Points of Order (Hansard, 20 December 1989)

HC Deb 20 December 1989 vol 164 cc388-93 388 5.23 pm

§ Mr. Jack Straw (Blackburn)
On a point of order, Mr. Speaker. I wish to raise a matter concerning the Education (Student Loans) Bill. Earlier this afternoon, it was announced that all the clearing banks were to withdraw from the operation of the Government's deeply unpopular Education (Student Loans) Bill. As the participation of the banks has been absolutely central to the administration of the Government's loans scheme, the withdrawal leaves the scheme in total ruin. In the light of the announcement, the Bill must be abandoned. In view of the gravity of today's announcement, Mr. Speaker, do you agree that there must be an immediate oral statement by the Secretary of State?

§ Mr. Speaker
It is not a matter for me.

§ The Secretary of State for Education and Science (Mr. John MacGregor)
Further to that point of order, Mr. Speaker. The hon. Gentleman grossly exaggerates the position. The Bill is not affected one little bit in any respect. Neither the principles, the framework nor the objectives of the scheme are affected, and they will continue as before. The only change is that one area of the mechanics of the scheme we intended to operate cannot now go ahead. That means that we will lose something that was to the benefit of the students—access to branch networks. I regret that.
I thought it right to inform the House immediately I was informed of the decision of the banks. I would have been happy to make an oral statement, but that was not possible because of the congested nature of today's business. However, I am happy to consider, through the usual channels, what else might be done.

§ Mr. Straw
Further to that point of order, Mr. Speaker. The question whether the abandonment of the Government by the banks is central to the administration of the scheme, as we believe could be argued if there was an oral statement. If there cannot be one this afternoon, for reasons that I understand, will the right hon. Gentleman or the Leader of the House, who is in his place, give a clear undertaking to make an oral statement at 11 o'clock tomorrow morning?