Higher Education (Freedom of Speech) Bill (Tenth sitting)

Lloyd Russell-Moyle Excerpts

Monday 20th September 2021 Public Bill Committees

[John McDonnell (Hayes and Harlington) (Lab)]

I make this simple point. Like my hon. Friend, I have met the National Union of Students to talk about the legislation. One question asked was, “What have the Government got against young people?”, because this seems to be an attack on an organisation that young people rely on. I do not understand it. If the legislation is to act as a deterrent against poor behaviour, the Government need to set out what the deterrence is. If there is an element of risk if procedures are not adhered to, that needs to be set out. Normally when introducing sanctions, at least there is a tariff system of some sort. In this legislation, there is no tariff. We are completely in the dark.

The obvious solution is to simply consult people about what the levels should be and how they should relate to certain types of behaviour. In normal circumstances when we impose sanctions, that is what Governments do. Even when it comes to criminal sanctions, there is extensive consultation. Certainly when they introduce civil elements of a sanction, there is detailed consultation throughout with the relevant parties, but that has not taken place in this case. All the amendment would do is ask the Government to sit down with the relevant bodies that will be affected so that they can agree, or at least be consulted on, the nature and level of the sanctions that will be introduced, and—we have referred to this in previous debates—a realistic maximum that does not break the institutions that the Government seek to work with.

When the Government introduce contentious legislation such as this, it is best to take people and the organisations that will be affected with them. The best way of doing that is to engage them in consultation and discussion about the detail of the legislation as it is rolled out. I hope the Minister can give us some assurances—

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

It is important to set out in this Bill the thresholds of the compensation that can be paid because that will also help the court process. We heard in evidence that a large amount of the cost to the court could come from arguments and wrangling about what the actual damage cost is. If that is laid out by the OfS, that reduces the burden of the cost to the courts.

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[Michelle Donelan]

I have reiterated many times, as Hansard will show, that it is not our intention to hit, penalise or alienate student unions. We are talking here about proportionate measures to protect freedom of speech. We will ensure that there is a consultation and that the voices of student unions are heard so that the regulations are right.

[Lloyd Russell-Moyle]

rose—

[Michelle Donelan]

I will give way, and then I really will finish.

[Lloyd Russell-Moyle]

The Minister mentioned “proportionate measures”, so will she commit to ensuring that the regulations reflect the size of the institution or student union, and the ability of the student union to comply? I am worried because if, after consultation, there is a flat rate, that would be disproportionate.

[Michelle Donelan]

Before I finish, I will repeat what I said a moment ago. In making the regulations, careful consideration will be given to the status and financial position of student unions and their varying sizes. I hope that having that confirmation on the record will satisfy hon. Members.

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[Matt Western]

I stand corrected. The hon. Member obviously misspent more of his time than I did watching that. Whatever part of the anatomy it was, it was coming down rather heavily on the small person. That is what the Government are seeking to do. It is quite clear that the intention in No. 10 and its policy unit is to drive out student unions in this case and change the representation on how bodies may be affiliated on our campuses.

Too much of the clause is down to guidance and none of it has been done in collaboration with student unions. Student unions are not professionally organised with huge resources behind them to counter this and take the Government on. I would have thought the Government would be much more willing to work with student unions and with the National Union of Students and say, “We want to collaborate with you. We do understand there is this issue, and you perhaps appreciate there is a bit of an issue in certain places. How is it that we go about best addressing this issue across certain campuses?”, realising that it is not the case across 98.9% of events. We cannot support this. The obligations and duties on student unions are far too onerous, and we will be voting against the clause.

[Lloyd Russell-Moyle]

As we have heard, this is one of the most worrying parts of the Bill because it seeks to regulate private associations even further. It is a very dangerous step because it starts to undermine freedom of association and the ability of people to do what they wish. Student unions, of course, came under the regulation of their institutions through the Education Act 1994. That Act also allowed students to opt out, which was widely touted to be an attempt to bring in an Australian-style opt-in for student unions, in the hope that it would destroy them, as happened in Australia. That failed, and more than 25 years later this is the next attempt to try to undermine and obliterate student unions and to obliterate the poorest or most fragile parts of our HE sector.

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[Mr Kevan Jones (North Durham) (Lab)]

That explains a lot.

[Lloyd Russell-Moyle]

It does possibly explain a lot. He was also clerk to one of the parish councils that I served on, so our lives have been intertwined.

