56 Lord Willetts debates involving the Department for Education

Oral Answers to Questions

Lord Willetts Excerpts
Thursday 13th January 2011

(13 years, 6 months ago)

Commons Chamber
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Sheila Gilmore Portrait Sheila Gilmore (Edinburgh East) (Lab)
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4. How many universities he expects to charge £9,000 in tuition fees in 2012-13.

Lord Willetts Portrait The Minister for Universities and Science (Mr David Willetts)
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Universities have not yet set their level of graduate contribution for 2012-13. Any institution in England wishing to charge above £6,000 must have an access agreement approved by the director of fair access. The Office for Fair Access will shortly begin discussions with individual institutions that intend to submit an access agreement under our demanding new requirements. We have always made it clear that £9,000 should be charged only in exceptional circumstances.

Sheila Gilmore Portrait Sheila Gilmore
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The Minister will be aware of the discussion within the university sector; many universities, especially Russell group universities, have already said that they are likely to charge at the higher level. Even some other universities are saying that to break even, they would need to charge more than £7,000. What modelling did the Department for Business, Innovation and Skills do when presenting its financial calculations to the Treasury, if it does not know the answers to questions that the universities appear to know?

Lord Willetts Portrait Mr Willetts
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We are waiting for universities to approach OFFA; they will have to submit a request to OFFA if they wish to go above £6,000. In our financial modelling, which we shared with the House, we made it clear that on average, replicating the income that universities are getting at the moment would involve fees of around £7,000. Of course, we are expecting universities, just like every other organisation in Britain, to make significant efficiency savings and hold down their costs.

Rob Wilson Portrait Mr Rob Wilson (Reading East) (Con)
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My right hon. Friend will remember that under the previous Government a number of higher education institutions were categorised as being at risk of financial failure. In the light of the funding changes taking place, has he updated his risk assessment of the HE institutions at risk?

Lord Willetts Portrait Mr Willetts
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The Higher Education Funding Council for England has always kept an eye on the financial position of universities. As a result of the new revenues that universities will get from graduate contributions, we estimate that it is very possible that at the end of this Parliament universities could well have a higher combined cash income in total from the Exchequer than they do at the moment; that is a sign of our commitment to the strength of British universities.

Gareth Thomas Portrait Mr Gareth Thomas (Harrow West) (Lab/Co-op)
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Like the Minister for Universities and Science, the Secretary of State says that universities charging the full £9,000 in tuition fees will be the exception. No one independent thinks that that is credible. The Secretary of State also says that university leaders support his plans, yet not one university vice-chancellor supports the 80% cut in university teaching grants. He cannot even organise a scholarship fund without creating perverse incentives for universities to turn away students from the very poorest backgrounds, so just to get back to being Mr Bean the Secretary of State has quite a long journey ahead of him. Is it not clearer now that the trebling of tuition fees was not fair or necessary, and still has not been properly thought through?

Lord Willetts Portrait Mr Willetts
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The hon. Gentleman is absolutely wrong. It was made clear when the House debated the issue last month that more than half of all vice-chancellors support our proposals, because, given the tough decisions that we have had to take on public expenditure, we have provided them with an alternative source of income, coming not through a quango but through the choices of students, who can be confident that they will have to pay for their higher education only after they have graduated and are earning more than £21,000 a year.

Charles Kennedy Portrait Mr Charles Kennedy (Ross, Skye and Lochaber) (LD)
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I know that the Minister recognises the force of the point made by the Glasgow university principal, Anton Muscatelli, in his recent article in The Sunday Times, about the fact that the decisions in England will inevitably create a funding shortfall for Scottish universities. Will the Minister again undertake to stay closely in touch, on behalf of the UK Parliament, with the Scottish Parliament, which has reconvened the all-party technical working group to look at the matter ahead of the all-important May elections?

Lord Willetts Portrait Mr Willetts
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I have ministerial responsibility for the financing of universities in England only, but the right hon. Gentleman is absolutely right, and we do keep in close contact with the devolved Administrations, because there are significant connections between decisions that we take in England and decisions that they take affecting Scotland and Wales.

Grahame Morris Portrait Grahame M. Morris (Easington) (Lab)
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6. What assessment he has made of the prospects of establishing a single local enterprise partnership in the north-east; and if he will make a statement.

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Baroness Blackwood of North Oxford Portrait Nicola Blackwood (Oxford West and Abingdon) (Con)
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15. What progress he has made on preparations for the higher education White Paper; and if he will make a statement.

Lord Willetts Portrait The Minister for Universities and Science (Mr David Willetts)
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We are consulting students, universities and other experts and will publish a White Paper in the early part of this year. It will set out how we will sustain our world-class universities, encourage them to deliver high-quality teaching and improve social mobility.

David Evennett Portrait Mr Evennett
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I thank my right hon. Friend. As he knows, a significant number of higher education courses are now being provided at further education colleges. Can he advise me whether the White Paper will build upon that?

Lord Willetts Portrait Mr Willetts
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My hon. Friend was, of course, a lecturer in a further education college, and it is only right that he should remind us of the contribution that FE colleges can make. He is absolutely right, and we do hope to encourage higher education in further education institutions as part of our White Paper.

Justin Tomlinson Portrait Justin Tomlinson
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In an ever more complex financial world, does the Minister agree that offering additional financial education will give universities a unique selling point in providing quality student support on post-study matters, and therefore should be considered as part of higher education pastoral support in the forthcoming White Paper?

Lord Willetts Portrait Mr Willetts
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My hon. Friend is absolutely right about the importance of people having access to good financial advice. Of course, one thing that students can be advised is that in future, under the coalition’s proposals, their monthly repayments on their student loans will be lower than under the current scheme.

Baroness Blackwood of North Oxford Portrait Nicola Blackwood
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The Institute for Fiscal Studies has found that socio-economic disadvantage has already had an impact on academic outcomes by the age of 11, and that disadvantage explains a significant proportion of the gap in HE participation at 19 or 20. Does the Minister agree that simply expecting universities to bridge educational inequalities once they have become entrenched will not work? If so, how does he intend to work with relevant Departments, such as the Department for Work and Pensions and the Department for Education, and with universities as they develop their access programmes, to try to break the link between socio-economic disadvantage in the early years and HE participation once and for all?

Lord Willetts Portrait Mr Willetts
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My hon. Friend is absolutely right to say that that problem needs to be tackled at all stages of the educational process, in early years, at school and at university. I am pleased to inform the House today of a new initiative, an excellent collaboration between KPMG and the university of Durham, whereby school leavers will go straight into employment with KPMG while also studying at the university, with their fees paid by KPMG. That is an excellent example of the type of initiative that we want to see.

Adrian Bailey Portrait Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)
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What assessment has the Minister made of the disconnect between the cuts in higher education funding, particularly in the arts and humanities, and the delayed implementation of the education White Paper, which contains the new funding arrangements? Universities will have cuts before they get the new funding arrangements following that White Paper.

Lord Willetts Portrait Mr Willetts
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As I said earlier, it was clear in the grant letter that we sent to the Higher Education Funding Council for England that over the next few years, as the teaching grant income of universities falls, there will be increased income through the graduate contribution scheme. We believe that by the end of this Parliament, universities could well have a higher total income than they have at the moment.

