Immigration Bill

Lord Hannay of Chiswick Excerpts

Monday 10th March 2014 Lords Chamber

Moved by

[Lord Hannay of Chiswick]

49: Before Clause 15, insert the following new Clause—
“Exemptions to Part 3
No restrictions on access to tenancies, bank accounts, driving licences or other services, or charges for services, under this Part shall apply to persons—(a) holding Tier 4 (General) visas sponsored by a recognised higher education institution, or(b) holding Tier 2 visa and registered in full time undergraduate or postgraduate study at a recognised higher education institution.”

[Lord Hannay of Chiswick (CB)]

My Lords, last week we had a useful debate about the negative impact of some aspects of the present Bill on overseas students, both undergraduates and postgraduates, wishing to come to this country. That debate took place on Amendment 26; today we are discussing Amendment 49.

Ministers can be in no doubt already of the depth of concern felt in all corners of the House about the damage being done by the cumulative effect of the Government’s immigration policy to what is, by common agreement, one of Britain’s most buoyant and valuable invisible exports, and of the strong desire that Ministers should think again before imposing any further charges or burdens on overseas students.

Last week we discussed the new appeals procedure; today we are considering what I would describe as the two most worrying aspects of the Bill so far as overseas students are concerned—the NHS charge and the provisions on accommodation. It is the aim of Amendment 49 to remove the threat to this very important part of our economy by, as it were, carving out full-time students from the application of those provisions.

I shall try not to weary the Committee with too much repetition of the general points and facts about the contribution of the higher education sector to our economy and the reasons for believing that it is already being harmed by the cumulative effect of the Government’s immigration policy, about which I have spoken—and that, I add, before any impact from the measures in the present Bill has taken effect.

I hope that the Minister can respond to this: what other British economic sector, bringing in more than £10 billion net a year and rising, is being put at risk by the Government’s own policies? Is there any other industry that we do that to? The latest statistics from the Higher Education Statistics Agency show that we are losing market share to our main competitors—to the US, Australia, Canada and, perhaps not too far in the future, to France and Germany, where more and more courses are being offered in English.

Let me cite one or two of the findings from a National Union of Students survey carried out in January this year on a sample of 3,000 overseas students already in this country; that is to say, people who will not be directly affected by the measures we are discussing today. Some 74% of them said that the proposed NHS charge would have made it more difficult or impossible for them to study in the UK, while 82% of those with dependants, who are mainly postgraduates paying much higher fees, of course, said that free access to the National Health Service was important to their choice to study here. Some 40% said that the introduction of landlord checks would have negatively impacted on their decision to study in the UK, and that figure rises to 51% in the case of PhD students. Those are pretty sobering findings.

When it is suggested that overseas students should surely in equity make some contribution to any welfare costs, it seems to be completely overlooked that such research as there is shows that the costs incurred are substantively outstripped by the benefits that these students bring to our economy. Unlike what I will call genuine economic migrants—people who come here looking for work—these people bring with them over £20,000 a year in cash which goes into our economy. They are creating employment both at our universities and in the towns and cities that host those universities, as research by the University of Sheffield shows. They often enable our universities to maintain a wider range of important subjects, such as engineering, science and mathematics, than would otherwise be the case. I do not imagine that anyone supposes that taxpayers’ money is going to be available to fill any gaps that might be caused by a shortfall in the number of overseas students who would otherwise be attracted by the excellence of our academic establishments.

I hope that I and others who are to speak to this amendment will have demonstrated why removing full-time undergraduate and postgraduate students from the scope of these measures, as Amendment 49 proposes, is not just a piece of special pleading but justified as a rational analysis of our national interest. I beg to move.

[Baroness Williams of Crosby (LD)]

My Lords, my name is attached, along with others, to the amendment moved by the noble Lord, Lord Hannay. I will speak briefly to make one or two points that perhaps are not so widely part of this debate, because, as I have rung up acquaintances of mine in universities—I know quite a few, having been an Education Minister—I have become more aware of the depth of the challenge to our university and higher education system and, at one remove, of the depth of the challenge to the front wave of our economy in terms of its dependence on innovation and invention. I will not detain the Committee for long, but I believe that what I am saying, although supplementary to what has already been said by the noble Lord, Lord Hannay, deserves a great deal of thought.

Let me begin by saying that what has attracted students from overseas to this country has been not only the English language and the excellence of our universities, but also a deep sense of our being an old and stable democracy. People have a sense of freedom of expression in this country, along with freedom of intellectual discussion and debate. There is no doubt that, rather surprisingly, in the fields of science and technological research, this country has continued to be a magnet for students from all over the world in a way that one would not really expect for a country of our size and one that is not in the very first rank of economies, like the United States at the present time. It is very important that the context of what attracts overseas students to this country is something that we maintain. In particular it means our marked ability to tolerate different points of view, and to tolerate people of different races, nationalities and languages. That has been a hallmark of studying in this country.

Anyone who reads the history of the United Kingdom will be more than aware that on three occasions we have benefited vastly from immigration. The first occasion was the immigration of German Jews in the 1930s, who brought with them an extraordinary level of understanding and knowledge of medicine and science, including a number of very distinguished Nobel laureates. The second great wave was immigration from the Caribbean in the 1960s without which, quite frankly, we would not have a working National Health Service today because of the huge contribution they have made to staffing that public service. The third wave, more recently, was of immigrants from Asia and east African refugees who came here in the 1970s and gave a tremendous boost to our commerce, business and research.

