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Why is it that two thirds of the money in ALFs relate to the three Glasgow colleges? Is that just historical or is there something behind it? Why are they more successful?

I have a final area to cover. Staff costs are shown as 71 per cent of the total expenditure in 2020-21. That is high, but it is, of course, very much a staff-driven environment. People have to be able to present courses and so on. Therefore, although 71 per cent is high compared with the figures in other sectors, it is possibly justified. However, that means that there is very limited manoeuvrability to save money elsewhere. Staff numbers fell by 1.2 per cent in 2020-21. How sustainable are those staff numbers, given the financial pressures that colleges face? Colleges really have only staff numbers to play with to save money.

We have talked about shared resources for as long as I remember, but I am not sure about the extent to which that has been successful. Are you aware of any examples of colleges that have found alternative ways to reduce costs or increase income? Is there a success story out there that could lead other colleges?

Previously, the financial situation among colleges varied widely. There were particular issues around the Highland ones and some of the Glasgow ones. Does that situation prevail, without much change? In other words, if we looked at 2018-19 and backwards, and looked at the position now, would we see the same pattern with the same colleges, or has there been any significant improvement for any of them?

Auditor General, the question of sustainability in the college sector goes back a long way. There have been various iterations of it over the years, particularly since 2014. There has been much discussion of Covid-related funding, which masks some of the financial problems. Are you able to quantify what the impact has been? I am trying to get to the underlying financial situation, as opposed to the impact of the Covid funding.

Let us look again at exhibit 1, which shows that the SFC is forecasting the adjusted operating position of colleges. It shows a deficit of £5.6 million in 2021-22 and a projected deficit in 2022-23; the figure then moves into surplus in 2023-24. That seems positive, but how realistic is it? Is that achievable?

It is a bit alarming that the SFC’s funding has gone up during the period that we are looking at, from 75 per cent in 2017-18 to 79 per cent now. That was never intended. It was intended that colleges should generate some of their own income—and they do, but not at the level that was anticipated prior to Covid.

Although there was fairly solid information to show that the vessels would be delayed, and the payment of the £30 million came with the condition that there had to be progress on the vessels, you took a public interest view rather than simply a literal view of the contract.

Do you want me to carry on, convener?

So, as far as you recollect, that was never discussed.