Oral Answers to Questions

Lord Willetts Excerpts

Thursday 10th April 2014 Commons Chamber

[Paul Blomfield (Sheffield Central) (Lab)]

2. What recent estimate he has made of the resource accounting and budgeting charge on student loans.

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

We currently estimate the RAB charge to be around 45%. The estimate changes frequently in the light of new economic forecasts and will continue to change.

[Paul Blomfield]

Back in the days when the Minister was confidently predicting that the RAB charge would not rise above 32%, writing in The Independent in October 2012 he described an RAB charge of 38% as the worst outcome for the taxpayer. How does he describe an RAB charge of 45%?

[Mr Willetts]

What we have achieved with our higher education reforms is significant savings to the taxpayer and extra income going to our universities. That is the right combination.

[Mr Liam Byrne (Birmingham, Hodge Hill) (Lab)]

The whole House will want to join me in congratulating Toni Pearce on her re-election as president of the National Union of Students. Figures this morning from the Sutton Trust and the Institute for Fiscal Studies show that Toni’s generation will now be paying off their student loans into their 50s. Will the Minister get to the Dispatch Box and confess that this student debt system is now not only unsustainable, but unfair? Does the Conservative party have any plans to raise the £9,000 fee in the next Parliament?

[Mr Willetts]

Let us be absolutely clear what today’s IFS report shows. It shows that people on lower earnings throughout their working lives are going to pay back less. That is a deliberate feature of our reforms which means that they are fairer and more progressive than the system we inherited from the Labour Government. Meanwhile, people who earn a lot during their working lives as a result of going to university will pay back more. That is what we intended with these reforms, and that is what the IFS shows we are delivering.

[Diana Johnson (Kingston upon Hull North) (Lab)]

3. What progress he has made on rebalancing the economy across the UK.

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[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

6. What steps he is taking to ensure that universities remain financially sustainable in the long term.

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

Our higher education reforms have increased university income and reduced costs to taxpayers. In 2011, universities received £7.9 billion of income for teaching. Next year, they will receive £9.9 billion. Universities are now well funded, on a sustainable basis for the long term.

[Mr Sheerman]

The Minister will be surprised to hear that I do not agree with relative complacency. I am a member of the Higher Education Commission and we are taking evidence on the long-term financial viability of our higher education sector. Time and time again, the Higher Education Policy Institute, the vice-chancellors, Lord Baker, Charles Clarke and everyone else who gives evidence to the commission say there is a serious, deep problem. We are not getting any British post-graduates as a result of the £9,000 a year. Something is deeply wrong. Will the Minister act before it is too late?

[Mr Willetts]

We now have record numbers of people applying to university. The funding is going to the courses that students choose. We are getting rid of controls on numbers of students. This system is financed by graduates—not students, but graduates—paying money back. That is the right way to finance our higher education. It is the system that all three parties have ended up proposing when they had to confront the realities of financing higher education. It is the right way forward for our young people.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

Universities in Scotland—in Edinburgh, in particular—contribute substantially to the UK’s research community, as most spectacularly exemplified recently by Professor Higgs. At the same time, universities in Scotland receive 15% of UK research funding, as is right and proper given their achievements. Would it not be a tragedy if that support and co-operation were put at risk by Scotland becoming independent from the rest of the UK?

[Mr Willetts]

The hon. Gentleman is absolutely right. Although Scotland has about 8% of the nation’s GDP, it gets about 15% of the public research income that is allocated across institutions, because of the excellence of the research in institutions in Scotland. That works to the advantage of Scotland and to the advantage of the entire United Kingdom, and that is why we are better off together.

[Mel Stride (Central Devon) (Con)]

7. What recent support he has provided to small businesses.

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[Paul Burstow (Sutton and Cheam) (LD)]

10. What estimate his Department has made of the contribution of life sciences to the UK economy.

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

The life sciences industry contributes more than £13 billion a year to the UK economy. Since the launch of our life sciences strategy, industry has been investing £1 billion a year in Britain.

[Paul Burstow]

Sutton is home to the Institute of Cancer Research and the Royal Marsden. Together, they have a formidable global reputation in the fight against cancer. As part of its Opportunity Sutton programme, my council has a shared plan with those two organisations to develop a life science cluster. Will the Minister meet me and representatives of those organisations to discuss how the Department can facilitate the co-ordination of policy across Government to secure that vision and the 4,000 extra jobs that will come with it?

[Mr Willetts]

I would be happy to meet my right hon. Friend. That is exactly the kind of initiative that the Mayor of London envisaged when he launched his MedCity initiative earlier this week. We look forward to a golden triangle that links Oxford, Cambridge and Sutton.

[Julian Smith (Skipton and Ripon) (Con)]

11. What steps he is taking to help small and medium-sized businesses to export.

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[Roberta Blackman-Woods (City of Durham) (Lab)]

T6. The latest report from the Higher Education Funding Council for England shows for the first time in 29 years a decline in the number of overseas students studying in the United Kingdom. Let me now give the Secretary of State another opportunity to admit that the inclusion of students in the net migration target is hindering the growth and international competitiveness of our British universities.

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

There is no cap on the number of legitimate overseas students coming to Britain, and we will not introduce any such cap. The Secretary of State and I work with the Prime Minister and others on trade missions around the world to encourage young people with the necessary aptitude and qualifications to benefit from study in Britain to apply to come here. We can be proud of our universities.

[Henry Smith (Crawley) (Con)]

Will my right hon. Friend congratulate Elekta Oncology Systems, a leading manufacturer and exporter of oncology systems which is based in my constituency, on its plan to expand by about a fifth in Crawley, and also on its involvement in the Government’s regional growth fund?

[Mr Willetts]

I do congratulate that company. As part of our life sciences strategy, we are supporting high-tech medical companies large and small, and it is great to hear that they are prospering.

[John Robertson (Glasgow North West) (Lab)]

T7. The Secretary of State said earlier that investment in businesses would go ahead next year, but today we have heard about the closure of coal mines. Will the Minister explain why, according to figures from Bloomberg New Energy, investment in clean energy in the United Kingdom is due to hit a five-year low this year? What is happening to that investment?

[Duncan Hames (Chippenham) (LD)]

The Budget invited universities and others to bid to develop the new Alan Turing institute for big data, an invitation enthusiastically embraced in Wiltshire and Swindon’s economic plan. How can we now work with the Minister to make this bright idea a reality?

[Mr Willetts]

My hon. Friend indeed represents an area with, shall we say, some very distinctive skills in cyber and big data, and yes, absolutely, it is very important that places like his have the opportunity to apply to have the Turing centre. We will be running a consultation on its best location.

[Julie Hilling (Bolton West) (Lab)]

In answer to a written question I was told that the Government know next to nothing about the number of jobs they claim to have created, not even how many of them are new jobs rather than simply a transfer from the public sector, so why will the Secretary of State not tell us how many of these jobs are minimum wage, unpaid or zero-hours?

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[Rehman Chishti (Gillingham and Rainham) (Con)]

Farmers are the backbone of the £97 billion agriculture and food sector. How are the Government helping them take advantage of the latest science and innovation supporting our world-class agricultural technology sector?

[Mr Willetts]

My hon. Friend is absolutely right about the significance of this sector, and that is why we have a £160 million agri-tech strategy, which is aimed at promoting exports and investment in high-tech agriculture for the future.

[Karl Turner (Kingston upon Hull East) (Lab)]

The Minister of State, the right hon. Member for Sevenoaks (Michael Fallon), refused to answer me, but I wonder whether the Secretary of State could estimate how many of the 12 immediate beneficiaries of the fire sale of the Royal Mail are Tory party donors?