There are some general concerns about the future of the HE sector in Wales, not only as the result of Brexit, of course; the sustainability of the sector has been vulnerable for many years now. But, the implications of Brexit for our universities will mean that it is crucial that the Welsh Government and the UK Government do take action soon in order to safeguard the future of the sector.

As many have already said this afternoon, a successful HE sector is crucial for a prosperous Wales. Therefore, the Welsh Government must do everything needed in order to safeguard the sustainability of the sector. First of all, we need to safeguard the current funding and funding programmes of the European Union or provide alternative funding and programmes.

Taking into account the expenditure of universities, staff and students, Welsh universities have an important direct impact, which is far-reaching, on the Welsh economy. The economic impact of the HE sector in Wales came to a total of £4.6 billion during 2014-15, with £251 million of that coming to Gwynedd alone. There are 3,000 jobs in Bangor University, which is an important part of the local economy of the area, with far more employed indirectly as a result of the existence of Bangor University.

Universities in Wales have raised concerns about the funding system for many years, pointing to the funding gap between institutions in England and Wales as a result of the tuition fee grant, and it’s estimated that the gap was between £73 million and £115 million in 2015. The hope is, of course, that the recommendations of Diamond will actually deal with some of that gap, but the historic impact on the sector has been grave, and the Welsh Government has been underfunding universities in this country. Plaid Cymru has been able to ensure that there will be no further cuts in the 2017-18 budget, but the situation remains extremely challenging. The funding gap has meant cuts to courses, with Bangor University, for example, having to close the school of lifelong learning, although there are some hopes that some provision will be provided in an alternative manner.

Given these funding pressures, European Union grants for research and development, as well as capital funding, have been exceptionally important in supporting the HE sector’s work in Wales and in enabling that sector to remain competitive: £12 million in funding from the Horizon 2020 fund in 2014 alone; £118 million in funding from the European Investment Bank between 2011 and 2016 for developing learning facilities and improving learning and research facilities. For example, Bangor University received funding to the tune of €10 million in March 2016 from the European Investment Bank, and another funding package worth €54 million from the bank in 2014, which is significant funding, not only for the university but for the wider economy, as I’ve said.

Philip Hammond has pledged to safeguard the funding of any project currently receiving Horizon 2020 funds up until the end of the project, even if we do leave the European Union before that programme is concluded, but what happens after that? The autumn statement allocated funding for research and development, but what about the broader range of academic research work that is also being funded through the European Union? We can participate in Horizon 2020 without being members of the European Union. Norway, Turkey and Israel, for example, do succeed in doing so, and it’s also possible to receive funding from the European Investment Bank without being members of the European Union—for example, Norway, Liechtenstein, Iceland and Switzerland do so. It’s important that all efforts are made now, and that we leave no stone unturned in order to ensure that our HE sector continues to have access to these funding sources once we have left the European Union.