Vince Cable
Main Page: Vince Cable (Liberal Democrat - Twickenham)Department Debates - View all Vince Cable's debates with the Department for Education
(14 years, 2 months ago)
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Mr Charles Kennedy (Ross, Skye and Lochaber) (LD)
3. What plans he has for the future level of the cap on tuition fees which may be levied by universities; and if he will make a statement.
The Secretary of State for Business, Innovation and Skills (Vince Cable)
We welcome Lord Browne’s independent report on higher education, which makes recommendations about the structure and level of graduate contributions. We are looking at his proposals carefully and considering a contribution level of £7,000.
Mr Kennedy
My right hon. Friend knows the reasons, which are well documented, why I cannot support the thrust and direction of Government policy on this one. Given the inevitable, and indeed immediate, ramifications of any policy change for the tertiary sector in England on Russell group universities in Scotland, is he willing between now and next May to enter into open-minded discussions with all the political parties in Scotland to see whether a modus vivendi can none the less be achieved to maintain some of the principles for which we have argued long and hard where Scottish tertiary sector education is concerned?
Vince Cable
That is a constructive suggestion. I am happy to do exactly what my right hon. Friend has said. To reinforce the point, yesterday the principal—the vice-chancellor equivalent—of Glasgow university, where I know my right hon. Friend is a rector and with which I have an association, said in relation to the growing funding crisis in Scottish universities:
“I believe we need to adopt a graduate contribution model that is properly designed, progressive and one which requires those who earn more during their lifetime to pay back more to society in order to fund higher education.”
That is exactly what we are doing.
Mr John Denham (Southampton, Itchen) (Lab)
On Tuesday, the Social Market Foundation published an analysis of how the Business Secretary’s £7,000 a year minimum fee will hit different graduates. It shows that the hardest hit will be graduates who earn £27,000 a year, while students who get help from the bank of mum and dad to pay off early will get a £12,000 discount on the cost of their degree. Is that fair?
Vince Cable
It would not be fair, if that were the outcome. That particular analysis does not properly consider the true present value of the payments that people will have to make. There has been some excellent research on the operation of different interest rates in order to produce a genuinely fair and progressive outcome, which Government Members want and which I hope the right hon. Gentleman still wants.
Mr Denham
When my building society starts asking me to pay my mortgage in net present value, I will do so. Until then, I will talk pounds and pence like everybody else.
Does the Business Secretary recognise that if he allows universities such as Oxford and Cambridge to charge £10,000 or £12,000 a year, the gap between the few and the many will get wider? The Higher Education Minister has said that it is not possible to stop people paying their fees up front. Will that not create the unfair situation in which those born into privilege, such as the Prime Minister and the Chancellor of the Exchequer to pick two at random, can get a huge discount for paying up front, while the bright child from a poor background who makes it to Oxford or Cambridge will pay even more? How is that fair?
Vince Cable
We are anxious to ensure a fairer solution than the existing graduate contribution system that we inherited. The right hon. Gentleman has used the analogy of mortgage payments, which is interesting. No building society or bank that I am aware of would exempt people from any payments until they were earning £21,000 a year, which is the progressive element that we are trying to introduce. He has rightly referred to the difficulties that would arise if certain Russell group institutions were allowed to charge very large variable contributions. That is why I made no commitment on Tuesday on how we would deal with that problem, on which we need to reflect further. He is right that there is an issue of fairness, which we will address.
Lorely Burt (Solihull) (LD)
Will my right hon. Friend do all that he can to stop higher education from disintegrating into a free market free-for-all, either by imposing a cap or by requiring a high proportion of additional fees levied by some of the top universities to be paid out in bursaries to poorer students?
Vince Cable
Yes, my hon. Friend is quite right; there has to be choice and there will be some competition among universities, which is welcome. That is very far short of a laissez-faire free market. We do not want that. There has to be protection for low-income students when they graduate. We will build in those protections and will ensure that there is a proper progressive scheme.
John Woodcock (Barrow and Furness) (Lab/Co-op)
4. What steps he plans to take to ensure that businesses in deprived areas receive support through local enterprise partnerships.
The Secretary of State for Business, Innovation and Skills (Vince Cable)
We are taking radical steps to reform the network of bodies sponsored by my Department. We announced this morning that we would abolish 17 partner organisations, merge eight, reconstitute two as charities and give further consideration to the future of nine more.
Jesse Norman
I thank the Secretary of State for that excellent response. Hereford college of technology is an outstanding institution, and I would welcome his visiting it if he should choose to do so at some time. Like many colleges, it labours under regulation by five separate bodies covering both further and higher education. Is there further scope to streamline the regulation of bodies covering such combined institutions?
Vince Cable
Yes, there is further scope to simplify the landscape of further education quangos, and we intend to pursue that. There are far too many organisations, making it impossible for further education colleges to do their job, and we will remove some and simplify the whole system greatly.
