Global Migration and Mobility (EUC Report)

Lord Clement-Jones Excerpts

Thursday 6th June 2013 Lords Chamber

[Lord Clement-Jones]

My Lords, first, I declare an interest as a member of the council of University College London and, yes, I will join the queue. My main purpose today is to speak briefly on and commend the recommendations of the committee on international students, in particular the recommendation that international students should be removed from the public policy implications of the Government’s policy, as so widely known, of reducing net migration to the tens of thousands by 2015. We now know well that higher education students really are temporary migrants. Home Office evidence shows that of those students who entered in 2006, only 1% had settled permanently by 2011. It would give us all a great deal more confidence if the e-borders system was fully up and running and if the exit checks promised by 2015 were already in place. I hope that the Minister can confirm that we are at least on target for those exit checks to be in place by 2015.

Many noble Lords have, over the past few years, asked a great many Questions relevant to international students with the aim of removing students from the Government’s net migration target. We have had debates in both Houses. In a superb speech, the noble Lord, Lord MacGregor, mentioned the debate that took place in another place today. The noble Lord, Lord Hannay, referred to five Select Committee reports, including a report of the Home Affairs Select Committee in 2011. We have had letters from chancellors of universities to the Prime Minister last May. We had an open letter last July from senior business people as part of a major campaign by London First. However, disappointingly, we have seen little progress or change in the Government’s thinking on the issue.

I sincerely hope, although I am not optimistic in the light of the Government’s response, that the Home Secretary will finally sit up and take notice this time. As the committee states, if the Government genuinely support an increase in bona fide students from outside the EU, they should make that clearer and ensure that all policy instruments support that objective. The committee rightly states that the current policy creates the perception that overseas students are not welcome in the UK. From a recent education agent survey, we appear to be becoming a less attractive destination in which to study. From a briefing which several of us have received from Universities UK, there are worrying signs that some of the numbers from the Higher Education Statistics Agency, particularly for postgraduate courses, seem to show a decline in non-EU students.

As many noble Lords have mentioned, we have already seen a dramatic fall in the number of Indian students coming to study in Britain—24%. That may well spread to China, with which I am extremely familiar. The Government seem to believe that they will provide an inexhaustible supply of higher educational students, but, as my noble friends Lord Sharkey and Lady Brinton said, the recent survey demonstrates that there is a growing lack of confidence there as well.

I hope that the Government are not tempted to put all their eggs in a Chinese basket. At the least, it looks as though we are suffering a fall in market share. The committee rightly believes that such a policy harms both the quality of the UK’s higher education sector and its ability to compete in an increasingly competitive global market for international students.

Noble Lords have mentioned the competitors in this field. Canada and Australia, in particular, are making concerted efforts to increase their share of the international market and, as we know, Australia has lifted certain visa restrictions and introduced a much more generous post-study work option. All in all, the 300,000 overseas students represent more than 11% of our higher education numbers. There have been various estimates of their contribution to the UK economy, but none of them seems to go below £8.5 billion. The inclusion of these students as temporary migrants in the target is not only a risk to much-needed income from tuition fees for our universities but is threatening our eighth largest export market. The Government’s response is that they insist that they welcome international students; nevertheless, they state that they will continue to include them in their figures on the grounds that they “have historically included students”. That seems a somewhat circular argument.

The sub-committee also says, rightly, that current policies risk damaging the UK’s international reputation and influence in the longer term. Educational links are a vital part of so-called soft power, as a number of noble Lords have said. The UK is currently the second most popular destination globally for students. I strongly believe that the sub-committee is entirely right in supporting the exclusion of international students from the public policy implications of the Government’s policy of reducing net migration. They should be removed from the migration reduction target. I believe that the growth in overseas student numbers has already been much less than it would have been, were it not for the withdrawal of post-study work route visas.

The Government could still learn from their European counterparts on their approach to post-study working routes in order to retain the skills and knowledge that international graduates have gained in the UK. Holland, for example, operates two processes specifically designed to retain educated foreign graduates: a residence permit for the purpose of seeking employment after graduation, and a residence permit for recently graduated highly skilled migrants. The Government, and indeed the Minister, may think that we are all a bunch of Cassandras but may I remind my noble friend that her predictions came true?

Moving briefly on to tourism, improving the tourist visa application process is absolutely vital. My noble friend Lady Hamwee mentioned our position having moved from seventh to fifth in terms of our overall competitiveness, but set against that we have to look, as she said, at the fact that we have slipped from 22nd to 46th in the competitiveness of our visa requirements. A recent report by the UK Chinese Visa Alliance revealed that the vast majority of Chinese visitors to Europe are discouraged by needing to apply for two visas—one for the UK and one for the 26 Schengen countries—and that only one Chinese visitor in 10 applies for both visas.

This is estimated to cost the UK £1.2 billion in lost revenue. I think that figure is an underestimate but it is set to rise to £3.1 biIlion by 2020, when China is forecast to be the world’s largest outbound tourism market. While the Government have tentatively begun to look at measures to streamline the UK application process in isolation, the biggest improvement would be felt by working more closely with our European counterparts to encourage more Chinese visitors to include the UK on their European tour. In this context, I very strongly agree with my noble friend Lord Teverson on the absolute imperative to work closely on the administration of the visa process together with the Schengen countries. That would make a huge difference.

The Government must be clear that the UK still wants to attract genuine students, high-spending tourists and skilled workers. A refrain from many wishing to visit the UK is that they no longer feel welcome. The Government must change course if they are to avoid deterring many of those whom we should be welcoming.