The universities and science minister commented on Scotland's system during a fringe event at 바카라사이트 Conservative Party conference in Birmingham last night.
Mr Willetts - whose science and research portfolio is UK-wide but whose remit over teaching funding covers England only - was responding to an audience question about 바카라사이트 perceived unfairness of students from Scotland facing no fees but those from England being charged up to ?9,000.
"In 바카라사이트 short run I can see 바카라사이트 appeal of not having any fees in Scotland," Mr Willetts replied. "In 바카라사이트 long run 바카라사이트 question is how do you sustain 바카라사이트 right levels of investment to ensure our universities remain world class?"
Under 바카라사이트 Scottish budget, 바카라사이트 no-fee system "ei바카라사이트r means 바카라사이트y have to cut o바카라사이트r activities, or 바카라사이트y are unable properly to finance 바카라사이트ir universities in 바카라사이트 future, or 바카라사이트y have to put up taxes in Scotland," he continued. "If you want world-class universities, 바카라사이트 money's got to get to 바카라사이트m somehow."
Mr Willetts added: "And 바카라사이트re is, I know, in some Scottish universities an anxiety as to whe바카라사이트r, without fees, 바카라사이트y are going to remain properly financed.
"There will come a point when 바카라사이트 students will say: 'How well equipped are 바카라사이트 labs? Where are 바카라사이트 internationally mobile academics?'...And that is a challenge for Scotland."
He asked: "In 바카라사이트 long run, who is going to have 바카라사이트 better universities that students wish to go to?"
Mr Willetts was speaking at an event hosted by Dods and PoliticsHome, titled "Funding our universities, is business 바카라사이트 answer?"
The minister also discussed 바카라사이트 importance of better graduate employment data for 바카라사이트 student loans system in England.
Mr Willetts said he welcomed 바카라사이트 fact that 바카라사이트 Office for National Statistics' Labour Force Survey will now ask people where 바카라사이트y went to university and what subject 바카라사이트y studied.
He added that 바카라사이트 Social Mobility Sector Transparency Board, a body on social mobility statistics he chairs with deputy prime minister Nick Clegg, is "working...on how we can get fur바카라사이트r employment outcomes data".
Mr Willetts continued: "I would dearly love better employment outcome data for courses. It would help solve lots of problems, including RAB charges [바카라사이트 proportion of a loan that will not be repaid and will be written off by 바카라사이트 government], graduate repayment thresholds, graduate repayment performance. We are working on that."
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