Chamber and committees

Mike Corbett wants to come in. Please keep it tight, because I have my eye on the clock and we have other topics to cover.

I am delighted to open the debate on the committee’s inquiry into college regionalisation. I thank all those who shared their knowledge and experience with us, and, of course, my committee colleagues for their due diligence.

During the inquiry, the committee considered how colleges have been impacted by the regionalisation process and consequential mergers, and how they are performing now. The committee was very impressed by the work that has been done in and across our colleges. Those institutions are critical to the economic and social wellbeing of our economy; to the delivery of the Scottish Government’s economic strategy; to the development of a skilled workforce that is able to respond to new requirements and new opportunities in industries; to opportunities for people of all abilities to develop skills for life; and to successfully widening access to opportunities, including higher education.

The committee recognises that regionalisation has allowed colleges to have a stronger voice and a seat at the table when it comes to the economic development decisions in their region, and to develop much stronger relationships with schools and universities. It has also led to a more coherent curriculum across the region, which can aid learner pathways from school to higher education; to an increase in the number of students who receive full credit for their higher national certificates and higher national diplomas, should they wish to take a degree; and to the strengthening of student associations and student representation in college decision making.

However, the committee also found that colleges face a very challenging financial situation. On average, 70 per cent of college expenditure goes on staff. Given a restricted ability to generate other funds, colleges have forecast significant staff cuts over the next five years. Indeed, some have forecast cuts of up to 25 per cent. College principals also highlighted that, although the scale has increased, financial challenges are not new, with many describing the sector as being “chronically underfunded”.

The committee believes that the full potential of colleges is being curtailed by those significant and on-going financial pressures, as well as by a lack of flexibility to respond to the specific economic and societal requirements of their areas. The committee therefore recommended that the Scottish Government and Scottish Funding Council urgently give colleges as many financial and operational flexibilities as possible to help them deliver on the various strands of their work.

Given the importance of colleges and the depth of the challenges that they face, I have been greatly disappointed at the lateness of the Scottish Government’s response to our report. It was provided only yesterday, some three weeks late and leaving the committee only a day to prepare for the debate. In addition to its lateness, the response was light on content and on addressing some of the wide-ranging, cross-cutting recommendations that we presented. I also noted that, when it arrived, it explained that the Scottish Funding Council has given colleges some flexibilities when it comes to credit targets and to addressing some of their semi-fixed costs. I look forward to hearing more about that from the minister.

The committee was concerned to hear that, in 2017, a survey identified that one third of the college estate was neither wind nor watertight. Based on that survey, Audit Scotland found a £321 million shortfall in backlog and life-cycle maintenance across the estate since 2018-19. That amount is just what is required to make the college estate wind and watertight; it does not cover what will be required to ensure that colleges meet their net zero commitment by the 2045 deadline.

Colleges, after all, are almost wholly dependent on the Scottish Government and the Scottish Funding Council for capital investment. Although the committee recognises the financial constraints that the Scottish Government is working within, the Government and the Scottish Funding Council must acknowledge the college sector’s significant needs and urgently take action to ensure that more capital investment can be leveraged into it.

Although the cabinet secretary’s response said that there would be more flexibility for capital maintenance, the combination of the backlog and life-cycle maintenance means that the allocations are still some way short of what will be required, given the extent of the backlog. I note that the Scottish Government is working with the Scottish Funding Council with the intention of bringing forward the infrastructure investment plan, and I look forward to hearing more about that from the minister.

The committee heard about the strong partnerships that many colleges have with the businesses in their region, but we also heard that they need more flexibility to respond to the needs of students and businesses locally. The ability to develop their own qualifications, including microcredentials, is one such flexibility that we discussed. The committee asked the Scottish Government to consider what barriers are stopping colleges from developing qualifications, and how they might be removed, and I am looking forward to hearing the minister’s thoughts on that during his contribution.

A significant ambition of the college reforms has been the enhancement of the student voice to help make the college sector more learner centred. We were grateful to have student representatives join us in the Parliament to share their views and tell us about the successes and challenges that they face in their roles.

The committee was encouraged to learn that student associations have been strengthened as a result of the reforms, and that student association presidents have been supported to be part of discussions about the strategic direction of the college and the support available for students, and to influence key decisions by the board. However, the strength of that challenge can be tempered by the financing arrangements of student associations, with most dependent on their colleges for funding.

The committee recognises that many college student associations are working well, but we found that others might need strengthening, possibly through more secure financing or more time and training support for student officers. The committee wants college student associations to have real agency in order to offer robust challenge to their college boards and principals, so we have asked the Scottish Government to consider whether minimum standards should be set to ensure that associations have appropriate levels of funding and independence to protect their ability to challenge their boards. Again, I would be interested in hearing the minister’s view on that.

Colleges perform so many different functions, and we all need them to do so. In our report, the committee made it clear that, without increased investment or flexibility, the sector needs the Scottish Government and the Scottish Funding Council to be clear about what colleges should be prioritising.

I move,

That the Parliament notes the conclusions and recommendations contained in the Education, Children and Young People Committee’s 2nd Report, 2023 (Session 6), College regionalisation inquiry (SP Paper 331).

You need only answer as briefly as you like, Mr Dey, and in the context of the regulations that are in front of us today.

Thank you. We now move to questions from Bob Doris.

Thank you for your candid comments. Willie Rennie has some initial questions.

Yes, I get that, but I am asking you to be more concise with your questions.

Thank you for those responses, minister. Does any member wish to make any further comments? I am just making it clear that this is where you would prompt any further action. It looks like we are all okay.

Minister, I thank you for your time this morning. We will have a short suspension to allow our witnesses to leave.

Thank you. As no one else wishes to comment, do members agree that the committee does not wish to make any recommendations in relation to the regulations?

Members indicated agreement.

Thank you. That concludes our business in public this morning. We now move into private for our final agenda items.

I want to clarify some of the terminology that Pam Duncan-Glancy used. It is not free tuition for postgraduates; it is, in fact, a loan. Can you confirm that?