House of Lords and Machinery of Government: Consultation on Changes

Lord Bilimoria Excerpts
Wednesday 15th July 2020

(4 years, 5 months ago)

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Lord True Portrait Lord True
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My Lords, I do not think I am going to be drawn on that one. I think that the Companion says that one is supposed to speak respectfully of the other place. However, I say to my noble friend that my right honourable friend Boris Johnson brought the other place close to the people by his devastating victory in the December election last year, which delivered a majority of 80 to the real people’s party.

Lord Bilimoria Portrait Lord Bilimoria (CB) [V]
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My Lords, Westminster is not only the mother of Parliaments; it is the mother of bicameral Parliaments. Would the Minister agree that, for purely practical purposes, the close proximity of both Houses side by side—whether for APPGs, committees or visiting Heads of State—is important and that they should be together, let alone the fact that the House of Lords has the greatest depth and breadth of expertise of any parliamentary Chamber in the world? Surely, being located in London—the greatest of the world’s great cities—is a huge advantage, as we have our financial capital and our government capital together. That is where the House of Lords should be based. Could he say who is behind this idea?

Lord True Portrait Lord True
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My Lords, I repeat what I said yesterday. Of course, all the factors the noble Lord has mentioned have to be weighed and taken into account in any reflections on the future of our Parliament and the role of this House. At the moment, Parliament is operating remotely—as the noble Lord himself is—and it is not impossible. However, I am sure that all the factors mentioned will be considered.

Covid-19: UK-wide Discussions

Lord Bilimoria Excerpts
Tuesday 9th June 2020

(4 years, 6 months ago)

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Lord True Portrait Lord True [V]
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My Lords, the Government are guided by science at all stages of the crisis; the advice we have given has been on that basis. The advice is constantly under review by SAGE, but I can give no guarantees as to when or whether any change will be announced.

Lord Bilimoria Portrait Lord Bilimoria (CB)
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My Lords, the Secretary of State for Health has assured us that all care home workers and patients will be tested. Can the Minister confirm that this has taken place throughout the United Kingdom? Is he aware that in Scotland, sadly, coronavirus deaths have now overtaken hospital deaths, with 46% of deaths in Scotland in care homes versus 29% in England and Wales? Surely the Minister agrees that testing patients and care workers in care homes throughout the whole of the UK should be an immediate priority for the Government.

Lord True Portrait Lord True [V]
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My Lords, I cannot add to what my right honourable friend the Secretary of State for Health said, but I can underline one’s concern for every resident of care homes. As my right honourable friend said, that testing is available. He announced yesterday evening that the testing will be extended to a wider range of care homes, not only those for the elderly.

Income Equality and Sustainability

Lord Bilimoria Excerpts
Wednesday 6th May 2020

(4 years, 7 months ago)

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Lord Bilimoria Portrait Lord Bilimoria (CB)
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My Lords, the CBI, of which I am vice-president, was engaged in a project on structural inequality in the UK last year, culminating in the report Structurally Unsound in 2019. It noted that being from an ethnic minority background and suffering health issues can compound the inequality that you suffer.

I thank the most reverend Primate the Archbishop of York for his stellar service in his amazing career and I wish him a wonderful retirement. We shall miss him.

At the University of Birmingham, where I am chancellor, Karen Rowlingson, professor of social policy, mentioned that those with low incomes are more likely to suffer from Covid-19 and indeed, sadly, die from the virus. They are also more likely to see a negative impact on their incomes from lockdown than other groups in any recession that may come. If we can find ways to reduce income inequality, that will be crucial.

The City of Boston government has instituted a Covid-19 health inequities task force. Does the Minister think it might be a good idea for the UK Government to follow suit?

According to the IFS, after stripping out the role of age and geography, Bangladeshi hospital fatalities are twice those of the white British group, Pakistani deaths 2.9 times as high, and black African deaths 3.7 times as high. As the noble and right reverend Lord, Lord Harries, mentioned, key workers are at a higher risk of infection through the jobs that they do, and for carers the average wage is £8.19 an hour.

The Government have introduced a range of excellent measures—the job retention scheme, changing the rules for statutory sick pay, self-employment support—yet despite that almost 2 million people are now claiming universal credit, jobseeker’s allowance and employment support allowance. This is only going to get worse.

