The Minister of State, Home Office (Lord Bates) (Con)
My Lords, I add my thanks to the noble Baroness, Lady Sharp, for securing this debate. Although we are very familiar with our respective positions as we have debated this issue so often, I suggest that there is a great deal more common ground than may at first appear. Of course, we are all grateful to the noble Baroness, Lady Sharp, for the way she introduced the debate. I listened carefully as she set out in precise terms how the current system works and the terms, methodologies and calculations used, which match the Government’s exactly, as one would expect from a distinguished academic. There is common ground on the analysis to that extent. However, there may be divergence over some of the conclusions.
The noble Baroness, Lady Brown, made an outstanding contribution to the debate in her maiden speech. More importantly, given her distinguished background in academia, particularly in science, technology and engineering, she brings an immensely valuable perspective to your Lordships’ House. We very much look forward to her further contributions.
Another area on which we can agree is that Britain is blessed with some of the greatest universities in the world. Any table will show that we have perhaps four out of 10 or six out of 20 of the top universities in the world. The UK is widely admired and respected in that field. It is not by accident therefore that we are the second largest attractor of foreign students in the world. That is a very important point for us to remember.
Nor is there any disagreement over the fact that the Government have set out in their own financial strategy that we want to see the number of students continue to increase, as was said. We have set targets for the contributions we want to see universities make because this is a great export earner. As a number of noble Lords said, the soft power that this process brings to this country is immensely valuable as we move forward. As the noble Lord, Lord Holmes, said, there is no doubt that we want to continue to attract the brightest and the best. That is common ground. We want to see an increase in foreign students—we are proud of them and we recognise their value—so where is the point of difference? I shall try distil that down to a question about whether the means by which we calculate the number of students coming into this country and those leaving this country acts as a deterrent to people thinking of coming to study here.
As regards the point touched on by the noble Lord, Lord Bilimoria, I think there is a problem. When you look at the overall statistics, there is some encouraging news. The number of overseas students coming to Russell group universities is up by 39% since 2010. However, when you break down the figures and start looking at them country by country, you see differences. You see numbers from China increasing but India’s economy is also growing strongly now and yet we see a different pattern there. We have looked at differences in the way British universities welcome these students who are effectively investing in this country, and how the latter perceive that welcome. Having discussed the matter with Jo Johnson, our Universities Minister, James Brokenshire went to India just last week with the specific purpose of busting some of the myths that surround the welcome that awaits genuine students who have the relevant qualifications and have been offered places at our world-class universities. There is a great deal to do in that regard. We need to get across the message that there is no limit on the number of students who can come to genuine universities here and that there is no limit on the number of people who can switch from tier 4 visas to tier 2 graduate programmes, particularly in the types of disciplines to which the noble Baroness, Lady Brown, referred. The level of the salary is, of course, something that we need to examine. If we want to attract the brightest and the best, then, of course, £20,800 as a starting salary is about NVQ level 3 or 4, or about A-level.
Lord Clement-Jones
My Lords, does the Minister accept that that is above the average graduate salary in places such as the north of England?
Lord Bates
That may be so. I would have to look into that point in relation to the north of England, and I am happy to do so. However, the point is that there is no limit on the number of graduate opportunities available. We have special programmes for PhD students and for post-doctoral study. Therefore, we need to get that message out into the wider world much more effectively that Britain welcomes these students and that a range of opportunities exists for students, post-study, to continue to work and gain experience. They can continue on tier 5 with approved internships and training programmes. Twenty-eight thousand organisations have approval to sponsor tier 2 graduate employment opportunities. There is also the PhD entrepreneur route on tier 1. There is a wealth of opportunities for these students.
The noble Lord, Lord Hannay, asked five very pertinent questions and then answered them, albeit not entirely to the Government’s satisfaction. We recognise that our country is experiencing growing pressures from inward migration and its effect on the fabric of society. As a result, we need to take steps to bring net migration down. Of course, you cannot do that simply by changing the figures. It would be very easy to change the figures and, by waving a magic wand, halve net migration. That would be very comfortable but it would not be true. Often people come to this country to study and then stay on. That is why there is a discrepancy between the figure of 117,000 coming in and 40,000 leaving. We need to understand better why we have the 77,000 discrepancy and we need to better understand the data.
