States surplus is ‘no pot of gold’ for student funds

By Nick Mann

A SURPLUS of £70m. in States finances should not mean the end of student loans, according to Treasury minister Charles Parkinson.

Education is expected to meet on Monday to decide whether it will take another report to the States on the introduction of student loans, or wait for a petition.

Behind the scenes, members are manoeuvring to make sure everything is in place for a requete from deputies if, as anticipated, the department decides not to act itself.

Those who want to revisit higher-education funding see the current financial picture as one of the reasons for the States to cover the anticipated £2.5m. annual shortfall in funding, instead of introducing loans, which would leave students heavily in debt.

‘The surplus is very nice to have, but to an extent it’s a one-time surplus. That money does exist, but £18m. of it was spent on what we call capital allocations.

‘A further £5m. was allocated to the capital reserve, so it’s not all available for spending on other projects,’ said Deputy Parkinson.

The States accounts are yet to be fully signed off, but Deputy Parkinson said these were the likely figures.

‘There will be that sort of revenue surplus of £43m., or thereabouts, to dispose of.

‘But it may well be a further transfer to capital reserves as required, bearing in mind the list of capital projects we’re faced with: the airport runway, the Alderney breakwater, further work on the ports and a couple of new schools,’ said Deputy Parkinson.

‘It’s not necessarily the case that money is sitting around waiting for someone to come and claim it,’ he said.

‘It’s money that will be very useful, which will be invested wisely on behalf of the island. But to some extent it’s a one-off.

This year’s accounts will be significantly in deficit because of zero-10.

‘I think it would be a mistake if people get too excited about it and think that there’s a pot of gold they can dig their hands into.’

Deputy Parkinson supports student loans.

‘I’ve long believed it was right in principle to make people, who after all are adults, start to take responsibility for their own careers and financial affairs.

‘It’s not just a question of, is there money available, it’s a question of what’s the right decision?

‘That’s the position I’ve taken.’

Initial indications suggest that more than 15 deputies would be willing to sign a requete which needs seven signatories before it gets to the House.

Former head teacher Deputy Jane Stephens believes more information is needed, including details of negotiations that had taken place with the universities.