To ask the Secretary of State for Education and Science when he next expects to meet the Committee of Vice-Chancellors and Principals regarding the future of university education.

My right hon. and learned Friend and I met representatives of the CVCP on 4 February to discuss a range of matters. We expect to meet them again from time to time, when both immediate and longer-term issues will doubtless be on the agenda.

I thank the Minister for his reply. Can he explain the basis of the extraordinary decision to cut access funds for our higher education institutions to less than half their present level—from £23 million to £10 million in two years time? Does he accept that access funds have been much touted by his Government as a new and flexible instrument and have been extremely useful to the universities? They have been the eye of the needle, with the would-be British higher education student acting as the camel. Why, having built up the funds, does the Minister intend to take away more than half of them over the next two years?

We have introduced new access funds. They will be available for use at the discretion of higher education institutions to help students who may be in financial difficulties. By convention, the figures for the later years of the public exependiture survey are rounded down to the nearest £10 million. Provision for 1993–94 will be settled following the three-year review that was promised in the 1988 White Paper.

Was the strategy of student finance discussed at that meeting and will it be discussed in future, in the spirit of consultation and recognising that this is one of the key problems that we face?

I take my hon. Friend's point about the importance of consultation on the basis of a rational understanding of the requirements of institutions I am pleased about the exciting and rapid rate of expansion in higher education, right across the board. The rate of expansion has been greater and more creative energy and innovation have been witnessed in recent years in the polytechnics. I have no doubt, however, that the universities will wish to respond. We wish to ensure that the amounts of funding and the funding methodologies are sensibly designed to take account of the needs of universities.

When the Minister meets the Committee of Vice-Chancellors and Principals does he intend to discuss with it the Secretary of State's plans, reported in The Independent on Sunday, to abolish the distinction between universities and polytechnics? Will he confirm that the Government are considering that matter? Does he agree that in order to overcome the binary divide it will be necessary to establish a joint funding council, common quality assurance mechanisms and safeguards for the existing research commitments at universities?

As I said to my hon. Friend the Member for Cambridge (Mr. Rhodes James), some of the most vigorous expansion and some of the most creative innovation in higher education have occurred in the polytechnics in recent years. They are impatient to have the right to university status. My right hon. and learned Friend and I are following with great interest the debate which, as the hon. Member for Oxford, East (Mr. Smith) recognises, raises complex and far-reaching issues.

I congratulate my hon. Friend on the expansion that has taken place at the excellent university of Exeter and at other universities. When he considers future funding, may I ask him to pay particular attention to the need for funds for the repair and maintenance of the buildings of universities that were created in recent years?

I well understand why my hon. Friend takes such pride in the achievements of Exeter university. We have increased not inconsiderably the sums available for capital expenditure; about £200 million will be available for that purpose. Universities have been provided with considerable discretion and flexibility over borrowing, so Exeter university can look forward with some confidence to being able to provide the necessary facilities to support the expansion in student numbers to which undoubtedly it aspires.

Would it not be advisable for the Minister to meet the vice-chancellors in the near future—certainly before completion of the Committee stage of the British Technology Group Bill?

As I said in my answer to the hon. Member for Cardiff, West (Mr. Morgan), we meet the vice-chancellors from time to time. Among other important matters is the funding of research and how universities can enter into the most constructive and productive relationship with private sponsors of research. I am pleased that university income from industrial and other sources for research has increased fivefold during the time that this Government have been in power.