The noble Lord, Lord Hodgson, asked for an update on e-borders. Exit checks, which were introduced last year, will give us a better picture of where those people are going. We will publish an update report in May on the progress of e-borders and the exit checks. That will give us greater confidence in this regard.
Lord Bilimoria
My Lords, we know that e-borders are not reliable. We have a migration problem with the EU as well. Why do we not institute scanning of all passports—EU and non-EU—at our borders? Then we will have total control. It is easy technology and is available right now.
Lord Bates
We will continue to look at these things. The exit checks are the first step to something we hope will help us get a better handle on flows in and out of the country.
I am aware that there is a great deal of expertise in the House, particularly in the higher education sector. We keep debating the numbers, but I urge noble Lords to think that our message should be to sell the incredible opportunities people have when they come to study in some of the greatest universities in the world. As graduates, they will then have the opportunity to work in some of the greatest companies in world. That is a fantastic offer that we can all come together to sell.
Lord Clement-Jones
I apologise for interrupting the Minister again, but he has time to answer a couple of questions. The two cases I mentioned were quite egregious, because neither postgraduate student had breached any visa rules. That gives Britain an enormously bad name among that community.
Lord Bates
I am very happy to look into those two cases for the noble Lord to ensure we get this right. The message has to be clear, and we have to recognise that we have a duty to welcome people coming in to contribute to our economy and to show them the appropriate respect.
I am happy, should the noble Baroness, Lady Sharp, think it an offer worth accepting, to convene a meeting of interested peers and colleagues with our people from the Department for Business, Innovation and Skills, who have ownership of the universities sector and the tier 2 and tier 4 issues, along with people from the Home Office and immigration enforcement, to discuss how we can tackle these problems and the reasons we are not getting the right message out. We can work together to ensure that our fantastic offer on the world stage is communicated loud and clear: that people from around the world with genuine qualifications and places at great British universities are very welcome and that we are very grateful to them; that, post-study, they will have immense opportunities in this country; and that we would like them to stay and contribute, if they are qualified to do so.
Lord Bilimoria
We have all asked for one thing. We are all great ambassadors for British universities—we are their greatest fans—and we will continue to be, but we are asking for one thing. The Prime Minister has said he is open to the idea, and I am sure the Chancellor would be. We are asking the Government to categorise international students separately, in the way that, as we have shown, the USA, Canada and Australia do. That one move would send out a message. The Minister talked about perception. It would remove that perception once and for all. Why can the Government not do it?
Lord Bates
The noble Lord, who knows this area inside out, knows that we looked at that very carefully. It is true that the United States separates that category out, but when it calculates net migration, it adds it back in. The United States behaves differently because it does not have a net migration target. We do, and therefore we have chosen to include students in the numbers.
Baroness Sharp of Guildford
Would the noble Lord not consider publishing the two statistics side by side, as the Americans do? We could have the net migration figures, but let us also have the figures excluding the students, so that the population can judge for themselves whether the targets have been met.
Lord Bates
Given the gap in the numbers, which we do not yet fully understand, the Government are not comfortable enough to take the heat from our heels—as it were—on the immigration statistics by providing a potentially sharp change in the net migration numbers. It might give us a degree of comfort that is not borne out in reality. The better our data and intelligence, the better able we will be to say to universities, “Listen, your responsibility is not just to attract people here, to ensure they are qualified to come and to give them a great education, but to ensure that, when their time is up and their visa has expired, they go home and use that education to build another career”. There are many ways we can all work together, and I am simply extending the opportunity to continue the dialogue—I am sure it will continue on the Floor of the House, but such dialogue can sometimes be engaged in more constructively with officials from different departments off the Floor—should it be helpful to the noble Baroness. I am grateful to her for raising this matter.