Scotland Bill

(Limited Text - Ministerial Extracts only)

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Monday 26th March 2012

(12 years, 8 months ago)

Lords Chamber
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Lord Wallace of Tankerness Portrait The Advocate-General for Scotland (Lord Wallace of Tankerness)
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I beg to move that the Report be now received.

Lord Forsyth’s amendment to the Motion not moved.
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Moved by
1: Clause 7, leave out Clause 7
Lord Wallace of Tankerness Portrait Lord Wallace of Tankerness
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My Lords, your Lordships will remember that last Wednesday I indicated that agreement had been reached between the United Kingdom Government and the Scottish Government on a number of changes to the Scotland Bill and supporting non-legislative measures. Following this agreement the Scottish Government tabled a legislative consent Motion recommending the Scottish Parliament support the Bill. The amendments in this group are part of the changes to the Scotland Bill as a consequence of the agreement that has been reached between the Government and the Scottish Government to ensure that the Bill continues to retain the support of the Scottish Parliament, previously affirmed in an overwhelming vote of support in March 2011.

These amendments will remove Clause 7, Clause 12 and the associated Schedule 2, Clause 13 and Clause 26 of the Bill. With regard to Clause 7, the Government’s intention in pursuing the limited reference procedure contained in that clause was to prevent unnecessary delays to Bills in the Scottish Parliament, where the majority of provisions are considered to be within the legislative competence of that Parliament. The Scottish Government had raised concerns that this clause could have potential for introducing unintended consequences and delay in enacting legislation in the Scottish Parliament.

Likewise, during Committee consideration, the noble and learned Lord, Lord Boyd of Duncansby, raised concerns about whether the provision was necessary, as he believed that the existing arrangements appeared to be adequate. As a result of our discussions with the Scottish Government, we have agreed that this clause should be removed. The Scottish Government accept that in future, as at present, only a full Act of the Scottish Parliament can be referred to the Supreme Court, even if only a single provision raises competence issues.

Amendment 14 removes Clause 26 from the Bill. This would have allowed UK Ministers to implement international obligations on a UK basis, where it would be more convenient to take action on such a basis. The Scottish Government believe that this clause could undermine the clarity about which Parliament and which Ministers have responsibility for a particular matter. Both Governments acknowledge the importance of ensuring that all of the United Kingdom's international obligations are fully implemented across the UK on a timely basis.

The UK Government are willing to remove this clause, on the understanding of course that Scottish Ministers will ensure that any international obligations that fall within their responsibility are implemented on time. In turn, we have made clear to Scottish Ministers that the Government would be prepared to use their existing powers of direction under Section 58(2) of the Scotland Act 1998, should we have concerns about the implementation of international obligations within the remit of Scottish Ministers.

Clause 12 and associated Schedule 2 relate to insolvency. It would have returned legislative competence back to the United Kingdom Parliament in relation to all aspects of the winding up of business associations. The United Kingdom Government continue to believe that, where appropriate, Scottish procedures for insolvency should be in step with the rest of the United Kingdom. Our discussions with the Scottish Government have provided us with assurances that these concerns can be addressed without amending the devolution settlement in this respect. We therefore seek to remove this clause on the understanding that the Scottish Government will consider the modernisation measures for the devolved areas of winding up in Scotland introduced into the reserved insolvency procedures in 2009 and 2010; and have provided assurances that future changes made by the UK Parliament or Ministers in this area will be considered timeously by the Scottish Government in their area of competence.

Finally, Amendment 7 seeks to remove Clause 13, dealing with the regulation of health professionals, from the Bill. While the Scottish Parliament has had power to introduce for Scotland separate legislation in respect of regulating a number of health profession—that is, those not listed by reference to specific statutes in Schedule 5 of the Scotland Act—it has chosen not to do so. Rather, it has approved the use of the existing, reserved machinery, in the form of orders made under Section 60 of the Health Act 1999, to regulate new groups of healthcare professionals.

During our discussions with the Scottish Government they raised some concerns about this clause. The Scottish Government have provided us with clear assurances that they will work closely with the Government to ensure that consistent regulatory regimes apply to all health professions. Given these assurances, the Government are content to continue to develop policy in relation to regulating the health professions with the Scottish Government. The United Kingdom Government, through the Department of Health in England, will continue to engage closely with officials, not just in Scotland but also in the Administrations in Northern Ireland and Wales, to develop future policy proposals concerning the regulation of healthcare professionals.