David Lammy Portrait Mr David Lammy (Tottenham) (Lab)
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On graduate contributions, can it be right that we are asking students to pay more when some universities have clearly not sorted out their inefficiencies? For example, is it right for Oxford fellows to get a free lunch on the taxpayer?

Lord Willetts Portrait Mr Willetts
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I think that we in the House have to be careful about free lunches. I do not know about the specific arrangements at Oxford, but I agree with the right hon. Gentleman’s wider point and appreciate his experience as a Minister in the Department for Business, Innovation and Skills. We are entitled to expect universities to make efficiency savings. There should be more contracting out; they should hold down their pensions costs—there is a lot that universities should do to hold down their costs. They should not simply pass them on to students in higher fees.

David Simpson Portrait David Simpson (Upper Bann) (DUP)
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Further to the point on universities, how many children of servicemen and women killed on active duty are expected to be eligible for the new university scholarship scheme?

Lord Willetts Portrait Mr Willetts
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We obviously do not know, as the years progress, how many children in those tragic circumstances can benefit. I think some estimates suggest that the figure could be 100 a year at the peak of the scheme. Our commitment to the education of the children of servicemen who sadly lost their lives is an important sign of our commitment to maintaining the military covenant.

Michael Ellis Portrait Michael Ellis (Northampton North) (Con)
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16. What representations he has received on his Department’s policy on the future of the post office network; and if he will make a statement.

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Adrian Bailey Portrait Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)
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The cuts in higher education funding will begin at the beginning of the next financial year, in April 2011. The university year will not end until the summer, and the new income streams from tuition fees will not arrive until some indeterminate time in the future. There is a disconnection in the cash flow to higher education. What is the Minister doing to prevent it from damaging higher education?

Lord Willetts Portrait The Minister for Universities and Science (Mr David Willetts)
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As I explained earlier, we are of course providing an alternative source of income for universities as graduate contributions come in. There will be a reduction in the teaching grant in the coming year, just as there will be public expenditure savings across many Departments, but universities will be able to go through that period, and we expect that at the end of the current Parliament, they will have a higher total income than they have at present.

Oral Answers to Questions

Lord Willetts Excerpts
Thursday 18th November 2010

(13 years, 8 months ago)

Commons Chamber
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Lord Evans of Rainow Portrait Graham Evans (Weaver Vale) (Con)
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1. What assessment he has made of the likely effects on the economy of maintaining his Department’s science and research budget at present levels.

Lord Willetts Portrait The Minister for Universities and Science (Mr David Willetts)
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Investment in science and research attracts inward investment, drives innovation and delivers highly skilled people to the economy, which is why we are protecting the cash budget for science and research at £4.6 billion and ring-fencing it.

Lord Evans of Rainow Portrait Graham Evans
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The Government are right to protect the science budget in cash terms, which is a decision that will reap dividends for our economy in the future. Does the Minister agree that the world-leading Daresbury science and innovation campus in my constituency should continue to receive the funding it needs so that it may play an important role in future economic growth?

Lord Willetts Portrait Mr Willetts
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My hon. Friend has campaigned effectively for Daresbury, and I can tell the House today that we have agreed that the public sector bodies can sign the joint venture agreement with their preferred private sector partner. That means that Daresbury now has excellent prospects as a national science and innovation campus, and I look forward to visiting in the new year.

Andrew Miller Portrait Andrew Miller (Ellesmere Port and Neston) (Lab)
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If the science budget is to be protected in the way the Minister describes, it is important that the right people are taking the right decisions. Since 1993, the post of the director general responsible for the science budget has been occupied by a senior scientist. Lord Krebs and I, in our respective roles as Chairs of the two Science and Technology Select Committees, have written to the Secretary of State asking for a guarantee that that will be maintained. Will the Minister give that guarantee now?

Lord Willetts Portrait Mr Willetts
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The Secretary of State and I have seen this correspondence, and I can assure the hon. Gentleman, whose close interest in these matters I recognise, that a very satisfactory solution can be found.

Chi Onwurah Portrait Chi Onwurah (Newcastle upon Tyne Central) (Lab)
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The Government speak of their support for science—support that has seen the science budget cut by 10% in real terms, stripped away the £400 million of annual science spend by the regional development agencies and exposed science capital expenditure to cuts of up to one third. Now the Minister is abolishing the top scientific post in his Department without even discussing it with the scientific community, which is a move that the former chief scientific adviser, Lord May, described as

“stupid, ignorant and politically foolish”.

So the science community has neither proper funding nor real influence. Does the Minister agree that the Government’s support for science is only skin deep?

Lord Willetts Portrait Mr Willetts
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We believe that it is possible to deliver the efficiency savings that mean that the science budget will be protected in real terms, and we are also, of course, committed to making efficiency savings within the Department. We make no apologies, therefore, for reducing the number of civil service posts in the Department. That is the right way to save money. However, as I said in answer to the hon. Member for Ellesmere Port and Neston (Andrew Miller), I am confident that the specific concerns raised by the science community about that post can be addressed.

Bob Blackman Portrait Bob Blackman (Harrow East) (Con)
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2. What his Department’s policy is on the future of the post office network.

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Rob Wilson Portrait Mr Rob Wilson (Reading East) (Con)
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14. What recent steps his Department has taken to increase the number of student places at universities.

Lord Willetts Portrait The Minister for Universities and Science (Mr David Willetts)
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Despite the need to address the deficit, we have enabled universities to recruit an additional 10,000 students in 2010-11. Had we not done so, the number of university places in England would have fallen this year. Our proposals for a fairer and more progressive system of university funding mean that we can maintain student numbers in the future.

Rob Wilson Portrait Mr Wilson
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Lord Browne’s review made it clear that the artificial cap on the number of students attending individual universities should be removed to improve market efficiency. Will my right hon. Friend confirm that he will implement that important recommendation in full?

Lord Willetts Portrait Mr Willetts
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My hon. Friend is a powerful advocate of the cause of liberalising universities. My right hon. Friend the Secretary of State and I are determined to ensure that they have a freer system, and we will set out proposals to that effect in our forthcoming White Paper.

Mark Lazarowicz Portrait Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)
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Is the Minister aware that the Government have just asked the British Council not to recruit before 2011-12 for its English language assistant placement scheme? The scheme is vital to many language students, and cancelling it next year would cause a great deal of disruption. Will the Minister reconsider? If he does not, he will remove a valuable scheme that is important to many language students in this country.

Lord Willetts Portrait Mr Willetts
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We are discussing the issue with language schools, and I met some of their representatives at the Department recently.

Charles Kennedy Portrait Mr Charles Kennedy (Ross, Skye and Lochaber) (LD)
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Will the Minister acknowledge that even before Lord Browne’s review, many universities—the university of Glasgow being a case in point—were finding that because of the purely artificial 50% figure that had been arrived at years ago, they were having to up their criteria for entry for, say, next autumn? Students who thought that they would be given a place are now finding that they are unlikely to be given one. How will the Government’s interpretation of Lord Browne’s recommendations deal with that fundamental problem?

Lord Willetts Portrait Mr Willetts
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While university places remain publicly funded, there has to be some sort of control. However, because of the proposals that we implemented in England this year, there were more places for British students in England. I hope that I am not being too chauvinistic when I say that, in the absence of similar policies in Scotland and Wales, the number of student places fell in both countries.

