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For absolute transparency, I remind the committee that I am currently a student at the Open University. To jump back very briefly, minister, what progress is the Scottish Government making in establishing parity of esteem in financial support for part-time students?

That is very interesting.

I will stick briefly with the points that have just been put to you, Professor Gillespie.

On the issue of cross-subsidising through international students, you said right at the start of the meeting that home students lose money. At the weekend, the vice-convener of Universities Scotland, Sir Paul Grice, said that the Scottish Government had not met its part of the deal on funding its free tuition policy. Given that we are coming into the budget process—Bill Kidd talked about that—what does the Scottish Government meeting its part of the deal look like? If it did that, would that mitigate the overreliance on international students?

I will stick with you on that, but I will go to Shona Struthers shortly.

The committee has heard concerns about cuts to funded places having a disproportionate impact on the post-1992 universities. In your view, what are the implications for those institutions and for Scotland-domiciled students? In relation to the point that you have just made, what could the Scottish Government do with the money that it is not using on those funded places?

Good morning, panel. Karen Watt, I go straight to you. We have heard a great deal this morning, and in general, about the significant financial challenges that our institutions face. It is important to note Professor Gillespie’s earlier comments about stewardship, and that the institutions are navigating the situation carefully. Nevertheless, what support is the SFC offering to those institutions to help them to navigate the current financial challenges?

My understanding is that such a decision has a much greater impact on Scotland’s modern universities, given the rules on the STSS pension scheme and the enrolment. I know that that has been raised with the Government and with the SFC. Just for the record, however, what can the Government and/or the SFC do to mitigate or ameliorate—or perhaps even, in future, to reverse—that hit to modern universities’ resource budgets?

I understand. I am very grateful.

I have a not unrelated point. If the Barnett consequentials do come up for distribution to teachers’ employers in order to meet the increase in contributions, that raises the question whether the Scottish Government is required to use the increased Barnett funding in that way or whether it is not mandated to do so. Given the current context of councils, in particular, not having the greatest of means—if I can put it that way—I would like to understand the answer to that question.

Shona, you say in your submission that the five-year plan that you mentioned should include

“a repurposing of an element of the overall skills and education resource”.

Has the Government accepted the need for a five-year plan? If so, is it going to develop such a plan? What do you mean by “a repurposing of an element”?

I understand. I will ask about a related point. The purpose and principles document came out in June 2023, but some might say that it has not been extensively referenced since then. What is your view on that? Do you think that colleges are clear on what the Scottish Government’s expectations of them are for this year and going forward?