Scotland: Demography and Devolution

Debate between Pete Wishart and Natalie McGarry

Thursday 9th March 2017 Westminster Hall

[Pete Wishart]

That is exactly what we found in the course of our inquiry. One of the report’s recommendations was that the Government reconsider their approach and attitude to the post-study work scheme offer. That would address the issues that my hon. Friend raises, but to me the problem is much more fundamental. It is beyond absurd that we attract all those talented young people to Scotland with the quality of our world-class universities and train and educate them to a high standard simply to watch them sail away, when we need those people to help grow and contribute to our community.

[Natalie McGarry (Glasgow East) (Ind)]

I wish the hon. Gentleman a happy birthday and congratulate him on securing this debate. He is making an important point. One of the few issues that unites political parties in Scotland is the need to reintroduce the post-study work visa. Does he share my concern about the 80% drop in non-EU students remaining in the UK after graduation since the scrapping of that vital scheme? We must continue to press the Government to stop the brain drain of global talent from Scotland.

[Pete Wishart]

The hon. Lady is absolutely spot on. I wish we could do more to convince this Government that they need to reconsider and help us to ensure that we keep those talented people. Our statistics show that we require these people to remain in Scotland; they are welcome in Scotland, but there has been absolutely nothing from the Government in response. They have run some pilots on a post-study work visa scheme, but none of them in Scotland. We saw in the Government’s response why Scotland was not included. All of that is totally unsatisfactory. It is one thing that this Government can do that is straightforward, simple and easy to administer. Give us a break; give us a chance. Do something to help us address one of the pressing issues facing our community. We want it, we are ready to do it, the universities want it and it is in the gift of the Government to make that simple little change to help our higher education sector.

The Government say in their response that Scotland should use its range of devolved powers to attract immigrants, and they highlight powers that we could use to achieve it, talking about things such as health and education. I remember the former Chief Secretary to the Treasury sitting across from us in Committee and telling us that the one thing we could use to attract immigrants to Scotland was our planning powers. That was the sum total of what we had at our disposal. How we are supposed to attract immigrants without the levers of immigration powers is totally beyond me.

What I am hearing from the Government—it is a strange proposal and a sustained one, too, because we hear it practically every day—is that apparently Scotland’s offer for immigrants has been diminished because we now have powers over income tax. Somehow, we are disincentivising people because we have a differential rate of income tax in Scotland. I do not know about you, Mr McCabe, but I do not imagine potential immigrants in town squares in Krakow and Budapest being put off coming to Scotland because the higher rate of income tax kicks in at £40,000 instead of £43,000. I suspect that that would be the last thing on their minds.