My Lords, I declare an interest as pro-chancellor of Lancaster University. I fear that noble Lords may feel that I have worked out my line with the noble Baroness, Lady Wolf, because it is very similar to hers in its thrust.
I am not against competition per se. I am in favour of it. There is a lot of competition in the university sector as it is. My own institution is deeply competitive in trying to recruit students within a group of universities which it sees as its prime competitors. For instance, we have to invest an awful lot in our high-quality management school if we are going to continue to attract the international students who are so important to our income. Let us not pretend that we do not have competition. We have a lot of it. On the whole, at present it is healthy.
If we are to have more competition, it must not be bargain basement competition at the bottom end of the market, trying to erode margins in the cheap-to-teach subjects—let us put it like that—because ultimately that would undermine the viability of the university sector as a whole. Therefore, when we are talking about competition, the duties ought to have a heavy emphasis on innovation. I would like to see more competition in the area of new courses and institutions that reach out to people who have had apprenticeships and give them a ladder of opportunity into degrees. I would like to see more innovation in trying to attract to university people who are bright but have not succeeded in our conventional education system. There is a strong role for innovation but it has to be guided and managed. I would be horrified by the possibility that the OfS should think that competition should override all other considerations.
I do not have a word formula to meet these requirements, but this requires thought. I would like to hear from the Minister whether the Government share the concerns that the noble Baroness, Lady Wolf, and I and others have expressed in this debate, and to hear that they emphatically do not think that the promotion of competition should override other objectives. My noble friend Lord Stevenson spoke to his amendments on having regard to the public interest. I would like to see a provision on having regard to the financial sustainability of the sector as a whole. Such amendments are very important, as we have to have balance on this question.