In coming out of the lockdown, the process of opening up should be mindful of inequalities. Will the Minister let us know whether the furloughing will be phased out and part-time working allowed?

The director-general of the CBI, Carolyn Fairbairn, said that when coming out of the lockdown perhaps most important of all is building back better. However difficult, the crisis has afforded us the chance to be radical. Tackling inequality must be paramount.

Economy: Update

Lord Bilimoria Excerpts
Tuesday 28th April 2020

(4 years, 7 months ago)

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Lord Agnew of Oulton Portrait Lord Agnew of Oulton
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My Lords, I do not have that figure as I do not believe that that calculation has been made yet. It will depend very much on the timing and speed of exiting lockdown. The sooner we can exit, the less damage will be done, but we must balance against that the Prime Minister’s overriding concern for the health of the nation, not overwhelming the NHS and the nation’s morale if we were to get a bad second spike of the disease. It is a bit too early, but we will of course keep noble Lords informed of our thinking as it develops.

Lord Bilimoria Portrait Lord Bilimoria (CB)
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My Lords, I am sure the Minister is aware that Germany, as part of its bazooka €1.1 trillion package, is guaranteeing 100% of loans of up to €500,000 to its small and medium-sized companies and of up to €800,000 for those with up to 250 employees. The Swiss have given out 98,000 loans—six times more than the UK, and their economy is one-eighth the size of ours. They guarantee 100% up to 500,000 Swiss francs, delivered within 24 hours. As the Minister just told us, we have granted 20,000 loans under the CBILS, totalling £3.3 billion out of £330 billion. I reiterate what the noble Lord, Lord Forsyth, said; we are really grateful to the Chancellor for what he is doing, acting so swiftly six weeks ago with the vast range of programmes which now include the bounce-back loans. However, does the Minister agree that we desperately need our own 100% guaranteed CBILS loans up to £500,000? Yes, some checks would have to be made, but the Chancellor said in the Statement that he does not agree with that because he thinks the ordinary taxpayer should not bear the entire risk. However, surely it is better to do this now, to have companies existing and surviving now, rather than not having them and having instead the unemployment that will be created. We need to go from bounce-back to bazooka.

Lord Agnew of Oulton Portrait Lord Agnew of Oulton
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I take on board the noble Lord’s point. Comparisons with other countries need to be done carefully so that one is comparing apples with apples. For example, the Swiss have not used a number of the other levers of support that we have used; this has been their main lever. Also, their furlough scheme requires employers to contribute one-fifth of the payments to the scheme, whereas in our country the furlough scheme removes that burden from businesses. In terms of the macro position, as I mentioned earlier, the Chancellor has announced support of up to 15% of GDP, which is a colossal sum of money, and he continues to be open-minded, which he demonstrated yesterday with the bounce-back loans, as to what further help the economy might need.

Referendums: Parliamentary Democracy

Lord Bilimoria Excerpts
Thursday 19th July 2018

(6 years, 5 months ago)

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Lord Bilimoria Portrait Lord Bilimoria (CB)
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My Lords, I thank the noble Lord, Lord Higgins, for initiating this debate. He talked about things being riddled with lies. The finances of the Leave campaign have just come to light, and there are people calling out for the whole thing to be rerun because of that. I congratulate my noble friend, whom I have known for many years, the noble Lord, Lord Pickles, on his excellent maiden speech; it was fantastic to hear his story. I also welcome the expertise of the noble Lord, Lord Anderson, my noble friend on the Cross Benches. I am sure that both noble Lords will make a phenomenal contribution.

The whole idea of referenda is that they are simple yes/no questions. The interpretation by the Prime Minister and the Government is that the people voted to take back control of our laws, our borders and our money and that therefore we will leave the single market and the customs union and there will be no more ECJ—simple, cut-and-dried red lines. We have had only three UK-wide referenda in our history, including the one in 2016. The 1975 referendum on the European Community was not a vote to join; we had already joined in 1973. The referendum was on whether or not we should stay in. Similarly, the AV referendum in 2011 was for no change, based on the idea that, “You know what you have with our current system; this is what you’ll get if you go for AV”. Then of course there have been eight referenda on devolution in Scotland, Wales and Northern Ireland.

