Immigration Bill

Lord Patel Excerpts

Monday 10th March 2014 Lords Chamber

I will concentrate my activities on this Bill on students because I believe that this is the part of the Bill that is most defective. I urge noble Lords in all parts of the House, whatever their political affiliation, to support the plea made by the noble Lord, Lord Hannay, and so admirably followed up by my noble friend Lady Williams and the noble Baroness, Lady Warwick. I sincerely hope it will not be necessary for the House ever to divide on this issue because I hope the Government will recognise the powerful good sense of the arguments that have been advanced and which I am trying, in a gentle and modest way, to reinforce and support.

[Lord Patel (CB)]

My Lords, I strongly support the amendment moved by the noble Lord, Lord Hannay, which seeks to remove tier 2 and tier 4 students from the Bill in all its aspects. I will speak also to my own Amendment 57, which relates specifically to the health charges for tier 2 and tier 4 students. Before I do that, I will just comment on the unintended consequences of some of the Bill’s provisions.

Let us take the evidence that students will have to produce of their bona fide tier 2 or tier 4 visas. I came to this country as an east African Asian schoolboy in the late 1950s, to do A-levels before entering university. I did them at a school in Harrow—not the public school. That is not the point. The point is I went to look for accommodation, which I eventually found, and I still remember the address: 38 Priory Road NW6, near Kilburn. The adverts for rooms in the newspapers that I looked at would either say “No blacks” or they would say nothing. So you went to addresses whose adverts did not say, “No blacks”—what was the point of going to a place that did? Sometimes the door would open and shut in your face, with a response, “Sorry, the room has gone”, before they even asked whether you had gone there for a room. There will be unintended consequences of having to provide proof for non-EU students. Later I found out why there were five east African Asians and one non-east African Asian—there were six of us—staying at that address. It was because we were paying a higher rent. The landlord—whom I would not name, but I do remember his name—knew that we were no trouble. We were no trouble because we had no money anyway. We were law-abiding, decent young people—I hope. But that is exactly what will happen: those landlords who are willing to take non-EU students will charge higher rents. That will be the unintended consequence of the clause in this Bill relating to renting.

That is one good reason why I would favour a carte blanche removal of students from this legislation. I declare an interest: I am the chancellor of the University of Dundee. With our strength in life sciences and being the second university in Dundee with strength in computer sciences, we have a large number of non-EU students. A tier 2 student’s perception of a health levy would be that this was just another example of unfriendliness in the United Kingdom. They would already have paid a lot of money for visas, for English language tests and sometimes for interviews, and they will now have to pay more. Is there an evidence base to suggest that students access the NHS disproportionately? There is no evidence, from general practice, from A&E departments or from specialist hospitals, that students disproportionately access healthcare—quite the reverse. In my case, the students that we used to see were the girls who came to contraceptive clinics, but, most of the time, even my wife, who did general practice, did not see students particularly. So there is no evidence that students disproportionately access the NHS.

It has already been said that there are huge net economic gains to be had from having students in this country—of several billion pounds. A study carried out by Oxford Economics showed that students in Sheffield contributed £120 million to the local economy. Let us remember that they pay for housing; they pay for their travel; they pay for everyday living costs; and they also pay indirect taxes because they buy stuff on which they have to pay VAT. There is no economic loss associated with our having international students. However, the likely impact of a perception—it might be a perception but perception becomes a reality—is a decline in the number of overseas students, particularly in STEM subjects and in those related to medicine where at one time there were large numbers. Figures that I have been quoted show that the total number of visa applications fell from 313,000 in 2009-10 to 207,000 in 2012-13. Forty per cent of our students come to university through pathway providers, which are mainly independent schools. They have seen a decline of 21% and we are likely to see a further decline in total numbers as a result of these pathway students not coming to university. All in all, including international students in the provisions of this Bill will have a greater detrimental effect on universities.

It was interesting to read in evidence given to the Science and Technology Committee inquiry on STEM subjects by Philip Lockett of London South Bank University, Ian Bradley of Manchester University and Daniel Stevens of the NUS—noble Lords can read the transcript—that they felt that an NHS levy and charges would deter students coming to the UK, even though such a levy might be only £150. Tier 2 students—the postgraduate and research students—are among the most valuable students that you can have. From them, you pick out the brightest and the best, and you keep them here because they will contribute to our university strength. They felt that the levy and other difficulties that the Bill would pose for them in finding accommodation et cetera would deter them from coming here. In a survey of 3,100 students, 83% of PhD students felt that the levy would have a detrimental effect; 82% of those who had dependants said that it would have a detrimental effect—let us remember that the levy is on top of the visa cost for dependants that is going up by 50%. All these costs quite rightly add to their perception that we do not welcome non-EU international students. I know that we have had that debate and that it is not the intention of the Government, but the perception needs to be addressed.

[Lord Phillips of Sudbury (LD)]

My Lords, I had a communication this very morning from the University of Essex, from which I stood down as chancellor at Christmas after more than 10 years, which drew my attention to the fact that the Times of India newspaper recently had a headline stating, “Indian students feel unwelcome in Britain”. Other noble Lords have mentioned that. Indeed, the speeches we have had do not leave a great deal in need of saying, but I want to emphasise a couple of things.

The University of Essex, apart from the London School of Economics, has the greatest proportion of overseas students of any university in the United Kingdom. Happily, I may say that undergraduate applications for this year, coming in the autumn, have declined by only 1%, although it is notable that the decline in applications from China and India is 16%, which has all sorts of significances of which I am sure the Committee is aware and on which I shall not enlarge.

What I want to emphasise—and the noble Lord in moving the amendment touched on it very effectively—are the non-economic aspects of a university education in this country. I think that many here now would agree that our universities and the opportunity that they provide to students from every corner of the globe are a jewel in our national crown. It is quite extraordinary that we are, almost inadvertently, undertaking a series of changes that lead to the consequences which other noble Lords have emphasised in terms of the dropping-off of applications to come here and so on. The non-economic consequences of having overseas students at our universities can be underestimated. Some talk of it as “soft power”. I understand the force of the phrase, but I am more keen, if one is allowed to be in this age, on the personal ties and relationships that are formed by having a large body of overseas students among our students here, whether undergraduate or postgraduate. Those personal ties, loyalties and affections work miracles after they go away from their university, miracles in all aspects of human life: cultural and economic, of course, as well as personal, societal—you name it. I think that all of us would agree that the most valuable thing that we ever take from a university is our relationships and the extraordinary broadening of our understanding of the lives of other people in other continents that comes from a close, lifelong relationship with someone you have met at university or some number you have met. I am lucky enough to have a number of lifelong friends who came from other countries. What you get from that and they from you cannot be put in terms of pounds, shillings and pence and is of infinite value in a world wracked with problems and tensions. This country cannot with any semblance of common sense do anything to damage in any way that jewel in our crown at a time when the whole wide world is competing for students. Everybody wants foreign students. Every country in the world is expanding its student base at huge rates—China and India are two exemplars.

--- Later in debate ---

[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.