Select Committee on European Union Minutes of Evidence


Examination of Witnesses (Questions 20-28)

BARONESS WARWICK OF UNDERCLIFFE AND MR CHRIS HALE

22 FEBRUARY 2007

  Q20  Chairman: Yes, that would fit in, would it not, with a trial period rather than one where you take a couple of individual cases and create the mechanism, and give it some standards to aspire to and then see whether it can actually work. That would fit in with that approach.

  Mr Hale: I think firstly you would have to establish what it was trying to do, if you were then to establish the criteria, and I do not think that is clear at the moment.

Chairman: That is right, so your objectives and when you know you have achieved your objectives are usually the two things that you have to be able to explain to people if you want to get money out of them, are they not?

Lord Wade of Chorlton: The problem in this business is you know very well that something like 80 per cent are going to fail. You have to take a big sample in order to know the thing is going to work.

Baroness Howarth of Breckland: I am interested in Lady Gale's question being put because I do not know about the nature of the degrees.

  Q21  Baroness Gale: My question is about awarding the EIT branded degree. In your paper you mentioned that quite a bit, where you say there is still a question of how these degrees will be recognized or quality assured, particularly in the context of the Bologna process, and further clarity in this area is still required. My question is, what are your views on the Commission's proposals of the awarding of the degrees with a prominent EIT branding, and how do think these degrees would be regarded in the academic and business worlds?

  Baroness Warwick of Undercliffe: Potentially, a degree that has currency across Europe ought to be attractive. Individual institutions, of course, believe that if they have high-quality provision, those degrees are themselves portable. So if you get a degree from a UK university or from a German university, theoretically that should be well recognised, and there is a whole structure being developed, a quality framework, across Europe to try to ensure that there is comparability of degrees. It is a very complex process and it is really quite unclear what the nature of the EIT degree might be. It looks at the moment as if it is intended to be somehow a joint brand, so that each of the institutions in some way adds its imprimatur to the degree but, again, that is really quite unclear and we know from other areas that although it is possible to establish joint degrees, it is another complex process. I think that the concept of embedding innovation and entrepreneurship in the degree course and therefore in the degree outcome is a very good one. The concept and purpose of the degree itself is still, at least to me, unclear.

  Mr Hale: I absolutely agree. There are already a lot of universities that are embedding innovation and entrepreneurship within their degree programmes and there are all sorts are examples of that within the UK. The key question is again around supply and demand: is there a demand for degrees from an EIT? I am not sure, and I am not sure if anyone in Europe knows that. I think what is needed is the flexibility within the KICs for universities, if they want to do joint degrees, to be able to do them but I do not think that should be a condition of being part of the KIC. They need to assess whether there is a demand for these kinds of degrees and if there is, they may go ahead, but I do not think they should be straitjacketed in that sense. There is also a key issue around making sure that the primacy of education stays with nation states at a national level and is not transferred over to a European institution. We would be more relaxed with an EIT degree that was just a degree from a university, which had a badge on it than an EIT degree as such.

  Baroness Warwick of Undercliffe: So it would be like a kite mark. We would be very anxious to ensure that the competency to award a degree remained within the UK. That is very much the bottom line for us.

  Q22  Chairman: I imagine that other Member States feel much the same.

  Baroness Warwick of Undercliffe: Yes, I am sure they do.

Chairman: I cannot imagine wanting anyone wanting to give that up.

  Q23  Baroness Howarth of Breckland: I still cannot see what one of these degrees would look like. I understand the conceptual framework, but it sounds like a UK or a Dutch or a German degree which happens to have some link into some other institution because of some piece of work or link. I find it hard in practical terms to understand what gives the quality assurance.

  Baroness Warwick of Undercliffe: Not at all. It really does depend on whether it is intended that this be something that looks like a joint degree, in other words, the curriculum, the design of the course and so on is done on a joint basis to achieve a particular outcome.

  Q24  Baroness Howarth of Breckland: Does this board of the EIT set the curriculum? I do not think this is virtual, 60 people in a board. That is the institution. Where does that institution fit in relation to setting the degree and the standards, or is there somebody else who does it? It is a very difficult concept.

  Baroness Warwick of Undercliffe: We certainly have not in other areas in the European context established that level of intervention at degree level. We have been very anxious, as I said earlier, to ensure that degree awarding powers remain in the remit of the UK.

