Higher Education Bill

[back to previous text]

Alan Johnson: The answer is no and no. No, my right hon. Friend the Secretary of State has not ruled out the Learning and Skills Council. There is a concern. If we are rubbing out the lines at 16, and increasingly for the 14 to 19 age group under Tomlinson, and we are rubbing out the lines to a certain extent at 18, the confusion between LEAs, the LSC and HEFCE must be resolved. In dealing with amendment No. 259, I mentioned a merger. There could be a merger between the LSC and HEFCE to a degree, or the LSC may become another funding body. Either way, that would require fresh primary legislation, so the amendment is unnecessary. To produce the situation that I have described, we would need primary legislation.

Mr. Collins: For the avoidance of doubt, will the Minister confirm that he is talking hypothetically and that he is not saying that there are plans for a merger of funding organisations or that that is contemplated?

Column Number: 169

Alan Johnson: No, I am not saying that. The answer to the question about whether the Secretary of State has completely ruled out a merger is no, but that is not to say that there are active plans for a merger. Given the Tomlinson agenda and everything that is going on, it would be crazy to rule anything out when we are trying to make the system more coherent. We want there to be less bureaucracy for sixth form colleges and tertiary colleges, given that three funding bodies deal with the 14 to 19 age group. I am making that simple point.

Mr. Boswell: The Minister is genuinely trying to assist the Committee and has clearly benefited from his break. Will he also deal with the point that I raised in my closing remarks about publicly funded students in private institutions, such as the university of Buckingham, or a private specialist college? Will such students or their institutions be affected by the clause?

Alan Johnson: I am glad that the hon. Gentleman raised that point, because although I cannot say that I spent the whole break thinking about that issue, I did give it some thought and went back to the drawing board. I am confident that there is no problem. There is only one private university, which is Buckingham, but many institutions have private courses.

Mr. James Clappison (Hertsmere) (Con): The Government's policies will result in more.

Alan Johnson: The hon. Gentleman says from a sedentary position that there could be more, a point raised by the hon. Member for Daventry (Mr. Boswell). If there are designated courses at other private institutions, for which the state provides money, could a university set up a private institution to get round the legislation and allow unregulated fees? That is the problem raised by the hon. Gentleman.

Mr. Boswell: The Minister has understood part of the problem. Equally, if a private institution in which students happened to receive support for their funding continued on that basis, and there was no malicious or clever intent to evade the legislation, would it be entrapped in the whole paraphernalia of access plans, notwithstanding the fact that it was a private institution and not receiving money directly from the funding council, but only indirectly for its students?

Alan Johnson: That is much simpler. The answer is no. I have always taken the line of not saying more than necessary, but having started on this theme, I will add that I am confident that if a university tried to set up a separate institution to get round the legislation, it would know that it would be left bereft of HEFCE funding, but would it be able to establish a fees-only situation that would be quite generous? It is almost incomprehensible that any university would try to do that, given that it would not only not receive HEFCE funding or research funding from HEFCE, but would probably get no student support, because designation is entirely a matter for the Secretary of State. If designation looked like being an issue, the Secretary of State could simply stop it by refusing to designate those courses.

Column Number: 170

Having answered a question that I was not asked, I hope that I have answered the questions that I was asked and that the hon. Member for Daventry will withdraw the amendment.

Mr. Boswell: It is deeply flattering and entirely undeserved that the Committee has been poised for a whole week on my amendment, but there it is. I find myself in the position of the Spanish academic who was locked up by the inquisition for five years, returned to his duties at Salamanca university and began his inaugural lecture with the phrase ''As I was saying yesterday''. However, I need not repeat my point. The Minister has characteristically tried to respond to the points and has given us some very useful clarification.

The principle of amendment No. 259 is that it would add to the number of funding bodies that might impose such conditions. Although I was genuinely trying to help the Minister, if only by smoking out what was intended, I do not think that we need an extra body. As he said, if we did, we could legislate for it as part of the primary legislation. Therefore, applying—as mediaeval logic has now come back into fashion—the provisions of Occam's razor, that it is no longer necessary to multiply bodies beyond the need for them, I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 22 ordered to stand part of the Bill.

The Chairman: I should have said at the start of the proceedings that the hon. Member for Epsom and Ewell indicated to me most courteously that he might have to leave the Committee at some point during the morning for reasons that I know we all understand. If he does so, he will take the Committee's good wishes with him to his wife.

We now come to clause 23. The Committee has got used to my unsubtle ways by now. As this is a complex issue and the amendments are inter-related, I shall allow a fairly wide-ranging debate on the understanding that there will almost certainly be no stand part debate. However, that is not carte blanche to have another Second Reading debate on the Bill. I expect remarks to be confined to the clause, if only because other important matters arise later in the Bill.

