§ Mr. Gwilym JonesTo ask the Secretary of State for Wales whether he has reached a decision on future funding and planning arrangements for the local authority higher education sector in Wales.
§ Mr. David HuntLast year, my predecessor commissioned a report from consultants, Price Waterhouse, on the polytechnic of Wales. I received the report in May in which the consultants recommended that responsibility for funding the polytechnic should be transferred from the maintaining local authority to my Department. Section 227(4) of the Education Reform Act provides for any or all of the local authority higher education institutions that meet criteria specified in section 122 to be incorporated and to leave the local authority sector if the holder of my office considers that to be necessary.
My hon. Friend the Minister of State has had face-to-face consultations about the recommendation with 513W the polytechnic and the other institutions, and with representatives of those employed in the institutions. The Wales Advisory Body for Local Authority Higher Education (WAB) has discussed the question fully. All eight local education authorities were invited to provide their views in writing on the recommendation and on the implications for the other higher education institutions of implementing the recommendation for the polytechnic. All those who have responded are agreed that whatever decision is made for the polytechnic should apply to the other institutions in the local authority sector.
In the light of the views expressed by those consulted I have now concluded that it would be in the best interests of those higher education institutions in Wales which are currently maintained by local authorities and which meet the specified criteria to be incorporated as independent institutions with effect from 1 April 1992. This will provide a period of 14 months during which they will be able to prepare themselves for independence. From 1 April 1992 the institutions will receive their funding from my Department. The appropriate transfer of funds between local authority resources and the Welsh Office's programme resources will be made for 1992–93.
The Wales Advisory Body for Local Authority Higher Education, which has advised me and my predecessors on the distribution of local authority funds allocated for higher education since 1983, will be dissolved on 1 April 1992. It is my intention, however, to invite the Wales advisory body to advise me on the distribution of funding for the sector for 1992–93, after which that responsibility will pass to my Department. I shall then be establishing a small group of people involved in higher education and business to advise me on the issues involved in funding higher education directly.
The institutions to be incorporated and which will leave the local authority section on 1 April 1992 are as follows:
- The polytechnic of Wales
- Bangor Normal college of higher education
- Cardiff institute of higher education
- Gwent college of higher education
- West Glamorgan institute of higher education
The Welsh college of music and drama has too few full-time equivalent students to be transferred without the agreement of its maintaining authority and my officials will be discussing with South Glamorgan county council whether it should be added to the institutions named.
I shall be laying the orders necessary to give effect to these proposals shortly.