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Higher Education Funding

Posted by Sammy Wilson, MP for East Antrim, at 16:15, Mon 8 November 2010:

I was fortunate to be one of those people who had the opportunity to obtain a university education free of charge. I was the first person in my entire extended family to achieve a degree not because I was smarter than my parents, uncles, aunties or cousins, it was simply due to the fact that the Butler Education Act and the decision by governments in the 1960s and 70s to fund Higher Education, opened doors that in the past my family could never have afforded to open.

I am grateful for the opportunities which I was given. They changed my life and made it possible for me to do jobs which were rewarding and which have I loved. As I sat through the debate on the funding of Higher Education in the House Of Commons on Wednesday and the minister outlined his proposals to lift the cap on tuition fees to £9000 per year and then explain the repayment arrangements for the debt which students would have available to them, I had a sense of sadness because despite what was said I knew that the proposals will exclude many able young people from the economic background from which I came, ever achieving the liberating experience of higher education. I know that if the cost of taking a degree had been to finish up with over £40,000 worth of debt my parents and my own natural instincts would have dissuaded me from going to university.

Whilst I know that attitudes to debt are different today than they were in the 1970s, nevertheless the cost of a home and lifestyle changes already make it difficult for young people on average incomes to make ends meet. If they have now to add on to that thousands of pounds of student debt then many may well decide that university education is not for them. Not only will they be poorer in the future but there will also be a problem for the economy which needs the skills they would obtain through further study.

I know we cannot go back to the halcyon days of my youth. First of all given the number of people now undertaking higher education, 50% now as opposed to less than 10% when I did my degree, the cost of running higher education has rocketed. Secondly there is a need to look at the level of public spending because of our economic difficulties. Thirdly there is a recognition that since a degree does increase earning power those who have the opportunity should make some contribution to the cost over and above the normal tax payments they make.

There are those who continue to argue that we should adopt the 1970s free for all approach to university education. It may be populist but it is unrealistic. Whilst we do have control over the financial arrangements for Higher Education in N.I. any changes in the funding arrangements in England are reflected in the amount of money which comes to the N.I. budget through the Barnett formula. So any divergence which we make from the policy at Westminster will require us to make a choice between being more generous to Higher Education but spending less on something else. Those who argue that we do so will never say where the money should be taken off.

When the issue was debated at the Assembly this week my party sought to put forward a motion which said three things. Firstly that public funded Higher Education should be based on ability to learn not ability to pay. Secondly that the minister should bring forward proposals on how students from the most disadvantaged backgrounds could be assisted and thirdly that there should be control over the fees which universities can charge.

I believe that this represents a balanced approach in the current circumstances. As I said during the debate in the House of Common, my fear in relation to the removal of the cap on student tuition fees is that universities rather than reducing costs and looking at how they could raise income, will take the easy way out and load the burden on students through charging them more. There is already evidence that Universities are not cost efficient and that degrees are more expensive than they need to be.

We need to get the balance right between adequate funding for institutions which can make a real difference to the skills base of our economy and ensuring that we do not price bright young people out of the opportunities they offer. We also need to ask whether degree courses are always the right method of delivering the skills which we require especially when industry and economists are arguing that the real shortages are in some of the technical skills such as IT, engineering and all types of technicians.

If we get the decisions right we will make our economy stronger and keep open opportunities for young people, our most valuable resource.

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