There is an odd concept in Scottish politics that
things that are paid for by someone else are free. The SNP in particular has
based much of its populism on providing these “freebies” to their supporters.
We now have “free” prescriptions, “free” eye tests, “free” passage over the sea
to Skye and of course most famously “free” tuition. Mr Salmond has promised
that rocks will melt before he will allow unfree tuition, though quite how he
will be able to forever stop these rocks melting now that he no longer even has
a seat in the Scottish Parliament is unclear. Can Mr Salmond’s hubris guarantee
permanent SNP Government?
But of course none of these things is free. They are
all paid for by taxation. Who pays for taxation? Well I do and you do. The
shops we go to pay tax and we pay tax on nearly everything we buy. How much of
what I earn in the end goes to the Government? This is something they
deliberately make obscure. There are so many different taxes: Income Tax,
National Insurance, VAT, Council Tax, tax on savings. But how much does it all
add up to? According to the latest Index of Economic Freedom “The overall tax
burden equals 32.9 percent of total domestic income.” This means that on average everyone in the UK pays nearly 33% of their income
in tax. Some people pay considerably more than this, some pay considerable
less. But none of us get anything from the Government for free.
In the university where I work it is typical for
people who should know better to consider that everything should be free.
Nothing must get in the way of academics getting as much as possible from the
Government. There must be no nasty considerations about what something costs.
Efficiency is considered to be a rather unpleasant word and nearly everyone
votes for a party that considers higher public spending to be the solution to
everything that is wrong with the world. Perhaps it is for this reason that we
have reached the stage where staff are routinely not replaced and where we have
a brand new expensive library that cannot afford to buy books.
The funding model of universities in Scotland is
broken. It is the SNP that broke it. We have two classes of students, those who
pay fees and those who don’t. The fee payers come from England, Wales, Northern
Ireland and the rest of the world except the EU. Those who have “free”
education are from Scotland and the EU. Naturally this means that we have a
large number of EU students.
There is a lot to be said for people from all over
the world coming to Scotland to study. It makes for an interesting mix and when
these people return home they speak fluent English and have knowledge of life
in Scotland. In the long run this helps trade. But as a matter of university
economics it is preposterous to provide these people with free education.
University education is expensive. Every Scot and EU
student who studies for “free” costs the Scottish tax payer. That means you and
me. In many if not most cases a university will make a loss from educating
these people. Sometimes in the case of medicine degrees the cost to the
university versus the fees received is such that the loss is enormous. It costs
hundreds of thousands to train a doctor, but the tuition is “free”. Who pays?
We all do except the doctor who then demands to be paid as if he were running a
top company that makes millions.
Given that the university is not making a profit
from its Scottish and EU students how does it remain in business? It does so by
charging foreign students. By foreign I mean non-Scottish and non-EU. What this
means is that every fee paying foreign unit from China, Africa, England, Wales
and Northern Ireland is subsidising the education of non-foreign students from
Scotland, France, Germany and so on.
Imagine that there was a pub in Edinburgh which
charged people from Scotland, Italy France and so on zero pounds per pint, but
charged people from England, Wales, Northern Ireland and China ten pounds per
pint. The reason for the price differential was that Scots wanted to drink for
free and being fair minded they couldn’t bear that this wouldn’t apply to other
Europeans, except of course the English who can’t really be called Europeans at
all given their attitude to Brexit. Would you consider this pub to have a fair
system of pricing? Moreover, if you were English would you go to this pub?
This situation also means that Scottish universities
have to discriminate against Scottish students. The subsidy that Scottish
students receive from English students means that it is far easier to get into
one of the top Scottish universities if you are English. Only the foreign fee
paying units help our universities to balance their books, so if there are not
enough one year they will choose foreigners over Scots.
One of the benefits of Brexit for Scotland is that
we will no longer have to give EU students “free” tuition at Scottish
universities. Scottish tax payers will no longer be burdened with paying for
people who may not contribute to the Scottish economy. It is folly to pay
hundreds of thousands of pounds to train a doctor only for him to return to
Spain. Moreover, few indeed are the Scottish students who receive a similar
benefit from studying for free in the EU. How many Scots are doing degrees at
the University of Warsaw? How many EU languages do you speak to a level at
which you could study at university?
Perversely however the SNP are planning to keep
paying the fees of EU students even after they no longer have to. We all know that Mr Swinney is a very nice man. We
know that the SNP are keen to portray themselves as good Europeans, but the
Scottish economy is in deficit to quite a considerable extent. We should not be
spending tax payers’ money when we don’t have to.
The whole system of “free this and “free that” in
Scotland is founded on a lie. It is not free. Moreover it is isn’t even Scots
who pay. The only way that our economy isn’t bust is because every year we
receive billions of pounds from the UK Government. People in other parts of the
UK then are paying Scotland to have “free” services that they themselves can’t
afford. The parents of an English student are in fact paying twice. They are
subsidising the Scottish student through general taxation and they are then
subsidising him because their child has to pay the fees that enable the Scot to
study for free. This is usually described as beggar they neighbour economics.
Discriminating against your fellow British citizen
because of where he comes from is obviously wrong. While treating him as if he
were a foreigner at the same time as you treat other foreigners as if they were
from Scotland is grossly unfair. Why do
the SNP dislike people from other parts of the UK so much? It couldn’t possibly
be xenophobia could it?
Using Scottish taxation to fund foreign students
when you don’t have to and when you are running Scotland at a loss is
mismanagement. The SNP are using a divide and rule strategy. It is as if they
want people in the rest of the UK to say “Good riddance”. This might be their
greatest chance of achieving independence. Why would Scots vote against such a cosy arrangement?
Nothing is free. There is always a cost. The cost of
SNP folly over education is that our universities are becoming second rate and
our system of “freebies” depends on taxes we don’t ourselves raise and
discrimination against those who do.