We have to remember the results of those other two UK-wide referenda: in 1975 it was 67.2%, a two-thirds majority, while in the 2011 AV referendum the result was 67.9%, another two-thirds majority. What were we doing—were we asleep when we passed the referendum Act and did not insist on a two-thirds majority threshold? I am not advocating a written constitution but in every country that has one, if you want to change that constitution there is invariably a two-thirds hurdle, and Brexit means changing the constitution in a huge way. Referenda should be used only in very rare circumstances. The Constitution Committee has given some examples, which I shall come to.

In 1945, the Labour leader Clement Attlee responded to Winston Churchill’s wanting to hold a referendum to extend the wartime coalition by saying:

“I could not consent to the introduction into our national life of a device so alien to all our traditions as the referendum which has only too often been the instrument of Nazism and fascism”.


As we have heard from the noble Lord, Lord Higgins, Margaret Thatcher said they are,

“a splendid weapon for demagogues and dictators”.

Then Margaret Thatcher spoke about this whole concept of representative government, where elected representatives—not delegates of their constituents but representatives—make decisions in the interests of their constituents and the country as a whole. We keep hearing about the 17.4 million but what about the 16.1 million people who voted to remain? That is a huge minority. That is the other point about the representative system of democracy: it protects minorities and ensures that their interests are taken into account. Here you have the tyranny of the majority on a one-off vote with a permanent effect.

Look at the effect that that has on MPs. If you look at the list of what the Daily Mail calls “mutineers”—the rebel MPs, the brave Nicky Morgans and Jonathan Djanoglys—you can see that many of them have constituencies that voted to leave, but they believe that it is in the best interests of the country to remain. So this has really challenged the whole concept of parliamentary democracy. To top it all, people were given four months to decide on an issue of such complexity—from February to June 2016. Then there is the asymmetric reversibility of referendums. There is a big difference between the consequences of voting for the status quo and a vote for independence or withdrawal. A leave vote is irreversible, whereas with a remain vote you can always come back again and have a vote to leave.

Here is the crux of it all: I am told that it is undemocratic to challenge the will of the people. No, no—it is very democratic. In a normal electoral cycle, every four or five years you make a decision and, if someone wins by 50.1%, they have won. Five years later, as Keynes said—and even David Davis says that a democracy cannot be a democracy unless you can change your mind—you can change your mind and you can vote them out and have something else, after the facts have changed. That is real democracy, not holding people to something permanent. On top of that, you have the youngsters who were not allowed to vote. The demographics have changed in these two years; there are two years’ worth of 16 and 17 year-olds who are now eligible to vote—and there will be more by the time we come to next year.

Things have changed, the facts have changed and our economy has changed. It was the fastest-growing economy in the western world two years ago; now Europe is growing faster than we are. The timing of the referendum was absolutely wrong; the migration crisis was at its peak and it frightened people. And then there is the reason for the referendum. Why did David Cameron do it? It was for the right wing of his party and for UKIP. Things have changed. Where is UKIP today?

My conclusion to this is that, in having a referendum, we should have had a threshold. Now we have the consequence where there are three options. The first is that we may have a hard Brexit, which will be unacceptable to this Parliament and the people of this country. Secondly, we could have a soft Brexit, with the EEA option, which is where we might end up—the least-worst option. That might be acceptable. The third option is that we might end up remaining. In my view, there is no option, and we are headed for something—call it a second referendum, call it referendum part 2 or the people’s vote. That is most likely to happen and is probably the most democratic solution to the conundrum that we have brought upon ourselves.

Elections: Personal Data

Lord Bilimoria Excerpts
Wednesday 18th April 2018

(6 years, 8 months ago)

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Lord Young of Cookham Portrait Lord Young of Cookham
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I was indeed aware of the report referred to by the noble Lord. It raises a really interesting question. Information technology is challenging the business model for election campaigns as we have traditionally known them: knocking on doors, leaflets and public meetings. That model is being challenged by the social media and to some extent being displaced by it. To the extent that social media can reach people who are alienated or bypassed by the traditional method of campaigning, that is a good thing. We have to ensure, however, that the legal framework within which we now operate is fit for purpose and that personal data is not misused. We should try to turn to our best advantage the fact that we are engaging people in the democratic process who previously were not so engaged.