However, it is not the case that the concerns being expressed here are those only of overseas students, although I echo completely what the noble Lord, Lord Hannay, said about the very disturbing information from the National Union of Students. He mentioned the fact that more than 50% of undergraduate students said that they would think hard before coming to us again. Perhaps even more significant and important is that no fewer than 66% of postgraduate students—half of our overseas students are postgraduates—said exactly the same thing. In light of the changes being made—the increase in visa fees, the health surcharge and all the rest of it, these students would think hard before coming here again. Let me say in passing that we do not seem to recognise our extraordinary dependence on these postgraduate students. I can give an example. Time after time we have recruited doctors from the Indian subcontinent to sustain our health service. A great bulk of them have been postgraduate students who came from India to study in the United Kingdom and then went on to work as postgraduates, and in some cases decided to become citizens of this country and continue to sustain the NHS.

I would add to that that there are people of great significance and wisdom who would associate themselves powerfully with the view that the discouragement of overseas students has a devastating effect on our economy, in particular the science and engineering sectors. I shall quote two of them. The first example is a quotation from the CBI which has said in a public statement:

“Despite the government’s assurances to the contrary, many businesses fear that complex recent work permit and visa reforms have created a perception that Britain isn’t open for business”.

That is often treated as something that is said by those who come from outside this country, but no, it is something that has been said officially by the CBI, the leading organisation representing industry in the UK. The second example comes from the president of the Royal Society, Sir Paul Nurse, who is a very great scientist indeed. Time and again he has pleaded with Governments to give a more generous reception to overseas students. I shall quote his words:

“The rhetoric from the Home Office, combined with the complexity involved with immigration rules and visas, has led to a perception internationally that the UK is not particularly welcoming”.

I have given these examples because no one can pretend that these are partisan statements made for political ends. They are statements by distinguished people who believe that what they are saying should be a warning for the rest of us.

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[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.

--- Later in debate ---

[Lord Taylor of Holbeach]

I think that the noble and learned Lord will understand that I suggest both. The graduate course has been a success—we are increasing the numbers of students who are staying on for postgraduate work—and the business entrepreneur course is equally successful. There will be some, but there is unfortunately still some evidence that the tier 4 student migration group—it is a special route; it is not the same as everything else; students are treated as a special case—is being misused in some cases. That is why it is important that we have checks in place to make sure that that does not occur.

My noble friend Lady Williams suggested that the exceptional talent route has dismally failed. We do not accept that. We recognise that the number of visas that are taken up under that is low, but it was always thought that that would be the case. However, we are working with all the competent bodies—the Royal Society, the Royal Academy of Engineering, the British Academy and the Arts Council—to improve the process so that the visa process payment will not be paid until the competent body has endorsed the application. We are working with these bodies to ensure that the scheme is a success.

In answer to my noble friend Lady Benjamin, it is not the case that international students are unable to stay on and work. The post-study work route, which was much abused, which allowed all students to stay on and look for work, has been replaced by the graduate level job scheme, and we have made a success of that.

The noble Lord, Lord Stevenson, asked whether the cost of the surcharge in relation to the cost of studying was competitive with other countries. Yes, it was addressed in our published impact assessment, where the noble Lord will find the answers to a number of the questions he asked. However, I will make a point of writing to him with a full answer to all the various questions, some of which lie outside the Home Office’s own immediate area of engagement.

I understand that people want to make sure that the Government do not do anything that damages the reputation of this country as a centre of intellectual and academic excellence. I accept that. Speaking as a member of the Government, I remind noble Lords that we have a responsibility to seek to control immigration. All the measures in the Bill are about methods of making sure that people who are in this country are here legally.

There is no difference between us on the benefits that overseas students bring to this country. That is why there is no limit on numbers, and why I will continue to seek to reassure noble Lords on the Bill. I hope that we will have a chance to discuss it before we come back to this issue on Report. Meanwhile, I hope that the noble Lord, Lord Hannay, will withdraw his amendment.

[Lord Hannay of Chiswick]

My Lords, I thank all noble Lords who participated in a very impressive debate. I thank in particular my three co-sponsors of this amendment, the noble Baronesses, Lady Williams and Lady Warwick, and the noble Lord, Lord Tugendhat, who so eloquently set out the case which I tried to introduce. There were many other remarkable contributions to this debate, so I will not try to pick out any others.

In a previous debate on this subject—we are getting quite used to having debates on this particular subject—I likened the Minister to St Sebastian, filled with arrows but still smiling. The best pictures of St Sebastian always show him smiling despite the number of arrows that have gone through him. The Minister always handles this with great good temper. I was very pleased on this occasion that he had one supporter, as that removed the sense that we were indulging in an unfair debate.

I hope that we can stop having a war of statistics. The Minister came back again to the point about the UN figures. No one is contesting that the Government will continue to submit to the UN figures in the way that the UN has asked for—that is to say, all people who stay for a year or more. But there is not the slightest difficulty about disaggregating those figures and putting them together again before sending them into the UN. If the Government wanted to, they could leave students out of this Bill completely but, at the same time, continue to make the same returns. I hope that we do not have to come back to that. I think that the war on statistics has gone about as far as it can go. Frankly, citing several times the enormous enthusiasm for Indian students to come to this country sits a little oddly alongside a 49% drop in the past two years. If that is enthusiasm, I do not think we can afford many more victories like that.