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Debate on the Address

My Lords, the noble Lord raises the issue of security, and I am sure it will be debated during the passage of the Bill, which is an enabling Bill as I said earlier. I shall make that point as I go through the remainder of my speech. It is not usual government business to remain exposed to large amounts of debt-related risk, and we believe that the private sector is well placed to take on and manage those risks. The Bill will enable us to put in place that programme of sales, making transactions that are judged to deliver good value for money for the taxpayer. It is, however, an enabling Bill. It does not require us to make sales, let alone constrain us as to when or how much to sell. The Government will ensure that they benefit from the highest quality commercial and legal expertise in designing the sales programme and in preparing each individual transaction. I hope that reassures the noble Lord. For each transaction, we will need to be satisfied that market conditions enable us to secure good value for money for the taxpayer. The ownership of the rights to the loan repayments that graduates make does not affect how we design and deliver policy on student support. It is central to the Government's policy that borrowers with student loans should experience no difference whether their loans are sold or retained in the public sector. Purchasers of loans will not be able to alter the terms and conditions. They will not be able to change interest rates, repayment thresholds or rates of repayment. The Bill enables us to ensure that if the Secretary of State changes the terms and conditions of existing loans, that will affect sold loans in just the same way as those still in the public sector. The administration of the income-contingent repayment system, with collection by Her Majesty's Revenue and Customs through the tax system and the maintenance of borrower accounts by the Student Loans Company, will remain as now for all loans. Borrowers' data will be fully protected and their experience of the system will be the same whether their loan is sold or not. The Sale of Student Loans Bill is not about altering policy on student support. It is not about converting student loans into commercial loans. The Bill is rather about enabling the transfer of ownership and risk of the underlying financial asset, while expressly leaving individual borrowers and the system of student support in the same position as before. The Government are passionate about quality, be it in the NHS, social care, embryology, children's welfare, developing skills or student loans. Improving quality in these areas is challenging, and these Bills are crucial in rising to that challenge. I commend this legislation to the House and look forward to the important and, no doubt, vigorous debates ahead.