Ms Trish O'Brien:

We have 905 providers. We also have a large number of centres which are linked to providers.

Mr. Vaughan mentioned equity and fairness, which we consider very important and one of the principles in our fees policy. We must also consider that in the wider sense of equity for private providers, some of whom are operating in the same area, and in terms of how we deal with higher education, which is all subject to fees. We have to look at this from the perspective of quality assurance in order to fulfil our statutory functions. We have to look at the whole system and all of the learners within the system. We do not believe it appropriate for a quality assurance agency to have a starting point of the financial viability for a subsector within the wider system and for us to look at subsidising a subsector of that.

In respect of the component piece and the strategic piece, I accept I was talking about a longer period of time. Many providers in the past would have come with components of awards. They would have come to validate one component, then another component and then another component at different times, instead of seeking validation of a bigger award, in which case they would be free to offer the components as part of that and potentially have learners on a piece whereby they could gather the components towards a major award. What often happens is that learners in further education are moving from one provider to another, getting enough components together to have a major award. We would contend that a provider might think further as to what it wants to offer a provider cohort, which is why we are trying to incentivise that a little. If a provider were to take that route, the costs on the fee schedule would be significantly reduced. I accept the financial viability element comes in for the long-term element, but if we take it objectively, this is our intention and our hope in trying to incentivise this.

The Deputy is quite correct to state that there will be issues in respect of the networking element. That is why we are hoping to engage with ICTU and Aontas after this to create a model of how it can be done. It is very easy to say that providers should be formed into networks and consortia, but we have to ensure that we are developing a viable model for them to be able to do that and to meet our quality assurance standards, which is our starting point. I am not suggesting that it would be easy, but I think it could be done.