Gareth Thomas Portrait Mr Gareth Thomas (Harrow West) (Lab/Co-op)
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As the Minister knows full well, there is mounting concern about the damage that will be done by the Government’s unprecedented 80% cut in funds for our universities. The Institute For Fiscal Studies, which Ministers used as a crutch, is busy revising its assessment of the Government’s plans; there is increasing evidence that poorer students will be deterred from going to university; and the Higher Education Policy Institute says that fees of £9,000 a year will be the norm rather than, as the Minister has claimed, the exception.

Is it not now clear that, rather than arranging a quick vote to end the Deputy Prime Minister’s embarrassment on the issue, the Government should publish their plans in full—including their plans for student numbers—so that they can be properly scrutinised in the House and the full facts can be considered by all Members before the House votes on increasing fees?

Lord Willetts Portrait Mr Willetts
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We are, of course committed to publishing a White Paper on our proposals, but I can tell the hon. Gentleman that they will ensure that power in our higher education system resides with the student, which is where it should reside. Universities will have to respond to the choices and preferences of students, and we believe that about a quarter of graduates will contribute less under our proposals than they do under the system left to us by the last Government.

Elizabeth Truss Portrait Elizabeth Truss (South West Norfolk) (Con)
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Methwold high school in my constituency is developing a pioneering plan to offer university of London degrees. It will be a first, particularly in a rural community. Does my hon. Friend agree that that is a great way of increasing participation and aspiration, and would he be willing to meet me along with a delegation from Methwold high school?

Lord Willetts Portrait Mr Willetts
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I think I read an interesting article about that important initiative in Times Higher Education the other day. I congratulate my hon. Friend on drawing the House’s attention to it.

We are committed to broadening participation in higher education. That is what our £150 million scholarship scheme is all about, and initiatives such as the one described by my hon. Friend are very valuable.

Adrian Bailey Portrait Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)
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15. What assessment he has made of the effects of the abolition of regional development agencies on access to unspent funding from the European regional development fund.

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Linda Riordan Portrait Mrs Linda Riordan (Halifax) (Lab/Co-op)
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T2. Thousands of medical students will be crippled by the increased tuition fees, and the submission by the British Medical Association to Lord Browne’s review appears to have been ignored. Does the Minister agree that those increases will deter young people from undertaking medical training?

Lord Willetts Portrait The Minister for Universities and Science (Mr David Willetts)
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We do not believe that our proposals will have any such effect. Obviously, I am in close contact with the Secretary of State for Health, and we are confident that we can continue to support medical training in a way that will provide the doctors that we need.

Dan Poulter Portrait Dr Daniel Poulter (Central Suffolk and North Ipswich) (Con)
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T4. Does the Minister agree that the true test of any education or training system is that the person concerned comes out better qualified and better equipped to be an active and employable member of society than they were before they went into it? Does he agree that the 50% target for universities did not work and was not right, and that we now need to value vocational training and apprenticeship schemes better?

Lord Willetts Portrait Mr Willetts
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My hon. Friend is right. That is why, as well as maintaining student numbers this year with 10,000 extra places, my right hon. Friend the Secretary of State and my hon. Friend the Minister for Further Education, Skills and Lifelong Learning have committed us to 75,000 extra apprenticeship places.

Bridget Phillipson Portrait Bridget Phillipson (Houghton and Sunderland South) (Lab)
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T5. Nissan is an important local employer in Sunderland and it has rightly said that “relatively modest” Government investment can rebalance the economy. That is crucial in regions such as the north-east. Does the Secretary of State agree with Nissan that if the Government do not fight for new business, it will simply go elsewhere?

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Diana Johnson Portrait Diana Johnson (Kingston upon Hull North) (Lab)
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Based on the equality impact assessment that I am sure the coalition Government have carried out on their higher education proposals, what will the impact of cutting the higher education teaching grant by 80% be on women?

Lord Willetts Portrait Mr Willetts
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Many part-time students are female, and it is already clear that our proposals to give a proper student loan entitlement to part-time students for the first time, in order to help with their fees, will particularly benefit women. We will publish the full impact assessment alongside our White Paper.

David Evennett Portrait Mr David Evennett (Bexleyheath and Crayford) (Con)
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I welcome the steps that my right hon. Friend is taking to increase the number of student places at universities. He mentions increasing the number of part-time courses, and that is vital, but will he urge institutions to be more innovative in their approach to study?

Lord Willetts Portrait Mr Willetts
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My hon. Friend is right. One of the main objectives of our reforms is to allow greater diversity of provision, which means more short two-year courses and more part-time opportunities. We want to see a new freedom for universities to innovate, and those possibilities will arise as a part of our reforms.

Karl Turner Portrait Karl Turner (Kingston upon Hull East) (Lab)
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The £1.4 billion regional growth fund is clearly grossly underfunded, and if we had taken the advice of Ministers today we would have spent it 10 times over already. Did the Prime Minister give my constituents false hope yesterday, when he suggested to me that they should go to that fund for housing regeneration?

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Lord Willetts Portrait Mr Willetts
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I have had several discussions with the Secretary of State for Health, and our proposals will ensure that we continue to be able to fund medical students in Britain.

None Portrait Several hon. Members
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Oral Answers to Questions

Lord Willetts Excerpts
Thursday 14th October 2010

(13 years, 9 months ago)

Commons Chamber
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Lord Willetts Portrait The Minister for Universities and Science (Mr David Willetts)
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Science and innovation are critical to our future prosperity and strongly supported by this Government. As part of the spending review, we are continuing to strengthen the way we support science and innovation, and improving the way they contribute to economic growth.

Stephen Metcalfe Portrait Stephen Metcalfe
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I thank my right hon. Friend for his answer. I am sure that we all agree that the Government have a very important role to play in supporting science and innovation, but there are many other organisations and businesses that need to come together to support more scientific research. What steps can his Department take to foster the big society approach to more research and development?

Lord Willetts Portrait Mr Willetts
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In Britain we are very fortunate to have some very substantial charities that support scientific research, especially medical research, such as the Wellcome Trust and Cancer Research UK. Indeed, only this week I was able to announce a £50 million joint project on tumour profiling to improve cancer treatment between the Medical Research Council and Cancer Research UK.

David Lammy Portrait Mr David Lammy (Tottenham) (Lab)
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The Minister will be aware that knowledge transfer partnerships mean that the Russell group universities contribute £2 billion to British exports. Is he surprised, therefore, that Lord Browne dedicated just 300 words in a 30,000-word report to the employer contribution? Will the Minister say more than his colleagues have about the contribution that employers will make to higher education funding?

Lord Willetts Portrait Mr Willetts
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It is good to see the right hon. Gentleman in the House, and I look back to our exchanges when he was a Minister with responsibilities in this area. Of course, when he was a Minister in the Department, he was one of the people who commissioned Lord Browne’s review and agreed its terms of reference. I very much regret that in his first intervention on the review, he has not welcomed the fact that Lord Browne discharged the remit that he was set. It is very important that businesses contribute, alongside individuals and the taxpayer, and we are pursuing that as part of the CSR.

Alun Cairns Portrait Alun Cairns (Vale of Glamorgan) (Con)
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Does the Minister accept that the performance of higher education in engaging with the private sector varies considerably? Will he consider making the handing out of research grants conditional on institutions finding private sector partners?