The Government have received assurances on all these matters that the same effect that was sought by provisions in the Bill can be secured by non-legislative means. On that basis we have agreed to seek to take out the provisions from the Bill. I beg to move the amendments.

Lord Foulkes of Cumnock Portrait Lord Foulkes of Cumnock
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My Lords, I wonder if this would be a good opportunity for the Minister in his reply to inform the House what will now happen in relation to the legislative consent Motion. It would be helpful if he could briefly give us a timetable about when it will be considered by the Scottish Parliament and the procedures thereafter. If there are any problems, how will this House be informed? Does he envisage that the legislative consent Motion will be passed through the Scottish Parliament without any difficulty; and are there any further procedures that may be necessary within this Parliament following the passage of the legislative consent Motion?

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Lord Pearson of Rannoch Portrait Lord Pearson of Rannoch
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My Lords, before the noble and learned Lord sits down, perhaps I could associate myself with his earlier remarks. I regret that I have not taken part in the proceedings on this Bill until now. I was not sure whether or not I should declare an interest as someone who spends most of the year in Scotland. Now that I have worked it out that I do not, I feel free to join in.

My specific question follows what the noble and learned Lord, Lord Boyd, said. Our Companion requires that there should be 14 days between Committee and Report. On this occasion, there has been one working day, which was a Thursday. I have never formed part of the usual channels—and never will—so can the Minister explain to your Lordships how this decision has taken place at this stage of this hugely important Bill to the Scottish people, who have not been consulted about it at all?

No one has told the Scottish people that this Bill is going to result in them paying more tax in future, and no one has asked them. All we are being told is that the manifestos said that the Calman commission results were going to be taken seriously, but no one knew at the time of the election that this was going to be the outcome. I am sure that the Minister is not personally responsible but I ask him to explain to us how and why this decision was taken, in view of the enormous importance of these matters to the Scottish people.

Lord Wallace of Tankerness Portrait Lord Wallace of Tankerness
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My Lords, I thank noble Lords who have taken part in this debate. I heard the stringent comments of the noble and learned Lord, Lord Boyd of Duncansby, echoed by the noble Lord, Lord Pearson of Rannoch. I am sure that they will be noted. Having had experience of the House of Commons, the Scottish Parliament and your Lordships’ House, if there is a thread that links these three experiences it is that the usual channels have currents and depths that I have rarely, if ever, been able to fathom.

Lord Sewel Portrait Lord Sewel
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Of course we do not hold the Minister at all responsible for what happens in the usual channels, but it seems rather perverse that we have discussed this Bill late at night and on Thursdays, under pressure of time. I accepted that because of the nature of the parliamentary timetable, but then we were told that we are having an extra week’s recess. Those extra days would have enabled this Bill to be given the due and proper consideration that it deserves, and I hope that the Minister and my noble and learned friend on the Front Bench will pass on those comments to the usual channels.

Lord Wallace of Tankerness Portrait Lord Wallace of Tankerness
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This almost proves my point. I am sure that these points will be noted and I will indeed draw them to the attention of colleagues.

With regard to the further point made by the noble Lord, Lord Pearson, about the number of days between Committee and Report, it was agreed between the usual channels, and as a result of a delay for further sessions in Committee to take place after the end of the consultation on the referendum, there was a need to reduce. As I indicated, that was agreed. In response to his further point, all parties—or at least all non-Scottish National parties that fought elections in Scotland: the Labour Party, the Conservative Party and the Liberal Democrats—had these proposals in their manifestos and I do not think it is fair to say that they had not been aired at all prior to the general election, nor indeed since.

I welcome the general support that the noble and learned Lord, Lord Boyd of Duncansby, has given to these moves, in the spirit of seeking agreement. He asked about insolvency. Specifically, there will be engagement with the Scottish Government to ensure that the modernisation programme contained in the reforms of 2009-10 is delivered in Scotland for the benefit of those affected by corporate insolvencies.

