Student Visas

Debate between Lord Sharma and Nadhim Zahawi

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—

Higher Education Fees

Debate between Lord Sharma and Nadhim Zahawi

Thursday 9th December 2010 Commons Chamber

[Alok Sharma]

No, I will not give way, because I do not have much time left.

Social mobility starts at school, and a report in November 2008 by the Teaching and Learning Research Programme, called “Widening participation in higher education”, concluded that a lack of attainment at secondary school was the biggest factor in non-participation in higher education. So it is highly disappointing to see the OECD figures, published over the last few days, which show that secondary school pupils in the UK have fallen well behind their international counterparts, a fall presided over by the previous Government. Between 2000 and 2009, we slipped from seventh to 25th place in reading skills, from eighth to 28th in mathematics and from fourth to 16th in science. The Opposition are not in any position to lecture us on improving social mobility.

I urge all Members also to take note of all the university vice-chancellors and principals who, in a letter in The Daily Telegraph yesterday, expressed their fears that social mobility would be curtailed if the regulation were not passed this evening. They said:

“If the vote on Thursday fails, the alternative is likely to be a reduction in students numbers that would be enormously damaging to social mobility and would seriously hamper Britain’s ability to adapt to the economic needs of the future. We urge MPs and peers to support the Governments proposals.”

Are the proposals being discussed today fair? Well—[Hon. Members: “No!”] Well, we cannot continue with the current system. All parties agree, and that is why the former Labour Government proposed the Browne review in the first place. Labour seems to be flirting with the concept of a graduate tax.

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

Does my hon. Friend not agree that that flirtation with a graduate tax is short-term opportunism for which the Opposition will pay dearly?

[Alok Sharma]

My hon. Friend is absolutely right. A graduate tax would mean that poorer graduates paid more and richer graduates paid less, which is neither fair nor progressive. A graduate tax would also be a tax for life, rather than the maximum period of 30 years in the proposed scheme.

The coalition’s proposed system is fair. The Institute for Fiscal Studies says that it is more progressive than the current system, and the Opposition have proposed no system at all. It is fair to all taxpayers that students, who will on average earn significantly more than non-graduates in their lifetime, make a contribution to their education after they graduate; it is only fair to full-time and, now, part-time students and their parents that they do not have to find any money up-front; and it is fair because graduates will pay less per month than do they under the current system.

I hope that, rather than playing grubby politics with the aspirations of a generation of students, the Opposition will be honest with students and taxpayers. I hope that they join us in offering students increased opportunity and a greater stake in their own education, instead of raising false expectations that an as yet unexplained utopian alternative exists. I urge all Members to support the regulations.