  Mr Hale: I think that is the answer, there needs to be autonomy for those people within the KICs to be able to develop degree programmes as they see fit. That may mean collaborating and embedding innovation in the process; it may mean doing other things to meet the strategic priorities they have set. It is about them having the freedom. At the moment, the problem with the document which has been published is that there are lots of "shalls", for example, "universities shall do this" and "shall do that". Some of that needs to be softened up a bit.

  Q25  Lord Moser: Degrees come out of teaching. Where is the teaching of these EIT degrees?

  Baroness Warwick of Undercliffe: I can only assume that it is within the participating institutions but perhaps shared between them, because there is not any intention to have a European University, one body where people will congregate in order to undertake these courses, as I understand it. I think the idea as it has developed so far—and it is still developing -it now seems that it will be encouraging partner institutions to develop joint degrees, and that is a more understandable concept. That is something where you can see part of the teaching will be delivered in one institution, it may be delivered in another, it might require movement between the two or it might require movement of staff between the two or three or four, depending on how many there are. You are then into a very much bigger organisational process. That is quite challenging and that would really have to be very carefully worked through. To make this work, I think there would have to be very considerable incentives for the institutions themselves and in a way, that comes back to the point that Chris made; you would need to know that you were delivering something that students wanted; you would need to be responsive enough to both students and employers to know that it was worth putting in the effort to produce this outcome, and at the moment that is not clear.

Chairman: And, as we know from the study we did of movement of students at school level and at university level, just to take part of their course somewhere else that, the sheer administrative cost of dealing with what are actually relatively small amounts of money, in the Erasmus programme and so forth, is a real disincentive to people. You have to be really devoted to the idea of it—and some people are, thank goodness—before you are willing to take on the labour of getting through the process of having really quite small sums of money but they all have to be accounted for. As you say, there are going to be some administrative and other problems there. Lady Howarth, you were going to ask the question about what could we do to improve things.

  Baroness Howarth of Breckland: I think those questions were answered earlier in the debate. I have probably run off what I think the answers were, to do with Lord Moser's proposition that, do we actually condone this at all, to Baroness Warwick's suggestion that if it has to be condoned, we make sure it is smaller. Those things have to be combined. If I have understood the answer correctly, those two elements we already have in the notes and we have covered it.

  Q26  Chairman: This project is supposed to address a problem, a problem which we all recognise. Suppose it were to fall by the wayside, what could we substitute? Is there a substitute approach to solving this problem of transfer of technology?

  Baroness Warwick of Undercliffe: I wonder if it comes back to Lord Wade's point about finding the right incentives to encourage private philanthropy or private support, because without that, whatever structure we put in place, it will not work. So I think there really must be some incentive.

  Q27  Chairman: Tax incentives or regulatory incentives.

  Baroness Warwick of Undercliffe: Something that will encourage the private sector to think this is a process worth going through.

  Q28  Chairman: For its own sake, as it were.

  Baroness Warwick of Undercliffe: Yes.

  Mr Hale: One of the issues floated by the League of European Research Universities as a potential alternative, or as something that could happen alongside the EIT would be to use public procurement budgets, for example. I know that is something the Government are considering and also the Opposition in the development of their thinking around how you can incentivise business to invest and do more R&D. There are all these different elements. There is no single solution.

  Baroness Warwick of Undercliffe: And incentives for universities to work together on this.

Lord Wade of Chorlton: It is quite interesting that a lot of the regional venture capital funds that have been supported by the EU are now coming to an end. They have been extremely important in helping the commercialisation of new ideas. Now they are going to stop all those, and they propose to put another €2.7 billion into a new concept. It is really the provision of finance that makes it possible, because you cannot start new businesses without money. It is the fundamental issue, which comes to it every time really: where do you get the money from?

Baroness Howarth of Breckland: The other fundamental issue is whether or not people want to do it. It is very reminiscent of the Consumer Credit Directive discussion this, where there was a concept that none of the businesses wanted it but, because Europe wanted the concept, they were pressing it forward, although business kept saying "It won't work for these reasons, because there aren't the drivers."

Chairman: I think the time has come to thank you both very much for coming to us today and for having such an interesting discussion. We got good evidence from you and a very interesting contribution to our future discussions. I hope you will like the report when it finally comes out. Thank you very much for coming to us. It was very kind of you.





 
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