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Chamber and committees

Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 5 May 2021
  6. Current session: 12 May 2021 to 27 August 2025
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Displaying 2257 contributions

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Education, Children and Young People Committee

Pre-budget Scrutiny 2025-26

Meeting date: 12 June 2024

Michelle Thomson

I am sorry to interrupt but, in that case, how could you be clear in your earlier statement to Willie Rennie, when you said that you did not think that that was likely? I am sorry, but I forget the exact words that you used.

Education, Children and Young People Committee

Pre-budget Scrutiny 2025-26

Meeting date: 12 June 2024

Michelle Thomson

That is exactly what I would expect to happen. The reason why I may appear slightly startled about that is that there have been dire warnings from elsewhere in the UK, particularly from former UK Government ministers, for example, who are proclaiming that, in their opinion, it is likely that some institutions may fail in England. I presume that those institutions are taking the same mitigation steps as other institutions. That therefore begs the question: in your opinion, what is different in Scotland from what is happening elsewhere in the UK, where that is considered to be a higher probability? I am not clear about that.

Education, Children and Young People Committee

Pre-budget Scrutiny 2025-26

Meeting date: 12 June 2024

Michelle Thomson

You have given us a lot of content, which other members will pick up on.

Education, Children and Young People Committee

Pre-budget Scrutiny 2025-26

Meeting date: 12 June 2024

Michelle Thomson

As public sector institutions.

Education, Children and Young People Committee

Pre-budget Scrutiny 2025-26

Meeting date: 12 June 2024

Michelle Thomson

Yes, of course.

Education, Children and Young People Committee

Pre-budget Scrutiny 2025-26

Meeting date: 12 June 2024

Michelle Thomson

You make a fundamental point about gearing that I do not think has been understood in this legislature from a financial perspective, so thanks for that.

To follow on and finish that thread, perhaps Shona Struthers could comment on the process for monitoring, be that in relation to the SFC or indeed the Scottish Government, if something needs to be highlighted. Will you talk us through the process for risk assessment of financial viability? Can I assume that that is happening on an on-going basis? After all, you are running businesses and you will be applying the usual measures. If I am not correct on that, please put me right.

Education, Children and Young People Committee

Pre-budget Scrutiny 2025-26

Meeting date: 12 June 2024

Michelle Thomson

Exactly—the financial element has been put across very clearly.

Education, Children and Young People Committee

Pre-budget Scrutiny 2025-26

Meeting date: 12 June 2024

Michelle Thomson

If you do not mind, I will come in before we move on to that issue. I want to be clear in my mind about the prudent regime that Iain Gillespie outlined. Is that set by the Scottish Funding Council? If we leave aside the risk profiling that commercial lenders undertake, do you set that prudent regime?

Education, Children and Young People Committee

Subordinate Legislation

Meeting date: 12 June 2024

Michelle Thomson

I have a brief top-up comment that follows on from my colleague Ben Macpherson’s fair point about the process of allocation. It might well be worth exploring that issue further, but I would be very surprised if it were otherwise. If the Scottish Government were mandated to flow the consequentials through in exactly the same format, that is exactly what it would have to do; after all, it would be a legal requirement. However, given that this is the education committee, there might well be a misunderstanding about how the financials flow through, the process itself and the point at which money arrives with the Scottish Government. It might be worth exploring that.

Education, Children and Young People Committee

Pre-budget Scrutiny 2025-26

Meeting date: 12 June 2024

Michelle Thomson

That point about gearing and lending to English universities is very well made, and I understand it clearly. Is part of the risk for them that, if they have taken on lending against fixed assets on a commercial basis, the lending institutions could pull in loans, as we have seen in other areas? I take it that that is what you are alluding to—as well as the cash-flow issue, there is the cash-out day idea.