Lord Willetts Portrait Mr Willetts
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That is a very important point, and we certainly welcome business backing for research, alongside public funding. There is very important evidence that public funding for research can be complemented by business backing. If I recall correctly, one of the best pieces of evidence on the subject is a research paper where one of the authors is now an official in Her Majesty’s Treasury, so it is a document that we particularly value.

Gareth Thomas Portrait Mr Gareth Thomas (Harrow West) (Lab/Co-op)
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In mid-September, apparently preparing the way for big cuts in the science and research budget, the Secretary of State managed to insult hundreds of hard-working British scientists by implying on the “Today” programme that

“something in the order of 45 per cent of…research grants…were going…to research that was not…excellent”.

As the US, France, Germany and China are increasing their investment in science and research to drive economic growth, is not this just one more reason why those who thought we had the Sage of Westminster and Two Brains running the ship are finding that we actually have Arthur Daley and the rest of the cast of “Minder” running the sails?

Lord Willetts Portrait Mr Willetts
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The countries that the hon. Gentleman cites—incidentally, I welcome him to his new position on the Front Bench—do not have the mess in the public finances that we inherited as a result of the performance of his Government. None of them is borrowing at the high level that we inherited, yet despite that, we remain strongly committed to science and excellent research in our universities.

James Morris Portrait James Morris (Halesowen and Rowley Regis) (Con)
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8. What recent representations he has received on access to finance for small businesses.

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Nigel Mills Portrait Nigel Mills (Amber Valley) (Con)
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17. What steps he is taking to encourage universities to focus on the employability of graduates.

Lord Willetts Portrait The Minister for Universities and Science (Mr David Willetts)
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Students rightly expect better information about their chances of a job after studying different courses at different universities, and universities need to do more to improve the employability of their graduates. That is why I have asked universities to publish statements on what they do for students’ employment prospects. The vast majority have now done so.

Nigel Mills Portrait Nigel Mills
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I thank the Minister for that answer. Does he agree that a key method of achieving increased employability are schemes such as those set up by David Nieper, a full service clothing manufacturer in Alfreton in my constituency? It has agreed a scheme with Nottingham Trent university that will ensure that students get a full range of experience and skills in the textiles sector to increase their chances of employment after they finish their course.

Lord Willetts Portrait Mr Willetts
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I agree with my hon. Friend. Indeed, one of the proposals in Lord Browne’s report that we are looking at very carefully is to do more to encourage the accreditation of skills developed in businesses and the workplace as part of a degree qualification.

Chris Evans Portrait Chris Evans (Islwyn) (Lab/Co-op)
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18. What recent representations he has received on access to finance for small businesses.

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Roberta Blackman-Woods Portrait Roberta Blackman-Woods (City of Durham) (Lab)
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T5. Can the Minister explain what he will do to ensure that our universities stay at the leading edge of research and innovation? That is especially important as, for many universities, the Browne proposals will mean only replacement income, not growth and investment money, despite the quite disgraceful hike in tuition fees proposed.

Lord Willetts Portrait The Minister for Universities and Science (Mr David Willetts)
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The package proposed by Lord Browne as a whole is intended to put our universities on a stable and secure long-term funding basis that will enable us to support and encourage their work in research, and we are considering carefully the new proposals from Sir James Dyson for technology innovation centres.

Philip Davies Portrait Philip Davies (Shipley) (Con)
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T3. Further to the excellent question from my hon. Friend the Member for Kettering (Mr Hollobone), given the volume of regulation that comes from the EU, does the Minister accept that unless the one-in, one-out policy applies to EU regulation as well, it will have only a limited impact? I understand that the Minister said that the policy would apply to EU legislation in due course, but can he give us a time scale for that?

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Andrew Stephenson Portrait Andrew Stephenson (Pendle) (Con)
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T6. In my constituency of Pendle, many graduates earn far less on average than those working in other parts of the country. Does my right hon. Friend welcome the Browne review’s proposals to raise the threshold for fees repayment from £15,000 to £21,000?

Lord Willetts Portrait Mr Willetts
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My hon. Friend draws attention to an important feature of the Browne review, which is also one reason why the analysis by the Institute for Fiscal Studies suggested that the poorest 30% of students would be better off as a result of those proposals.

Valerie Vaz Portrait Valerie Vaz (Walsall South) (Lab)
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Can the Minister state whether he has received the petition from the Science is Vital group, which lobbied Parliament last Saturday, and also say whether he has listened to the group, and if not, why not?

Lord Willetts Portrait Mr Willetts
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I believe that the Science is Vital group is also presenting a petition today. I hope to meet the members of that campaign to discuss their commitment to science and to emphasise that this Government are committed to excellent science research.

Mark Spencer Portrait Mr Mark Spencer (Sherwood) (Con)
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T7. The Minister will be aware of the thousands of companies that in the past have supplied Departments, an example of which is F. J. Bamkin in my constituency, which used to supply socks to the Ministry of Defence. Can he say what progress his Department has made in achieving the manifesto commitment to deliver “25 per cent of government research and procurement contracts through SMEs”?

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Eric Ollerenshaw Portrait Eric Ollerenshaw (Lancaster and Fleetwood) (Con)
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T8. Cumbria university, which has one of its largest campuses in the Lancaster part of my constituency, has experienced a number of financial and managerial problems over the past few years. Can the Minister comment on the university’s viability, given its new business plan?

Lord Willetts Portrait Mr Willetts
- Hansard - -

I know that my hon. Friend has been closely involved with that university, as have other hon. Members. The Higher Education Funding Council for England advises me that, with the university’s new management arrangements and its new plan, it will have a far better prospect for the future.

Mark Tami Portrait Mark Tami (Alyn and Deeside) (Lab)
- Hansard - - - Excerpts

On Tuesday, Tata Steel announced its intention to close its Living Solutions business in Shotton, with the loss of some 180 jobs. This is a hammer blow to all those employees and their families, as well as to the local economy. Will the Secretary of State join me in pressing the company to reconsider its decision, and also look at the future of the whole modular construction business?

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John Leech Portrait Mr John Leech (Manchester, Withington) (LD)
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Research by the Institute for Fiscal Studies suggests that the poorest 30% of graduates would pay less than they do now if the Browne review were to be implemented. However, potential students do not automatically assume that they are going to be among the bottom 30%, so any increase in tuition fees would surely be a disincentive for them to apply to go to university, even if they would ultimately be better off.

Lord Willetts Portrait Mr Willetts
- Hansard - -

We can see from the evidence that the introduction of fees by the previous Labour Government did not have the effect that many people in all parts of the House feared. In reality, we have seen an increase in the number of applications from students from poorer backgrounds, because they knew that they would not have to pay up-front fees. That key feature of the system would be maintained under Lord Browne’s proposals.

Anne Begg Portrait Miss Anne Begg (Aberdeen South) (Lab)
- Hansard - - - Excerpts

A lot of the businesses in my constituency are involved in the offshore oil and gas sector, which is a global business that depends on the movement of labour so that it can move its work force around the world. That business is seriously concerned about the cap on immigration, and I hope that the Secretary of State is having very detailed discussions with the Home Office to ensure that that business remains in the North sea and does not go elsewhere in the world.

