Oral Answers to Questions

Lord Willetts Excerpts

Thursday 8th July 2010 Commons Chamber

[Oliver Colvile (Plymouth, Sutton and Devonport) (Con)]

9. What plans his Department has to improve the employability of graduates.

[The Minister for Universities and Science (Mr David Willetts)]

We are committed to increasing employment by cutting the burden of national insurance on new businesses employing new staff in areas such as Plymouth. We are cutting corporation tax over the next four years. We are easing the burden of regulation. In addition, I have asked universities to provide public statements on what they do to promote employability, to encourage them to improve the job-readiness of their students and to do better at getting their students into internships, work experience and work.

[Oliver Colvile]

I thank my right hon. Friend for that answer. Is he willing to meet me and the vice-chancellor of Plymouth university—the enterprise university—to discuss ways in which it might make greater commercial use of its excellent reputation in marine science research as well?

[Mr Willetts]

I have met the vice-chancellor of the university of Plymouth and corresponded with her when she praised the co-operation that she already had with my hon. Friend. Of course, I would be very happy to meet her. Those are exactly the kind of initiatives linking universities and business to promote economic growth that the Government are backing.

[Paul Blomfield (Sheffield Central) (Lab)]

In October last year, the Minister said:

“At a time when the jobs market for young people is tougher than ever, it is far better to find them a place in education than to leave them languishing on the dole…whereas going to university will increase their qualifications and make them more employable in the long run.”

Will he confirm that that is no longer his view, in the light of the withdrawal of 10,000 university places?

[Mr Willetts]

In that statement, I announced my commitment to 10,000 extra places at university, when the then Government were planning a cut in the number of places at university. We have delivered those 10,000 extra places. There will be more places at university this year than the then Government originally planned, and we are proud of what we have achieved.

[Mr David Lammy (Tottenham) (Lab)]

Given that the Office for Budget Responsibility has confirmed a rise in unemployment next year and that the Association of Graduate Recruiters estimates that vacancies for graduates will fall by 7%, what will the right hon. Gentleman do to support graduates in what will be the toughest year on record to get employment?

[Mr Willetts]

I have here the forecast from the OBR, and it is an endorsement of the measures that the Government took in the Budget. It makes it absolutely clear that it expects total employment in the economy to rise from 28.89 million now to 30.23 million in five years’ time, as a result of the decisions that the Government are taking. Of course, times are tough for students, but going to university and getting a degree remains a very good investment in people’s long-term prospects for well-paid employment, and we will encourage universities to focus on maximising the employability prospects of their students.

[Charlie Elphicke (Dover) (Con)]

10. How many further education colleges will receive capital funding from his Department in 2010-11.

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[Ann McKechin (Glasgow North) (Lab)]

12. What plans he has for the future funding of university-based research.

[The Minister for Universities and Science (Mr David Willetts)]

During 2010-11, the Department will provide £5.7 billion in funding for science and research, made up of £3.9 billion, principally to the research councils, and £1.8 billion of research funding distributed by the Universities Funding Council in England. The previous Government delayed the comprehensive spending review, so budgets have not been set for future years. They will be decided this autumn as part of the spending review.

[Ann McKechin]

As the Minister will, I am sure, agree, we enjoy a world-class research base in our universities here in the UK, but stability of funding is crucial to that. I seek reassurance today that he will take that as a priority, especially for science research, which is so essential as a driver for our economy. Can he confirm whether the VAT increase, which will affect universities to the extent of £200 million, will be taken into account?

[Mr Willetts]

My right hon. Friend the Secretary of State and I are committed to a strong research base in Britain and in our universities. If the hon. Lady looks at the Budget, she will see that it contained, alongside the necessary VAT increase, imaginative proposals to try to help universities respond to that challenge.

[Dr Julian Huppert (Cambridge) (LD)]

Is the Minister aware that the decisions that individuals take to come to this country, leave this country and to stay and research in this country depend on how welcome they are made to feel here and how much funding is available over a long time scale? Will he commit to a 10-year prediction of how much money is likely to be available, so that when we are out of the current hole people will know that there is a rosy future ahead?

[Mr Willetts]

It is quite a challenge to make a 10-year prediction when we have just embarked on the comprehensive spending review for the next three years. I can say that we are committed to supporting research in this country. The challenge we face is that we inherited from the previous Government a commitment to reductions of

“£600 million from higher education and science and research budgets”.

[Chris Bryant (Rhondda) (Lab)]

13. If he will make representations to his EU counterparts to require that the proposed EU free trade agreement with Peru and Colombia undergoes ratification in each member state.

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[Mr Charles Kennedy (Ross, Skye and Lochaber) (LD)]

14. When he last met representatives of Universities UK; and what matters were discussed at that meeting.

[The Minister for Universities and Science (Mr David Willetts)]

I meet Universities UK on a regular basis. I last met UUK representatives at their board meeting on 25 June when we discussed a range of issues facing higher education. With my right hon. Friend being the rector of Glasgow university, and my right hon. Friend the Secretary of State having been an economics lecturer there, I am of course impressed by the excellence of that institution.

