---

Sale of Student Loans Bill

It is important that I again make it clear that we have not identified a problem. No breaches of protocol have taken place and no student loans administration data have gone missing. Nevertheless, if the hon. Gentleman has proposals, I am happy to consider them. The hon. Gentleman made a point about ensuring that a fair allocation of the Bill’s proceeds goes to my Department. That is a decision for the Treasury, and I will not reveal discussions that take place between my Secretary of State, colleagues in the Treasury, the Chancellor and me. I ask the hon. Gentleman to judge us by what we have done in the past. During the Conservatives’ last eight years in power, there was a 36 per cent. real-terms cut in per-student funding rate for higher education. Under this Government, there has been a 23 per cent. real-terms increase in the higher education budget. Across the country, virtually every vice-chancellor I speak to acknowledges that universities are undergoing a big expansion in their finances; that is in stark contrast to what they experienced before 1 May 1997. The hon. Gentleman also asked me about growth projections for the student loan book. We expect that the income-contingent loan book will grow to about £21 billion by April 2008, and about £25 billion by April 2009. Clearly, the sales anticipated over the comprehensive spending review period are not for the whole loan book; we are talking about a long-term programme. I reiterate that if market conditions are not appropriate and we cannot guarantee value for money, sales will not go ahead.