Select Committee on Welsh Affairs Minutes of Evidence


Examination of Witnesses (Questions 840 - 845)

TUESDAY 18 MAY 2004

NORTH EAST WALES INSTITUTE

  Q840  Hywel Williams: Gathering together whatever you have here can be quite burdensome for SMEs so how can we give SMEs easy access to that? How do you do it?

  Professor Thomas: We can arrange distance learning open mornings through ICTs, which means serious investment by the government in copper lines, etc, which we need in particular for the rural areas, for small companies there. We also need peripatetic staff to come and advise people. That again needs investment. It may be that if you are looking for some investment model the funding should not look just for the number of students you get but also for a donor company for other activities which is local to the economy. Manufacturing costs have to be incurred but also costs are incurred on activities with the local economy and there are also the costs compared with other activity such as research activity. There is little money coming from outside the teaching programme for research to help academics so it is very difficult without additional funding.

  Mr Howard: We need to be a one-stop shop.

  Professor Thomas: As long as the funding budget is funding the number of students, the staff/student ratio, it will always constrain staff for other activities.

  Q841  Hywel Williams: You mentioned that you have been active in an initiative to introduce graduate skills into SMEs. How successful has this been and could you tell us what impact it has on SMEs in Wales?

  Professor Thomas: There is a drain of intellectual property in Wales. The differences in salaries, for instance, means that very good graduates from Wales are being easily tempted across the border. Big cities like Manchester, Leeds, London and Birmingham make it difficult to keep good graduates in Wales. We do keep a sufficient number but we would love to keep more. Conversely, those who do go to England are very difficult to get back to Wales and their expertise is lost to the Welsh economy. It is not a comfortable thing.

  Mr Tatler: From the engineering point of view the links we have with the graduate reduce after their final year. They may stay one or two years and work for the small SMEs here but they eventually move on. There are rich pickings.

  Q842  Hywel Williams: They move on when they are at their most productive and active?

  Professor Thomas: We work here at NEWI with the Welsh Language Board and the Welsh Media Board. I strongly believe that the North East Wales Institute is the perfect place to bring up Welsh language issues, for instance, in Welsh law and about what the Assembly is doing. I want to look at Welsh and what it means in open local business studies and health care. We would like to start to bid in for that for the Welsh media. We think that if we had Welsh speaking modules relating to the business and commercial area that would encourage micro companies and sustain SMEs in Wales.

  Q843  Hywel Williams: The wider language issue is something that can be replicated anywhere. That is just a comment.

  Professor Thomas: Wrexham has a big population. I have a Manchester accent and my family live in Caernarfon and so we have an ear for accents, Welsh, foreign, Europe citizens Welsh and English citizens. No other population in the world carries such a wide diversity of accents, so we are well placed to take advantage of the opportunities that that offers.

  Q844  Hywel Williams: My last question is on devolution. Responsibility for further and higher education, like other parts of the devolution settlement, is shared between Westminster and Wales. What assistance can the UK Government give to create a prosperous environment in the Welsh academic sector?

  Mr Bird: There is a series of things. One is student numbers. We are in the worrying situation of English universities being able to come across the border and teach our students on our doorstep and get funding for it. It would help cross-border cultures, and I said earlier about KTPs, if we could have an increase in cash funding so that we could become sustainable and make it even bigger than the 30 million going to the local economies.

  Q845  Mrs Williams: There is a school of thought which says that we are producing too many graduates. How does that fit in with what you have just said? I do not agree with that view.

  Mr Bird: I know the government has a 50% target in higher education. We do not see that as a problem on the ground here.

  Mr Tatler: From an engineering point of view if you said that to the major employers they would say they cannot get enough good quality engineering graduates.

  Professor Thomas: I came into higher education in my mid twenties, so I came in via the mature entrant route. Being an undergraduate teaches you to be more disciplined in the way you learn and analyse and you also apply the same philosophy to other interests. You can then transfer those skills into other programmes and it allows your motivation to roam free so you can transfer from one subject area to another. We find it difficult to accept that a country does not need graduates.

  Mr Tatler: We have come full circle now on where we spoke about SMEs, where they need to be more smart now with better qualified, better trained staff if they are going to be competitive against the degree imports that can be brought in from China and all the other places. We can do this by giving a better trained workforce, by having graduates with degrees and undergraduate qualification coming on board now who are helping the competitivity of the SMEs within Wales and also they tend to be more worldly wise.

  Mr Bird: In my enterprise and entrepreneurship area I try and teach people how to learn and I also try to teach about growing graduates for high value, high skill jobs. It will come full circle after the EU enlargement to put it on an international basis growing these high value, high skill jobs where people do not have just to go to Eastern Europe for their skilled workforce.

  Chairman: We have exhausted the questions we had. Thank you very much for your answers.





 
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