Lord Bilimoria Portrait Lord Bilimoria (CB)
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My Lords, the questions being asked are about digital interference with elections and the Electoral Commission. Does the Minister think that the Electoral Commission is basically toothless, in that it cannot even police a message on the side of a bus about £350 million going to the NHS? Should it not have more powers to stop blatantly lying statements during elections and referenda?

Lord Young of Cookham Portrait Lord Young of Cookham
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The Electoral Commission has been absolutely clear that it does not want to get involved in deciding whether a particular advertisement is truthful or not. It regards that as something fit for the political dialogue between the parties. If somebody believes that a claim is untrue, they are at liberty to denounce it, but I do not think that the Electoral Commission wants to get drawn into the truth or otherwise of political campaigns.

European Union (Withdrawal) Bill

Lord Bilimoria Excerpts
Tuesday 30th January 2018

(6 years, 10 months ago)

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Lord Bilimoria Portrait Lord Bilimoria (CB)
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My Lords, Professor Sir David Eastwood, the vice-chancellor of the University of Birmingham, where I am proud to be chancellor, wrote an article yesterday, entitled “Trump and Brexit have triggered two deep constitutional crises”. “Two years ago”, he says,

“a Trump presidency and a vote for Brexit were considered all but unthinkable. Now, two of the world’s oldest democracies are struggling to live with them, and their struggles are even more profound than they seem”.


He goes on to say that basically, since the Reformation, Parliament has always been sovereign and until the Brexit vote the broad parameters of the constitution, according to Walter Bagehot in the 1860s, have prevailed. When we have had referenda in the past, on the whole they have reflected the will of Parliament. However, David Cameron decided on this referendum and, for the first time, we had a Prime Minister and a country in turmoil, with Parliament—the vast majority of MPs and Members of this place—wanting to remain before the referendum and then a narrow result. Now, politics is on hold until Brexit is determined. Both parties are beholden to their more extreme wings, according to Professor David Eastwood, and the machinery of government is overheating and struggling to shape the Brexit deal.

Is this going to continue? The Government have put down the red lines of leaving the single market and the customs union. The EU has made the situation very clear. Yesterday, it said, “If you want a transition period, you can have it but you have to adhere to the free movement of people, you have to keep paying money in, and you have to keep having EU regulations and EU law”. So what deal will the Government be able to negotiate on that basis? Today, BuzzFeed News is reporting on the leaked government analysis of Brexit that says that Britain will be worse off in every scenario. That analysis looked at three scenarios: deal, no deal and a soft Brexit. In each case, Britain will be far worse off in every area. It says that the biggest negative is the UK’s decision to leave both the customs union and the single market.

We have had 3 million people from the European Union working here. In phase 1 of the negotiations it was said that they would be protected, but what about the future? They make up less than 5% of this country’s population. They are not a burden on this country. Without them, we would have an acute labour shortage, so we should be grateful to them.

I openly admit that I am a Eurosceptic in many ways. I dislike the European Parliament, I do not know who my MEPs are—I do not think that many of your Lordships do—and there is no accountability or responsibility. I think that the euro was a huge mistake—thank God we did not join it. I made a mistake with Schengen: I thought that we should have been a member, but now thankfully, from a security point of view, we are not. So we will never have a “United States of Europe”.

I have never been one for further European integration. We signed out of that. The EU is nowhere near perfect. It has huge faults but, looking at it on the whole, on balance we have done well out of it. We have had the highest cumulative GDP growth rate of any nation, including Germany—62%—since being a member of the EU. However, the sad thing is that even the OBR in the Budget has just said that, looking ahead, we will have a growth rate of less than 2% a year for five years—the lowest ever level.

We are the highest recipient of inward investment in Europe but, now, the Government and the Brexiteers are talking about going global. What is this “going global” nonsense? Fifty per cent of our trade is with the European Union. Another 20% on top of that is through the free trade agreements we have through the European Union, including, now, with Japan. That leaves 30%. As a businessman, am I going to give up 70% for 30%—and a 30% that I may never get? India and the Commonwealth account for less than 10% of our trade. Canada has a free trade deal with the EU but the EU accounts for only 10% of Canada’s trade. Its biggest trading partner is the United States—next door to it. India has nine free trade deals with countries around the world but not one is a western country. And what about the £8 billion that we have paid into the EU? I would pay that for the peace that we have had over the last few decades, including through NATO. As for sovereignty and taking back control, what a lot of nonsense. The laws that affect us in our day-to-day life are not the 20,000 regulations that the noble Lord, Lord Pearson, spoke about but the ones that we make here in this House every day.

