§ "With permission, Mr. Speaker, I wish to make a Statement on arrangements for planning and funding of higher education in Scotland announced in today's White Paper on higher education. This follows consultations on the recommendations in the report of the Scottish Tertiary Education Advisory Council on future strategy for Higher Education in Scotland and advice from the 575 Advisory Board for the Research Councils and the Croham Committee on the UGC.
"In my Statement to the House on 17th July 1986, I said that the Government accepted STEAC's view that there is scope for improvement in the planning and co-ordination of provision in higher education by the universities and colleges in Scotland.
"In reaching decisions on the future, I have recognised that six out of eight Scottish universities opposed the central STEAC recommendation for a separate Scottish body with funding responsibilities for both the university and college sectors. I share the views of the universities that they should continue to be, and be seen to be, an integral part of the British university system and believe that that might be prejudiced by removing them from the British funding framework of the UGC and its successor.
"Irrespective of the source of funding, it is however highly desirable that both the university and college sectors can plan the development of their provision in the knowledge of what other institutions in Scotland are planning to do. But knowledge is not enough. We need arrangements to ensure that plans can be discussed, adapted and coordinated to take account of what other institutions intend to do and to ensure that overall provision in both sectors is in line with likely national and local needs.
"That is why we announce in the White Paper that we propose to accept and build on the recommendation of the Croham Committee that the proposed Universities Funding Council should have a Scottish Committee. The committee will play an important part in planning higher education in Scotland. It is important that the Universities Funding Council and its Scottish committee should take into account the needs of Scottish higher education as a whole. To this end in future the Secretary of State for Scotland shall give the Universities Funding Council guidance on plans for the other sectors of higher education in Scotland and will expect it to have regard to his views on the implication of Scottish needs for the university sector. These will, of course, be consistent with guidance given by my right honourable friend to the Universities Funding Council. The UFC and the Secretary of State for Scotland will then be able to plan provision, with the help of the Scottish committee, in the university and college sectors respectively with a clear knowledge of the implications of each other's plans.
"I expect the committee to advise the UFC on the implications of the Scottish education system for the needs of the Scottish universities. It will, in consultation with my department, consider the demand for higher education in Scotland and the balance of provision between its constituent parts.
"Appointments to the Scottish committee will be a matter for the Universities Funding Council in consultation with the Secretary of State for Scotland. I envisage that the committee will include members drawn from the non-university sector and employers, as well as from the UFC and the 576 universities and that there will be representation from the Scottish Office.
"I believe that the establishment of a Scottish committee of the UFC on these lines will mark a very important development in the relationship of the Secretary of State for Scotland with the university sector, with far-reaching implications for the proper planning of higher education. For the first time he will have formal access to a group taking an overview of the needs of the Scottish university sector and will be able to discuss with them his views on the priorities for higher education in Scotland and the plans of the college sector.
"I am confident that the arrangements will be welcomed by the universities in Scotland. They will be able to maintain their role as part of the British system but will have a new focus for looking at Scottish needs. They will be better able to plan their provision in the light of knowledge of each other's plans and those of the central institutions. The CIs should welcome the more systematic opportunity afforded by the Scottish committee for joint planning between my department and the universities on how demands from students and employers should be met. Most importantly, Scotland at large should benefit from the improved arrangements for co-ordination and planning of higher education to meet the changes envisaged by the White Paper between now and the end of the century."