Chris Leslie (Nottingham East) (Lab/Co-op)
Has the Secretary of State also done a U-turn on his views of Sir Philip Green, who gave advice about non-departmental public bodies? Once upon a time he said, talking about Sir Philip Green, that he had
“no time for billionaire tax dodgers who step off the plane from their tax havens…and have the effrontery to tell us how to…run our tax policies”.
Has he changed his mind on that as well?
Mr Speaker
Order. We do not need a character assessment of Sir Philip Green, what we require is comments on the subject matter of the question. The Secretary of State is welcome to volunteer them, otherwise we will move on.
Vince Cable
I am certainly happy to answer. I have not changed my views—I think Sir Philip Green should pay his taxes in the UK.
Simon Hughes (Bermondsey and Old Southwark) (LD)
12. What recent progress he has made on the creation of a green investment bank.
The Secretary of State for Business, Innovation and Skills (Vince Cable)
We remain committed to creating a green investment bank that will support the growth, industrial transformation and greening of the UK economy. Over the summer, we made good progress on the role and form of the bank and its relationship with other Government policies. I will make a statement on the bank shortly after the spending review.
Simon Hughes
I am grateful to my right hon. Friend. May I encourage him, in the remaining days before the final settlement of Government spending is reached, to ensure that a green investment bank has sufficient funds to make it a real agent for change towards a sustainable economy as well as the ability to lever in the maximum additional investment, and to follow the best models in other countries and among those proposed to the Government? This is a real test of the Government’s green credentials, and I hope he fights that case to the wire.
Vince Cable
I accept that the test my hon. Friend sets is a good test of the Government’s green credentials. The bank must be ambitious and it must lever in substantial amounts of private capital. We must not be excessively constrained and must open up the possibility of subsequent expansion. I am sure we will give him a satisfactory answer.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Does the right hon. Gentleman agree that if a green investment bank is to be successful, it must embrace all the science and technology available in our country? Much of that is seated in our great universities—we have over 120—but has he not already sold the pass? There will be substantial cuts in university budgets, which will affect towns, cities and innovation in this country.
Vince Cable
You are right, Mr Speaker, that we have strayed a little.
The hon. Gentleman chaired the Select Committee on Children, Schools and Families for many years, so I am sure he knows that in my statement on Tuesday, I spoke about the implication of the teaching grant for student-graduate contributions. The implications for research remain to be seen till next week.
George Freeman (Mid Norfolk) (Con)
Does the Secretary of State agree that the green investment bank is a key part of the important task of shifting our low-carbon policy from one that is based on restriction, targets and negative regulation to one based on enterprise, innovation, science and community? Crucially, does he also agree that the bank must be able to issue bonds? Will he make representations to the Treasury to ensure that its ability to do so is established in the legislation?
Vince Cable
At this stage, we are not specifying the precise financial techniques that will be employed, but clearly, we will retain options and look at the variety of possibilities in future. Moreover, I would stress that the green investment bank is one of several policies that is driving the low-carbon economy, which also include reform of the electricity tariff system, the green deal and those that my right hon. Friend the Secretary of State for Energy and Climate Change is pursuing.
Hugh Bayley (York Central) (Lab)
13. What consultation Royal Mail plans to undertake with businesses and the public on proposals to close sorting offices in Yorkshire and the North East.
Dr Daniel Poulter (Central Suffolk and North Ipswich) (Con)
T1. If he will make a statement on his departmental responsibilities.
The Secretary of State for Business, Innovation and Skills (Vince Cable)
My Department’s responsibilities include helping to drive growth and rebalance the economy, which we can do by building on the strength of manufacturing, other knowledge industries and the science and research base, by helping businesses to grow by getting rid of excessive regulation and helping them access credit, by being open to trade and foreign investment, by encouraging the development of a skilled work force and by spreading opportunities and life chances to as many people as possible.
Dr Poulter
Working in agriculture is still an important life choice for many people in rural areas, and I am sure that, like me, the Minister would like to see a profitable and vibrant agricultural sector. However, will he please outline what steps he will take to support vocational and apprenticeship schemes in the agricultural sector?
John Mann (Bassetlaw) (Lab)
T10. If the Business Secretary had been able to accept my invitation to open the world’s most advanced plastics recycling factory in my constituency two weeks ago, he would have learnt that the decision to invest in this country was based on a £1 million grant from the regional development agency. How much will be available through such grants to attract other overseas businesses to invest in my constituency in the next three years?
Vince Cable
I am sorry that I did not have the opportunity to visit the hon. Gentleman’s constituency. I will try to make up for that in future. We want to attract inward investment, but it was not at all clear that the best way of doing so was through the RDAs, which were duplicating each other’s work. In key overseas countries, for example, there have often been several RDAs competing with each other, using public money in a completely unstructured and unhelpful way. We are going to resolve that.
Andrew Stephenson (Pendle) (Con)
T6. In my constituency of Pendle, many graduates earn far less on average than those working in other parts of the country. Does my right hon. Friend welcome the Browne review’s proposals to raise the threshold for fees repayment from £15,000 to £21,000?
