Jane Davidson

University top-up fees will not be introduced in Wales before 2007, it has been announced.

Welsh education minister Jane Davidson said on Friday that the devolved administration had reached agreement with Whitehall on the move.

The decision followed meetings between Welsh secretary Peter Hain and education secretary Charles Clarke.

However, it is currently proposed that top-up fees will in any event only be permitted for the final six months of the next term of the assembly, ending in April 2007.

"This is not necessarily ruling out variable fees for the longer tem. As well as having an obligation to students, I have an obligation to ensure that our institutions are well funded and can compete on the world stage," Davidson added.

"But the emphasis will continue to be on the importance of widening access to higher education and I want to take the proper time to consider fully the impact of variable fees on our ambitious access agenda for learners in Wales."

But initially rejecting the policy adopted for England marks further progress in first minister Rhodri Morgan's strategy of putting "clear red water" between Labour in London and Cardiff.

The strategy was effectively endorsed at the recent Welsh Labour conference when Tony Blair gave his strong support to Morgan's leadership since replacing Alun Michael.

Pushing the idea forward, Davidson said that there was a strong case for devolving more power to the assembly to end London's role in Welsh student support finance.

"I strongly believe that the assembly should have the scope to take decisions on student support and funding itself, following appropriate consultation in Wales," said the minister.

"Devolving powers in these areas gives us an exciting opportunity to take forward our work on building social justice, widening access and establishing an even stronger HE sector in Wales. These are our priorities and will remain so."

A letter from Charles Clarke confirmed that work on devolving the powers would go ahead, with an aim of completion within the next two months.

Plaid Cymru said the latest news was "nothing new".

"There is still a question mark over whether the necessary powers to scrap tuition fees will be transferred from Westminster to the assembly and what funding will be transferred to Wales to fill the funding gap and allow the assembly to follow this course," said education spokesman Helen Mary Jones.

"Wales can little afford Labour's nightmarishly long negotiations between the assembly and Westminster."

The Welsh Liberal Democrats said there was "a game of cat and mouse going on between Whitehall and Cardiff" over the issue of powers for the assembly.

"Welsh Liberal Democrats are opposed to top-up fees for students. It is good news that discussions are taking place with the secretary of state for education, but I would urge the Minister mo take a firm stance on behalf of Welsh students," said spokesman Mick Bates.