The noble Lord, Lord Wallace, has made some very interesting points on this issue. I wait with interest to see what the Minister has to say in response. I would be grateful if he would respond on the point that the noble Lord, Lord Wallace, raised about consultation on the implications for the public sector.
He mentioned the health service and universities. It will obviously be no secret that representations have been received from universities and health service organisations about the implications of this proposal. Indeed, I understand that some universities have taken it up directly with government. Will the Minister set out the extent to which the consultation covered public
sector organisations and say what responses were received? Clearly, their line is over the additional costs it is likely to cause the service in question. Indeed, universities will say that it is causing additional costs which might lead to them not necessarily being able to recruit the best people, and obviously part of the role of a university is to train people and increase their skills through higher education. It would seem a bit distorted if the purpose of the levy was to enable money to be provided for apprenticeships but, in so doing, it managed to weaken the ability of universities to provide the best people to provide the education which in itself is raising the skills of people who will be needed in the labour market in the future.