More generally, the Accountant in Bankruptcy is an executive agency of the Scottish Government that holds policy responsibility for devolved insolvency matters in Scotland, and the Insolvency Service is aware of the need to stay in close contact with counterparts in the Accountant in Bankruptcy’s office, as indeed already happens, to help ensure that as far as possible developments in insolvency law in devolved areas do not create unnecessary difficulties for users of the legislation. So there are the specific provisions of the 2009-10 changes, which we have had assurances will be implemented, and there is a means by which we can maintain contact and dialogue in the longer term.

With regard to health professionals, like the noble and learned Lord, I was a member of the Calman commission and certainly took this matter seriously. He will appreciate that we have agreed to seek removal of this clause on the receipt of assurances that the Scottish Government will work with us to ensure consistency in the regulation of health professionals. I sometimes wonder if we had had some representations from the Scottish Government when we sat on the Calman commission whether we might have been able to reflect those in the report, but that was not the case.

The noble Lord, Lord Foulkes, asked about the procedure from here on in. In his letter to my right honourable friend the Secretary of State, the Scottish Cabinet Secretary for Parliamentary Business and Government Strategy, Mr Bruce Crawford, having gone through the terms of the agreement, indicated:

“I can therefore confirm that the Scottish Government is now prepared to recommend to the Scottish Parliament that it consents to the Bill, amended in line with your proposals, and supported by the undertakings in your letter”.

Of course, it will be a matter for the Scottish Parliament. It is my understanding that the Scotland Bill Committee of that Parliament will meet to discuss the amendments on Wednesday. We expect that the legislative consent Motion will be debated after the Easter Recess but before Third Reading in your Lordships’ House. Given the engagement that there has been, I very much look forward to the Scottish Parliament approving the Motion to support the Bill. I hope that answers the noble Lord’s inquiry.

Earl of Caithness Portrait The Earl of Caithness
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Before my noble friend sits down, could he comment on his final point? If the legislative consent Motion is agreed by the Scottish Parliament before Third Reading and we pass an amendment at Third Reading, what is the situation then?

Lord Wallace of Tankerness Portrait Lord Wallace of Tankerness
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I suspect that the Scottish Parliament may have something to say about it if it is something that it does not agree with.

Amendment 1 agreed.
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Lord Wallace of Tankerness Portrait Lord Wallace of Tankerness
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My Lords, once again, as we did in Committee, we have had a passionate debate. As I think the noble Lord, Lord Browne, said in his closing comments, it has been a debate where clearly there is a strong emotional sense that what happens at the moment is not right. I want to salute my noble friend Lord Forsyth for the tenacity with which he has pursued this issue. I indicated in Committee that I certainly would reflect on the strong views expressed then. As I said, my officials and I have engaged with the Department for Business, Innovation and Skills, and indeed with Universities Scotland. These are discussions to see if we could identify some way to resolve this problem rather than just accept an anomaly that we must live with, as my noble friend Lord Vallance said.

Lord Gilbert Portrait Lord Gilbert
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My Lords, I realise that it is normal to intervene towards the end of a Minister’s remarks, but I think on this occasion it is rather more helpful to intervene at the beginning. What I would like to know is: when are we going to have the dinner break?

Lord Wallace of Tankerness Portrait Lord Wallace of Tankerness
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I probably share the noble Lord’s feelings on this. For that reason, I think it is only right that I do proper justice to the many comments that have been made; but I will try to do so as concisely as possible so that we can proceed. I accept and I have heard again the strictures that have been made about the timing.

As was expressed very clearly by the noble Lord, Lord Empey, today we are debating an issue caused by the fact that higher education is devolved across the United Kingdom.

This UK Parliament is responsible for higher education in England, in Scotland the Scottish Government are responsible, in Wales the Welsh Assembly has responsibility and in Northern Ireland the Northern Ireland Executive has responsibility. All four countries in the UK have chosen to fund higher education in different ways. Because of EU law, and my noble friends Lord Stephen and Lady Brinton have both explained the limitations of what is permitted under EU law, non-UK EU students in universities in the UK are entitled to the same financial support regarding tuition fees as local students. We recognise, and perhaps this is common ground, that our challenge is to ensure access to university education and to ensure the quality of that education.

