Higher Education (Basic Amount) (England) Regulations 2010

Baroness O'Loan Excerpts

Tuesday 14th December 2010 Lords Chamber

[Lord Ashdown of Norton-sub-Hamdon]

I will make it very clear to the noble Lord. The deal that was made was a coalition deal between two parties. I remind my Liberal Democrat friends that the coalition deal was endorsed unanimously by the parliamentary party and by the party at its conference; it has the democratic endorsement of the party. Where we are at present is uncomfortable, but we would be much more uncomfortable if, having accepted the coalition deal and passed it by the internal mechanisms of the party, we now ran away from it. If the noble Lord, Lord Elystan-Morgan, will forgive me, I would like to make progress; I have spoken for about six minutes already.

The next question that we have to address is whether this is necessary. In order to say that it is not, one would have to say that, uniquely, the higher education sector of this country should be excused from carrying the burdens that everybody else has to carry, and should be excused from the cuts. If the noble Baroness will allow me to make a little more progress, I will happily give way.

[Baroness O'Loan]

Is the noble Lord aware that government departments are being asked to take a cut of 25 per cent while universities are being asked to take a cut of 80 per cent?

[Lord Ashdown of Norton-sub-Hamdon]

The noble Baroness makes exactly the point that I would have gone on to, had she given me the opportunity to do so. When we consider university cuts, we may do one of two things. We may institute those cuts or ask graduates—not students—to bear a proportion of the costs. The right reverend Prelate who spoke earlier said that students should not be required to pay for higher education. They are not being required to pay; they are being asked to share in the payment. Under these proposals, universities by and large will have the same amount of funds as they had before, because graduates will pay their contributions. That is perfectly right. I cannot argue the case that the higher education sector should be removed from the burden that the rest of the nation has to carry. Those such as the right reverend Prelate seem to propose that somehow higher education should be free. It was free for my generation. I never went to higher education; my university was Her Majesty's Corps of Royal Marines. Free higher education is possible for 7 per cent of the population, but is impossible for 50 per cent. One has to find a mechanism to fill the gap.

The next question is whether it is fair. I will deal with the issue of debt. I accept that the consequence of these proposals will be to raise debt to the order of £27,000, £30,000 or perhaps more. I regret that; it is the consequence of the age in which we live and the economic position in which we were left. However, we do not complain when young people have to take out a mortgage debt of £150,000 or £200,000 to buy their house. This is not like a credit card debt; it is much more like a mortgage. There is a fixed system of repayment and a fixed mechanism for repayment. Frankly, I do not find it offensive; if one can take out mortgages for physical property, why should one not take out a mortgage to improve one's intellectual property, from which one will benefit in future? I know that I am testing the patience of the House and I am keen to make progress, but I will give way.