Education (Student Support) (European University Institute) Regulations 2010

My Lords, I thank the noble Lord, Lord Lucas, for this opportunity to clarify the Government’s intent behind the regulations under discussion today. Let me first remind noble Lords that the Government’s priority is to provide access to students entering higher education for the first time. Since 1997, almost 400,000 additional students have been able to enrol on first degree courses. The number of undergraduates in English universities already stands at an all-time record level, and only a fortnight ago, my right honourable friend the Chancellor of the Exchequer announced funding for an extra 20,000 places for 2010-11. Recent years have also seen a burgeoning demand for masters and research degrees, reflecting growing demand from employers for high-level skills. Here, too, student numbers stand at record levels. To take just one example, over the last six years for which there are figures, the number of home students taking physics PhDs rose by no less than 37 per cent. However, noble Lords will be aware that it has never been a normal function of the Government to fund postgraduate students directly. Instead, as has been the case under previous Administrations, the seven UK research councils bear this responsibility, funding students on a discretionary basis. It has nevertheless been the case for some years that the Department for Innovation, Universities and Skills and its predecessors have funded a limited number of postgraduate students from the UK to study at three institutions in Europe: the European University Institute, the College of Europe and the Johns Hopkins University Bologna Center. This provision was made possible by a composite set of regulations which covered three different funding frameworks. In 2009 we reviewed the funding for these three institutions. The context then was emerging EC law, changes to domestic student finance policy and, frankly, pressures on the public purse caused by the global downturn. At that point, we took the decision to withdraw funding for students wishing to attend the College of Europe and the Bologna Center from 2010-11. No students currently involved in programmes at either institution have been affected by this decision. At the same time, we resolved to continue to support students attending the European University Institute. The EUI was established pursuant to a European convention and the UK is therefore obliged under treaty to contribute a specified proportion of its budget. Furthermore, the Government are obliged to the extent that funds are available to support UK nationals admitted to the EUI. We intend to honour this commitment. That is the background to the regulations we are debating today. They clearly set out provisions for supporting postgraduate students attending the European University Institute and they revoke the preceding composite regulations. I understand the genuine concerns raised by noble Lords that withdrawal of funding from students attending the College of Europe could harm UK representation at EU institutions. It is true that too few UK nationals apply to work in EU institutions. The UK makes up 13 per cent of the EU population, but only 6.4 per cent of EU staff. In more junior roles, the UK percentage is even lower, and we are falling behind other large member states. We recognise that to be effective in Europe the UK needs more British nationals working in EU institutions, better engagement with these bodies and ways to achieve more joined-up policy-making across Whitehall. For these reasons, the Government have recently set up the Success in the EU project, which is examining a range of approaches to boost UK representation. I think that is a positive step forward, which acknowledges the importance of the issue that has been raised. Plans are under way, for example, to revive the European fast stream—a point referred to by the noble Lord, Lord Wallace. The project is looking at how to maximise the effectiveness of secondments to the EU from the UK Civil Service. We are also working with EU institutions to help them recruit more effectively in the UK and address issues which deter UK nationals from working in the EU, such as stringent language requirements and slow promotion prospects. As part of this broader effort, the project will explore the value of funding UK postgraduates at the College of Europe. In the mean time, we have reinstated a limited number of scholarships to the College of Europe this year—it will be something like 11 scholarships. There are fewer than previously, which is partly due to the exchange rate. There are also 20 scholarships to the European University Institute. I readily accept that the laying of the European University Institute Regulations as planned and then subsequently providing a separate set of regulations for the College of Europe is not ideal. I apologise to the House if this approach has caused concern to the Select Committee on the Merits of Statutory Instruments. However, it was crucial that the EUI regulations were laid as planned to make sure that students applying under those provisions for the 2010-11 academic year did not suffer any undue delay. We also firmly believe that maintaining a composite set of regulations covering quite different funding policies was unsustainable in the long term. By providing two separate instruments, we can deal with reviews of policy or administrative changes to either set of regulations quickly and clearly, and again without undue disruption to students. I will look now at some of the issues that were raised. The noble Lord, Lord De Mauley, asked when the College of Europe grants will be reinstated. The grants, as I have said already, will be reinstated in time for the academic year 2010-11. The applicant process is imminent and the regulations to reinstate them have been laid. The noble Baroness, Lady Garden, raised the role of stakeholders. Following representations from interested parties the Government decided to reinstate, as I have said, a limited number of scholarships at the College of Europe. I do not think that fully satisfies the noble Baroness on the question of whether the stakeholders were consulted. I apologise for that. On the question of languages, I seem to recall that we had a debate on the importance of modern languages and our commitment to ensuring better provision and better take up in a previous debate. I will write to her giving details of that. The noble Baroness also asked about the role of BIS. BIS is the lead department due to its responsibility for higher education. It does have a joint interest with the FCO in the success in the EU project to boost UK representation in EU institutions, so we are in effect straddling those two departments. I certainly agree with the point made by the noble Lord, Lord Lucas, about needing to encourage the brightest and the best. We hope that the review I have referred to will initiate that process. I should also stress that the Government look forward to working with interested parties over the coming months, including the College of Europe, to develop fresh ideas on how to target available funding to the best effect and how to achieve our abiding goal of increasing the UK’s representation in Europe. To sum up, these stand-alone regulations set out clearly the support that remains available for students at the EUI, while disentangling them from other, unrelated policy areas. A separate set of regulations has now been laid to provide the statutory framework on support for a small number of students to attend the College of Europe. Regulations for the College of Europe are being laid separately and are not linked to the regulations being debated here. The College of Europe regulations will be reviewed in their own right as part of the Success in the EU strategy. I trust that this explanation has persuaded noble Lords that these regulations and the more recently laid College of Europe regulations will in fact work towards achieving the Government’s policy objectives and the objectives that have been expressed here today by the noble Lords, and also meet our obligations under EU law. It only remains for me to thank the noble Lord, Lord Lucas, and other noble Lords for their contributions today.