Sale of Student Loans: Regulation

Debate between Jim Cunningham and Philip Hollobone

Tuesday 7th March 2017 Westminster Hall

[Mr Philip Hollobone (in the Chair)]

Would those not staying for the half-hour debate on the regulation of the sale of student loans please be kind enough to leave quickly and quietly? This debate can last until 5.3 pm.

[Mr Jim Cunningham (Coventry South) (Lab)]

I beg to move,

That this House has considered regulation of the sale of student loans.

It is a pleasure to serve under your chairmanship, Mr Hollobone. I think this is the first time I have been involved in a debate when you have been in the Chair. On your past record, I know that you will be fair and lenient.

I have two universities in my constituency, Coventry University and the University of Warwick. I have come across Members who have attended the University of Warwick, and some who have attended Coventry University. Many students at those universities have expressed concern to me regarding the sale of student loans. It is possible that to a certain extent, the Government are heaping more debt on students that they can ill afford, against a background of further education budgets receiving a 27% cut. The education allowance and the bursaries for midwifery have been abolished. Those things raise questions about the Government’s real intentions regarding skills, whether in the national health service or manufacturing.

On 6 February, the Government announced plans to sell off student loans taken out between 2002 and 2006. Conservative Governments have previously tried to introduce that policy, but they have never been successful. Indeed, the former Business Secretary, Vince Cable, scrapped the move in 2014, saying that it would not help the aim of reducing Government debt. Why are the present Government continuing to pursue the policy? With the sale of Royal Mail, we have seen how difficult it can be to achieve value for taxpayers. It could be argued that the taxpayer lost out in past privatisations. It can be controversial if the price paid seems too low, with short-term profit put ahead of the public interest. If the student loans are expected to be profitable, why are the Government not keeping them and helping the taxpayer?

The market has little experience of buying such debt, and it will be priced conservatively. It is therefore questionable whether value for money can be achieved. It has been widely acknowledged that the Government will make a loss on the sale. The price the loans are sold for is expected to be lower than the face value. It has been described by the Financial Times economic correspondent, Martin Wolf, as “economic illiteracy”. As I said, I have two universities in my constituency, so I am very concerned about the proposal, as are the students.

Foreign National Offenders (Exclusion from the UK) Bill

Debate between Jim Cunningham and Philip Hollobone

Friday 11th March 2016 Commons Chamber

[Mr Hollobone]

I agree with my hon. Friend and I thank him for that intervention. He is far more expert than I am in legal matters, given his extensive parliamentary experience, legal training, and great deal of common sense, but I am not sure whether he is correct. My understanding is that, in our bizarre human rights system, even member states of the European Union are not deemed to be safe countries to return to. I believe that Greece is classified as a country to which it is not safe to return individuals, either under the asylum regulations or the prison regulations. That is a country to which millions of our fellow citizens go on holiday every year—

[Mr Jim Cunningham (Coventry South) (Lab)]

rose—

[Mr Hollobone]

I am happy to give way in a moment. Our citizens go there on holiday every year and yet we are not allowed, legally, to send back to that country people whom we do not want here.

[Mr Cunningham]

Will the hon. Gentleman give way?

[Mr Hollobone]

I will give way to the hon. Gentleman after I give way to my hon. Friend the Member for Bury North, to whom I promised to give way some time ago.

--- Later in debate ---

[Mr Hollobone]

I will give way to my hon. Friend, but in all fairness I did promise that I would give way to the hon. Member for Coventry South (Mr Cunningham) first.

[Mr Cunningham]

The hon. Gentleman is making a very interesting speech. What is the reason for the Government not deporting these people to their countries of origin, particularly to Europe?

Iran’s Nuclear Weapons Programme

Debate between Jim Cunningham and Philip Hollobone

Tuesday 12th November 2013 Westminster Hall

[Mr Hollobone]

The right hon. Gentleman knows more about religious divides than most of us in the House. In many respects, the split between Protestants and Roman Catholics is similar to that between Shi’as and Sunnis. The divides between Shi’a Iran and Sunni Saudi Arabia date back centuries. If Saudi Arabia feels that the wrong deal is negotiated in Geneva, there is a real chance that the Saudis will buy nuclear weapons from Pakistan, because they will want to defend themselves against the threat from Iran.

The right hon. Gentleman is absolutely right to say that the situation is not just about Israel versus Iran; it is about Iran versus, frankly, the rest of the world. That is yet another reason why the international community simply cannot allow Iran to have nuclear weapons, because the likelihood of its wanting to use them in future is simply too great. That comes back to the point made by my hon. Friend the Member for New Forest East (Dr Lewis). Iran’s horrible regime is far removed from any process of democracy, and we can easily envisage circumstances in the near, medium or distant future in which someone in authority in the country might decide, “We have got a nuclear weapon. Let us use it.” That is a frightening prospect, which puts our worries about places such as Syria, Afghanistan and Somalia into the shade. It is the big issue on which the international community must concentrate.

I am in no way an expert on nuclear technology, but I have read enough to be convinced that Iran does not want to develop nuclear technology simply to provide power for its own people. It is hellbent on developing a nuclear weapons programme. The Foreign Secretary confirmed to me on the Floor of the House that the UK Government are convinced that Iran has enriched uranium to at least 20%. That is way beyond the 3.5% needed for civilian nuclear use, which suggests that the country is trying to develop a military capability. My understanding is that uranium for use in a nuclear warhead must be enriched beyond 90%, and although the gap between 90% and 20% might seem large, in nuclear physics terms it is actually quite small. Uranium enriched to 20% is more than half way to weapons-grade uranium. One of the worries about the potential deal now supposedly being negotiated in Geneva is that Iran might be left with a stockpile of uranium enriched to 20%, which it could bank and use to develop a nuclear warhead in the future. Any interim agreement that allows the Iranians to hang on to their nuclear stockpile is not worth having.

[Mr Jim Cunningham (Coventry South) (Lab)]

Perhaps I am wrong, but I understood the Foreign Secretary to say in a press interview that an interim agreement was being discussed, and a long-term agreement would be considered later on. I do not understand the concern about an interim agreement. Like the hon. Gentleman, I am no expert on nuclear weapons.

[Mr Hollobone]

There might be a problem here with my accent and that of the hon. Gentleman. I understood the Foreign Secretary to be talking about an interim agreement prior to arriving, we hope, at a full accord. The problem with an interim, short-term agreement is that, if I am right—I hope I am not—and the Iranians want to develop a nuclear warhead, such an agreement might give the Iranians time to develop enough enriched uranium to make a nuclear warhead. An interim agreement might, effectively, give the regime diplomatic cover to complete its nuclear weapons programme without the international community’s agreement.

[Mr Cunningham]

It is not for me to defend the Foreign Secretary, but as I understand it, he was talking about weeks rather than a long-term process that might allow Iran to develop along the lines the hon. Gentleman suggests. I am not sure that the hon. Gentleman’s fears would be realised within the short period of time the Foreign Secretary was talking about.

[Mr Hollobone]

There we disagree, because my understanding is that it is not a matter of weeks. I am sure that the Minister will enlighten both of us in his response, but my understanding is that it would take months or even years to reach an interim agreement.