Clause 23

Condition that may be requried to be imposed by English funding bodies

9.30 am

Mrs. Anne Campbell (Cambridge) (Lab): I beg to move amendment No. 82, in

    clause 23, page 9, line 7, leave out paragraph (a).

The Chairman: With this it will be convenient to discuss the following amendments: No. 3, in

    clause 23, page 9, line 10, leave out 'the higher amount' and insert

    '£3,000, increased annually on 1st April, in line with the Retail Price Index'.

Column Number: 171

No. 144, in

    clause 23, page 9, line 11, at end insert

    'but which can increase by a minimum of 0.5 per cent. above the rate of the retail price index in each academic year.'.

No. 223, in

    clause 23, page 9, line 11, at end insert

    'and that at least 10 per cent. of its fee income is supplied for distribution amongst institutions, as directed by the Secretary of State'.

No. 239, in

    clause 23, page 9, line 11, at end insert

    'and that there is provision to students, as directed by the Secretary of State, of a bursary equivalent to at least 10 per cent. of the fee, or £300, whichever is the greater sum'.

No. 83, in

    clause 23, page 9, line 13, leave out from 'period' to 'institution' in line 15.

No. 84, in

    clause 23, page 9, line 26, leave out paragraph (a).

No. 85, in

    clause 23, page 10, leave out lines 30 and 31.

No. 120, in

    clause 23, page 10, line 30, leave out from 'means' to end of line 31 and insert

    '£3,000, increased annually on 1st April in line with the Retail Price Index'.

No. 110, in

    clause 23, page 10, line 35, at end insert

    'but excludes any year of education beyond the first three years of a course in medicine, veterinary medicine or education'.

No. 86, in

    clause 24, page 10, line 44, leave out 'and the higher amount'.

No. 87, in

    clause 24, page 10, line 48, leave out 'and the higher amount'.

No. 88, in

    clause 24, page 11, line 1, leave out 'either of those amounts' and insert 'that amount'.

No. 89, in

    clause 26, page 11, line 26, leave out paragraph (a).

No. 225, in

    clause 26, page 11, line 30, at end insert

    'and that at least 10 per cent. of its fee income is supplied for distribution amongst institutions as directed by the Secretary of State.'.

No. 240, in

    clause 26, page 11, line 30, at end insert

    'and that there is provision to students, as directed by the Secretary of State, of a bursary equivalent to at least 10 per cent. of the fee, or £300, whichever is the greater sum'.

No. 252, in

    clause 26, page 11, line 30, at end insert

    'but which can increase by a minimum of 0.5 per cent. above the rate of the retail price index in each academic year.'.

No. 90, in

    clause 26, page 11, line 32, leave out from 'period' to 'institution' in line 34.

No. 91, in

    clause 26, page 12, leave out lines 33 and 34.

No. 121, in

    clause 26, page 12, line 33, leave out from 'means' to end of line 34 and insert

    '£3,000, increased annually on 1st April in line with the Retail Price Index'.

Column Number: 172

No. 92, in

    clause 31, page 14, line 5, leave out subsection (1).

No. 93, in

    clause 31, page 14, line 10, leave out 'also'.

No. 94, in

    clause 31, page 14, leave out lines 39 to 43.

No. 95, in

    clause 35, page 16, line 4, leave out '(a) or'.

No. 96, in

    clause 36, page 16, line 23, leave out '(a) or'.

Mrs. Campbell: The purpose of amendment No. 82, and of consequential amendments Nos. 83 to 96, is to remove the variable fee and to replace it with a fixed fee. I have attempted to delete all references to the higher amount, leaving only the basic amount in place. That means that the basic amount will remain the fee that is charged to all eligible students as an entry fee into higher education, and I have left the setting of that fee within the Government's remit. I recognise that universities need better funding and that the basic fee would have to rise beyond its current level of £1,125 a year if universities are to increase the amount of funding that they have for teaching.

It is probably worth pointing out that the amendment would achieve the objective set out in the early-day motion that I tabled on 1 April 2003. It reads:

    ''That this House welcomes the extra Government money announced in the White Paper 'The Future of Higher Education'; further welcomes the end of up front tuition fees; supports the reintroduction of grants for students from poorer backgrounds; recognises the improvements outlined for the repayment of debt, but believes that differential fees will deter students from low-income backgrounds from applying to the top academic institutions and to certain courses; and, if extra money is required, urges the Government to implement a measured increase in fees across the board, whilst maintaining the full or partial exemption from fees for students from low income backgrounds.''

The early-day motion was signed by 77 hon. Members, including my hon. Friend the Member for Aberavon (Dr. Francis), who is sitting next to me. I hope that its aims will be supported by an equally large number when I press the amendment to a vote.

 
Previous Contents Continue

House of Commons home page Parliament home page House of Lords home page search page enquiries ordering index


©Parliamentary copyright 2004
Prepared 24 February 2004