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Higher education may not come under the Welsh Assembly's remit, but institutions are regarding its advent with a mix of optimism and worry. "It will be an opportunity and a challenge," said Adrian Webb, Glamorgan University's vice-chancellor. "We have to show that we are worth our existing share and then convince them to give us more. But that could be quite difficult as the assembly has already overcommitted its budget."

This does not mean, however, that universities and colleges wish to set themselves at a remove. One academic a year per institution will be seconded to the assembly. The Heads of Higher Education in Wales, of which Professor Webb is deputy chairman, decided to approach devolution collectively. "We want to ensure that higher education is represented strongly to the assembly," he said.

The University of Wales has established a Welsh Governance Centre in Cardiff. Offering its services to assembly members, the centre will target its research projects at priority policy areas. Its director, Barry Jones, promises that the centre will be proactive rather than reactive. "Higher education is not a remote ivory tower. It has a very active role to play. We are here to facilitate the evolution of devolution." Short courses on the function and responsibilities of the assembly will be offered to the public.

Mr Jones dismissed fears that the lack of an individual higher education committee in the assembly will be of any real consequence. "With more than 18 policy areas to represent and only six or seven committees, there is likely to be some doubling up. But this is not significant. Higher education will be represented."

The post-16 shake-up recommended by the Hain report has primed further education institutions about the changes in store. The proposal to absorb the Welsh Further Education Funding Council into a National Council for Education and Training for Wales has raised some concerns about the future of sixth-form colleges and about training and enterprise councils in particular.

"Some of the recommendations are very far-reaching, but the changes will be welcomed by those in the sector who want it to develop coherently," said Huw Evans, principal of Llandrillo College. "We will give our full support to the moves towards devolution, as I am convinced that the assembly needs further education to develop its agenda for change."

The opportunities a home-grown government could yield are too good to miss, so Welsh institutions are dressed to impress. "We are sources of wealth creation, innovation and enterprise," Professor Webb said. "We are unhappy that we have less funding per student than in England, and now we can aspire to be treated on a par, if not better than our neighbours."

There are some misgivings, nonetheless. "The Welsh model of devolution is very much a blueprint for English regional change," Professor Webb said. Or, as another source put it: "England should be watching what is happening with care. They are fiddling with Wales first, and we don't quite know what we are getting yet."