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As I understand it, the process must take place once every two years. Is there a retrospective element of the process that involves reflecting on what you have delivered and on what you will change? Is that information then made available for parents or anyone else to read?

How do the other two councils approach the matter? It sounds as though no formal process is followed.

Okay. We probably have to agree to disagree on that point.

Moving on to the college funding model, I am interested in exploring the viability of that model in the long term and just how serious the position is for Scotland’s colleges. None of us would want to see the colleges in Scotland get into the financial mess that many colleges in England have got into. How viable is the funding model in the long term?

So, accepting, as you have just recognised, that that was a one-off, is it not inaccurate to talk of a £51.9 million cut in the budget? The £23.9 million figure is much more accurate, is it not?

I want to follow up on that. In previous evidence taking, we have explored the fact that up to 70 per cent of some colleges’ spend is on staff. I want to get the SFC’s view on that, given its overview of educational spend. Do you think that that is an appropriate position for colleges to find themselves in, compared with the position in universities and schools? Is that level of spend on wages justified? Are you comfortable with that?

I am talking specifically about where there is like-for-like provision. There would be a multiplier attached to that £2,500.

What is the view of the SFC?

I am seeking to get two points of clarification from Karen Watt.

First, you indicated earlier that, in determining the level of funding that universities enjoy, you take account of the additional overheads—their cost base. Do you also take account of their ability to generate income from other sources? I see that you are nodding your head, so I will take that as a yes. I am sure that you see the point that I am getting at: colleges do not enjoy the same opportunity.

Secondly, if you were to arrive at a decision that the funding per student should be the same for colleges as for universities where there is like-for-like provision, what would that be worth to colleges? Can you give us a ballpark figure?

Could you write to us on that, to give us a sense of what difference that would make?

I want to pick up on the issue of pay harmonisation. It strikes me that, particularly in the early days of mergers and regionalisation, a considerable amount of work was done, and a lot of money was expended, on bringing pay levels into line. That legacy issue has had a substantial effect.

To what extent has pay harmonisation contributed to the financial difficulties that the colleges now face?