HL Deb 08 December 1988 vol 502 c669

3.5 p.m.

Lord Beloff asked Her Majesty's Government.

Whether the Universities Funding Council set up under Section 131 of the Education Reform Act 1988 shall be bound by Sections 131(7) and 134(3) of that Act.

Viscount Davidson

My Lords, the UFC will, of course, be bound by these sections and all other relevant statutory provisions.

Lord Beloff

My Lords, I thank the Minister for that encouraging reply. Will he also confirm to the House that the UFC will be bound by two undertakings given by the noble and learned Lord the Lord Chancellor in the course of the passage of the Bill when he said: I confirm now that our annual settlement of overall public support is entirely independent of university success in raising more private funds".—[Official Report, 16/5/88; col. 149.] On 25th July the noble and learned Lord the Lord Chancellor further said that such conditions as the funding councils will impose, may not relate to income received from sources other than the councils".—[Official Report, 25/7/88; col. 35.]

Viscount Davidson

My Lords, these matters were discussed at great length and in great depth during the passage of the Bill through your Lordships' House. I can only say that the whole point of Sections 131(7) and 134(3) of the Education Reform Act is to emphasise that universities will remain free to attract and use funds from private sources without risk of financial penalty.

Lord Allen of Abbeydale

My Lords, is the Minister aware that the draft financial memorandum between the department and the funding council will require the council to keep under review the level of balances of universities without any qualification, or any reservation, or indeed any reference to moneys which universities may have, otherwise than by way of grant? Does the Minister think that that is consistent with the provisions in the Act to which the Question relates?

Viscount Davidson

Yes, my Lords. The Government are well aware of the concern expressed by the CVCP. I understand that a meeting is to be held next week between the department and the CVCP to discuss the points which have been raised. That is one of the points that will be discussed.

Lord Peston

My Lords, is the Minister aware that some universities are a good deal richer than others, and that some are capable of raising £200 million while others have difficulty in raising 200 pence? Would it not be reasonable for the UFC to take account of the difference in funds available to universities, and in particular whether that difference is not itself a reflection of the relative academic qualities of the universities?

Viscount Davidson

My Lords, I am sure that the CVCP will be taking that into account.