Oral Answers to Questions

Greg Clark Excerpts

Thursday 20th November 2014 Commons Chamber

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

8. What recent estimate he has made of the resource accounting and budgeting charge on student loans.

[The Minister for Universities, Science and Cities (Greg Clark)]

The most recent estimate of the resource accounting and budgeting charge is about 45%.

[Mr Bailey]

I thank the Minister for that admirably concise response.

On Monday, the Higher Education Commission published a report which effectively endorsed the statement in the report from the Business, Innovation and Skills Committee that the current finance system for higher education was unsustainable. The Government rejected the Select Committee’s report. In the light of the overwhelming evidence backing the report, will the Minister tell us what he is going to do about this?

[Greg Clark]

I do not agree with that report. Our system of student finance is in rude health. The OECD reviewed higher education systems throughout the world, and concluded that the

“UK is…one of the few”

countries

“that has figured out a sustainable approach to higher education finance”

and that

“that investment…pays off for individuals and tax payers.”

This year more students are going to university than ever before, and that would not have been possible without the reforms that we introduced.

[Mr David Willetts (Havant) (Con)]

Does my hon. Friend agree that the resource accounting and budgeting charge is not a fixed cost, a cost that is being incurred today or public expenditure, but, essentially, a highly speculative forecast of what income tax receipts might be up to 2050? He is right: we have a system that is in rude health, with more people applying to universities, more funds for universities, and more applications from low-income families.

[Greg Clark]

My right hon. Friend is absolutely right. We take a very cautious view of the RAB charge. The OECD is amazed that we take such a conservative view. For example, we take no account of the fiscal benefit that results from people paying more taxes because they earn more as a result of having a degree. The average salary of a non-graduate is £21,000, but the average salary of a graduate is £33,000. The graduate’s salary means extra tax for the Treasury, but that is not taken into account. We are expanding student numbers, and we have a record number of students with the most disadvantaged backgrounds. It is a tribute to the work done by my right hon. Friend that we are able to say that.

[Mr Liam Byrne (Birmingham, Hodge Hill) (Lab)]

The Institute for Fiscal Studies says that the system is going bust, the Select Committee says that the system is going bust, and the Higher Education Commission says that the system is going bust. When will the Minister get the message? Let me ask him about uncapping student numbers this year. We were promised that the ceiling would be removed from places this year, next year and the year after. Earlier in the week, when I asked the Minister how he would pay for that, I received the immortal answer:

“The Department…has indicated that it will not be possible to answer this question within the usual time period.”

Will the Minister tell the House now how he will pay for lifting the ceiling on student numbers this year? If he cannot answer that question, we shall have to conclude that it is a case of “Never mind a long-term plan; he has no plan at all.”

[Greg Clark]

First of all, the IFS did not say that the system was unsustainable. We have one of the best systems of student finance in the world, and it is achieving the results that we on this side of the House all want to see. I will give the right hon. Gentleman the answer to his question on how the removal of the cap is being paid for. The Treasury has allocated £550 million to pay for it, and it is fully funded. This has enabled us to implement the Robbins report, which was produced 50 years ago and recommended that anyone with the capability and desire for a university education should be able to have one. We are the first Government in 50 years who have been able to implement that.

[Philip Davies (Shipley) (Con)]

10. What his policy is on representation of people from ethnic minorities in boardrooms.

--- Later in debate ---

[Mr Alan Reid (Argyll and Bute) (LD)]

19. What discussions he has had with the Secretary of State for Transport on proposals for Machrihanish to become the site of the UK's first spaceport.

[The Minister for Universities, Science and Cities (Greg Clark)]

The Government set out in July their ambition to start hosting commercial spaceflights from the UK by 2018. The activity is being driven by a cross-Government team that reports to me as well as to Ministers in the Ministry of Defence and the Department for Transport. We have undertaken a public consultation on the potential locations—including the one in my hon. Friend’s constituency—and the criteria that will be used to select the location of a spaceport. Our response will be published shortly.

[Mr Reid]

I thank the Minister for his answer. When the Government take the decision on the location of Britain’s first spaceport, will they take into account the fact that Machrihanish, with its 3 km runway, all the facilities of the former RAF base and a location that is far from densely populated areas, satisfies the criteria perfectly and is clearly the obvious choice for Britain’s first spaceport?

[Greg Clark]

My hon. Friend has taken the opportunity to make a strong case for Machrihanish. He will not be surprised to hear that some of his hon. Friends make equally persuasive cases for their own constituencies. It shows that this competition has captured the public imagination and is a great one to have been launched.

[Mr Speaker]

Chris White. Not here.

--- Later in debate ---

[Graham Stringer (Blackley and Broughton) (Lab)]

T3. The position of chief scientific adviser to the President of the European Commission has been abolished. Professor Glover has held that position with distinction for the past four years. One cannot have evidence-based decision making without scientific advice, so will the Government make the strongest representations to the European Commission to reinstate the position?

[The Minister for Universities, Science and Cities (Greg Clark)]

I pay tribute to the work of Anne Glover, who has been a force for enormous good in Brussels. I am concerned at these reports and it is my view and that of the Government, which I think the hon. Gentleman shares, that it is important to have strong and robust scientific advice at the heart of European policy making. That has been provided in the past and I very much hope that it will be provided in the future.

[Bob Blackman (Harrow East) (Con)]

T5. Every day in my constituency, 200 eastern European men assemble outside the local B&Q superstore on Honeypot lane. They tout their services aggressively for casual labour to people visiting the superstore, take money in cash and have no deductions for tax or national insurance for the work they do. What steps can be taken to ensure that people are employed properly and that the necessary deductions are made to support state aid?

--- Later in debate ---

[Mr David Willetts (Havant) (Con)]

With the extraordinary technical achievement of the Rosetta landing last week and the announcement of crowdfunding for Lunar Mission One this week, will the Minister responsible for science take this opportunity to congratulate the British space community on its scientific excellence and its enterprise?

[Greg Clark]

I will indeed do that. I had the great pleasure of visiting Stevenage earlier this week to congratulate in person many of the scientists and engineers who worked on that brilliantly successful Rosetta mission. They demonstrated the Mars Rover, which is going to be the next source of excitement.

[The Minister for Culture and the Digital Economy (Mr Edward Vaizey)]

And Harwell in my constituency!

[Greg Clark]

My ministerial colleague quite rightly calls on me to mention the signal role played by Harwell and, indeed, many other space and scientific establishments across the country. It was a great day for UK science.

[Heidi Alexander (Lewisham East) (Lab)]

In response to my earlier question, the Secretary of State boasted that a number of firms were already benefiting from the Government’s direct lending facility. Will he name the firms, in addition to Carillion, that have benefited to date?