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Duncan Hames Portrait Duncan Hames (Chippenham) (LD)
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My right hon. Friend has asserted the Government’s determination that graduate contributions should be linked to ability to pay. Will he therefore consider supplementing the Browne proposals with a less advantageous interest rate for the highest earners?

Lord Willetts Portrait Mr Willetts
- Hansard - -

We are, of course, considering Lord Browne’s proposals very carefully and in greater detail. One issue that we will certainly consider is the exact interest rate that should be applied.

Anas Sarwar Portrait Anas Sarwar (Glasgow Central) (Lab)
- Hansard - - - Excerpts

What an incredible transformation the Business Secretary has made from a Labour councillor in Glasgow to a Tory front-man in Westminster, with every principle dropped at the first sniff of power. Will he please detail what consultation process took place with the National Union of Students before reaching his own conclusions on the Browne report?

Oral Answers to Questions

Lord Willetts Excerpts
Thursday 8th July 2010

(14 years ago)

Commons Chamber
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Oliver Colvile Portrait Oliver Colvile (Plymouth, Sutton and Devonport) (Con)
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9. What plans his Department has to improve the employability of graduates.

Lord Willetts Portrait The Minister for Universities and Science (Mr David Willetts)
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We are committed to increasing employment by cutting the burden of national insurance on new businesses employing new staff in areas such as Plymouth. We are cutting corporation tax over the next four years. We are easing the burden of regulation. In addition, I have asked universities to provide public statements on what they do to promote employability, to encourage them to improve the job-readiness of their students and to do better at getting their students into internships, work experience and work.

Oliver Colvile Portrait Oliver Colvile
- Hansard - - - Excerpts

I thank my right hon. Friend for that answer. Is he willing to meet me and the vice-chancellor of Plymouth university—the enterprise university—to discuss ways in which it might make greater commercial use of its excellent reputation in marine science research as well?

Lord Willetts Portrait Mr Willetts
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I have met the vice-chancellor of the university of Plymouth and corresponded with her when she praised the co-operation that she already had with my hon. Friend. Of course, I would be very happy to meet her. Those are exactly the kind of initiatives linking universities and business to promote economic growth that the Government are backing.

Paul Blomfield Portrait Paul Blomfield (Sheffield Central) (Lab)
- Hansard - - - Excerpts

In October last year, the Minister said:

“At a time when the jobs market for young people is tougher than ever, it is far better to find them a place in education than to leave them languishing on the dole…whereas going to university will increase their qualifications and make them more employable in the long run.”

Will he confirm that that is no longer his view, in the light of the withdrawal of 10,000 university places?

Lord Willetts Portrait Mr Willetts
- Hansard - -

In that statement, I announced my commitment to 10,000 extra places at university, when the then Government were planning a cut in the number of places at university. We have delivered those 10,000 extra places. There will be more places at university this year than the then Government originally planned, and we are proud of what we have achieved.

David Lammy Portrait Mr David Lammy (Tottenham) (Lab)
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Given that the Office for Budget Responsibility has confirmed a rise in unemployment next year and that the Association of Graduate Recruiters estimates that vacancies for graduates will fall by 7%, what will the right hon. Gentleman do to support graduates in what will be the toughest year on record to get employment?

Lord Willetts Portrait Mr Willetts
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I have here the forecast from the OBR, and it is an endorsement of the measures that the Government took in the Budget. It makes it absolutely clear that it expects total employment in the economy to rise from 28.89 million now to 30.23 million in five years’ time, as a result of the decisions that the Government are taking. Of course, times are tough for students, but going to university and getting a degree remains a very good investment in people’s long-term prospects for well-paid employment, and we will encourage universities to focus on maximising the employability prospects of their students.

Charlie Elphicke Portrait Charlie Elphicke (Dover) (Con)
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10. How many further education colleges will receive capital funding from his Department in 2010-11.

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Ann McKechin Portrait Ann McKechin (Glasgow North) (Lab)
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12. What plans he has for the future funding of university-based research.

Lord Willetts Portrait The Minister for Universities and Science (Mr David Willetts)
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During 2010-11, the Department will provide £5.7 billion in funding for science and research, made up of £3.9 billion, principally to the research councils, and £1.8 billion of research funding distributed by the Universities Funding Council in England. The previous Government delayed the comprehensive spending review, so budgets have not been set for future years. They will be decided this autumn as part of the spending review.

Ann McKechin Portrait Ann McKechin
- Hansard - - - Excerpts

As the Minister will, I am sure, agree, we enjoy a world-class research base in our universities here in the UK, but stability of funding is crucial to that. I seek reassurance today that he will take that as a priority, especially for science research, which is so essential as a driver for our economy. Can he confirm whether the VAT increase, which will affect universities to the extent of £200 million, will be taken into account?

Lord Willetts Portrait Mr Willetts
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My right hon. Friend the Secretary of State and I are committed to a strong research base in Britain and in our universities. If the hon. Lady looks at the Budget, she will see that it contained, alongside the necessary VAT increase, imaginative proposals to try to help universities respond to that challenge.

Julian Huppert Portrait Dr Julian Huppert (Cambridge) (LD)
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Is the Minister aware that the decisions that individuals take to come to this country, leave this country and to stay and research in this country depend on how welcome they are made to feel here and how much funding is available over a long time scale? Will he commit to a 10-year prediction of how much money is likely to be available, so that when we are out of the current hole people will know that there is a rosy future ahead?

Lord Willetts Portrait Mr Willetts
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It is quite a challenge to make a 10-year prediction when we have just embarked on the comprehensive spending review for the next three years. I can say that we are committed to supporting research in this country. The challenge we face is that we inherited from the previous Government a commitment to reductions of

“£600 million from higher education and science and research budgets”.

Chris Bryant Portrait Chris Bryant (Rhondda) (Lab)
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13. If he will make representations to his EU counterparts to require that the proposed EU free trade agreement with Peru and Colombia undergoes ratification in each member state.

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Charles Kennedy Portrait Mr Charles Kennedy (Ross, Skye and Lochaber) (LD)
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14. When he last met representatives of Universities UK; and what matters were discussed at that meeting.

Lord Willetts Portrait The Minister for Universities and Science (Mr David Willetts)
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I meet Universities UK on a regular basis. I last met UUK representatives at their board meeting on 25 June when we discussed a range of issues facing higher education. With my right hon. Friend being the rector of Glasgow university, and my right hon. Friend the Secretary of State having been an economics lecturer there, I am of course impressed by the excellence of that institution.

Charles Kennedy Portrait Mr Kennedy
- Hansard - - - Excerpts

Well, that is very nice to hear. I hope that the Minister will visit, and we will make him feel extremely welcome. A guest lecture would not go amiss.

Given the Government’s policy of a cap on immigration, the Minister will be aware that Universities UK and many others across the sector are worried about its impact, as 10% of university staff across the UK are non-EU nationals, including 2,500 staff at the Scottish universities alone. What can he do with his colleagues in the Home Office to mitigate the impact of that policy on the tertiary sector?

Lord Willetts Portrait Mr Willetts
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We are working closely on this matter with my right hon. Friend the Home Secretary, and I think that we have reached a sensible way forward, which she announced the other day. Of course, if there are individual problems affecting universities in the operation of these controls, we would be interested to hear from them, and will discuss them with our colleagues in the Home Office.

