Group 9 is next. This group of amendments relates to funding policy and transparency. Amendment 78 is the lead amendment in this group, and I call on Sioned Williams to move the lead amendment and to speak to the other amendments in the group.

Amendment 78 (Sioned Williams) moved.

Thank you, Llywydd. I speak to amendment 78, the only amendment in this group. One of the central principles of this Bill is to try and break down the borders between the different sectors of the post-16 education sector, which, historically, have been seen as being isolated from each other. Naturally, perhaps, there is concern, with a move towards a more comprehensive system, and we heard that during our work as the Children, Young People, and Education Committee, with some stakeholders calling for a balanced funding principle on the face of the Bill, which would be a general duty on the proposed commission to ensure that there is balance between the various functions of the commission's tertiary education responsibilities and its research and innovation responsibilities.

It's understandable that there is concern that funding for the front-line provision of tertiary education could be prioritised at the expense of research and innovation, particularly when financial pressures are great and budgets are tight. However, the risk in placing such a general duty in the legislation is that it could militate against the aim of getting a more comprehensive view of the post-16 education sector.

Recognising all of this, the purpose of amendment 78 is to place a new section in the Bill, which goes some of the way towards meeting these concerns and ensuring transparency in the financial decisions of the commission. It achieves this by ensuring that the commission will need to prepare a statement on its policy as to how it will use its funding powers, and it will need to have regard to the principle that decisions about financial resources should be made in a transparent way. In practice, it will also need to consult before publishing a statement or a revised statement. We expect, therefore, that it will be possible to clearly see the impact of the commission's funding decisions on its various functions, and that those interested or concerned could express their views through the duty to consult. We're of the view, therefore, that this amendment strikes the right balance and strengthens the Bill by ensuring greater transparency.

I'd just like to take the opportunity to signal my appreciation for Plaid's tabling of an amendment inspired by the efforts that I have made throughout the process so far.

Just to note that, and to echo Sioned Williams's point, I'd like to ask the Minister just for clarity. The Welsh Government's indicated their expectation that the terms and conditions of funding will be set out in the statement and, as such, will be consulted on. As it isn't in the Bill, could the Minister confirm whether the intention is for terms and conditions of funding to be set out in the statement of funding policy and consulted on in that way?

The Minister to contribute now.

Thank you, Llywydd. I support amendment 78, tabled by Sioned Williams. I believe that the amendment will address, as she mentioned, concerns raised by stakeholders and the recommendations of the Children, Young People, and Education Committee regarding transparency in relation to the exercising of the commission's funding powers. I'm pleased that I've been able to work with Sioned in drafting this amendment to take forward the commitment that I made at Stage 2 in light of the comments and recommendations of the committee.

Requiring the commission to consult on and publish a statement of its funding policy, whilst having regard to the principle that funding decisions should be made in a way that's transparent, will help to ensure that stakeholders are kept informed about how the commission proposes to exercise its funding functions in relation to the full range of tertiary education provision and in respect of research and innovation.

Just to respond to the question from Hefin David, I do foresee that the consultation under this new duty would include the terms and conditions that the commission intends to impose on all of its budget.

Now, considering the requirements and changes made by amendment 78, amendment 31 removes requirements for the commission to consult prior to determining the terms and conditions applicable to its higher education funding. Amendment 31 provides for a coherent approach to the application of the terms and conditions of funding by the commission throughout the Bill by deleting provision that is no longer required in light of the wider consultation duty under amendment 78.

Amendment 58 in my name, but that reflects constructive discussions with Laura Anne Jones—and I thank her for her co-operation—addresses the recommendation of the Children, Young People, and Education Committee for the Bill to provide a more consistent and wide-ranging approach to the equal opportunity and widening access duties for all parts of the post-16 sector, and not just registered providers.

The amendment also goes further than the recommendation, creating greater consistency and alignment in terms of the commission's regulatory oversight of registered and non-registered providers. It achieves this by requiring the commission to consider imposing terms and conditions on its funding to non-registered providers in relation to matters addressed by the mandatory ongoing conditions of registration under Part 2 of the Bill.

The commission, when determining the terms and conditions to be imposed on its funding to a non-registered provider, must consider whether to impose requirements relating to quality, the effectiveness of the governance and management of the provider, financial sustainability, the effectiveness of the provider's arrangements for supporting and promoting the welfare of its students and staff, and the delivery of measurable outcomes in respect of equality of opportunity aims.

The amendment does not mandate which terms and conditions should be applied. It rightly puts the commission in control of its own terms and conditions, as what may be appropriate in respect of a large, recurrent grant may be unnecessary and unduly burdensome for a small, ad hoc contractual arrangement. The commission will be best placed to decide on the specific conditions for a particular funding stream.

Taken together, amendments 31 and 58 improve coherence across the Bill, ensure more equitable treatment of registered and non-registered providers, and afford the commission the necessary flexibility to tailor the terms and conditions so that they're proportionate, appropriate and reasonable, depending on the particular circumstances of a given funding arrangement. I therefore call on Members to support all of the amendments in this group.

Sioned Williams to reply to the debate.

Thank you, Llywydd. I'm pleased to have the Government's support and the support of the Conservative Party for my amendment 78, and I would like to put on record that I am grateful for the constructive collaboration that there has been throughout the journey of this Bill, in all of its stages, and that that constructive relationship with the committee and the two opposition parties has led to effective amendments to the legislation on its journey through the Senedd.

The question is that amendment 78 be agreed to. Does any Member object? No, there is no objection. Therefore amendment 78 is agreed.

Amendment agreed in accordance with Standing Order 12.36.