Immigration Bill

Lord Bourne of Aberystwyth Excerpts

Monday 10th March 2014 Lords Chamber

[The Earl of Sandwich (CB)]

My Lords, the Minister will not be surprised that I wanted to have a last word about colleges. We have many illustrious representatives of the universities but every time that we have this debate I think, “Why has no one mentioned the colleges?”. The proportion of foreign students in our colleges and other institutions is quite a bit higher. The noble Lord, Lord Hannay, refers in the amendment to “all institutions”, so they are covered, but the noble Baroness, Lady Williams, made an important point about the sustaining of courses: if you do not have enough students, you do not have enough courses. This is happening right now. I know personally of a college in London—I am not a representative of it—that is losing staff and courses as fast as it is losing its students. I think that last year they had an 80% loss, which they are now trying to make back up again. I remind the Minister of my interest there.

[Lord Bourne of Aberystwyth (Con)]

My Lords, in opposing the amendment, I certainly do not do so in any spirit of being against the importance that higher education students have to this country; clearly, they are important. We have had some very passionate speeches, with which I find myself much in agreement, about the danger of speculation, rumour and perception. However, it is important that we keep the changes that are put forward in perspective, and that we look at some of the facts as well. I put down some Written Questions and had back some answers based on figures from the Office for National Statistics about student numbers from some of our important markets. The latest figures available show significant rises from China, Hong Kong and Malaysia. Admittedly there are falls from India, but that is against a background of a fall in the value of the rupee, and other countries, such as Australia, have also noticed a fall in Indian student numbers. One or two noble Lords suggested that already a drop in student numbers was feeding through. That is certainly not true of many of our important markets.

Yes, perception is important, as are overseas students, but I would like to say something specific about the health charge, because I do not think that the amount has been addressed directly. The noble Lord, Lord Patel, suggested that we were suggesting that students were making calls on the health service disproportionately. I do not think that that is being suggested. I accept that that is not remotely the case.

[Lord Patel]

Just to clarify, my Lords, I was suggesting that students do not make disproportionate claims on the NHS.

[Lord Bourne of Aberystwyth]

That is certainly true but of course the charge is lower than the charge for other people, so that is going to be recognised in the proposal. The amount of the charge, at £150 per year, is significantly less than the average student would cost the health service, and I accept that that is as it should be. I think that the charge is actually lower than for other people. We need to get in perspective just how much the charge is: it is £150. I am not minimising that but, if you look at it spread over a year, and many of the students at a higher level will be here for a full year, you see that it is the cost of a Sunday newspaper each week throughout the year. It is important to keep that in perspective.

I look at the charge in terms of whether it is fair. I know what the noble Baroness, Lady Warwick, suggested, but we have to look at it in the round against the other changes. Compared with the other proposals, is it not fair that students should pay a charge, a levy, as well? I think that it is, against the background of the Bill and indeed of the other people in this country who have contributed.

[Lord Hannay of Chiswick]

I am most grateful to the noble Lord for giving way. I was a bit puzzled by his saying that the charge is spread over a year. The whole point about this charge is that it is not spread over a year but is paid up front. Moreover, if you ask for a visa for the whole of your study period, the charge is tripled and up front.

[Lord Bourne of Aberystwyth]

I was specifically addressing the health charge. When I say that it is spread over the year, I mean that the benefits are spread over a whole year, and many students are here for a whole year. I appreciate that it is paid as a lump sum. On the issue of fairness, I think that it is fair, looked at across the broad sweep of the changes that are being proposed.

The other issue is whether the charge is competitive. Some noble Lords have cited the position in the United States. As I understand it, they require insurance, and the cost of that is at a much higher level. The USA is the chief market for students; more students go there, as has rightly been said, than elsewhere. I am not suggesting that we slavishly follow the USA, but, if we are going to make the point about competition, we have to look at other states and how they handle this issue. Many of them have a charge or require insurance. We have to look at it globally in that way.

[Lord Clement-Jones (LD)]

My Lords, I suspect that we are rapidly moving into territory where everything has been said but not everyone has said it. Given that, I wanted to respond not only to the noble Lord, Lord Bourne, but also to my noble and learned friend Lord Wallace of Tankerness, who responded a week ago to Amendment 26 from the noble Lord, Lord Hannay, and my noble friend Lady Hamwee’s Amendment 80 to reassure us about the impact of the Bill. The fact is, though, that the Bill exacerbates the impact of previous policies towards overseas students. The noble Lord, Lord Hannay, and many other noble Lords have talked about the contribution to the UK economy and to soft power, while my noble friend Lord Phillips has talked about personal ties.

However, the hard figures already show a drop in overseas student numbers. My noble and learned friend Lord Wallace of Tankerness, and indeed the noble Lord, Lord Bourne, today, have taken comfort from the increase in Chinese students in particular in recent years, compared to Australia and France. If the riposte of the noble Baroness, Lady Warwick, and my noble friend Lady Williams was not enough, the recent British Council document Education in East Asia—by the Numbers (Making Sense of the Slowdown in Outbound Student Mobility from China) shows a global slowdown in outbound Chinese student numbers. This demonstrates that we cannot stand still and that we need to increase our share of Chinese students if the numbers are not to fall. That is the very latest document from the British Council.

We cannot take the risk of alienating aspiring students from China and other emerging markets. My noble and learned friend Lord Wallace said:

“We are still an attractive proposition for people wishing to come and study”—[Official Report, 3/3/14; col. 1192]—

but he himself admitted to us that a good story is not being told and it cannot be told with the Bill as it is. No one quarrels with measures designed to prevent abuse of the immigration system, but if we do not redress the impression—indeed, as the noble and learned Lord, Lord Hope, said, the perception—that students are not welcome, we will see more severe reductions in student numbers. What better way to counter that impression than to totally exempt overseas students from the Bill?