§ Mr. WelshTo ask the Secretary of State for Education and Employment what plans he has to(a) give part-time students access to loans on the same basis as full-time students and (b) change the accounting rules so that student loans are counted as investment; what discussions he has held on this subject; with which bodies; and if he will make a statement. [38820]
§ Dr. HowellsWe agree with the Dearing Committee's recommendation that extending loans to part-time students in higher education should not be a priority. While we have taken alternative steps to protect part-time students who experience financial hardship, we have no plans to extend loans to them at this stage. The provisions of the Teaching and Higher Education Bill would, however, allow loans to be extended to part-timers at some time in the future and we will keep the position under review.
The Government's proposal to move to a system of full Resource Accounting and Budgeting in 2001–02 will result in student loans being treated as a balance sheet asset in the Department's accounts. Discussions on this issue are taking place as part of wider preparations for the introduction of Resource Accounting and Budgeting across government, which is the responsibility of my right hon. Friend the Chancellor of the Exchequer.
Cost (£000s) Commission date Estimated Actual Planned Actual (a) Departmental Systems 1993–94 Nil 1994–95 Upgrade of Department of Education VAX system 128 129 March 1994 June 1994 Department of the Environment Office Automation 3,460 - March 1995 Ongoing Department of Finance and Personnel Network and System Management 120 120 May 1994 May 1994 1995–96 Department of Education Inspectorate 142 220 September 1995 September 1996 Department of Education Presentation Unit 105 108 February 1996 April 1996 Department of Agriculture VAX system 203 222 May 1995 August 1995 1996–97 Nil 1997–98 Department of Education Resource Accounting 364 - April 1997 Ongoing Department of Finance and Personnel Resource Accounting 478 - April 1997 Ongoing Parliament Buildings Network 255 255 April 1997 June 1997 NIO Automation System 4,050 4,380 June 1997 November 1997