That case said that student unions are excepted charities. As a result of the Charities Act 2011, student unions are not only excepted charities and therefore exempt, but regulated directly by the Charity Commission. As charities, they have a duty to be non-partisan, to be balanced and to ensure that they fulfil all the requirements of the Charity Commission, and we know that the commissioners have great powers to step in if charities are being partisan. So we have a great deal of regulation for student unions already.

Of course, in the HE sector, which this clause covers, student unions are part of that broader assessment that Ofsted has to make when assessing the student unions of the further education college, so now we have a fourth piece of regulation.

[Emma Hardy]

I want to give a tangible example, just in case the Minister has missed this. This regulation, as written here, will apply to Basingstoke College of Technology’s student union. By dint of the college being OfS-registered, because of its HE provision, its student union, which is currently governed by some 17-year-olds keen on running Rag Week, will have to comply with the regulations written here and, as we have heard from the Minister, there will be a fine of an undisclosed amount if they do not, yet still JCRs will not have to comply. Does the Minister not accept that applying this to every single student union, regardless of whether it forms part of an FE college or an HE college, is a little over-bureaucratic?

[Lloyd Russell-Moyle]

My understanding is that this relates not just to the student union’s activities be in the HE sector, but to the whole of the student union’s activities, even in the FE part of the institution, so student unions in that sector may face more administrative and regulatory burdens than their parent institutions. It is a bizarre situation. That is why this whole provision must be withdrawn, or voted against, or at least rephrased. The Minister must make sure that this is restricted to only that part of the activity that is HE, and that the regulation is light-touch, and she must make reference to how this relates to Charity Commission regulation. That does not apply for higher education institutions, because they are not regulated by the Charity Commission; they are exempted charities. Since 2010, student unions have not been exempted, so they have to register. They are regulated charities, and this measure is totally contradictory to the current regulation.

[Michelle Donelan]

It might be useful if I clarify for the hon. Member that, where student unions are registered charities, charity law will still apply to them. The OfS will only regulate student unions on freedom of speech matters.

[Lloyd Russell-Moyle]

Of course I understand that, but a complaint is not simple and will not be simple. For example, a charity that is seen to prejudice one part of speech, particularly political speech, would be in breach of charity regulations already, because we cannot privilege one part of speech or one part of activities as a charity because it is political speech. That is quite right, excepting the ruling of Baldry v. Feintuck, which says that political party associations of students can be supported within the student union if it is self-organised, because it is not the political activity it is supporting but the educational activity of students mocking up being in a political party, so they can hold mock elections and so on.

There is detailed case law and detailed legislation. The danger is that this Bill runs roughshod over that. People would have two places where they could complain. The complainant can go to the Charity Commission, where there is a basis of case law that is already very nuanced, and they can go to the OfS, where there is no case law and no such basis. Because we know the OfS will not necessarily be built with lawyers or making its decisions based on case law, the danger is that we will end up getting semi-contradictory decisions.

Baldry v. Feintuck says that student unions are free to support a Conservative club, for example, and to give money to that student Conservative club for its operations, as long as it offers the same amount of resources to the Labour club, the Lib Dem club or whatever different clubs might come along. There is a danger, however, that free speech regulation will say, “Actually, the regulations need to be different and will require the clubs to accept a broad range of views.” That is different from the basis on which those clubs have been set up.

I ask the Minister to reconsider ensuring that there is a direct reference to the Charity Commission and to the order of priorities in which someone would make a complaint to a student union. Currently, they could make a complaint to the institution, to the Charity Commission and the OfS.

[Emma Hardy]

And the OIA.

[Lloyd Russell-Moyle]

And the OIA. I would appreciate the Minister doing that, because it is a minefield. We heard as much from the representative of Universities UK, who said that they were deeply worried that this would confuse the matter and make things more difficult in terms of regulation.

Before I finish, I will touch on the finances. Universities effectively have the powers to raise finances through their recruitment of students and the research grants they get. Universities live and die, in that sense, in their corporate actions. Student unions, for the most part, raise no money themselves. Gone are the days of the student bar and the student club. If Conservative hon. Members think that student unions get money from those, I am afraid they are misguided. The vast majority of student unions rely solely on a grant from the university. They are solely dependent on the university, higher education institution or further education institution.

[Michelle Donelan]

Listening to the debate, I am quite perplexed. On the one hand, the Opposition argue there is no problem with free speech, but on the other, they argue that once the Bill is introduced, virtually all student unions will be fined because they will be breaching it, and they will not be afford the fines. I am a bit confused about the argument here.

