Visas: Student Visa Policy

Debate between Lord MacGregor of Pulham Market and Lord Lucas

Thursday 31st January 2013 Lords Chamber

[Lord MacGregor of Pulham Market]

My Lords, I thank the many distinguished noble Lords who have put their names down to speak in this debate. There are several, such as my noble friend Lord Norton of Louth, who for good reasons are unable to be here but would like to have participated. That is a sign of the concern that there still is on this matter. The time pressure put on us means that I will have to be succinct on the issues and there is much that I will have to leave out.

There are three basic points with which to start. I strongly support the Government’s overall immigration policy. I entirely agree with the steps take to deal with abuse and bogus applications in parts of the private sector, the education sector and English language schools. Today we are talking solely about universities. I welcome the helpful steps that the Government have taken to alleviate some of the concerns expressed not least by five Select Committees in both Houses, and in particular the decision to disaggregate the student numbers in the migration figures. That was a big step in the right direction but we need to go further.

The achievements of our universities are one of the major UK success stories. Many are recognised world leaders, comparable to the best anywhere, especially in the United States. Overall our university sector has an internationally high reputation and the demand for places from overseas is strong. Non-EU overseas students contribute over 10% of total university fee income. The contribution to that reputation from overseas undergraduates, postgraduates, research fellows and professors working and studying here is great. The benefits that our universities bring to local economies are substantial, not only in their spending on local goods and services but also in their contribution to key economic developments. The huge growth in the science and research parks in Cambridge is just one outstanding example. The universities are a major expert earner, accounting for £8 billion now and with an expected to increase to £17 billion by 2025 on recent trends. They are the fifth biggest positive contributor to the net balance of payments.

The vast majority of overseas students are not permanent immigrants. They are migrants. The universities have excellent systems for tracking what happens to them. Most eventually return to their own countries or elsewhere. A 2010 Home Office study showed that of the individuals who entered as students in 2004, only 3% had settled permanently by 2009. They do not claim benefits. It is a condition of their visa that they have no recourse to public funds. They are net contributors to the economy and not a drain on public funds. They are unlikely to require NHS care because of their age profile. They are totally unlike bogus applicants and many other immigrants.

There are countless examples of them returning to their own or other countries and becoming permanent ambassadors for the UK. They are our best ambassadors when they leave our shores. They find prominent positions in government, foreign services and defence, industry and commerce, education and elsewhere. This is so-called soft power. In short, these are absolutely not the sort of immigrants that the public and the media have in mind when they call for tougher controls on immigration. They are the opposite, real assets to us, and that needs constantly and regularly to be made clear in the context of policy decisions. In so far as there has been public concern about students, this was related to bogus ones, and I hope that that problem has now been dealt with.

Overall figures of new entrants from non-EU countries are only slightly down in 2012, by 0.4%. Most overseas students are postgraduates and their numbers are down by 1.9%. Not much, one might say, but I suspect that this is only the start of a trend. First, in what is a hugely competitive industry, as many in this House know, numbers in most of our major competitor countries—America, Australia, Canada and some EU countries, which are fast developing courses in the English language —are up.

Secondly, some universities have told me that they found that last September the number of postgraduate applicants who had even paid deposits and then declined to come had increased. Thirdly, the perceptions that the UK was imposing tough new restrictions, being less welcome to new applicants and spouses, and even closing for business, have grown considerably since these figures were compiled. This goes particularly for the Indian subcontinent, where numbers are already substantially down and compensated for only by a rise in China.

Unless action is taken, future years will show a considerable decline in entrants. On the Indian subcontinent and, I am told, in some African countries, this perception has been especially evident as a result of the London Metropolitan issue. I do not have time to go into that in detail. Suffice it to say that the hostile publicity in India after that matter focused on the students who either had to or could not find other places—and it was huge. That, combined with individual stories about visa difficulties with the UK Border Agency, has been immensely damaging.

Fourthly—and this is difficult to explain in a few words, certainly to people outside this House—the claims sometimes made by Ministers that there are no limits on non-EU applications are simply not believed. This is due partly to the perceptions that I have already described, partly to difficulties with the UK Border Agency—of which, more in a moment—but perhaps most of all to the following point. In order to meet the Government’s target of reducing net migration to tens of thousands by 2015—and we are still a long way off that—and since students are the largest category of migrant, a further reduction in student numbers seems inevitable. The Migration Advisory Committee’s report states that a reduction in non-EU student numbers of 87,600 in the period 2012 to 2015 would be required to meet that target. The Institute for Public Policy Research has an estimate of 50,000 fewer non-EU students, translating to a loss to the UK of £2 billion to £3 billion per annum. These figures suggesting limits are becoming widely known and are fed by the perception of the way in which the UK Border Agency is applying its controls and rules to potential and already-in-place students from non-EU countries.

