Rob Wilson
Main Page: Rob Wilson (Conservative - Reading East)(14 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text
Vince Cable
The hon. Gentleman asks about Scotland. I was there last week discussing this with university authorities, who told me that the existing model in Scotland is not sustainable and that they may well have to move to a model similar to that in England and Wales. So I think that in Scotland, as elsewhere in the UK, these realities will have to be faced.
Mr Rob Wilson (Reading East) (Con)
May I welcome Lord Browne’s report, the Secretary of State’s statement, and his recognition that a graduate tax would be ruinous for this country? Could the right hon. Gentleman reassure the House that under his plans, no student will be penalised for early repayment of their loan?
Vince Cable
It is certainly feasible under the existing system—and it will be in future—for people to pay their obligations early, but we need to be very clear that we cannot allow very affluent people to be able to buy their way out of their obligations under a fair graduate contribution system. Anybody who has tried to pay their mortgage back early will have discovered that there is something called a redemption fee to maintain the integrity of the system. We need to look at ways of ensuring that there is no mechanism that allows people to avoid making a fair contribution to universities.