Oral Answers to Questions

Greg Clark Excerpts

Thursday 26th March 2015 Commons Chamber

[Valerie Vaz (Walsall South) (Lab)]

6. What recent estimate he has made of the average level of indebtedness of people who have taken out student loans.

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

A graduate with a student loan of £41,000 will expect to earn during their career, net of tax and student loan repayments, £200,000 more than a similar individual with two or more A-levels. That is why more young people than ever are choosing to go to university, with the biggest jump coming from people from the most disadvantaged backgrounds.

[Valerie Vaz]

The fact remains that young people will be leaving university with an unsecured debt of over £43,000. Does the Minister agree that this will place an intolerable strain on middle-income families?

[Greg Clark]

No. In fact, the success of the Government’s policy reforms are reflected in the hon. Lady’s own constituency. In October 2009, 20.8% of young people in her constituency went to university, whereas this October it was 30.2%—nearly a 50% increase. What is extraordinary is that a day before the general election campaign begins, the Labour party has not worked out how to pay for its university policies. Labour’s chaos would plunge the successful policy that we have introduced into chaos—a very good reason not to have a Labour Government.

[Mr David Willetts (Havant) (Con)]

Does my right hon. Friend agree that our higher education reforms have delivered more students, especially from disadvantaged backgrounds, more funding for teaching in universities than ever before and have lowered the monthly repayments by graduates, which is the key sum that mortgage lenders take into account when people are trying to get started on the housing ladder?

[Greg Clark]

My right hon. Friend is absolutely right. I pay tribute, as the whole House should, to his work in achieving this transformation. This is a proud moment for him to leave the House, in a year in which more young people have been to university in this country than ever before as a result of the far-sighted policies that he championed in the House.

[Mr Nicholas Brown (Newcastle upon Tyne East) (Lab)]

16. Have the Government examined the case for lifting the cap on student fee contributions, perhaps just selectively? If so, what conclusions have they reached?

[Greg Clark]

We are very happy with the policy. The questions to be answered should be answered by the Labour party, because there is a £600 million gap in its ability to pay for its university policy. No wonder the vice-chancellors are concerned about the chaos into which that policy would plunge our universities.

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

As Chair of the Select Committee, I thank the Secretary of State and his team of Ministers, both current and past, for their unfailing willingness to appear before the Committee and be questioned on their policies. I also thank them for adopting so many of our recommendations, and hope that they will look again at those that they did not adopt.

According to the Office for Budget Responsibility, £12 million of the projected deficit from the non-repayment of student loans will be funded by the sale of the student loan book. Given the low rate of repayment of those loans and the low interest rate that they attract, what assessment has the Minister made of the incentive that may be needed to induce people to buy them?

[Greg Clark]

Preparations are continuing for the sale of the loan book during the next Parliament, and it is right that they should. I acknowledge the work of the hon. Gentleman, as Chairman of the Select Committee, in scrutinising this and other aspects of business during the current Parliament, but he should, perhaps, reflect on the words of a prominent Labour business person—indeed, the only prominent Labour business person. John Mills, who is Labour’s biggest donor, said that the party’s university policy would destabilise British universities and disadvantage “working class children”. He also said that it would hurt Labour’s economic credibility.

[Mr Speaker]

Order. The Minister has finished. He may not know that he has finished, but he has.

--- Later in debate ---

[David Rutley (Macclesfield) (Con)]

15. What steps he is taking to promote regional growth.

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

Since this Government were elected, nearly 2 million more people are in employment, with jobs created in every region of the country—60% outside London and the south-east. The 28 city deals and 39 local growth deals are helping drive local growth by transferring powers and resources from Whitehall to local economies.

[Henry Smith]

I am grateful to the Government for investing £10 million in a growth deal to upgrade Gatwick airport station, and a further £18 million in the same growth deal to improve the highways in Crawley. Does the Minister agree that that is only possible because of the Government’s long-term economic plan, which means that we can invest in infrastructure for further growth?

[Greg Clark]

My hon. Friend is absolutely right. It is notable that, during the time when £20 billion was spent on regional development agencies by the Labour party, the divisions within our economy grew, whereas, under this Government, the growth in jobs and employment right across the country is accelerating, which is good news for every part of the country.

[David Rutley]

I congratulate my right hon. Friend for all that he has done to help take forward the vision of a northern powerhouse. That will lead not just to important infrastructure developments, but to the transfer of power to local authorities and a much-needed focus on key industrial sectors in the north-west. Will he tell the House what steps he has taken to help take the life science corridor forward in north-east Cheshire?

[Greg Clark]

One principle behind our reforms in devolving powers is that every part of the country is different, and it is that difference that plays to the strengths of those reforms. Throughout this Parliament, my hon. Friend has been a formidable champion of the science sector in Cheshire and across the north-west. It is doing very well and creating jobs. I thank him for his efforts during this Parliament.

[Ian Murray (Edinburgh South) (Lab)]

Here comes a tenuous link. The strength of the EU and the euro is critical not just for the economic success of the UK, but for regional growth. However, major concerns are rightly being raised about the effect that the Transatlantic Trade and Investment Partnership negotiations will have on our national health service and public services. Will the Minister and his business team use this very last Business, Innovations and Skills questions to rule the NHS out of the TTIP negotiations, or will it be left to a Labour Business Secretary and a Labour Government, as it always is, to save our NHS?

[Greg Clark]

The hon. Gentleman said it himself: this is a tenuous connection. There is no relevance in it at all. But there is relevance in the sense that, as our economy prospers and is the strongest in the EU for job creation, other countries are looking to the success of our long-term economic plan. We advocate it to the world, and when Yorkshire is creating more jobs than France, it pays close study.

[Mr Speaker]

Last but not least, I call Kelvin Hopkins.

--- Later in debate ---

[Mark Menzies (Fylde) (Con)]

May I take this opportunity to welcome the recent announcement that Blackpool airport has been designated a joint enterprise zone with the one at Warton? What steps is the Minister taking to encourage businesses to move to enterprise zones such as the one in my constituency in order to stimulate further regional growth?

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

I certainly congratulate my hon. Friend, along with colleagues, on his lobbying for that important expansion of that new enterprise zone. We are seeing across the country that enterprise zones are one of a number of policies that are attracting and driving jobs. Very large numbers of jobs are being created, reversing the pattern under the previous Government.

[Fiona Mactaggart (Slough) (Lab)]

T7. In the time that he has been in government, East Berkshire college has lost 40% of its Government funding, and the courses that have been hit, while apprenticeships have been protected, are technician-level courses, so we will not have the nursery nurses, the lab technicians or the IT technicians that business and industry desperately need. What is he going to do about it?