I'll ask my questions in Welsh, if I may. This discussion between HEFCW and higher education, these challenges in terms of how ready they are for the changes to come, and the work that the Government is doing with FE, I suspect, is happening at an organisational level. So, I just want to hear a little about where the student voice comes into that discussion and where the engagement happens in terms of the students.
So, we have a close working relationship with the National Union of Students. I meet with them regularly, and officials are in constant touch with the student voice. They have been very clear, and I think there is a huge amount of consensus between the Welsh Government, what the universities are asking for and what the students are asking for. You'll have seen, only earlier this week, the very powerful campaign by NUS Wales about the importance of Erasmus+ arrangements. There is a huge amount to be gained for Welsh students and young people participating in the Erasmus programme. Many of us, I know, have had the opportunity to study abroad as part of our own studies, and there's a lot to be gained from it. We've been very clear from the outset, as have the sector and the student voice, about the importance of participation in that scheme.  NUS are also very concerned that there should be no negative impact on the quality of faculty. Our HE institutions, to a greater extent than FE, have faculty staff from the EU—it runs at about 11 per cent. That adds great diversity and strength to the quality of teaching within our institutions. Clearly, that is a concern for students. They want to have the best teachers, they want access to the best learning opportunities, and we've been very clear about the importance of providing security and stability for those staff, making sure we send very clear messages that they're very welcome and we value their contribution. NUS, again, also value the diversity in the student population. Again, as far as we've been able to, we've been able to give messages about the security of funding for European students for the next academic year. I wish I could go further, but that's out of my hands. We're working to the limits of what I feel comfortable in being able to guarantee without further guarantees from Westminster. So, we've been working closely with the student voice, and I think, Llyr, what's very clear is there is a consensus about what is important across the Government, the institutions and student voice. So, that is making sure we send very clear messages about Wales's institutions being open for business and that we welcome both EU and international students, that we value the contribution of faculty, and that we want to be able to continue in Horizon 2020. That's especially important if we're looking at attracting postgraduate work and postgraduate students into our system, as well as Erasmus+. The issue of post-study work visas, again, is very important. As I said, there's a consensus, I think, between the Government, the institutions and the students about what we need the UK Government to achieve for us.
Before we move on to student recruitment, it's increasingly the view of many experts that we're heading for a 'no deal' Brexit. Can I ask both of you what specific plans you've put in place in the event of such a 'no deal' Brexit happening and us crashing out next spring?
Well, I think it's really difficult for us to prepare for a 'no deal' Brexit, but obviously we need to think through very carefully what that might look like, and I think that scenario planning is starting to happen. I think it's very different, again, for FE compared to HE. So, in relation to FE, what we do have is funding—ESF funding—which the UK Government has said that they will underwrite until 2020. So, in March next year, if there is no deal, the immediate impact on FE is unlikely to hit in the way that we may have feared. The problem then becomes: what exactly is the deal with the EU in future, because we will have some kind of relationship, and what that impact will be on the broader economy and our ability to work with companies locally, and industries, to provide that link between training needs? So, the colleges, basically, are providing the training for lots of the apprenticeships, and so if the number of companies reduces, then that is likely to have an impact. So, there are specific sectors that we are more concerned about than others. Farming is obviously one that we are concerned about, because that could have a difference in terms of day one of no deal. If your markets are not there, that could be quite an immediate impact. Health and social care—obviously, we are concerned that there are a number of people who work in that sector who are EU citizens. What is the impact? Are they going to feel unwelcome? Are they likely, then, to return home? Where will that skills gap, therefore, be? So, that's a problem for us. Construction is already an issue for us in terms of skills shortages. So, one of the things we're doing is we've developed these regional skills partnerships where we ask local employers, 'What is it that you need in terms of skills development?' and we are now asking further education colleges to respond to that need. So, rather than them just getting people through the college system, who are easy to get in because they're doing courses that they're excited about, let's try and encourage them to do courses where we know there are skills shortages. So, that is a new structure that we've developed that is already having an impact; there's a £10 million project there. So, we're already putting things in place for those situations. In manufacturing, obviously, if there's no deal, the rules of origin, that could have an immediate impact. Just-in-time—we could have real problems in terms of dislocation there; and hospitality and tourism. So, those are the sectors we have most concerns about, and all of them have very strong links to the FE sector.