[Mr Kennedy]

Well, that is very nice to hear. I hope that the Minister will visit, and we will make him feel extremely welcome. A guest lecture would not go amiss.

Given the Government’s policy of a cap on immigration, the Minister will be aware that Universities UK and many others across the sector are worried about its impact, as 10% of university staff across the UK are non-EU nationals, including 2,500 staff at the Scottish universities alone. What can he do with his colleagues in the Home Office to mitigate the impact of that policy on the tertiary sector?

[Mr Willetts]

We are working closely on this matter with my right hon. Friend the Home Secretary, and I think that we have reached a sensible way forward, which she announced the other day. Of course, if there are individual problems affecting universities in the operation of these controls, we would be interested to hear from them, and will discuss them with our colleagues in the Home Office.

[Mr Denis MacShane (Rotherham) (Lab)]

The Minister will be aware that the United States spends 2.9% of gross domestic product on higher education. We spend 1.3%, which is below the OECD average. The previous Government took a brave decision on tuition fees, although it was very unpopular with my hon. Friends. May I invite the Minister to take equally unpopular decisions on university finance, perhaps to introduce a graduate tax or lift some of the charges that universities can make? We must get more money into our universities.

[Mr Willetts]

That is why, of course, the Browne review was set up on a cross-party basis—to look at these issues so that we can find a way forward that I hope will command consent on both sides of the House of Commons.

[George Freeman (Mid Norfolk) (Con)]

15. What steps he is taking to support the UK’s science and innovation industry.

[The Minister for Universities and Science (Mr David Willetts)]

We will encourage universities to work with businesses and enhance the effectiveness of the UK’s innovation system to support successful business innovation. The coalition agreement made it clear that we are committed to refocusing the research and development tax credit on high-tech companies, small firms and start-ups, as recommended by Sir James Dyson. We are considering the other recommendations in his report.

[George Freeman]

May I say how nice it is to see such a heavyweight business and finance team on the Front Bench? I would also like to declare an interest as someone who has had a career in business before coming to the House. Does the Minister agree that, in order to unlock the significant economic potential of our science and research base, instead of scattering money to the four corners of the kingdom, as the previous Government tended to do, we should focus our money on those centres that have a demonstrable track record in commercialising technology, such as the excellent John Innes research centre and the Norwich research park on the edge of my constituency?

[Mr Willetts]

The John Innes centre is a centre for plant science, but that does not mean it was a planted question.

[Mr Speaker]

Order. May I gently remind the Minister, who always looks very comfortable at the Dispatch Box but is usually looking the wrong way, that he needs to look at, and address, the House as a whole?

[Mr Willetts]

I can assure the House that we are looking very carefully at the important issue of concentrating research funding in the areas where it will yield its greatest results. However, concentration means concentration of research in departments. It need not be done university by university.

[Ann Clwyd (Cynon Valley) (Lab)]

17. What discussions he has had with the Secretary of State for Work and Pensions on health and safety regulations affecting businesses.

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[Dr Julian Huppert (Cambridge) (LD)]

T3. I have been made aware recently of a number of cases of academic visitors coming to the UK, often for only a few days, and being denied visas for their entry. Will the Minister meet the Home Secretary to work out a new protocol for treating these people? Will he also meet me to talk through the issue, so that we can ensure that the reputation of British educational research is supported and not weakened?

[The Minister for Universities and Science (Mr David Willetts)]

My right hon. Friend the Home Secretary and I are both aware of the importance of these academic exchanges and visits. If there are any particular operational problems that my hon. Friend has encountered, I would be very happy to meet him to discuss them.

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[Mark Pawsey (Rugby) (Con)]

T7. Last week, I joined students at Rugby high school in my constituency, who were taking part in a business partnership event, in which they learned the principles of running a business. Does the Minister agree that it is vital to encourage and support such entrepreneurs of the future?

[Mr Willetts]

We are strongly committed to enterprise education. People can learn how to be enterprising and learn the skills necessary to run a business. We are indeed committed to supporting such initiatives.

[Toby Perkins (Chesterfield) (Lab)]

The Secretary of State will be aware that of all the important things for small businesses, the most important of all is that people have enough money to buy their products. In that light, what impact does he think the increase in VAT will have, particularly on the retail sector, which relies so much on people having the money to purchase products?

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[Gordon Birtwistle (Burnley) (LD)]

The university campus at Burnley college has developed what it believes to be the most advanced wind turbine in the world. The previous Government were asked to fund further research on it, which they refused, so will the Minister visit this project and look at the possibility of helping to develop it further?

[The Minister for Universities and Science (Mr David Willetts)]

I always enjoy visiting universities, especially when they have enterprising ideas that bring forward business opportunities, so I am happy to accept my hon. Friend’s invitation.

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

Will the Secretary of State confirm what communication he or his Cabinet colleagues have had with Corus and Tata Steel Europe, since the announcement of the departure of the coalition Government’s fiscal friend, Kirby Adams?