Professor Peter Clinch:

The supply and quality of labour is our key instrument in the face of the extraordinarily increased competition in international trade arising on foot of what is going on with Brexit, in the USA and in Europe. In our research, the single biggest factor which explains the differences in prosperity between countries is the talent and skills of its workforce, as well as its demographics. People are crucial. It is always important when thinking about innovation that one does not just think of a high-tech start-up, incubators or investment in research. That is very important but it is also in people. What we have argued for in this battle for talent is a sustainable funding model for the higher education sector. In spite of their inadequacies, the rankings demonstrate what is going on. To a large extent the fall in rankings is because of the fall in the ratio of staff to students in the institutions. We have looked for a model that encourages participation in order that people are able to access education without, perhaps, the financial assistance of their family. We do not favour the option of all the burden falling on the student. As we also recognise the multiple demands on State funding, we did not think that the required funding would be available as a State subvention. As there is evidence to suggest that those who have received higher education receive benefits beyond what the State accrues, we favour a balance of State funding and income-contingent loans that are available to people from all backgrounds. We do not get into any more detail other than that because there has been an expert group that has examined this and has made recommendations and we would rely upon its expertise. We have encouraged the Government to make decisions about what will be the funding model for the future.