A point that I should make at the beginning, and I will deal with this in a little more detail as I proceed, is that English students attending Scottish universities should be no worse off than English students attending English universities as a result of the present arrangements. The latest figures from UCAS at 21 February this year, compared with the same date a year earlier, show that as a proportion of the total number of applicants so far, prospective English students have not been put off from applying to Scottish universities. In both years, 5 per cent of the total population of applicants have applied to a Scottish university. That is a circumstance where the English students are aware that they would be no worse off if they choose to attend a university in Scotland than if they went to a university in another part of the UK.

I do not want to open this up into a wider debate on tuition fees but the noble Lord, Lord Browne, indicated that part of the Scottish Government’s response to the UK Government deciding that, to ensure the long-term sustainability of higher education, tuition fees were to be increased was that the Scottish Government had decided to fund undergraduate tuition fees for Scottish students and directly fund Scottish universities, which are therefore able to charge students from the rest of the UK up to £9,000 a year. This means that attending university in Scotland, as I have said, should be no more expensive per year for an English student than for an English student attending a university in England. Indeed, as university courses in Scotland are typically four years long, many Scottish universities have committed to charging students from the rest of the UK a maximum of £27,000 for a four-year course—the same as the maximum fee that students would pay for a three-year course in England.

The fee, however, is only one part of the equation of student finance. The universities of Edinburgh and St Andrews, which have not capped for a four-year course, have both committed to providing generous bursaries to students from the rest of the UK. Little has been said in today’s debates about that aspect of student finance. Edinburgh University is offering bursaries of up to £7,000 a year to the least well-off English students, which they can use either to reduce their fees or to help them with their living costs. St Andrews University will be topping up support for all English students who qualify for a maintenance grant so that they will receive no less than £7,500 a year in total government and bursary support.

That is why I do not recognise what the noble Lord, Lord O’Neill, said about only the very rich paying up-front fees. It is not a question of up-front fees; for English students in England or Scotland, the loans that cover the fees do not start to be repaid until they are earning at least £21,000 a year.

Lord O'Neill of Clackmannan Portrait Lord O'Neill of Clackmannan
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How many students are likely to benefit from these awards? The noble Lord, Lord Sutherland, has already made the point about the generosity of the Edinburgh settlement, but what we have not heard today is how many students will be eligible to apply and therefore benefit from such a generous scheme, which I freely acknowledge it is.

Lord Wallace of Tankerness Portrait Lord Wallace of Tankerness
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My Lords, I cannot give the full figures at the moment but the position is that all Scottish universities have announced their proposed fees for the rest of the United Kingdom, and the average per annum is £6,841. Work undertaken by Universities Scotland and accepted by NUS Scotland shows that this drops to an estimated £6,270 fee after means-tested bursary support is accounted for. In England, the average per-annum fee is £8,470, dropping to £7,815 when fee waivers, bursaries and student support are taken into account. Over the totality, the average in Scotland is certainly less. Universities Scotland has indicated that the average fee paid by students in receipt of means-tested bursaries—an estimated 4,281 students based on current populations—would be £4,262. Many will pay significantly less than this, with around 25 per cent of all English students studying in Scotland expected to benefit. That is an indication of the average. When one takes bursaries and fee waivers into account for English students studying in Scotland, it would be less than would be the case for English students studying in England.

Lord O'Neill of Clackmannan Portrait Lord O'Neill of Clackmannan
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I am grateful to the Minister for the breadth of his answer. But he did not actually answer the question I wanted: the number of students. It is 25 per cent of how many? I realise that it is a considerable improvement and a generous offer, but we still need to know what the numbers are. We know that three times as many students coming to Scotland will not be getting any of these generous endowments, but the other 75 per cent do not need them.

Lord Wallace of Tankerness Portrait Lord Wallace of Tankerness
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My Lords, I am afraid that I do not have the figures for each university institution. One does not really know until the applications are in and turned into acceptances. However, I hope that I have indicated that the average will be less in Scotland, taking into account bursaries. It is also important to point out that the United Kingdom Government provide support to English students. Some may say that it is more generous than the support provided to Scottish students by the Scottish Government in terms of living support. In that situation, English students are entitled to a loan for the full cost of their tuition fees, regardless of where in the United Kingdom they study. This loan is not repayable until students have left university and are earning over £21,000, and even then, at only 9 per cent of earnings over £21,000.