Denis MacShane Portrait Mr Denis MacShane (Rotherham) (Lab)
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The Minister will be aware that the United States spends 2.9% of gross domestic product on higher education. We spend 1.3%, which is below the OECD average. The previous Government took a brave decision on tuition fees, although it was very unpopular with my hon. Friends. May I invite the Minister to take equally unpopular decisions on university finance, perhaps to introduce a graduate tax or lift some of the charges that universities can make? We must get more money into our universities.

Lord Willetts Portrait Mr Willetts
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That is why, of course, the Browne review was set up on a cross-party basis—to look at these issues so that we can find a way forward that I hope will command consent on both sides of the House of Commons.

George Freeman Portrait George Freeman (Mid Norfolk) (Con)
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15. What steps he is taking to support the UK’s science and innovation industry.

Lord Willetts Portrait The Minister for Universities and Science (Mr David Willetts)
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We will encourage universities to work with businesses and enhance the effectiveness of the UK’s innovation system to support successful business innovation. The coalition agreement made it clear that we are committed to refocusing the research and development tax credit on high-tech companies, small firms and start-ups, as recommended by Sir James Dyson. We are considering the other recommendations in his report.

George Freeman Portrait George Freeman
- Hansard - - - Excerpts

May I say how nice it is to see such a heavyweight business and finance team on the Front Bench? I would also like to declare an interest as someone who has had a career in business before coming to the House. Does the Minister agree that, in order to unlock the significant economic potential of our science and research base, instead of scattering money to the four corners of the kingdom, as the previous Government tended to do, we should focus our money on those centres that have a demonstrable track record in commercialising technology, such as the excellent John Innes research centre and the Norwich research park on the edge of my constituency?

Lord Willetts Portrait Mr Willetts
- Hansard - -

The John Innes centre is a centre for plant science, but that does not mean it was a planted question.

John Bercow Portrait Mr Speaker
- Hansard - - - Excerpts

Order. May I gently remind the Minister, who always looks very comfortable at the Dispatch Box but is usually looking the wrong way, that he needs to look at, and address, the House as a whole?

Lord Willetts Portrait Mr Willetts
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I can assure the House that we are looking very carefully at the important issue of concentrating research funding in the areas where it will yield its greatest results. However, concentration means concentration of research in departments. It need not be done university by university.

Ann Clwyd Portrait Ann Clwyd (Cynon Valley) (Lab)
- Hansard - - - Excerpts

17. What discussions he has had with the Secretary of State for Work and Pensions on health and safety regulations affecting businesses.

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Julian Huppert Portrait Dr Julian Huppert (Cambridge) (LD)
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T3. I have been made aware recently of a number of cases of academic visitors coming to the UK, often for only a few days, and being denied visas for their entry. Will the Minister meet the Home Secretary to work out a new protocol for treating these people? Will he also meet me to talk through the issue, so that we can ensure that the reputation of British educational research is supported and not weakened?

Lord Willetts Portrait The Minister for Universities and Science (Mr David Willetts)
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My right hon. Friend the Home Secretary and I are both aware of the importance of these academic exchanges and visits. If there are any particular operational problems that my hon. Friend has encountered, I would be very happy to meet him to discuss them.

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Mark Pawsey Portrait Mark Pawsey (Rugby) (Con)
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T7. Last week, I joined students at Rugby high school in my constituency, who were taking part in a business partnership event, in which they learned the principles of running a business. Does the Minister agree that it is vital to encourage and support such entrepreneurs of the future?

Lord Willetts Portrait Mr Willetts
- Hansard - -

We are strongly committed to enterprise education. People can learn how to be enterprising and learn the skills necessary to run a business. We are indeed committed to supporting such initiatives.

Toby Perkins Portrait Toby Perkins (Chesterfield) (Lab)
- Hansard - - - Excerpts

The Secretary of State will be aware that of all the important things for small businesses, the most important of all is that people have enough money to buy their products. In that light, what impact does he think the increase in VAT will have, particularly on the retail sector, which relies so much on people having the money to purchase products?

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Gordon Birtwistle Portrait Gordon Birtwistle (Burnley) (LD)
- Hansard - - - Excerpts

The university campus at Burnley college has developed what it believes to be the most advanced wind turbine in the world. The previous Government were asked to fund further research on it, which they refused, so will the Minister visit this project and look at the possibility of helping to develop it further?

Lord Willetts Portrait The Minister for Universities and Science (Mr David Willetts)
- Hansard - -

I always enjoy visiting universities, especially when they have enterprising ideas that bring forward business opportunities, so I am happy to accept my hon. Friend’s invitation.

Tom Blenkinsop Portrait Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)
- Hansard - - - Excerpts

Will the Secretary of State confirm what communication he or his Cabinet colleagues have had with Corus and Tata Steel Europe, since the announcement of the departure of the coalition Government’s fiscal friend, Kirby Adams?

Industry (Government Support)

Lord Willetts Excerpts
Wednesday 16th June 2010

(14 years, 1 month ago)

Commons Chamber
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Lord Willetts Portrait The Minister for Universities and Science (Mr David Willetts)
- Hansard - -

I am delighted that we have had so many firsts in this debate. It is the first in which I have participated with you and other new Deputy Speakers in the Chair, Mr Deputy Speaker, and we very much welcome you. We have also heard the speeches from the new Chairs of the Select Committees that will take a close interest in our deliberations: I welcome the speeches by the hon. Members for West Bromwich West (Mr Bailey) and for Ellesmere Port and Neston (Andrew Miller).

Above all, we have had some very welcome maiden speeches in the debate, and I pay tribute to the excellent speeches from new colleagues, including my hon. Friend the Member for Bracknell (Dr Lee). He spoke as a doctor, and also with great passion for space and the importance of the space industry. That cause is also close to my heart, and I welcome him to the Chamber. I hope that we shall be able to work together on that important subject.

We also heard from the hon. Member for Bolton West (Julie Hilling), and I agree with her about the importance of unionlearn. It is an excellent and cost-effective way of spreading access to skills in the workplace. We heard from the hon. Member for Wansbeck (Ian Lavery), who spoke of the importance of the coal industry to his constituency. We also heard from the hon. Member for North West Durham (Pat Glass), who explained that her predecessor had been Hilary Armstrong, and that Hilary Armstrong’s predecessor had been Ms Armstrong’s father. We therefore welcome this radical break with the hereditary principle, and welcome the hon. Lady to the House. She also referred to socialism in her speech. We do not hear the word “socialism” in the Chamber very often, but we enjoyed her contribution all the same.

The hon. Member for Barnsley East (Michael Dugher) spoke with great passion about brass bands. Just occasionally, the meaning of the word “socialism” is a bit fuzzy when used by Labour Members, but, having heard his speech about brass bands, we now know that a socialist utopia will have been achieved when the Arts Council devotes as much money to brass bands as it does to the Royal Opera House. We very much look forward to the hon. Gentleman’s advocacy of that cause.

Lord Willetts Portrait Mr Willetts
- Hansard - -

I hope that all hon. Members heard that intervention.

