§ 21. Mr. Hannamasked the Secretary of State for Education and Science what is his estimate of (a) the savings by 1984 as a result of the reductions in university expenditure and (b) the cost of redundancies of university staff in the same period.
§ Mr. WaldegraveMy right hon. Friend estimates that by the end of the financial year 1983–84 cumulative savings at constant prices will be over £200 million and that the savings thereafter will be of the order of £150 million a year. The cost of redundancies depends on decisions by individual universities about how to adjust to their new levels of funding.
§ Mr. HannamDoes not the fact that the Government have had to make a substantial increase in the finance available for the redundancy scheme show that the case for extension of the time scale is well founded?
§ Mr. WaldegraveNo, Sir. Even the figures of the Association of University Teachers, which made as favourable assumptions for teachers as possible, show that there was an outlay of £100 million on academic redundancies to make an annual saving of £77 million. That is not a bad deal.
§ Mr. CryerIs it not disgraceful that the Government are continuously talking about cutbacks in university expenditure, and a reduction of choice and of opportunities for young people, while at the same time they are talking about spending between £6 billion and £10 billion on Trident nuclear missiles? Where are the Government's priorities? Surely they should be spending more on universities and creating more opportunities for young people?
§ Mr. WaldegraveThe Government will be spending billions of pounds on higher education. That they are also spending billions of pounds on the proper defence of the country is entirely just.