I would like to express my appreciation for Professor Hazelkorn’s work, alongside the many stakeholders, in reviewing the current arrangements and drawing on her extensive international experience. Indeed, in her most recent co-authored book, ‘The Civic University’, she has argued that pursing a civic mission must be a way of both organising higher education and the value of institutions in partnership, committing to improving the lives of communities and nations. I have previously set a challenge to Welsh higher education to recapture its sense of civic mission following the Brexit vote. But I also recognise that the wider framework for our post-compulsory education system itself needs clarity, both in terms of its sense of purpose and how we ensure high-quality options and outcomes for our citizens.

The previous administration commissioned the review because of concerns about the growing complexity of the post-compulsory education and training system. This includes further education, higher education, work-based learning and adult community education. The various sectors and providers are regulated and funded in different ways by different bodies and the result can be unhelpful competition between education and training providers, duplication or gaps in provision and confusion for learners. New types of providers have entered the system in recent years and a significant number of HE courses are now taught in FE institutions. Boundaries between higher education and further education, which once were clear, are now breaking down.

I am conscious of significant changes in the approach to post-compulsory education and training in other parts of the United Kingdom. These will have a knock-on effect on Wales and we need to ensure that our system is fit for purpose and benefits learners of all ages, employers and communities. Working lives are now longer, and they change rapidly, and we need a system that makes it easier for people to learn and acquire skills throughout their careers. Our lives and economy are undergoing huge technological change. We know that the skills requirements of our economy are constantly changing and, of course, we must respond to the impact of Brexit. Doing nothing, or maintaining the status quo, is not a viable option.

Professor Hazelkorn concluded that the current system does not focus sufficiently on learners and nor does it fully achieve value for money. Her report emphasised the need for post-compulsory education and training to operate as a single sector. It also proposed how the post-compulsory sector should be regulated and monitored to ensure sustainability, coherence and effectiveness into the future. Her recommendations included: developing an overarching vision, based on stronger links between education policy, providers and provision and social and economic goals; establishing a single regulatory, oversight and co-ordinating authority for the post-compulsory sector—this would be responsible for funding provision at all levels, monitoring governance practice, ensuring quality and be the lead funder of research; placing the needs of learners at the heart of the education system by establishing a clear and flexible learning and career pathway; and there should be parity of esteem between vocational and academic pathways and connections between qualifications and the labour market, and they have to be improved.

Over the past few months, I have given these proposals careful consideration, alongside ministerial colleagues. As set out in my agreement with the First Minister, we want to promote and enhance both academic and vocational routes into and through further and higher education, ensuring that we widen access so that learners benefit throughout their lives. Raising standards in schools is crucial, but we also know that lifelong learning, part-time learning and work-based learning is essential to social mobility and national prosperity.

I recognise that the model proposed by Professor Hazelkorn builds on what is tried and tested in successful systems such as the ones in Ontario and New Zealand, and I want Wales to enjoy those same advantages. Therefore, Deputy Presiding Officer, I plan to consult, later on this year, on proposals for establishing a single strategic authority, responsible for overseeing all aspects of post-compulsory education and training. It is critical that we hear from learners, leaders and practitioners on how post-compulsory education and training meets their needs and can be an even greater force for the social mobility and national prosperity I mentioned earlier.

It is intended that the new body would be given responsibility for planning, funding, contracting, ensuring quality, financial monitoring, audit and performance, and be the lead funder of research. In line with Professor Hazelkorn’s recommendations, the current functions of the Higher Education Funding Council for Wales would be transferred to the new authority, which would operate at arm’s length from the Welsh Government. Let me be clear: our universities were founded, grew and now prosper as autonomous institutions with academic freedom—a principle that remains secure. This is an opportunity to shape a system where institutions of all types are encouraged to work together to meet learners’ needs, enabling progression and building strong links with businesses, so that skills gaps can be addressed. The new body would develop strong links with others, including schools and business, so that young people can move smoothly to further or higher education and find the opportunities that best meet their needs and aspirations.

Following consultation, Deputy Presiding Officer, I plan to bring forward legislative proposals later on in this Assembly term. To help manage the transition, the current chair of HEFCW has provisionally agreed to continue in this role for a further three years, for which I am grateful. Alongside this, I am seeking new members for the HEFCW council with experience in a wider range of areas, including work-based learning, further education and major public and private sector employment, in addition to existing strengths in higher education, innovation and research. In addition, we continue to seek the best advice and support for raising standards and enhancing opportunities.

Building on the work undertaken by Professor Hazelkorn and Professor Ian Diamond, I am able to announce that Professor Graeme Reid will oversee a review of research and innovation activity investment made by Welsh Government and related agencies. Later in the spring, I also intend to review how we monitor and improve effectiveness and outcomes in our post-compulsory education system.

So, Llywydd, I see these proposals and the other work I have announced today as the start of an informed debate. It must involve the education sector as a whole, business, learners and all who have an interest in making our post-compulsory education and training system the very best that it can be.