HL Deb 01 February 2005 vol 669 cc96-8

2.45 p.m.

Baroness Lockwood

asked Her Majesty's Government:

What are their plans for funding knowledge transfer and links with industry and higher education.

Lord Triesman

My Lords, the Science & innovation investment framework 2004–2014, published in July 2004, sets out the Government's plans. Some £187 million is available through the Higher Education Innovation Fund for the academic years 2004–05 and 2005–06. The Government will further increase funding available for the HEIF. to £110 million a year by 2007–08. The Government will move towards a predictable funding allocation for knowledge transfer based essentially on metrics, starting from 2006–07.

Baroness Lockwood

My Lords, I thank my noble friend for that encouraging reply. Does he agree that UK universities have done very well in responding to government initiatives on knowledge and research transfer to industry on a commercial basis? If I declare an interest as chancellor, I can say that my own university—Bradford—has done well under the bidding system and lived up to its motto, "Making knowledge work". Nevertheless, if the science and innovation of our universities is to be a permanent part of our economic life and of the business of the community, does he also agree that universities will have to invest more in infrastructure and support staff to maintain such activity? In turn, does that not require a more permanent and consistent method of funding?

Lord Triesman

My Lords, huge progress has been made in the area by a number of universities, including that so ably represented by my noble friend. It is plain that, starting from a relatively low base, investment in the area to build capacity is one of the most important things that we can do. The Government have responded to the Lambert review, which deals with the long term. Our support for the Higher Education Innovation Fund has been described as a permanent third stream of funding for universities in England, to build capacity further in the university sector for knowledge transfer. That was the basis on which the increased investment that I mentioned was made. It will be a predictable funding stream and it will carry forward some excellent work into the future.

Baroness Morris of Bolton

My Lords, how do the Government intend to resolve the tension between the concentration of research funding in top-rated departments and their aim to remove economic disparities between regions in the UK?

Lord Triesman

My Lords, that is a very important question. The Government's intention is to fund the best research wherever it is found. The aim is to ensure that the overall quality of the United Kingdom's research is competitive and comparable to the best in the world, wherever it is done. It is not the Government's policy to concentrate funding or research, and we are not convinced that there is any such concentration. The quality-related research funding is widely distributed. It is true that 75 per cent of the funding goes to 25 institutions, but at least one major institution is in receipt of major funding in every region of the country.

Lord Barnett

My Lords, does my noble friend accept that two of the best institutions that also provide links with industry are the Open University and Birkbeck, which provide part-time education for students? A commitment was given in the summer, when the Higher Education Bill was under consideration, that effectively offered money for those two institutions and I am delighted to hear my noble friend say that more money is being put into such areas. The buck was passed at that time to the Higher Education Funding Council. Does he accept that the Government must take responsibility? Can he assure us that the modest sum of money that would be needed for those two institutions would not cost too much out of the huge sums that he has already mentioned and that, whatever the HEFC's report says, that money will be provided?

Lord Triesman

My Lords, the basis of the discussion between the HEFC and those two institutions is to ensure that the manner in which part-time students are treated is not to their disadvantage. I believe that those discussions are at an advanced stage, but have not, as yet, culminated. I shall add only one observation, which is that links with business and industry, as my noble friend pointed out, are not just a question of funding; there is also the question of the sources of students and the links that they bring with them and take back after they have completed their courses. That is a very important factor regarding both Birkbeck and the Open University.

Lord Dearing

My Lords—

Baroness Sharp of Guildford

My Lords, given that the Minister said that in future the Higher Education Innovation Fund will be distributed by metrics and that it had nothing to do with rationalisation and concentration, what, precisely, will these metrics be?

Lord Triesman

My Lords, I have not come to the House today with the formula—much as I love formulae—and I apologise that I cannot answer that question as precisely as the noble Baroness would like. All that I can say is that the element of judgment between projects is giving way to a formula which the institutions generally feel will give rise to a very fair distribution.

Lord Dearing

My Lords, following the points made by the noble Baroness, Lady Morris, will the Minister say more about what is being done to encourage regional bodies, such as regional development boards and science and industry councils, to further knowledge transfer in the sub-regions and nations of this country?

Lord Triesman

My Lords, it is absolutely true that knowledge transfer applies equally to the economic well-being of regions as it does to the whole country and there have been a number of important developments. The Northern Way and other growth strategies are beginning to have a positive effect on the areas concerned and the department is working with partners, including the Higher Education Funding Council for England, the regional development agencies and government offices, to ensure that we reduce disparities within regions, while supporting excellence and competitiveness.

You can see in the consortia of universities across the north of England just how strongly they have taken up the challenge in front of them. Science and industry councils have now been established in a number of regions. Listing them now might be tedious for the House, so perhaps I may write to the noble Lord, Lord Dearing, with the complete list and the dates when they were started and place that in the Library, so that everyone can see the details.