I turn to this European Union (Withdrawal) Bill—or great repeal Bill, or whatever it is called. In the debate that we had last week on devolution, I challenged the Minister to explain how we are going to deal with the Northern Ireland situation. He did not have an answer. Phase 1 has just kicked the can down the road. Scotland will say, “We want to be treated on the same terms”. Can the Minister tell me how we are going to deal with Clause 11, to which the noble and learned Lord, Lord Hope, referred?

By the way, at the time of the referendum UKIP got 12.5% of the vote. Today, the figure is 1.8%, and let us not talk about its leader. What really upsets me is that Brexit has damaged our standing in the world and I see this all the time. I was with the Prime Minister of India earlier this month and I have seen India’s reaction to Brexit. We were flying before the referendum; now, look at Davos, where we were overshadowed by Macron and Trump. The whole world, except for Trump, thinks that we should remain in the EU.

In conclusion, virtually every speech today has made references to “when we leave the European Union” and “after Brexit”. Steve Jobs founded the most successful company the world has ever known—Apple. He said that changing your mind is a sign of intelligence. Keynes said:

“When the facts change, I change my mind. What do you do, sir?”


Even David Davis said:

“If a democracy cannot change its mind, it ceases to be a democracy”.


We have Juncker and Barnier—everyone—saying, “Stay on. We would welcome you staying on”. Even Farage has now spoken about a second referendum. Boris Johnson has said that there is now a danger that Brexit will not take place.

My message is this: we have to go through the motions of this Bill. We have to go through whatever we have to go through, but in a normal democracy you get a chance every five years to change your mind. We are not getting that chance, and in the two years that have already passed since the referendum was called, a lot has changed. We face many challenges: the NHS, our security, our police forces, our Armed Forces, our Army, which would not fill Wembley Stadium, our Navy and our entrepreneurship—fewer companies started last year than the year before. That is what we have to deal with, not this wretched referendum. We need to give the British people the chance to have their say, with all the facts—we can call it a second referendum; we can call it referendum part two—and Parliament must have the final say before any deal is passed on to the European Union. Will the Minister confirm that Parliament will have the final say?

Finally, at the Harvard Business School— of which I am proud to be an alumnus—I talked to Dr Deepak Malhotra, a world expert in negotiations. He has written an excellent paper on Brexit. He told me to read a book about the build-up of the First World War. He said, “Reading that book is like watching a train crash in slow motion. Karan, that is what Brexit is: a train crash in slow motion”. It is not too late to stop that train crash.

Electoral Spending Limits: Wales

Lord Bilimoria Excerpts
Wednesday 6th September 2017

(7 years, 3 months ago)

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Lord Young of Cookham Portrait Lord Young of Cookham
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I am not quite sure where my noble friend is taking me with that question. The cost of the Electoral Commission is roughly £30 million a year. Like all public bodies at a time of downward pressure on public expenditure, it should seek economies in the way it runs its operations, but it has an important role to play in monitoring the health of our democracy and, where necessary, in enforcing the law on elections.

Lord Bilimoria Portrait Lord Bilimoria (CB)
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My Lords, in India, with 800 million voters in elections, the electoral commission is all-powerful during elections. It runs elections over a period of three weeks, using electronic voting in a very rigorous manner. Why can we not catch up with that over here? Secondly, as a businessman, if I advertise my brand and I make a statement that is not true, the Advertising Standards Authority asks me to pull it down straightaway. The Electoral Commission is toothless and does not seem to have any power over misstatements in elections, such as £350 million on the side of a bus. Will the Minister tell us why?

Lord Young of Cookham Portrait Lord Young of Cookham
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On the first point, I think my party is committed to continuing to allow people to vote by pencil on a ballot paper. If one were to introduce electronic voting at the same time, there would of course be the extra costs of running two systems in parallel. At the moment, we are not committed to doing that. We are interested in pilot schemes, however, for example on voter identification. On the second point, I am not sure that the Advertising Standards Authority or, indeed, the Electoral Commission would like to get drawn into the heat of party-political battles during a general election.