So what is to be done? I will be as brief as possible to enable as many speakers as possible to have a little bit more than the two minutes allowed. I have two points to put to my noble friend. First, it is clear that the UK Border Agency is overstretched, overbureaucratic and underresourced. Universities are highly responsible and want to clamp down on any bogus students and those who break the rules. I have talked to various vice-chancellors, seen the Universities UK submission and read the excellent article in the Daily Telegraph of 24 January by Sue Cameron, which accurately sums up the impressions that I have gained. The stories of unnecessary difficulties are legion. The UK Border Agency seems to be making students feel as unwelcome as it can. The amount of time, energy and costs that universities are having to use up is high, and all this is now being used by competitors in other countries to imply that the UK is closed for business.

I have a list of complaints and suggested improvements from Universities UK which I do not have time to repeat. Today, I shall mention just one or two of them. It makes the following points: that the UK Border Agency requirements of tier 4 sponsors have changed 16 times since 2009, making it incredibly difficult for sponsors to keep track of requirements; that changes have been made to visa requirements in the middle of the universities’ admission cycle, which has led to individual institutions having to review by hand thousands of offers already made to prospective students; that the UK Border Agency helpline is often unable to answer questions about changes to the rules; and—this is a particularly important point—that universities frequently tell Universities UK that they have received no feedback from the UK Border Agency following a tier 4 audit visit, either to inform them that they are compliant or to point out shortcomings or potential weaknesses. Many universities are making this point to Universities UK, and I hope that the Government will take it up.

Secondly, and most important of all in the light of all that I have said, I strongly support the recommendations of the five Lords and Commons Select Committees, including the Public Accounts Committee. It must be rare to have five committees from both Houses making the same points time and again. I am not sure that I can recall that ever happening before in my long period. It is important therefore that the Government take heed of what they have all said and remove international students from the net migration target. All five committees have powerfully argued the case. I quote from just one, the House of Commons Business, Innovation and Skills Committee, reporting in September 2012. It states:

“Whilst we understand that the UN definition of migration includes overseas students the Government is under no obligation to use that definition for the development of domestic policy”.

That is a fundamental point: it is perfectly reasonable to have the figures under the UN definition, but they should not be used for the development of domestic policy. The committee goes on:

“Removing overseas students from the Government’s migration targets would allow universities to compete on a level playing field with their international competitors”.

That is again an absolutely fundamental point. By changing the system, we would come into line with what happens in America, Australia and Canada, where they are making great appeals to overseas students. The report continues:

“It would also allow the Home Office to concentrate on economic migrants and their value to the United Kingdom”.

That is a point that I made earlier. The report goes on:

“We recommend that, for domestic policy purposes, overseas students should be recorded under a separate classification”—

we are moving, thank goodness, towards that—

“and”—

crucially—

“not be counted against the overall limit on net migration. That does not mean that we wish to hide the level of overseas students studying in the UK. The Government could make clear the distinction by publishing, alongside its net migration data, detailed information on the number of overseas students studying in the UK, their country of origin, the number who remain here after they have completed their studies and the number who remain in higher education”.

The committee then makes the following, terribly important point:

“Such an approach would make clear the difference between permanent immigration and study and crucially it would demonstrate clearly that the United Kingdom welcomes overseas students and values the contribution they make to our economy”.

I could not put it better myself. I stress again that such a change would bring our universities into line with the systems in our major competitor countries.

Yesterday, all five chairmen of the committees wrote to the Prime Minister on this point in view of his forthcoming visit to India, where the problem is most acute. I cannot recall an occasion on which the chairmen of five Commons and Lords committees have taken such action. I am sure that, on his visit, the Prime Minister will yet again powerfully and splendidly promote the cause of British exports. This change would be most timely and welcome in relation to one of Britain’s key export sectors.

At the Conservative Party conference in October 2011, the Prime Minister said:

“I want the best and brightest … scientists and students from around the world to get the red carpet treatment”.

I say amen to that. It is precisely what this change would do. My noble friend on the Front Bench has a deservedly high reputation in this House. I am sure that he will listen. I hope that, as a result of this debate, he will feel able to pursue both these points, on the UK Border Agency and on taking the migration statistics out of the target, with the relevant colleagues in government. If he can achieve progress on that front, it will be warmly welcomed by very many in this Chamber.

[Lord Lucas]

My Lords, may I point out that, on the mathematics of the speakers list that we have in front of us, we actually have three minutes each?