To help with living costs, English students are also entitled to a maintenance loan of up to £5,500 and a grant of up to £3,250. All students are entitled to a loan of at least £3,575 regardless of their household income; and English students will receive a larger amount of maintenance grant compared to Scottish students with the same household income. So if one accepts my noble friend’s amendment in terms of fees, the concern would be that you can equalise fees, but would still have a considerable disparity in student finance and funding. That is because of the more generous arrangements that the United Kingdom Government have made for English students as compared with the arrangements the Scottish Government have made for Scottish students.

My noble friend Lord Forsyth said that students from England would be burdened by substantial debts because they came to a Scottish university. However, the truth is that they would have no greater debt—and arguably a lesser debt—coming to a Scottish university than they would if they went to one in England. That is a relevant point. The noble Lord, Lord Sutherland, acknowledged the fact that bursaries had been made available.

We have tried to look at the possible outcomes of my noble friend’s amendment and we have identified three. First, Scottish universities could begin charging tuition fees to European Union students. We believe that this would be a breach of European Union law and could place the United Kingdom, as a member state, in danger of infraction proceedings. Secondly, Scottish universities could charge Scottish students and therefore also EU students, tuition fees. Thirdly, Scottish universities could stop charging tuition fees to students from the rest of the United Kingdom.

Lord Forsyth of Drumlean Portrait Lord Forsyth of Drumlean
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That’s it. That is the one.

Lord Wallace of Tankerness Portrait Lord Wallace of Tankerness
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My noble friend has indicated which one of the three he favours. I do not think that anyone has actually suggested that we breach European Union law, although the noble Lord, Lord Empey, said that at the heart of that is where the problem lies. If one accepts a devolution settlement across the United Kingdom, it will produce different outcomes in different places.

Lord Pearson of Rannoch Portrait Lord Pearson of Rannoch
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Is the noble and learned Lord aware that there is no way, under European treaties, that a country can be forced to pay a European Union fine?

Lord Wallace of Tankerness Portrait Lord Wallace of Tankerness
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My Lords, I am not going to embark on a lengthy debate on the pros and cons of the European Union. As the noble Lord, Lord Empey, said—as did many noble Lords who have contributed to this debate—the problem is that if a student comes from Scunthorpe they are charged a fee; if they come from Bratislava they are not. I am certainly prepared to look at whether that European Union problem can be addressed, but I do not to wish to raise any expectation or hope that it can be. It is a piece of legislation that is very firmly in the European Union rules and directives. The Scottish Government have indicated they want to examine it and I am sure we would be prepared to examine it along with them, but I say that without offering a hope that it is likely to be changed.

My noble friend clearly indicated that his preference would be for Scottish universities not to charge students from any part of the United Kingdom. It is our view that that would not be financially sustainable. My noble friend suggested that it would be £24 million in the first year, but of course as one year succeeded another that would be a cumulative amount. The United Kingdom Government have come to the decision that in order to guarantee the long-term financial stability of universities, it is necessary to require students to make a greater contribution to the cost of their higher education. It would be unreasonable and unrealistic to expect the Scottish Government to fund free higher education for students from all parts of the United Kingdom, and in the long term it would be damaging to Scottish universities and their ability to compete with other universities in the UK and worldwide, which potentially have much greater financial resources available to them.

Lord Empey Portrait Lord Empey
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As I said earlier, the issue for me is not the minutiae of the individual operation of devolution in each region—even though we are on the Scotland Bill and the amendment specifically applies to Scotland—it is that there is a difference in treatment between a non-UK EU citizen and a UK EU citizen. Will the Minister give the House an undertaking that he will speak to his ministerial colleagues and perhaps come back to us at a later stage? The issue of how many bursaries we are getting and so on is missing the point. We are not here to examine the entrails of higher education funding in the regions; we are trying to deal with the feeling in the House that we do not like this idea of UK students being treated in this way as opposed to EU students, when UK students are UK students. That is the issue.

