Lynne Neagle AM: Okay. Thank you. Okay, we're going to move on now to some questions about the level of ambition in the higher education Act and any lessons for the PCET Bill, from Janet Finch-Saunders.
Janet Finch-Saunders AM: 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?
Kirsty Williams AM: 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.
Janet Finch-Saunders AM: 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?
Kirsty Williams AM: 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.
Janet Finch-Saunders AM: Thank you. Are there plans to give the proposed new PCET funding body more effective policy levers to align the sector to the social, economic and civic needs of Wales? And, if so, how will this be done?
Kirsty Williams AM: Well, as I said in answer earlier, I'm determined that we ensure a sense of civic mission for the entirety of the sector, including our institutes of higher education. You'll be aware, Janet, that, in the consultation exercises that have been undertaken by the Government so far on PCET reform, we will be introducing more formal outcome agreements, whereby institutions might be given by the commission very clear expectations of how they're expected to contribute to national priorities.
Janet Finch-Saunders AM: Thanks. We've heard that the HE Act, by focusing on individual institutions, did not encourage collaboration, even for widening access activity. Was this a missed opportunity and how will this be taken forward in the PCET Bill?
Kirsty Williams AM: I think we can strengthen our sector by closer collaboration. I think what sets us apart in Wales is that this Government is determined to create a legislative regime and a regulation regime that encourages collaboration and co-operation, which is in stark contrast to the marketisation and the competition that we see being regulated for and legislated for across the border in England. That's one of the reasons why we are going to introduce the new PCET reforms—to create collaboration, not just between different higher education institutes but actually across the sector. So, this is a prime opportunity where we can create a framework that demands and encourages collaboration, not just, as I said, in between individual institutions but across the entirety of the sector. We're doing that because that means we can avoid duplication, we can fill gaps that there currently are and we can create a system that allows for a seamless passage for students to move between the different parts of post-compulsory education that are currently available, where, sometimes, those students find barriers.
Lynne Neagle AM: Okay, Janet?
Janet Finch-Saunders AM: Thank you—that's great, thank you.