sort of blank check available, such that data requests could be made on us at any time for multiple purposes, which would obviously increase our costs very considerably and those increased costs would inevitably have to be passed on to students and higher education providers.