Class 4 National Insurance Contributions

Lord Bilimoria Excerpts
Wednesday 15th March 2017

(7 years, 9 months ago)

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Lord Young of Cookham Portrait Lord Young of Cookham
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My noble friend gives some wise advice on the number of commitments in the manifesto. I think that we had 600 in our last manifesto, and I am sure that there are lessons to be learned. But I cannot agree with him that we should ditch our manifesto commitments. Confidence in the political system is not that high and if any party, once elected, were to break its manifesto commitments along the lines that my noble friend has suggested, it would not enhance confidence in the political system at all. So we have to stick within the commitments that we made and find other ways in which to reduce the deficit.

Lord Bilimoria Portrait Lord Bilimoria (CB)
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Although I welcome the fact that the Government have backed down on this, the reason given very clearly is on the spirit of a manifesto commitment not being broken. Well, the biggest manifesto commitment that has been broken is remaining in the single market. Are the Government now going to back-track on that? We shall wait and see.

The main reason why people—and when I say people I mean Members across the parties in another place and here—objected to this increase in national insurance contributions for self-employed people affecting more than 2.5 million people is because the perception that it sends out is that the Government are going after and hitting the very people who take the risk to be self-employed and going against encouraging entrepreneurship. Would the Minister agree that the main role of government in this area is to encourage entrepreneurship, which means encouraging job creation, tax takes and growth, which will help to get rid of the deficit—not by hurting the very people who will create that growth?

Lord Young of Cookham Portrait Lord Young of Cookham
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The noble Lord will know that we have taken a number of measures to promote enterprise. We have reduced corporation tax and we are investing in infrastructure and broadband. I do not want to reopen a discussion that we have had for the last two or three weeks about the single market and Brexit, but what has happened is that there was an announcement last week and there were then discussions with parliamentary colleagues and others. Against the background of those discussions, the Government have decided not to proceed. This is not an unparalleled development in the political system. It is a measured and proportionate response to some very real reactions that we got from colleagues down the other end.

Higher Education and Research Bill

Lord Bilimoria Excerpts
Lord Bilimoria Portrait Lord Bilimoria (CB)
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My Lords, I declare my interest as a former international student and the third generation of my family in India to be educated in this country. I am chair of the advisory board of the Cambridge Judge Business School, which has just been ranked No. 5 in the FT global MBA rankings. As the noble Lord, Lord Holmes, said, our universities are the best in the world along with those of the United States of America.

I wholeheartedly support the amendment in the name of the noble Lord, Lord Hannay. I am sorry that the noble Lord, Lord Patten, is not with us. The amendment refers to more than international students and talks about competition from other countries in terms of collaboration as well. That point should not be missed. I have made the point many times that at the University of Birmingham, where I am proud to be chancellor, when we carry out collaborative research with a university such as Harvard—I am proud to be an alumnus of the Harvard Business School—it has three times the impact of our individual research. Therefore, it is essential that we do that, particularly given the European Union referendum and the potential of Brexit coming up.

There are accusations that international students overstay. Can the Minister confirm that a Home Office report has shown that only 1% to 1.5% of international students overstay? If he will not answer that question, will he say why the Government continually refuse to put in visible exit checks at our borders? If we scanned the passport—EU and non-EU—of every person coming into this country, and the passport of every person—EU and non-EU—going out of this country, we would know who was coming in and who was going out, particularly with regard to international students. I urge the Minister to say why the Government are not doing this.

As the noble Lord, Lord Hannay, said, the global environment is one in which the international student demand from countries such as India is increasing by 8% year on year. We have no target to increase the number of international students. This amendment very clearly says that the Government need to make that a priority. I go further and say that there should be a target. Countries such as France, for example, have a specific target to double the number of students from India by 2020. As the noble Lord, Lord Hannay, said, the number of Indian students went up to nearly 40,000 around 2010. It has now dropped by over 50%. Canada, the United States and Australia all have programmes to increase the number of international students. In fact, Australia has a Minister for international students. Last year in India, the Australian high commissioner said to me, “Thank you for your immigration policy on international students. You’re sending them to us instead”. That is ridiculous.

