Student Loans: Muslim Students

Lord Sharkey Excerpts

Thursday 3rd March 2016 Lords Chamber

Asked by

[Lord Sharkey]

To ask Her Majesty’s Government what help they provide to Muslim students whose religious beliefs prevent them from taking interest-charging student loans.

[Baroness Evans of Bowes Park (Con)]

My Lords, the Government are aware that some students whose religious beliefs may prevent them from taking out a loan that bears interest may feel unable to take advantage of student loans. In April 2014, the Government conducted a consultation on a sharia-compliant alternative finance product for students. Upon review of consultation responses the Government supported the introduction of a takaful alternative finance product available to everyone. Work on this product is ongoing and, subject to Parliament, the Government hope to introduce the new system through legislation.

[Lord Sharkey (LD)]

I asked the Minister the Question because the head teacher of the Preston Muslim Girls High School asked me the question and I could not answer it. I am not sure that the head teacher and his students will find much present comfort in the Minister’s reply. Every year that passes without a solution, thousands of Muslim students are disadvantaged. As she said, the Government identified the solution two years ago but still cannot say when it will be delivered. Will she agree to meet me so that we can discuss how to have a sharia-compliant system in place without further delay?

[Baroness Evans of Bowes Park]

As I said, the Government did a consultation in 2014 and are continuing to work closely with experts in Islamic finance to develop the product but, at the moment, the Secretary of State does not have the power to just introduce it. We need primary legislation, which is why we are hoping and looking for a suitable opportunity to bring it forward.

Royal Bank of Scotland

Lord Sharkey Excerpts

Wednesday 1st July 2015 Lords Chamber

Asked by

[Lord Sharkey]

To ask Her Majesty’s Government whether they will ensure that any review of their shares in Royal Bank of Scotland examines all options for the bank’s future, including alternatives to reprivatisation.

[Lord Ashton of Hyde (Con)]

My Lords, the Chancellor announced on 10 June that the Government intend to begin selling their shares in the Royal Bank of Scotland in the next few months. The Chancellor is acting on independent advice from the Governor of the Bank of England and a review by Rothschild that it is in the interests of taxpayers to begin now to sell our stake in RBS and return the bank to the private sector.

[Lord Sharkey (LD)]

That is very disappointing. We now have an opportunity to break up RBS into regional stakeholder banks. We know that these banks are better at lending to SMEs and more stable, and contribute more to regional growth. Will the Minister agree to publish a proper and full analysis of the comparative merits of different ways of dealing with RBS, including breaking it up into regional stakeholder banks?

[Lord Ashton of Hyde]

My Lords, it was never the intention of the Government to be a permanent investor in the UK banking sector. At a national level, both RBS and Lloyds are already in the process of divesting part of their UK banking businesses. The Government do not believe that the case for breaking up the core operations of any bank in which the Government have a stake into regional entities meets the objectives of maximising the bank’s ability to support the British economy, getting the best value for the taxpayer or facilitating a return to private ownership. The cost of reorganisation would be attributable to the banks and, as a result, would be fully borne by the taxpayer. The significant issue is the trade-off between the costs, which are certain and significant, and the benefits, which are uncertain.