Chris Bryant
Main Page: Chris Bryant (Labour - Rhondda and Ogmore)
Vince Cable
Yes. One of the scandals under the existing system is that affluent people can take advantage of loans at subsidised rates and invest the money. That has happened on a substantial scale, but it will no longer be attractive to people on very high incomes.
I urge Labour Members to have a careful look at the income analysis in the report. The explanation of how the interest rate relates to work is technical and complicated, but even with a system of early repayment—I am sorry to go into economics jargon—the net present value of high earners’ contributions will remain higher than for any other income group.
Chris Bryant (Rhondda) (Lab)
The Secretary of State has said many worrying things, but in particular it worried me that he said that it would be better if a higher percentage of students went to universities or colleges in their home towns. If he really expects every young person in the Rhondda to aspire only to go to a university in Glamorgan, he will be letting down future generations. I want to ensure that there is no disincentive for rich or poor kids to go on the right course for them, whether in England, Wales or wherever.
Vince Cable
Of course nobody wishes to stop people travelling to other communities in pursuit of the best course—[Interruption.] I was simply making the point that for many universities, especially those that absorb people from less privileged backgrounds, the students live locally in their home environment. That is the common practice in London, Glasgow and other big cities. It is not true for all, and we do not want a one-size-fits-all system. We merely want to have more flexibility and choice, and that is one of the models available.