Lord Wallace of Tankerness Portrait Lord Wallace of Tankerness
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My Lords, I hope that I represented what the noble Lord said, that that is the point, and that is why there is such concern. It is a point that my noble friend Lord Stephen made with regard to the strong misgivings that the Scottish Executive had back in 2000 in having to go down this course. It had to acknowledge that if we went down this course of free tuition fees for Scottish-domiciled students attending Scottish universities, the consequence would be that students from European Union countries attending Scottish universities would have to be treated on the same basis. In Committee, I said that I was then a Member of the Scottish Government and that although it was not something we particularly wanted to do, it was a consequence that we had to accept, however reluctantly, if we wished to bring in a policy of free tuition for Scottish-domiciled students.

I indicated that I am more than willing to look at whether there is a way of resolving this at a European Union level but I do not wish to mislead the noble Lord or the House into believing that there is a realistic prospect of that happening, certainly before Third Reading. It is something that is so deep within the relevant directive that it would be a significant mountain to climb—although I know my noble friend Lord Forsyth is quite good at climbing significant mountains.

Lord Forsyth of Drumlean Portrait Lord Forsyth of Drumlean
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But not in Europe.

Lord Empey Portrait Lord Empey
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I was not expecting to resolve it at an EU level. I am asking whether we can try to resolve it at a UK level. It is in the UK that this differential has arisen.

Lord Wallace of Tankerness Portrait Lord Wallace of Tankerness
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My Lords, I apologise if I misunderstood the point. I think that the noble Lord, Lord Browne, also made the point about some sort of pan-UK discussion on this. I will ensure that that proposal is taken up by the Department for Business, Innovation and Skills. We will certainly relay it to the department, which will undoubtedly be in contact on an official level on a number of issues with those who deal with higher education in the devolved Administrations. Again, however, I should flag up the scale of the challenge of making progress if there is even one Administration who want free tuition and say that they will not change that until the rocks “melt with the sun”—I think that that was the quote. It is a reasonable request that that pan-UK discussion should take place.

Lord Wills Portrait Lord Wills
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My Lords, as an Englishman, I was not going to contribute to this debate. However, having listened to it all, and listened to the Minister’s response, I wonder if he could give the House an indication of whether he understands the damage that this situation is doing to the union. Does he understand that that is perhaps the most fundamental challenge at stake here?

Lord Wallace of Tankerness Portrait Lord Wallace of Tankerness
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My Lords, I understand that there is a serious issue here. As the noble Lord, Lord Browne, indicated, if we end up telling the Scottish Parliament what to do—my noble friend Lord Forsyth says that that is not what his amendment says but I think that, de facto, that is what it would lead to—that would be a serious position for the union, and it would undermine the whole devolution settlement. That is why I find this a difficult issue.

I think that my noble friend has, as the noble Lord said, totally underestimated the number of students who would seek to apply to Scottish universities. It only stands to reason that if you can get free tuition at the St Andrews university but would have to pay £9,000 at Durham, you are more likely to apply to St Andrews. The notion of quotas has never been particularly welcomed.

Lord Sutherland of Houndwood Portrait Lord Sutherland of Houndwood
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I wonder whether the Minister remembers when this argument was last put forward. On that occasion we were, perhaps unusually, on opposite sides of the argument. I was recommending a form of care for the elderly, wrongly categorised as free, and one of the counterarguments was that there would be a—they did not use the word then—tsunami of pensioners crossing the border to Scotland. I think that it would have been more of a steady trickle which grew. It did not happen, although it was claimed that it would.

Lord Wallace of Tankerness Portrait Lord Wallace of Tankerness
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My Lords, it is too easy to dismiss the possibility of it happening. It is probably much easier for a student to choose which university he or she would wish to attend than for a pensioner completely to up sticks and settle in a different part of the United Kingdom. I think, with respect, that the noble Lord is not comparing like with like. However, I do recall that when tuition fees were first significantly increased by the then United Kingdom Government, around 2003 or 2004, the then Scottish Government had to respond to it. There were very clear signs that if the Scottish Parliament did not respond to it—and my noble friend Lord Stephen has indicated that it happened again in 2006—there would be an increase.

