Higher Education (Northern Ireland) Order 2005

Part of the debate – in the House of Lords at 3:06 pm on 22 March 2005.

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Photo of Baroness Amos Baroness Amos President of the Council, Privy Council Office, Lord President of the Council and Leader of the House of Lords (Privy Council Office) 3:06, 22 March 2005

My Lords, the purpose of the order is to increase the funding available to higher education institutions in Northern Ireland, while safeguarding access for students from the most disadvantaged backgrounds.

It is the Government's aim to increase funding for higher education in Northern Ireland in a way that takes account of two key principles: first, a larger share of the cost of higher education should fall to the direct beneficiaries of a third-level education and, secondly, a first-rate higher education system should be available to everyone who has the ability to benefit from it. The order introduces provisions broadly in line with those to come into force in England under the Higher Education Act 2004.

In the quality of their teaching and research, universities and higher education institutions in Northern Ireland compare favourably with the better higher education institutions in the rest of the United Kingdom. The challenge for the Government is to ensure that, in the face of a changing higher education sector in England, the Northern Ireland institutions continue to contribute to economic growth, develop and enhance research excellence, fulfil their social and cultural role, provide access to high-quality education for local students and, in general, continue to compete favourably with their GB counterparts.

Now that the Higher Education Act 2004 is on the statute book, we must respond to it in a way that benefits Northern Ireland most and does not put Northern Ireland students or universities at a disadvantage. The Act, which has its origins in the White Paper, covers a number of important developments in higher education. Of those, the introduction of variable fees and their impact on students and the higher education institutions are key issues for Northern Ireland.

Last year, the Department for Employment and Learning held a policy consultation on proposals to increase university funding through the introduction of variable tuition fees. The consultation also covered proposals to introduce access agreements and a review of the student complaints system. Following the policy consultation, the draft legislative proposals were issued for public consultation. There was significant interest in and reaction to the proposals, particularly in relation to variable fees. Much of that reaction was critical, but no viable alternative was proposed.

I turn to the detail of the draft order. Part II sets out the provisions for student fees. They will enable higher education institutions to set their own fees up to a basic amount specified in regulations. If institutions wish to charge fees above that rate, they can do so only if they have in force a plan—also known as an access agreement under this part of the order—approved by the Department for Employment and Learning, and then only up to a higher amount also specified in regulations. The department will monitor approved plans. Should an institution breach its plan, the department may choose not to renew, or it may impose financial sanctions.

In Part III, the order includes provisions for preventing student loan debt forming part of a bankrupt's estate. That reflects the non-commercial nature of a student loan and closes an existing loophole whereby student loans are written off on bankruptcy.

The order provides for the sharing of information between student support authorities with the consent of the individual. That will streamline the process, in keeping with the Government's aim of requiring individuals to provide information once only.

The order includes provisions for facilitating the deferral of payment of tuition fees by allowing student loan payments to be made directly to institutions, so that they can receive fee payments up front and students can repay later.

Although the provisions follow the Higher Education Act, the legislation has been tailored to reflect specific needs in Northern Ireland. The draft order does not replicate all the provisions of the Act.

With regard to access agreements, the order provides that, in Northern Ireland, the Department for Employment and Learning will undertake the access regulatory function and will take advice as necessary from the Office for Fair Access. On student complaints, the Government have accepted the weight of argument from consultees in favour of change and of making the system more independent of the institutions. However, the intention is to retain the visitor system in Northern Ireland until the institutions are restored and to leave the final decision on the way forward to the Northern Ireland Assembly.

In considering the introduction of variable fees in Northern Ireland, it is important to remember that up to 30 per cent of Northern Ireland students go to universities in Great Britain: some to do courses that are not available locally; some to widen their horizons; and others because their grades are not good enough to meet the entry requirements in Northern Ireland. Whatever the reason, unless we act now to introduce a deferred fee system many of those students or their families will be forced to pay up to £3,000 up front each year from 2006. It would not be right to allow students from Northern Ireland to face such a barrier. It would be perverse that Northern Ireland students should pay more to improve standards in English universities while their counterparts studying in Northern Ireland paid less to invest in the future success of their own universities. It is even more unacceptable that the Government should provide the additional funding to support that, in effect funding institutions in England while denying the same level of fee income to Northern Ireland institutions.

The initial reaction of many people to the introduction of deferred fees is that they will add to the existing burden of student debt. However, a student loan is one of the most generous forms of credit available. In contrast to commercial loans, the only interest charged is the rate of inflation, so that we can be sure that the loan repaid is equal in real terms to the amount borrowed. Graduates will have to pay the money back only when they can afford to do so. If income falls below £15,000, repayments stop. No one will be penalised for taking time out for any reason, such as to have a family, to work part time, or if he or she becomes unemployed.

The Government want to increase the funding available to the higher education sector in Northern Ireland in a way that ensures that up-front fees are abolished and that graduates take on a greater share of the costs. However, the Government also recognise the need to ensure that financial help continues to be provided for students who need it most by maintaining a system of student support that is as favourable as present arrangements.

In addition, institutions charging variable fees will have to introduce access agreements, which will require them to tell students and prospective students what help is available. It will include a commitment to provide an access bursary to students from low-income backgrounds.

If our higher education institutions in Northern Ireland are to sustain—indeed, to build upon—the high standards of teaching and research in the increasingly competitive global higher education sector, they need the extra investment that the proposals will bring. The Government firmly believe that that is the best way to secure the future of our highly valued higher education sector in Northern Ireland and to ensure access to all those who have the potential to benefit from higher education, regardless of background or personal circumstances.

It is the intention that, subject to the approval of both Houses, the order can be made at a Privy Council meeting by the end of the Session. That will give time for preparations to be made so that it can become operative from September 2006 to coincide with the start of the academic year. I beg to move.