Budget Resolutions and Economic Situation

Debate between Richard Fuller and Mark Lazarowicz

Thursday 21st March 2013 Commons Chamber

[Richard Fuller]

I appreciate my hon. Friend’s intervention, but I am not sure that I can share his joy. The impetus behind this Treasury document is the notion that enhancing loan-to-value ratios of 95% is somehow a good policy, and I need some more reassurance about that.

Let us compare the average house bought in 1997 at the average loan-to-value ratio of 80% with the average house bought in 2007—after all that price inflation—at a 95% loan-to-value ratio. Over the 20 or 25 years of their mortgage, the people who bought the average house in 2007 will have to spend £234,000 more than those who bought the average house in 1997. Increasing loan-to-value ratios depresses people’s ability to spend money on other things, because they are spending more on their mortgages. I want some more reassurance from the Treasury that this scheme will not have unintended consequences for their ability to spend money appropriately in relation to their incomes.

[Mark Lazarowicz]

Is not another possible unintended consequence of the measure the setting off of regionally based house price spirals, exacerbating some of the regional differences that other measures in the Budget are intended to address?

[Richard Fuller]

The hon. Gentleman makes a fair point, but I do not see that that would be a problem in this instance. In fact, the scheme might counteract the problem. However, it is clear that the issue needs to be sorted out as what is currently an outline becomes a fully developed scheme.

Let me end by making a fundamental point. Every politician in the House must recognise that our debt burden presents us all with a challenge to do more with less. The answer is not to continue kicking the can down the road. We must face up to our responsibilities, and we owe it to the generations to come to do that quickly, while interest rates are low, rather than waiting to see what—as was pointed out by my hon. Friend the Member for Folkestone and Hythe (Damian Collins)—may happen if they suddenly start to spike, and we find ourselves in a much more difficult position in trying to bring Government spending back under control.

Student Visas

Debate between Richard Fuller and Mark Lazarowicz

Thursday 16th June 2011 Westminster Hall

[Richard Fuller (Bedford) (Con)]

It is a great pleasure to serve under your chairmanship, Mr Benton, and to speak in the debate secured by the hon. Member for Sheffield Central (Paul Blomfield). He made an articulate speech that raised a number of points, which I am sure the Minister will consider. I think that he will find support across the House on some points. Other points might be a little more contentious, but we look forward to hearing his comments.

Mr Benton, I must ask for your forgiveness and that of other hon. Members, as I will not be able to stay for the closing remarks from the Minister. I have a good reason, which allows me to highlight what is perhaps a contrarian point. I am meeting representatives from the Taiwanese embassy equivalent to talk about a visit by Taiwanese students to the university of Bedfordshire in my constituency of Bedford, which includes Kempston. Some Opposition Members talked about the importance of having people come from mainland China. We all have to make our choice of Chinas. I tend to prefer those that have elections and do not lock up Nobel prize winners. The issue with Taiwan that is important to mention is that we have simplified immigration rules for Taiwanese students to come to study here. It is precisely because the controls and understandings that Taiwan has in sending students overseas are so well administered that we have confidence in the country that is sending, as well as the country—the UK—that is receiving. It will be a great pleasure to welcome them.

We have a responsibility to weigh up two major factors, which have come through the different contributions: restoring people’s confidence in our immigration system and controls; and ensuring that we are optimising and maximising the opportunity to enhance the economic well-being of our universities, and the role that our open educational system can play to spread freedom, democracy, belief in the rule of law, understanding of free markets, and the belief that every citizen’s rights have to be recognised in all parts of the world. That is an important and critical role that our universities play. As I am leaving shortly, I will address those two areas quickly.

My hon. Friend the Member for Peterborough (Mr Jackson) said that immigration control is a significant responsibility for the Government. If we do not believe that, then I do not think that any of us can have knocked on doors at the general election. It was raised as a concern by many residents. There was exasperation at how the system had got out of control under the previous Government. Both the previous Government and this Government sought to bring in controls. We are still dealing with an issue where people’s confidence has not yet been restored. I urge the Minister, in response to all the hon. Members he will hear from today, not to lose sight of the fact that he has a significant responsibility to ensure that people’s confidence in our immigration system is restored. He and his colleagues in the Home Office have made a very good start, but he has to see it through to the end. That sometimes requires very tough decisions. I urge him strongly to continue all the way through this period of office, and I congratulate him on the steps that he has taken.

[Mark Lazarowicz]

Does the hon. Gentleman accept that confidence in the immigration system will be even more jeopardised if the Government make announcements that claim that they will sort out the problem, but then find that the immigration figures are still increasing and that, for example, the measures for overseas students will do nothing whatever about EU students? Will that confusion lead to even less confidence in the immigration system?

[Richard Fuller]

The hon. Gentleman urges some very good caution. The worst thing to do is to ignore the immigration issue, pretend it is not there and destroy people’s confidence in the system, as his Government did. However, as the right hon. Member for Leicester East (Keith Vaz) said, there is an issue about trying to ensure that we have the numbers, so that we are dealing with the facts. Facts help people to gain confidence. If people do not have the facts, it is harder to gain their confidence. However, the measures this Government are taking on that have been a significant step forward on behalf of the country.

The United Kingdom—what a wonderful country we live in, and how proud we can be of our values and our society. We have these great debates in this fantastic mother of Parliaments. We are a beacon for educated people around the world. We should be really, really proud of what is now called the soft power that countries such as ours have. The fact we have a vibrant series of educational institutions is a critical part of ensuring that the United Kingdom continues, in the words of a former Foreign Secretary, to punch above its weight. There is no doubt that hon. Members from all parties think that that is an important thing for us to accomplish.

However, we must recognise that our higher education institutions are going through some substantial changes and challenges. I would like to praise Professor Marilyn Leask, who is the dean of the Bedford campus of the university of Bedfordshire. There is a Luton campus, but I shall not speak for that one. I will speak for the campus in Bedford. Professor Leask is considering with energy and vitality how to deal with the challenges faced by our higher education system in terms of the changes to student fees. She is based in a teaching training institution for physical education and is considering new ways to accommodate those changes. We must recognise that our universities are going through substantial changes. This issue is one part of a much bigger picture that they are trying to piece together, as they put together a more sustainable long-term funding basis for their future operations. It is probably not the most important part of our universities’ business model, but it is an important issue.

I ask the Minister—again, apologies that I will not be here to listen to his response, but I shall read it with great interest—to explain how the relationship between the Home Office and the Department for Business, Innovation and Skills is operating, so that we can get a sense of whether we have an integrated strategy. Million+ is asking for an integrated higher education strategy, which is a very good thing. If we have all these advantages from being this wonderful country and if we want to educate the world, we must have a coherent strategy to achieve that. That does not necessarily mean that some of the issues raised today have to be acceded to, because I do not think that all of them are right, but it does give a context for where we are heading. As these institutions and universities are building their new business models, we need to give them a context in which they can plan for the long term more coherently.