[Lloyd Russell-Moyle]

My argument does not necessarily only deal with fining; I am talking about regulation as opposed to fining, and we have had a debate on that. The point on fining is that we are worried that we will end up seeing a chilling effect and people coming forward vexatiously. That is a real concern—[Interruption.] The hon. Member for North West Durham groans, but he should stand up and say why he groans—give a speech or make an intervention supporting the Bill. He has said very little.

[Mr Holden]

I think that is a bit unfair. I do not quite understand where the hon. Gentleman thinks all of these vexatious claims will come from, and why they are about to happen. Why, in this instance, with student unions specifically, does he think that there will be millions of vexatious claims trying to close them down at the drop of a hat?

[Lloyd Russell-Moyle]

We have heard that “where there’s a blame, there’s a claim”. We have seen it in road traffic, and we have actually seen an increase in litigation in the higher education sector, which is deeply worrying. Government witnesses talked about the commercialisation of the HE sector and students demanding that they get the results that they want.Those demands have actually led to universities being more restrictive in what people can say. This will increase that.

[Mr Holden]

The evidence that the hon. Member is pointing to is on students and their universities, and I can quite understand that. This point, however, is all about student unions, so I would like to understand why he thinks that student unions will be targeted, rather than education providers.

[Lloyd Russell-Moyle]

Because, so far, student unions have not had that contractual relationship, with the ability of students to take them to court for failing to fulfil a service. That is my point about where the money comes from. At the moment, the student gives the money to the university. The contract for a basic service is between the student and the university. This extends that, so the student then has a direct contractual relationship with the student union.

If the hon. Member thinks that every single student will agree with what their student union is doing, and that no student will try it on, then I am afraid that his university experience was far too bland. My experience was of debate and contestation, and of people arguing and wanting to push the boundaries—quite rightly. This will not help that, because it will regulate student unions in a way that means they cannot then defend themselves properly. The reason for that is the financial point, which I was trying to come on to.

The university gets money from the student. They then give a grant—usually a small one—to the student union, which then spends, effectively, the university’s money. My understanding is that, according to the Education Act 1994, the university has an oversight role for how that money is spent. Yes, the student union can spend it how the students want, but within a framework that the university sets out and lays down. If the student union is liable, whose money are they liable with? That is what I am trying to get at.

If the OfS puts forward financial sanctions, whose money are they sanctioning at the student union? The student union’s money is just the university’s money, held in trust and spent on behalf of the university. Would student unions need to raise unrestricted monies, somehow? We know that most student unions do not raise unrestricted monies any more, because gone are the days of the bars. Or would student unions, if they were fined by the OfS, need to use their restricted university grants on this? If so, that clashes with the concept that that university grant is restricted to only the educational activities of the student—not for liability claims against the union. It seems strange that they would face this double regulation, and money able to be drawn from all different quarters, when they have no money themselves.

[Mr Jones]

It is a bit unfair to call the hon. Member for North West Durham—my neighbour—“bland”, but anyway. Surely, what will happen is that student unions will take out indemnity insurance, whether they need to or not? That, again, is more money going away from education and into the coffers of insurance companies.

[Lloyd Russell-Moyle]

Either they will get indemnity insurance, or they will find a way to be covered by the institution’s indemnity insurance, which, again, defeats the whole point that student unions are regulated directly. We might as well regulate the institution, which would then have a duty—as they already do—to ensure that the student union is following the rules.

[Emma Hardy]

Another alternative is, of course, based on examples like the one I gave of Basingstoke College of Technology’s student union, and the other smaller student unions that exist out there. They simply stop having a student union and stop engagement, because some of these smaller colleges and institutions, which I have drawn attention to several times, could not afford the insurance. Those unions do not get much money from their colleges, which are their main providers, and therefore might not exist in the future. It would be a devastating impact of this Bill if we ended up with fewer student unions around the country.

[Lloyd Russell-Moyle]

We have talked in great detail—possibly too much for some Members. The point is that, in regulating the institution, where it is institutional money and resources, the regulation already flows down to the student union. That is the argument that the Minister has used for the junior common rooms. That already exists.

Double regulating the student unions actually confuses the matter. It makes it more difficult for complainants to seek redress, because student union premises are usually university premises. Who are they seeking redress from? Also, it potentially produces financial settlements that student unions would not be able to pay and that the university would effectively have to bankroll, but it would not allow the university to make representations to the OfS, in this case because the representations are directly with some 17-year-old who is the president of the union. It makes no sense whatever.

The legislation should be, as with the Education Act 1994, in the institution, which then supports the students to get it right. That is why the clause should be withdrawn. It would be a better Bill for it.

Question put, That the clause stand part of the Bill.