STUDENT loans are now out of the equation until the start of the 2012 academic year. States members yesterday overturned November’s decision to introduce them.
A vote of 34 to 10 saw the requete to maintain the present system of States financial assistance succeed. That followed an amendment from the Policy Council that the annual cost could not rise above £7m. at 2006 values being rejected by 24 votes to 20.
Requete leader and Education member Deputy Matt Fallaize (pictured) welcomed the decision. ‘I think it was obvious there was a coalition of people who were against student contributions in principle or opposed to this particular student loans scheme.
‘I’m yet to be persuaded, given our very small student numbers, that we will ever find a student loans scheme or student contribution scheme that is going to be cost effective.
‘But this type of scheme, which would have required £2.5m. of student contribution to fund just a £1m. saving in States spending, was not cost-effective or logical and I’m pleased the States reversed that today.
‘I think the States has provided students and families with some certainty for the foreseeable future and I think it’s an important message that this States has sent out – it is not going to accept underfunding of priority public services lightly.’
Education minister Carol Steere supported the amendment for a cap on the budget before voting for the requete because she said it was important to act responsibly. However, she assured the House that her department would not allow the grant system to get out of hand and if it needed to come back to the States because it was costing too much, she would make sure it did.
Housing minister Dave Jones, like others who supported Chief Minister Lyndon Trott’s amendment, was worried the States was effectively giving Education a blank cheque.
‘We make a promise to cut public expenditure and the first chance we have to show restraint in this House, we all run like rabbits.’
He said he was looking forward to the debate during which departments would happily come forward and offer cuts in their own budget to help fund Education’s.
Deputy Fallaize said that should Education’s budget run into difficulties in terms of funding higher education off island, then he would make sure the matter came back to the States as soon as possible.
‘I can give that assurance. Two members opposed the requete anyway, so as a third member I can give the promise that if the budget is blown wildly off course we are obliged to bring it back.’
However, in his opinion it was unthinkable that the subject of student loans would be back before the States earlier than 2011.
Article posted on 26th September, 2008 - 2.29pm
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