---

Sale of Student Loans Bill

That would be nirvana, a perfect outcome. We would support the Bill with alacrity on the basis that we would spend the cash, and we would, of course, put it to altogether better use than the present Administration. However, I do not wish to be unkind. After all, it is my birthday and I am even more tempted to be generous than my character leads me to be every other day of the year. We do not know whether the value of the loan book has gone up or down since November. We can guess, based on market conditions, but it would be useful if the Minister could give us a little more detail. He has told us on numerous occasions that if value for money cannot be ensured, the sale will not go ahead. This amendment will ensure that proper parliamentary scrutiny takes place, but it is also important that we have some idea of the effect on borrowers. Our amendment would ensure that borrowers had that certainty about their future circumstances. As I said, it is unusual for the Government to table as significant an amendment as Lords amendment No. 2 to a Bill after its Commons stage. When the Bill was introduced, a full impact assessment was not conducted because, as I argued, the Government did not feel that it was necessary. They said that no aspect of the Bill would"““create a material impact on borrowers, higher education institutions or employers””." However, the new provisions will allow the Secretary of State either to fix or to change regulations in relation to those loans that are to be sold, with a consequent material impact on borrowers. Given that Lords amendment No. 2 changes the terms of the Bill, one possible way forward would be for the Government to conduct a retrospective assessment of the impact of each sale on the holders of student loans. The permissive nature of the amendment has created considerable uncertainty about the potential impact of sales and a full assessment would provide much-needed clarity on that point and thus might allay Opposition concerns, as I said when I wrote to the Minister about these matters. I want to say a few words about Lords amendments Nos. 11 to 14. The explanatory notes on the Lords amendments say:"““These amendments would make drafting changes to the clause on sharing of information with purchasers and potential purchasers. Lords Amendments 11 and 12 would make explicit that HMRC information may be disclosed in relation to loans that have not yet been sold, as well as those that have been sold. Restrictions already contained in the Bill restrict the disclosure of personalised data to actual purchasers and their agents.””" The Minister has repeatedly made it clear that data would be anonymised in as much as they needed to be shared—for example, for accounting purposes. The explanatory notes go on:"““Amendment 13 would define the permitted onward disclosure of anonymised HMRC data by reference to the purpose of disclosure—in connection with loans that have been or may be transferred—rather than by reference to the identity of parties who may receive such data. Amendment 14 would make explicit that the narrow group to which onward disclosure of personalised HMRC data is permissible does include loan purchasers' auditors.””" It would be useful for the Minister to say a further word about all that. There have been doubts about the maintenance and transfer of personal data. I do not want to raise again the issue of the failures and errors of the Government in handling data. To do so would perhaps be harsh on the Minister, who has not been personally responsible for such problems. However, he takes collective responsibility for the shambolic behaviour of those on the Labour Front Bench and, as a result, it is important that we have assurances from him today about precisely what will happen in respect of data handling. We are pleased that the Government have made amendments to the Bill to clarify the provisions on who will have access to HMRC data. We have expressed concerns throughout the passage of the Bill, in the measured way that I have today, about the danger of data falling into the wrong hands, being misused or, heaven forbid, being lost altogether. That danger is particularly acute if the book is broken up into many parts as a result of onward sales. The Minister said earlier that he does not expect the loan book to be collateralised and sold on. He has made that point repeatedly during our considerations, but I find it hard to believe. It might well be sold on as that is the nature of the sale of debt. I accept his assurances that control can be exercised in respect of the initial sale, but the hon. Member for Bristol, West was right to insist that, because of the potentially convoluted and complex nature of the data that will be held and shared, a clear audit trail is very important. I am grateful for the Minister's assurance that the Student Loans Company will be the responsible agency for that information, but once again borrowers will want assurances about not only the accuracy of the data that are being transferred but where the data will reside, who has access to them and who might get access to them by fair means or foul. It is important that the Minister should say a word or two more given the prevailing circumstances, not all of his making, of public doubts about data, their maintenance and their security. I hope that the Minister will be able to come back specifically on Lords amendment No. 2 and our amendment to it. I hope that he will say a further word about the security of data and that he will also tell us something about the reason for the amendment and the background to it, in order to clear up the uncertainty that has arisen from the original letter from Baroness Morgan and the subsequent discussion. I hope that he might also give us some feel of the value of the book and the Government's intentions in respect of sales, of how those sales might operate and of how the report to Parliament might shape up in practice. All Members of this House are determined that borrowers' and taxpayers' interests should be preserved. This House is the place to ensure that Ministers are held to account accordingly. I hope that our amendment, our response to Government amendments and the views expressed by Opposition Members in the other place and here have made those matters paramount in the Minister's mind, so we wait to hear him express his thoughts in a few moments' time.