My Lords, we have had another good but much shorter debate on this important Bill. Once again it goes to the principle of autonomy, which is the cornerstone of our higher education system. I would like to say at the outset that I am sorry to hear that the noble Baroness, Lady Wolf, is indisposed. I am sure that all noble Lords will wish her a speedy recovery.
Before I speak about this group of amendments, let me be very clear. I heard the strength of feeling expressed in Committee last week about the need to protect institutional autonomy. I would like to inform noble Lords that, along with the Minister in the other
place, I am actively considering what further safeguards may be needed to protect institutional autonomy and academic freedom as the Secretary of State and the OfS carry out their duties under the Bill. No doubt we will return to this issue on Report, so I will keep the rest of my remarks relatively brief.
We certainly want an open dialogue between the Government and the OfS, and the systematic involvement of the OfS in the policy-making process, just as there has been with HEFCE over the past 25 years—something to which my noble friend Lord Willetts alluded. As currently drafted, the Bill does not constrain the OfS from giving open and honest advice and analysis to the Government on matters within its regulatory remit. Let me also reassure noble Lords that the Bill prohibits the Secretary of State from framing guidance, setting terms and conditions of grant or giving directions to the OfS in terms of course content and how courses are supervised or assessed. The powers we have discussed today relate directly to the spending of public money and the accountability of the OfS. The Government have a legitimate role in setting priorities in these areas. That is why we are taking the time to think carefully about how we are going to ensure an appropriate level of oversight while at the same time properly protecting the vital concepts of institutional autonomy and academic freedom.
The noble Lord, Lord Storey, raised the issue of guidance and stated that there was a reversal of the 1992 Act. No reference is made to guidance in that Act, and we are strengthening the protections on ministerial guidance by making reference to institutional autonomy and academic freedom. An express power to issue guidance means that the Government do not automatically need to have recourse to setting the terms and conditions of grant or directions, which are less light-touch, so this is surely a sensible intermediate step.
I will now address the issue of parliamentary oversight, about which we have heard some speeches this afternoon. We have thought carefully about the use of these powers. The general focus of the contributions of my noble friend Lord Norton and the noble and learned Lord, Lord Judge, was that the guidance must be subject to parliamentary scrutiny. But the duty in Clause 2 is to “have regard to” guidance. As my noble friend Lord Norton said, where the OfS has cogent reasons, it can act outside that guidance—so the provision does not impose any obligation other than that the OfS should consider it. Directions under Clause 72 are different: they must be followed. That is why there is parliamentary scrutiny when those are made.
It is absolutely right that the Secretary of State should be ultimately responsible for the guidance that he or she gives the OfS, especially when it relates to directing public money towards government policy priorities. We envisage that the Government will issue regular guidance to the OfS in much the same way as they do to HEFCE. Imposing parliamentary oversight and approval on the giving of the Secretary of State’s guidance to the OfS would create a far less flexible process and would risk inhibiting the ability of the Secretary of State rapidly to issue ad hoc guidance in response to changing events. However, I reassure my
noble friend Lord Norton that our approach to guidance will be transparent in a similar way to the guidance given to HEFCE—for example, with a published annual grant letter.
I hope that I have given a flavour of the careful balance that we continue actively to work to achieve here. I have noted the points raised and will actively take them into account ahead of Report. In the meantime, I ask the noble Lord to withdraw the amendment.