Scotland Bill

European Union law could not be changed unilaterally. I know that my noble friend proposes in his amendment how we might address it, but that is not the same as changing European Union law, which I am sure he would be the first to accept. When the package of free tuition for Scottish domiciled students was introduced in January 2000, my noble friend Lord Stephen—or Mr Nicol Stephen MSP as he then was—as the deputy Minister for Enterprise and Lifelong Learning, indicated that the proposals were produced based on the best advice available given the risk of challenge by other EU nationals. He went on to say that he was disappointed with the legal advice and would like it to be different, but that was the position in terms of having to operate within the confines of European Union law. I would not wish to suggest who gave that advice because I am sure it was sound, but given that we had to operate within the confines of European Union law, that was how we got into that position. Let us not be under any illusion that it was something that the then Scottish Executive did because they wanted to do it. It was because they were obliged to do it. Something that has not been fully understood until now is that the same tuition fee was charged for students from Scotland, England, Wales, Northern Ireland or the European Union, except that in the case of Scotland and European Union students, the Scottish Government paid it. It was not that it was a different rate. It was the same rate across the board and the Scottish Government paid it for Scottish and EU students. Those coming from England, Wales and Northern Ireland had their own arrangements for funding and for meeting the fees. Of course, we now see a difference. There is a difference in the new order which, it was pointed out, was not opposed by any party in the Scottish Parliament when it ultimately went through, which set a differential fee. It is wrong to suggest that this difference has suddenly come upon us. I appreciate that it is starker, but it cannot be said that it was unknown at the time of devolution. Anyone who went through those years particularly remembers the 1999 Scottish election campaign. The issue of whether there should be free tuition for Scotland domiciled students with a key one in that campaign. It was a key issue in the negotiations that led to the formation of the coalition Government. The principle was accepted at the time that Scotland and the Scottish Parliament could operate on a different basis from that which would operate in different parts of the United Kingdom. That principle was accepted and what we are saying today is not that the principle has changed but that the numbers have changed so we should be re-examining the principle. I recognise why that is the case. At the core, my noble friend said, ““Do not come away thinking that this is a matter of principle: that once you devolve powers you have to live with what is devolved””. But there is an important principle. It was one that was not challenged when the distinction was first made and therefore we must be very careful as to the grounds on which we are now challenging the principle. The noble Lord, Lord Sutherland, and my noble friends Lord Forsyth and Lord MacGregor, all mentioned the importance of the quality and the excellence that we want to see in Scotland's universities. We want to attract students to Scotland's universities because of the quality and the excellence of teaching and research. I can think of some educational institutions south of the border that would also claim to have excellence. A student resident in England choosing between Oxford and St Andrews will face the same fees whichever they choose. Perhaps St Andrews is an exception because the four years would all be at £9,000. Some Scottish universities have capped fees at £27,000, bearing in mind that there is a difference in the three-year or four-year course. That is a matter for the universities. But the residency does not affect the price of their higher education. They have the choice of going to an English university. It is not as if they are suddenly not going to be paying fees if they go to an English university which they suddenly have to pay if they go to a Scottish one. It is important that we put these issues into that kind of context.