We also had a maiden speech from the hon. Member for Middlesbrough South and East Cleveland (Tom Blenkinsop). That was particularly touching for those of us who were here in the last Parliament, because he referred to the sad loss of Ashok Kumar, who was held in high regard on both sides of the House.

As I was listening to those maiden speeches, I recalled a maiden speech delivered in a previous Parliament by a newly elected loyal Blairite Back Bencher who had previously been a London taxi driver. Many of us regretted that, in his new role, he would no longer be able to share his political opinions with us. However, we now have new Members who are certainly going to share their opinions with us in a most vigorous and effective way. Indeed, some newly elected Members are so vigorous and dynamic that they have already made their second speeches, which must be some kind of record. Among my intake in 1992, we had a competition to see which of us would first be referred to in the press as a senior Back Bencher, and I think that we have heard from several candidates for that title here today.

There was a paradox, however, in that many of these new Members, who are changing the character of our House, and rejuvenating and refreshing it by coming from all sides to bring fresh angles to the issues of the day, defined their political loyalties by historic disputes, especially disputes about the performance of our economy. I should like to set the record straight, especially for those Labour Members who have given such a caricature account of this country’s economic history.

In 1979—a year that clearly rankles with some Labour Members—manufacturing industry comprised 25.8% of the British economy. In 1990, when Baroness Thatcher lost office, as a result of the economic policies that Labour Members have been criticising today, manufacturing was down to 22.5 % of gross domestic product. In 1997, when we last lost office, it was 20.3% of GDP; and in 2009, it was 11.8% of GDP. So next time we have any sermons from Labour Members about what has happened to manufacturing industry, I hope that they will come to this House and be willing to accept the simple evidence from those statistics.

Perhaps I can give the House a second set of statistics on another important measure of the performance of our economy—business investment. In 1979, business investment was 13% of GDP. Business investment goes up and down, but there was a trend, and I regret to say that by 1997 that figure had fallen to 11.7% of GDP. In 2009, the last full year in which Labour was in office, business investment was 8.8% of GDP. When it comes to investing in the future of our economy and when it comes to manufacturing and the significance of the manufacturing sector, I hope that Labour Members will recognise the comprehensive failure of their years in office.

Lord Willetts Portrait Mr Willetts
- Hansard - -

I have very little time.

Many Labour Members referred particularly to regional issues, and I have to say to them that of course we understand the concern about regional imbalances in our economy. In fact, another measure that deteriorated over the past 10 years has been the gap in GDP between different regions of our economy. If we are to tackle the problem of regional imbalances, we have to look objectively at the performance of regional development agencies. The report from the National Audit Office, published in March this year, made it clear that the NAO was

“unable to conclude that the regional wealth benefits actually generated”

by RDAs

“were as much as they could and should have been, and are therefore value for money.”

The report went on to refer to “weaknesses”, which

“in many cases, undermined the RDAs’ ability to make decisions and set priorities to maximise regional economic wealth”.

It concluded that RDAs were simply not doing the job they were supposed to do. That is why Government Members believe that RDA boundaries do not reflect functional economic areas; we wish to enable local enterprise partnerships to reflect better the natural economic geography of the areas that they serve. We are committed to replacing RDAs with local enterprise partnerships and we will invite local groups of councils and business leaders to come together to consider how they wish to form local enterprise partnerships.

Lord Willetts Portrait Mr Willetts
- Hansard - -

I will give way to the Chairman of the Select Committee.

Adrian Bailey Portrait Mr Bailey
- Hansard - - - Excerpts

Will the right hon. Gentleman answer the query I posed in my contribution and tell us whether the money hitherto allocated to RDAs will follow through to the local economic partnerships?

Lord Willetts Portrait Mr Willetts
- Hansard - -

We do believe that there are efficiencies to be made because of the very high overhead costs of RDAs. Government Members are committed to saving public money, and I have to say that one way in which we will do so is by saving money in the overhead costs of RDAs as we move to the new arrangements—and we make no apology for that.

We also believe that some roles currently carried out by RDAs can be scrapped to save money—regional spatial strategies, for example. We simply do not need them—full stop. There are other roles, including inward investment, that we believe should be led nationally and can be carried out elsewhere. We heard powerful examples from several of my hon. Friends of how individual RDAs were spending money around the world on regional offices; this type of function is better done at the national level. We believe that some RDA roles in sector leadership and taking responsibility for business support and innovation can also best be done nationally. That is the approach that we will take.

Our challenge is to rebalance the economy, to rebalance it in favour of manufacturing, to rebalance it in favour of investment and to rebalance it regionally as well. That is part of the inheritance that we take on from the previous Government.

Esther McVey Portrait Esther McVey (Wirral West) (Con)
- Hansard - - - Excerpts

I have listened to what has been said this evening, and I would like to raise the concerns of small business owners and family-run businesses in Wirral, Cheshire and Merseyside, as I have been part of the Merseyside Entrepreneurship Commission. What they say is drowning them is the burden and cost of regulation. Last year, in the north-west alone, it cost £8.3 billion and, since 1998, the overall figure has gone up by £11 billion a year. I want to know what we are going to do to help the small businesses across the north-west.

Lord Willetts Portrait Mr Willetts
- Hansard - -

My hon. Friend is absolutely right. To indicate the challenge that we face, the previous Government introduced 20,938 new regulations. Between 1987 and 1997, 46 pieces of primary legislation affected the workplace. In the subsequent 10 years under the Labour Government, 92 pieces of legislation affected the workplace. In the Department for Business, Innovation and Skills, working with the Secretary of State, we have already identified on our forward programme 200 proposed regulations inherited from the outgoing Government that would have cost more than £5 billion to British business. Every one of those will be scrutinised, and we will roll back the burden of regulation, which is fundamental.

We believe in “rebalancing the economy”, and although those are the new words, I sometimes think that Winston Churchill, who served in the House as a member of the Liberal party and of the Conservative party, expressed it best when he said that he wanted to see finance less proud and industry more content. That is what the Government stand for. Getting a grip on the public finances is fundamental, because otherwise, as my hon. Friends the Members for West Suffolk (Matthew Hancock) and for Bromsgrove (Sajid Javid) described powerfully, interest rates will rise, which is a burden that British industry cannot be expected to bear. We need to bring down the burden of public borrowing and of the public finances.

The Government are not alone in believing in that—former Ministers who are now on the Opposition Benches signed up to such plans in government. They have failed today to give us any information about their plans to deliver the savings to which they publicly committed themselves. Let me remind them of what was in last year’s pre-Budget report with regard to the Department for Business, Innovation and Skills. It said that £300 million would be saved by reducing funding for adult skills budgets, and £600 million would be saved from higher education and science and research budgets. I agree with Labour Members about the importance of science, although it is a pity that they fought the last election on a proposal to save £600 million from higher education and science but have never informed us of exactly how they would have made those savings. We will now deliver the savings, and they are in no position to criticise the savings that they planned for but never had the guts to share with us and explain.

The Government are committed to a strategy for growth that involves an enterprise-friendly tax system, support for science, support for free trade and competition, a belief in investment in skills and training, and rolling back the burden of regulation, setting British industry free. As every contribution to the debate has revealed, there is a simple difference between the Government and Opposition. The Government believe in freedom, enterprise, initiative and competition, and the Labour party still believes in state control, higher public expenditure, more regulation, more RDAs, and more interference in the wealth-creating sector of the British economy. That is not the way we will recover from the recession in which the Labour party left the country.

