Oral Answers to Questions

Debate between Lord Willetts and Peter Bone

Thursday 2nd February 2012 Commons Chamber

[The Minister for Universities and Science (Mr David Willetts)]

Let me be absolutely clear that this arrangement is set out very clearly in the Student Loans Company annual accounts. If Labour Members had cared to study the report, they would have seen on page 42 a completely transparent account of the arrangements for Mr Ed Lester’s reimbursement. It is set out very clearly there. The payments are to the recruitment consultancy company that found him, and he was appointed on an interim basis to tackle a disaster in the SLC that we inherited from the Labour Government. We of course recognise the importance of ensuring that proper arrangements are in place and will continue to monitor the situation, but I can inform the House that we have agreed that, for the remainder of the chief executive’s contract, the SLC will account for PAYE and national insurance at source.

[Mr Peter Bone (Wellingborough) (Con)]

T3. Last Sunday I attended Indian republic day at the Wellingborough Hindu Association, yet the same week we learn that a £20 billion fighter contract has been lost to, of all people, the French. We now know that the lead bidder was not the British Prime Minister or the British Government, but the Germans. What on earth do they know about cricket and curries? Why was the British Government not leading on that? How did the Secretary of State allow such a cock-up?

Higher Education Fees

Debate between Lord Willetts and Peter Bone

Thursday 9th December 2010 Commons Chamber

[The Minister for Universities and Science (Mr David Willetts)]

We have indeed had a passionate and robust debate, and I am sorry that there will not be time for me to respond to all the points that have been made. The reason for the passion is that all of us care about the future of our universities, and about how we discharge our obligations to the younger generation. It has to be said that all three parties, when in government and confronted by the challenge of how to finance higher education in our country, have reached the same conclusion. All have concluded that the way forward is fees, paid for by loans from the taxpayer and repaid by graduates.

[Mr Bone]

My problem in deciding how to vote tonight is related to my constituents, and to whether this measure will put them off going to university. My right hon. Friend the Minister has already indicated that there will be an annual review of the measure. Will the £150 million be used to help all low-income families, rather than just those on benefit?

[Mr Willetts]

I can assure my hon. Friend, as I chair the group planning the use of that extremely valuable £150 million, that we will consider a range of options for who could be assisted by the scholarship programme.

I was explaining to the House how all three parties have reached the same conclusion, albeit by a rather circuitous route. When we were in opposition, my party voted against the fee increases in 2004, and we remember that decision because we were afraid that the effect of fees would be to put poor people off applying to university. We have now seen the evidence, however, and it shows that, since fees came in—and because there were loans as well—the proportion of people going to university from the poorest backgrounds in England has actually gone up. It has not gone down. Indeed, by contrast, in Scotland, the proportion of people from the poorest backgrounds attending university has fallen while it has gone up in England. That is why my party has concluded that fees supported by loans do not deter poor students from going to university.

The Liberal Democrat party and my right hon. Friend the Secretary of State for Business, Innovation and Skills, when confronted with the challenge of how to deliver progressive policies in a time of austerity, have rightly concluded that this is what we have to do.

The Labour party, now so irresponsibly retreating to the comforts of Opposition, was explaining such policies six years ago. I see the shadow Chancellor laughing. Six years ago, he was in the position that I occupy today, and he explained only the other day, as well as anyone could, the logic of our proposals, in his famous note to the leader of the Labour party:

“Oh, and for goodness’ sake, don’t pursue a graduate tax. We should be proud of our brave and correct decision to introduce tuition fees. Students don’t pay them, graduates do, when they’re earning more than £15,000 a year, at very low rates, stopped from their pay just like a graduate tax, but with the money going where it belongs: to universities rather than the Treasury.”

Quite right. It was true then and it is true now.