Student Visas

Lord Sharma Excerpts

Thursday 6th June 2013 Commons Chamber

[Nadhim Zahawi (Stratford-on-Avon) (Con)]

I shall attempt to take less than 10 minutes, Mr Deputy Speaker.

Ever since Erasmus came to study Greek at Cambridge 500 years ago, our universities have attracted the best and the brightest from around the world, but the world is changing. In the modern global marketplace, we have no God-given right to a competitive advantage in higher education. We have to fight for it.

As the Chairman of the Business, Innovation and Skills Committee has said, there will be huge rewards for the British economy if we get this right. By 2020 the number of international students worldwide is set to grow to 7 million. Key strategic partners, such as Brazil and Saudi Arabia in the Gulf, have earmarked billions of dollars to spend on sending their students on scholarships abroad. This is a fast-growing market and if we want to win the global race we have to get serious about growing our market share.

We know that the competition is serious. Could there be any better example of the extraordinary lengths to which our rivals will go than the French Government’s recent decision to relax the ban on teaching in the English language at French universities? Let us be clear: even though we enjoy a commanding position in the market, over the past 10 years our market share has remained pretty flat. Over the same period, our two most obvious competitors after the United States—namely Australia and Canada—have recorded significant increases. What are they doing differently?

First, both countries present more attractive options for post-study work. Foreign students in Canada can work for up to three years after graduation, and in Australia they can work for up to two years, rising to three with a masters and four with a PhD. Crucially, they do not have to seek work with a Government-approved firm or on a Government-approved salary.

The other key difference is that both countries distinguish between the temporary student inflow and long-term migrants when devising their borders policy. Australia has learned the hard way why that makes sense. When student visa rules were tightened up in response to political pressure in 2010, the Australian higher education sector posted a 2.7 billion Australian dollar loss on goods and services that would otherwise have been purchased by overseas students. In the UK, we risk making the same mistake. In particular, the closure of the tier 1 post-study work route has broadcast the message around the world that foreign students are less welcome in the UK than they are in our competitor economies.

I believe that the perception of a policy is just as important as the policy itself. Even though it did not come to it, the prospect of legitimate students at London Metropolitan facing deportation was deeply damaging. We cannot expect the casual 17-year-old reader of the China Daily who is thinking about studying abroad to distinguish between London Metropolitan university and the University of London.

[Alok Sharma (Reading West) (Con)]

My hon. Friend is making some valid points. Does he agree that one of the key things that must come out of this debate is a clear message to students in India, China and other emerging economies with a lot of growth that the UK is open, that there are no caps or limits, and that they can come here if they go to an accredited establishment, can speak English and have the funding?

[Nadhim Zahawi]

I thank my hon. Friend, who is absolutely right that the message has to be that we are open for business. Indeed, the latest figures for 2010-11 and 2011-12 show that all the Russell group universities apart from three posted positive increases. There is some good news, but I hope that this debate will further inform the Government and the Home Office as to what else we can do to enhance the situation.

[Nadhim Zahawi]

My hon. Friend is spot on in saying that we have to be robust and I will deal with that later. She is absolutely right to say that we have to carry the good will of the British people with us and demonstrate rigour in the immigration system and our border controls in order to be able to send a message to those areas that are crucial to our exports.

I want to return to the point that perception is reality and the example of the young student reading the China Daily. Fortunately, we know exactly what the problem is. With unprecedented unanimity, all five parliamentary Committees that have looked into this issue agree that the Government’s net migration target puts our borders policy on a collision course with our ambitions for higher education.

Political targets are an essential part of the democratic process. They tell the electorate what we are about and what our values are. However, targets are not an end in themselves, but a tool to measure the success of broader policy aims. The Government’s net migration target is about building an immigration system that works for Britain—one that delivers economic benefits while addressing long-standing public concerns about immigration. However, if we are trying to meet that target by discouraging a group who provide an obvious economic benefit, who are disproportionately less likely to settle here and who, of all migrant groups, attract the least public concern, something is wrong with the target.

I want immigration politics to be taken out of our higher education system. For that to happen, we must take international students out of the targets.

[Alok Sharma]

My hon. Friend is being very generous in giving way. Should we not be explaining to the public in more detail what the net migration figure is made up of and disaggregating it? We can debate whether student numbers should be taken out, but clearly we must explain each of the components, because that is not widely understood.

[Nadhim Zahawi]

My hon. Friend is absolutely right. The disaggregation and further decimation of that information—