Lilian Greenwood (Nottingham South) (Lab)
Yesterday I spoke to Dr Paul Greatrix, registrar of the university of Nottingham. He described the Government’s immigration cap as wrong-headed and perverse, because it will hamper the free trade in ideas and prevent our world-class international university from recruiting the brightest and best minds to join its highly skilled research team. What will the Minister do to ensure that our university’s excellent reputation is maintained?
Vince Cable
We very much believe in the free trade of ideas, and we want Britain to be open. We are looking at the moment at how we can reconcile this with the coalition’s policy to maintain a cap on non-EU migration.
Eric Ollerenshaw (Lancaster and Fleetwood) (Con)
T8. Cumbria university, which has one of its largest campuses in the Lancaster part of my constituency, has experienced a number of financial and managerial problems over the past few years. Can the Minister comment on the university’s viability, given its new business plan?
Mark Tami (Alyn and Deeside) (Lab)
On Tuesday, Tata Steel announced its intention to close its Living Solutions business in Shotton, with the loss of some 180 jobs. This is a hammer blow to all those employees and their families, as well as to the local economy. Will the Secretary of State join me in pressing the company to reconsider its decision, and also look at the future of the whole modular construction business?
Vince Cable
I am always happy to meet Opposition Members who have local difficulties with local companies; I have already done so and I am happy to talk to the hon. Gentleman about this. I do not know the details of the case, and I have to say at the outset that we are not in a position to make available large amounts of public money, but if we can help in other ways, we will.
Jason McCartney (Colne Valley) (Con)
T9. Will the Minister confirm his commitment to ensuring that the nation has the right kind of skills for a sustainable economic recovery by supporting ambitious young people and adults such as those studying at Kirklees college to improve their education and skills in further education?
Mr Dennis Skinner (Bolsover) (Lab)
Does the Secretary of State remember the Lib Dem halcyon days when he sat here on the Opposition side of the House opposing university top-up fees and walked through the same Lobby as me? He was also against the privatisation of Royal Mail, but we now know the price of a Liberal pledge: a seat on the Government Front Bench and a ministerial salary. What a price to pay.
Vince Cable
I have always enjoyed joining the hon. Gentleman in the Division Lobby, and I have done so on many occasions. I have also enjoyed his humour. If he had followed my writings as closely as he claims to have done, he would have realised that I was advocating the introduction of private capital into Royal Mail about six years ago.
Mr John Leech (Manchester, Withington) (LD)
Research by the Institute for Fiscal Studies suggests that the poorest 30% of graduates would pay less than they do now if the Browne review were to be implemented. However, potential students do not automatically assume that they are going to be among the bottom 30%, so any increase in tuition fees would surely be a disincentive for them to apply to go to university, even if they would ultimately be better off.
Miss Anne Begg (Aberdeen South) (Lab)
A lot of the businesses in my constituency are involved in the offshore oil and gas sector, which is a global business that depends on the movement of labour so that it can move its work force around the world. That business is seriously concerned about the cap on immigration, and I hope that the Secretary of State is having very detailed discussions with the Home Office to ensure that that business remains in the North sea and does not go elsewhere in the world.
Vince Cable
The hon. Lady is absolutely right. I have had many such representations, not only from that industry but from others. I have had discussions with the Home Secretary about this, and we are determined to keep Britain open for business and attracting the kind of companies that she has in her constituency.
Miss Anne McIntosh (Thirsk and Malton) (Con)
Will the Business Secretary set out the timetable for the setting up of the local economic partnerships? Will he explain which umbrella body should be used to apply for European funding such as the rural development programme? Will he also guide us on the position on match funding going forward?
Ian Austin (Dudley North) (Lab)
The deep-seated structural challenges facing the west midlands economy mean that our region has been hit harder by the downturn than anywhere else in the country, and the recovery will take longer, too. Is the Secretary of State prepared to meet a cross-party delegation of Members of Parliament from the west midlands and business leaders from the region so that we can discuss plans to bring new industries and new jobs to the region?
Vince Cable
I am happy to do that. In recent times, I have met Opposition Members from the west midlands who were concerned about the car industry and others who were concerned about ceramics. I am happy to meet the hon. Gentleman and his colleagues.
Duncan Hames (Chippenham) (LD)
My right hon. Friend has asserted the Government’s determination that graduate contributions should be linked to ability to pay. Will he therefore consider supplementing the Browne proposals with a less advantageous interest rate for the highest earners?
Anas Sarwar (Glasgow Central) (Lab)
What an incredible transformation the Business Secretary has made from a Labour councillor in Glasgow to a Tory front-man in Westminster, with every principle dropped at the first sniff of power. Will he please detail what consultation process took place with the National Union of Students before reaching his own conclusions on the Browne report?
Vince Cable
I fondly remember my days on the Glasgow city council, where we achieved much. I have met representatives from the National Union of Students on several occasions. We have consulted them and continue to do so. The NUS has some useful ideas, which will hopefully supplement our response to the Browne report. We shall continue to maintain a dialogue.