Thank you. To what extent has the 2012 university funding system limited Welsh Government’s policy leverage over the sector, and how has the HE Act addressed this beyond the levers offered by fee and access plans?
Of course, the Act was introduced as a direct result of the changing scenario around finance and the different ways in which, because of the reduction in HEFCW's budget, the level of influence that HEFCW would be able to exert over institutions through the imposition of terms and conditions of funding—. So, the Act was introduced in part to address that shift in influence and the Act also has provided HEFCW with a range of new powers of intervention and sanctions in the case of non-compliance by institutions. Personally, I wholeheartedly believe that tertiary education providers should contribute to national goals and outcomes as part of what I'd describe as a civic mission. I'm determined that any legislation that I bring forward and any commission that I establish will be empowered to enable that to happen through its regulatory and funding powers. Of course, the funding situation has shifted again now because of the introduction of what is commonly known as the Diamond reforms, but our new system of student finance does again shift the parameters of influence that HEFCW or any new tertiary commission could have. But, as I said earlier, it's not to say that institutions have had a free reign. We have been able to use the remit letter and our relationship with HEFCW to progress agendas that we would want to see. So, for instance, you'll be aware, in my remit letter, I am concerned about issues around how people working in the sector are paid. We've been able to successfully see all institutions sign up to becoming living wage employers, all institutions sign up to the Welsh Government's code of ethical procurement. So, it's not to say that the Act has meant that we've had no influence, but there are opportunities now, because of the change in financial circumstances once again, to look at that in any forthcoming legislation.
Thank you, Minister. Do you share HEFCW's views on the benefits of having national targets to get institutions to address national priorities? Is this something you wish you could do?
Well, it's not something I wish I could do; I think that we're doing it. Self-praise is no recommendation, but, because of the working relationship that we have, I think we're seeing some success in using the remit letter to influence national outcomes. So, I've just talked about living wage; we're also using our remit letter to drive transparency over senior leaders' pay, the gender pay gap within institutions. For instance, as part of this Government's commitment to improving mental health, we've been able to use the remit letter and some funding to be able to drive change and some improvements in mental health in the higher education sector. These are national priorities and we're acting upon them and we're using the multiple levers we have at the moment to engage in universities. And, I have to say, universities have risen to that challenge, and I'm very grateful to them for doing that.