Student Visas

Richard Bacon Excerpts

Thursday 6th June 2013 Commons Chamber

[Paul Blomfield]

I am not sure that I will make a habit of it. We made the point then and we make it again today that there is much cross-party unity on this issue. The fact that the motion has been sponsored by Members from all three main parties is a sign of that. From my discussions with Government Members, I am sure that, were they not tied by the responsibilities of office, many more of them would be joining us in support of the motion.

The case that we are making today was perhaps most powerfully put in an article in the Financial Times in May 2012 under the headline, “Foreign students are key to UK prosperity”. The author wrote:

“Britain’s universities are a globally competitive export sector and well-placed to make a greater contribution to growth. With economic growth at a premium, the UK should be wary of artificially hobbling it.”

The article continued:

“Now that the government has clamped down on the problem of bogus colleges”—

from my perspective, the last Government did that too—

“there is scope to take legitimate students out of the annual migration targets… Indeed, that is what our main competitors in the global student market already do.”

I do not disagree with a word in the entire article and I do not think that any of my hon. Friends would. Who was the author? It was the hon. Member for Orpington (Joseph Johnson), who is now head of the No. 10 policy unit. I quote from that article not to score a debating point, but to demonstrate the breadth of support for the motion.

At the outset of the debate, it is worth emphasising that international students are important not just because of their financial contribution, but because they add to the intellectual vitality of our campuses; they are vital to the viability of many courses, particularly in the STEM subjects of science, technology, engineering and maths; they contribute to the cutting-edge research that gives the UK a unique edge in international markets; and they give UK students the chance to learn alongside people from every other major country, which is extraordinarily good preparation for the transnational environment in which our graduates will work. As has been pointed out, international students form relationships and a fondness for this country that will win us contracts and influence as they become leaders back home.

Those are huge advantages for Britain, but let us put them to one side and look at the hard-nosed economic case. International students bring £8 billion into the UK economy each year. Higher education is a major industry and a major export earner. Some people ask, “What about the costs?” Indeed, the Minister made that point on the all-party parliamentary university group at one point. I discussed it with the university of Sheffield, which said, “Fair point. We ought to look at that”, and it commissioned Oxford Economics to undertake the first ever independent cost-benefit analysis of the contribution of international students. As an independent study I expected it to be quite rigorous, although I did not realise how rigorous. Oxford Economics did not just look at health, education and use of public services; it went to the nth degree and looked at traffic congestion and every conceivable indirect cost. It concluded that the annual net benefit to our city’s economy is £120 million. That is worth about 6,000 much-needed jobs in the city, not just in universities but in restaurants, shops, transport, construction and more besides.

The Government have damaged our ability to recruit by including international students in net migration targets. That is not a statistical argument but a fundamental point because in doing so, they have put international students at the heart of the immigration debate. It is no good saying, as the Minister might later and the Home Office did this week in its response to the report by the Business, Innovation and Skills Committee, that there is no cap on student numbers—[Interruption.] The Minister says from a sedentary position that there is not, but if the Government have a target for reducing immigration and they include international students in that, such a policy leads them to celebrate cutting the number of international students coming to the UK. Indeed, the Minister did just that a couple of weeks ago when the fall in net migration was announced by celebrating the drop in numbers of 56,000 international students year on year.

The Minister will point out that within those figures the number of university visas rose slightly while the real fall was in private college and further education student numbers, but that in itself should be a cause for worry not celebration. Not only are those students valuable in themselves, those courses are pathways into higher education and a fall in numbers is an indication of the problems we are storing up for the future. Conservative estimates suggest that some 40% of students going to universities in the UK go through those routes, and we should worry about that future impact.

On other occasions, the Government have argued that numbers are holding up, but as my hon. Friend the Member for West Bromwich West (Mr Bailey) clearly pointed out, holding up is not good enough. We do not want to stand still in a growing market, which the Department for Business, Innovation and Skills recognised will double by 2025. That is another £8 billion in export earnings for the UK and another 6,000 jobs in Sheffield, yet the Home Office is frustrating that ambition.

The hon. Member for Stratford-on-Avon (Nadhim Zahawi) mentioned Brazil—one of the fastest growing economies in the world. Under their Science Without Borders programme, the Brazilian Government are spending $2 billion over four years on sending 100,000 of their brightest young people to study abroad at undergraduate and postgraduate level. They want them to go to the best universities in the world, and those are in the UK.

A group of 2,143 Brazilian students who wanted to come to the UK have been prevented by inflexible visa rules. They are high-achieving students who wanted to study undergraduate STEM courses, but they needed to improve their English before starting. Current rules prevent them from staying in the UK after completing an English language course, and they would have had to return to Brazil and reapply for a new visa before starting their courses. As a result of those rules and the Home Office’s refusal to change them, 1,100 of those students are now going to the US and 600 to Australia, where they are welcome to study English and stay on for their degree course. Of the original 2,143 students, only 43 are applying to come to the UK this September. The value to the country of that cohort was £66 million. That has been lost because of Home Office inflexibility, and with it, considerable good will.

[Mr Richard Bacon (South Norfolk) (Con)]

I am listening with great interest to the hon. Gentleman and I commend him for his work with my hon. Friend the Member for Stratford-on-Avon (Nadhim Zahawi). He reminds me of a story in the Financial Times which, when describing the stupidity of the Home Office stated:

“If the Home Office were a horse it would have been shot by now.”

Despite the fact that the Home Office has been split up into an interior ministry and the Ministry of Justice, it still evinces extraordinary stupidity. Does the hon. Gentleman agree that one of the most extraordinary aspects of that stupidity is that the STEM subjects, which this country needs so badly, in many universities across the country can be sustained in sufficient numbers only if we include foreign students?

[Paul Blomfield]

I absolutely agree with that point, which I raised earlier in passing. I commend the hon. Gentleman on initiating an Adjournment debate some time ago. I know he feels passionately about this subject, as many of us do.

To allow other hon. Members to contribute, I will draw my remarks to a close by making a couple of points. Including students in net migration targets distorts the policy debate on immigration and focuses on the migration that concerns nobody. More importantly, as has been said, it damages the opportunity for growth in one of our most important and successful industries. Five Select Committees of both Houses are agreed on the issue, and as we debate the matter, those in the other place are also considering it when discussing a report by one of its Select Committees. This is too important for the Home Office to dig its heels in, and I suspect that in his heart the Minister knows that. I urge him to go away from today’s debate, look again at the inclusion of students in our net migration targets, and send a clear message to the world that it is not just about what we say but about what we do, and that we are open for business.