The Government will commit ourselves to bringing down the burden of borrowing and managing the public finances prudently. In the Department for Business, Innovation and Skills, in which it is a privilege to work with the Secretary of State, we are determined to have a more flexible and dynamic industrial sector because of our commitment to free trade and free markets.

Question put (Standing Order No. 31(2), That the original words stand part of the Question.

The House proceeded to a Division.

Lindsay Hoyle Portrait Mr Deputy Speaker
- Hansard - - - Excerpts

I ask the Serjeant at Arms to investigate the delay in the Aye Lobby.

Oral Answers to Questions

Lord Willetts Excerpts
Thursday 3rd June 2010

(14 years, 1 month ago)

Commons Chamber
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David Anderson Portrait Mr David Anderson (Blaydon) (Lab)
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8. What the terms of reference are of the review of employment law referred to in the coalition agreement.

Lord Willetts Portrait The Minister for Universities and Science (Mr David Willetts)
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We are reviewing employment law to maximise flexibility for employers and for employees. Our aim is fairness for employees within a competitive environment for business.

David Anderson Portrait Mr Anderson
- Hansard - - - Excerpts

I thank the Minister for that response. During the election campaign, the Secretary of State said that he and the Liberal Democrats believed that the link between the Labour party and the trade unions was corrupt. Can we have an assurance from the team that that prejudice will in no way influence the employment law review?

Lord Willetts Portrait Mr Willetts
- Hansard - -

The Secretary of State has made it clear that he did not make those remarks. We are looking at a review that will not cut the rights of individuals, but we want a streamlined process to cut the costs of compliance for employers. We have noticed the comments that have been made by, for example, British Chambers of Commerce and the Institute of Directors, which have called for changes to the employment tribunal system so as to streamline the process. That is what we are considering.

Paul Blomfield Portrait Paul Blomfield (Sheffield Central) (Lab)
- Hansard - - - Excerpts

10. Whether he has discussed with Sheffield Forgemasters the continued availability of a loan facility from his Department; and if he will make a statement.

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Lilian Greenwood Portrait Lilian Greenwood (Nottingham South) (Lab)
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13. What plans he has for funding higher education in 2010-11; and if he will make a statement.

Lord Willetts Portrait The Minister for Universities and Science (Mr David Willetts)
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Universities will receive £5.1 billion for teaching from the Higher Education Funding Council for 2010-11. This includes an increase of £70 million since the December 2009 grant letter. That reflects the 10,000 extra university places that the coalition is committed to delivering in 2010-11.

The Government will make future funding decisions in the light of the Browne review on student finance, established by the previous Government, which will report later this year.

Lilian Greenwood Portrait Lilian Greenwood
- Hansard - - - Excerpts

I am sure that hon. Members know that for almost a decade Professor Philip Cowley and his colleagues in the school of politics at Nottingham university have been studying Back-Bench behaviour. Their findings have been published on the “Revolts” website and are widely used by journalists and hon. Members—particularly, I am told, the Whips Office. Does the Minister share my concern that the project has recently lost its Economic and Social Research Council funding, just at the time when it might yield the most interesting results from the Benches opposite?

Lord Willetts Portrait Mr Willetts
- Hansard - -

I attended a meeting at Nottingham university before the election when Professor Cowley presented his report on the fascinating subject of rebellions in the House of Commons, so I am aware of his work. However, it would be dangerous if we got into a position whereby Ministers responsible for higher education started commenting on and micro-managing individual universities’ decisions about their departments. I do not think that we should go down that route.

Rob Wilson Portrait Mr Rob Wilson (Reading East) (Con)
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My hon. Friend will be aware of the value for money that the US community college model provides in getting more disadvantaged young people into higher education. Is he having any work undertaken in the Department to assess what we can learn from that important system in the USA?

Lord Willetts Portrait Mr Willetts
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I pay tribute to my hon. Friend’s expertise in the subject and his record of campaigning on it. I completely agree that progression through college to university is one of strengths of some American systems, such as that in California. Experts from California are coming here next week. We definitely need to learn from those systems so that people have opportunities as they progress through education to move from college to university.

David Lammy Portrait Mr David Lammy (Tottenham) (Lab)
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I welcome the hon. Gentleman to his new role. I know that many in the higher education sector value the continuity that he provides, but they also value consistency. In November 2009, he said:

“At a time when the jobs market for young people is tougher than ever, it is far better to find them a place in education than to leave them languishing on the dole.”

Why, within days of taking up the job, has he done a volte face and condemned 10,000 young people to the dole by not providing extra student places to HE this summer? Is that not desperately hypocritical?

Lord Willetts Portrait Mr Willetts
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I look forward to my exchanges with the right hon. Gentleman, and of course I recognise his expertise as the former Minister for universities. As he held that position, I am sure that he remembers the grant letter that the former Secretary of State sent out in December 2009 to the Higher Education Funding Council, which involved a reduction in the number of students. We have delivered the pledge that we made to our party conference, and which is in the coalition agreement, of 10,000 extra places. That is why the amount of money going to universities in teaching grant this year is £50 million higher than the figure set out in the December 2009 letter.

Adrian Sanders Portrait Mr Adrian Sanders (Torbay) (LD)
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14. If he will take steps to increase the use of Royal Mail by public sector bodies.

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Ian Lavery Portrait Ian Lavery (Wansbeck) (Lab)
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Does the Secretary of State acknowledge that cutting the higher education budget will place pressure on Lord Browne to conclude that student fees need to rise? Is it not the ultimate cop-out for the Secretary of State to cut the higher education budget and then abstain on student fees legislation?

Lord Willetts Portrait The Minister for Universities and Science (Mr David Willetts)
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Of course, Lord Browne’s report was commissioned by the previous Government, on a cross-party basis, so those on both sides of the House will agree that it is right to wait for his report. As I explained to the House earlier, compared with the plans announced in December 2009, we have increased our contribution to student teaching so that we can deliver our pledge of extra student places.

David Tredinnick Portrait David Tredinnick (Bosworth) (Con)
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T2. Does the Secretary of State have any plans for departmental reorganisation? Does he recall that his predecessor, Lord Mandelson, went on an empire-building spree as a price for supporting the former Prime Minister, and will he be moving back innovation and skills to the Department for Education?

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Lord Beith Portrait Sir Alan Beith (Berwick-upon-Tweed) (LD)
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T5. Will the Government’s apprenticeship initiative provide scope for the training of blacksmiths and other heritage crafts, bearing in mind the concerns of blacksmiths in my constituency that the new entrants training scheme for blacksmith training seems to have been closed down following the decisions of the previous Government?

Lord Willetts Portrait Mr Willetts
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I know that my right hon. Friend has a strong interest in this subject, and I assure him that the Department is committed to improving the apprenticeship regime for craft skills. I have also already had a meeting on how we can improve the qualification regime so that specific qualifications in craft skills are properly recognised and funded—something that disappeared under the previous Government.

Barry Sheerman Portrait Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
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T4. Why is this new Front-Bench team so reluctant to talk about manufacturing? Can we not start to tie up the start-up of new businesses that make things with our university sector? Is it not about time that there was yet another inquiry into doing something about expanding our manufacturing exports?