We now face competition from European Union countries. Non-English speaking countries such as Germany, Sweden and the Netherlands—I have already mentioned France—are incentivising international students. Why cannot we accept this amendment once and for all to make international students a priority? Given the backdrop of Brexit, that is even more important. A survey last year said that 82% of EU students and 35% of non-EU students reported that they would find the UK less attractive as a result of Brexit. This means that some 50,000 EU students and 63,000 non-EU students could be at risk. The proof of the pudding comes from the latest indication that fewer EU students have applied to start university courses in the UK. According to UCAS, there was a 9% fall in the number who had applied for courses. At Cambridge, we know that the figure has dropped by 14%.

I am also president of UKCISA, the UK Council for International Student Affairs, which represents the 450,000 international students in this country, of whom 130,000 are from the EU. UKCISA’s response to the EU referendum result was very clear. It said that it sends,

“worrying signals to thousands of EU (and indeed British students hoping to participate in EU mobility programmes) but given the government’s relentless pressure to cut net migration (including curbs on international students) it is … not surprising that this has been the result”.

I am co-chair, along with Paul Blomfield in the House of Commons, of the All-Party Parliamentary Group on International Students. Our purpose is to recognise the global prominence of UK education, to promote the value of international students, to promote, as the noble Lord, Lord Holmes, said, the soft power of international students, to raise awareness of issues that affect international students and, in reference to the amendment of my noble friend Lord Hannay, to provide a platform for collaboration.

Before I conclude, perhaps I may give a specific example. Following the Committee stage, last week at the University of Birmingham I chaired the annual meeting of our annual court, at which we highlighted that not only one-third of our academics, of whom 18% are from the EU, but a quarter of our students, including from the EU, are international. We have just released an independently prepared impact report on our university. It highlights that:

“Eight additional international undergraduate students would add £1m to the economy”.


That is what we are talking about. It is economic illiteracy not to promote international students and to send out signals that they are not welcome here. At Birmingham, according to this impact report, our international students contribute £160 million to the economy, and they are advocates and ambassadors for Birmingham. They are also ambassadors for the UK around the world, as the noble Lord, Lord Holmes, said.

Just last week—again, since Committee—UUK released a report on international students. It said:

“International students are vital for a successful post-Brexit, industrial strategy fit for a global Britain”.


It also spoke about the element of soft power. At any one time there are 30 world leaders who have been educated at British universities. The report also—this point has not been made so far—spoke about a ComRes public opinion poll for Universities UK which suggests that the public do not view students as immigrants. It said:

“Only 23% of Remain voters and 25% of Leave voters view international students as immigrants. Of those that expressed a view, 75% say they would like to see the same number, or more, of international students in the UK. Of those who expressed a view, 71% would support a policy to help boost growth by increasing overseas students. This polling suggests that current visa policy is not addressing public concerns”.


I would go one step further: this poll suggests that the Government are entirely out of line with public opinion when it comes to international students. I need only mention the current, and first Indian, president of the Royal Society, Sir Venki Ramakrishnan—Nobel laureate and fellow of Trinity College, Cambridge.

Universities UK does not argue that students in the UK should not be counted. I do not think that anyone here is saying that; we are saying that they should not be included in a net migration target. Our direct competitors categorise international students as temporary citizens. In the United States they are classified as non-immigrants alongside tourists, business visitors and those in cultural exchange programmes. In Australia they are classified as temporary migrants alongside tourists and visitors, and in Canada they are classified as temporary residents. These are our direct competitors. If they can do it, why cannot we?

Every time this issue has been brought up in this House, there has been unanimous cross-party support for taking international students out of the net migration figures, but the Government are not listening, the Prime Minister is not listening and the Home Office is not listening. So what option do we have? The only option is legislation and I urge noble Lords to support this amendment. Net migration figures create a perception that has unfortunately become reality in putting off international students. They must be a priority for our universities, for our economy, for our position in the world, for our domestic students and, more importantly with this uncertain future, for our whole country.

Earl of Dundee Portrait The Earl of Dundee (Con)
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My Lords, as has been said, Amendment 150 would serve to redress a number of unsatisfactory outcomes. These already threaten to undermine our economic competitiveness, skills, trade, exports; then soft power deriving around the world from our usual reputation for welcome and fair-mindedness. However, adjusting, through this amendment, is perhaps all the more fitting, remaining as we do within the Council of Europe of 47 states, within which affiliation, through good practice such as this amendment promotes, we can therefore continue to assist balance, democracy and common sense.