I should like to make it clear to the noble Lord, Lord Morgan, that I strongly believe that part of the richness of university education—one of its great pluses—is that it includes people from all different backgrounds. Universities in Scotland would certainly take the view that it is important that there should continue to be students not just from other parts of the United Kingdom but from other parts of the European Union and from around the world. That adds to the richness of a university education. They seek to achieve a manageable flow of students from the rest of the United Kingdom which would ensure the long-term stability of universities in Scotland.

Lord Sewel Portrait Lord Sewel
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I thank the Minister for giving way. I put it to him that the noble Lord, Lord Empey, has spoken for virtually the whole House in explaining the deep bitterness that people feel about the EU anomaly. In discussions with the First Minister, has the Minister or any of his colleagues pointed out to the First Minister that if he was successful in achieving his primary political policy objective, which is independence, then all these arguments would fall away? There would be the opportunity for English domiciled students to go to Scotland and there would be no way in which a Scottish Parliament would be able to impose a differential fee. Has the Minister pointed that out to the First Minister?

Lord Wallace of Tankerness Portrait Lord Wallace of Tankerness
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I have not pointed it out personally but, frankly, it is not the best argument for the case that the noble Lord has been prosecuting. He certainly does not wish to see an independent Scotland; neither does my noble friend Lord Forsyth or anyone who has spoken in this debate. The argument that this will all be the consequence of an independent Scotland is perhaps one argument for why we should resist an independent Scotland.

Lord Sewel Portrait Lord Sewel
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I just hoped that there was at least the glimmer and possibility of consistency.

Lord Wallace of Tankerness Portrait Lord Wallace of Tankerness
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My Lords, I am not sure that I follow that. What about the consistency of Mr Salmond’s position? I have to answer for a number of things in your Lordships’ House but, fortunately, I do not have to answer for Mr Salmond.

I agree with the comment that the noble Lord, Lord Empey, has encapsulated what the problem is. There are differential solutions around the United Kingdom—Northern Ireland charges £9,000—so simply to adopt this amendment would not solve the problem across the country. I do not believe that the Bill is the right place to address this. I have indicated that we are prepared to look at the European Union dimension and that we are more than willing to engage with the different Administrations. I just do not want to suggest to your Lordships’ House that this matter can be resolved easily; it would be wrong to suggest that. Even if one does not accept the word “tsunami”, the consequences, which could include a complete disruption of the Scottish higher education system, are sufficiently uncertain for it not to be a risk that we can take. Even allowing for one year’s grace, the problems would still arise in subsequent years. Therefore, I urge my noble friend to withdraw his amendment.

Lord Forsyth of Drumlean Portrait Lord Forsyth of Drumlean
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My Lords, I am most grateful to everyone who has spoken in a very interesting debate. Given the lateness of the hour, I am sure noble Lords do not want me to respond to all the points or to repeat any of the arguments. I am very impressed by the argument from the Labour Party’s Front Bench that if something has been going on for 10 years, you should keep it. That seems a very conservative point of view to me.

In all the arguments about the practicalities and difficulties, all of which can be addressed and overcome, the overriding issue here is one of fairness. Why did I table this amendment? I spent a week at St Andrews. I went there nearly 40 years ago and I have to say that the students now are much harder working and much more focused than they were in my day. They are absolutely outraged by what is happening to them. Those students have a much tougher time ahead of them than any of us in this House had when we left university. We owe it to them to address this problem.

I was not sure whether I would have to press this matter to a vote tonight. However, I have to say to my noble and learned friend that we debated this in Committee, when I urged him to raise it with the Prime Minister and his colleagues. Perhaps this was said in confidence and I should not repeat it, but one of his ministerial colleagues in the Scottish Office called me today to say, “How can we help you with the Scotland Bill?”. I said, “You can help me by accepting my amendment, or at least giving some commitment. What is your position on student fees?”. He said, “We’re waiting to see what the strength of opinion is”. On that basis, I beg leave to test the opinion of the House.

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21:13

Division 2

Ayes: 72


Labour: 27
Conservative: 24
Crossbench: 16
Ulster Unionist Party: 2
Democratic Unionist Party: 1
UK Independence Party: 1
Independent: 1

Noes: 151


Conservative: 65
Liberal Democrat: 50
Labour: 25
Crossbench: 6
Bishops: 1
Plaid Cymru: 1