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1709 Student Visas 6 JUNE 2013 Student Visas 1710 [Mr Bailey] In addressing what must be recognised as a hugely sensitive issue and a focus of public concern, the Government must have a student regime that does not deter bona fide international students and does not undermine our further education colleges, our universities or the wider economy. I recognise the efforts that the Prime Minister has made to visit India and China in particular to make it clear unequivocally that there is no cap on bona fide student applications. However, the Prime Minister has a credibility problem if, at the same time as he proclaims those things, students who wish to come to this country from abroad find that their dealings with the Home Office and the visa process completely contradict his public assertions. Steve McCabe (Birmingham, Selly Oak) (Lab): Does my hon. Friend find it slightly perplexing that we have seen a drop of about 40,000 a year in overseas student numbers, which suggests that the very people he wants to attract are being deterred, and that simultaneously we have seen a huge growth in temporary student visas—the very group that the independent inspector warned is most likely to include bogus students? Mr Bailey: My hon. Friend mentions an important point. I shall deal with that in some depth in a moment. Within the regulatory regime, the current problems are focused on the inflexibility of the tier 4 visa for undergraduate education. Over and above that and linked to it are the problems associated with the post-study work visa. There is no doubt that many international students who want an undergraduate education want to carry that on at postgraduate level in order to demonstrate the skills that they have acquired in local universities, the local public sector or sometimes local businesses. The majority deterrent to that within the existing visa structure is the high salary threshold, which precludes much postgraduate working in areas where salaries for graduates are lower or in professions where salaries for graduates are lower. Credibility interviews are the process that the Home Office is using to interview would-be international students in their home countries to establish the credibility of their claims to want higher education in this country. The feedback that I am getting time and again from universities is that that approach appears to be incoherent and inconsistent. Taken together with the change in regulations, it reinforces the perception abroad that Britain is no longer open to business. The fact that the Prime Minister needs to go to these countries and make these statements is a tacit admission that there is a real problem and a gap between the regulatory regime as stated by the Government and the perception of it abroad. Dame Joan Ruddock (Lewisham, Deptford) (Lab): I congratulate my hon. Friend on his speech. In London alone, tuition fees are paid by overseas students to the value of £870 million, so we have a tremendous gain from these students coming here. At my local colleges, Goldsmith’s and Trinity Laban, the student experience is vastly enhanced by the presence of foreign students. Mr Bailey: I thank my right hon. Friend for her intervention. I will elaborate on that point in a moment, and I am sure that Members representing other universities would seek to do so. We really need to sing about the fact that further and higher education in Britain is a success story. It is not just a way for people to fulfil their personal career ambitions or to develop themselves culturally and socially, important though that is; it is an industry that earns £8 billion in exports and contributes £14 billion, in all, to the British economy. In certain towns, particularly in more deprived regions, it is crucial in sustaining employment levels and economies. Four UK universities are in the world university top 10 rankings, and a very high percentage are in the top 200. It is not just about the contribution that international students make to the economies of the local areas in which universities are located. Increasingly, universities are working in collaboration with local businesses to ensure that the research and skills that they develop are harnessed for commercial purposes or with the public sector to assist in the local community. I have seen fantastic examples of that work up and down the country, and it is crucially underpinned by international students. Last year, 12% of the total student body comprised international students, 49% of whom enrolled in courses in engineering, maths and computer sciences—the very areas where there are serious skills shortages and the maximum economic dividend for our businesses. Any policy that restricts access into those areas will have, in the long term, profound implications for the capacity of our local businesses to grow the economy. Bob Stewart (Beckenham) (Con): I congratulate the hon. Gentleman on securing this debate from the Backbench Business Committee. He may well come to this point, but I would like to make it as well. Many people who come to this country to study get a very good impression of it. They get educated here and they experience our values and understand what we stand for. When they go back, they become a friend of this country in their own societies. That is terribly important for the future of our country and, indeed, their countries. Mr Bailey: I thank the hon. Gentleman for his intervention, although he has taken half my next point. Perhaps he made it considerably better than I would. Jeremy Corbyn (Islington North) (Lab): Will my hon. Friend give way? Mr Bailey: Very quickly, but I have already taken a lot of interventions. Jeremy Corbyn: I appreciate that, and I am grateful to my hon. Friend. He will be aware that I represent the constituency that includes London Metropolitan university. Although things have moved on a long way and some overseas students are now being recruited, will he express regret about how that university has been treated and the damage that was done to Britain’s international reputation by the Home Office’s handling of the situation? Mr Bailey: Whatever the case for taking action there, the way that it was handled has undoubtedly had considerable adverse repercussions abroad. Perhaps the case needs to be examined to see whether similar problems that may emerge in future can be dealt with in a less damaging way.
1711 Student Visas 6 JUNE 2013 Student Visas 1712 We have a superb industry and there is a huge and increasing global demand for its product. It is estimated that 4.1 million students are studying in different countries from their home countries and that that figure will rise to 7 million by 2020. We have top-class universities and an expanding market of people who want to come here, and we must capitalise on that. The Government have claimed that their visa policy is working because, according to the figures, there has been a marginal increase in the number of international students applying to come to British universities in the past year. In reality, there are considerable fluctuations, with an increase in numbers coming from China offsetting a huge fall of 25% in those coming from India. I have to say that Universities UK disputes some of these figures, but I do not want to get drawn into a debate between the Government and Universities UK. Everybody recognises that at a time when there is huge and growing demand, Britain is, at best, flatlining in terms of the number of recruits it is getting. In fact, Britain’s share of this expanding market has dropped from 10.8% to 9.9%. A shareholder of a company that had a fantastic product and an expanding market would not be very happy with its management if it were taking a declining share of that market. The crucial significance of that was highlighted by the hon. Member for Beckenham (Bob Stewart). It is not only about the immediate benefit but the long-term trading relationships that build up as a result. In the west midlands, we see that with the Tata brothers and their investment in Jaguar Land Rover, and with Lord Paul and his investment in schools and companies. There is a tremendous potential as regards the immeasurable contribution that will be made due to foreign students studying here. This comes at a time when universities are struggling for finance; they recognise that in these hard times they cannot be exempt. Recruitment of international students presents an opportunity for them to bring in extra money that unfortunately they cannot get from the Government because of the current financial problems. My local university, Wolverhampton, currently recruits 800 international students each year, but it estimates that with a fair and consistent visa process it could take another 500 a year from India and Sri Lanka alone. If they contribute £10,000 a year, which is a fairly minimal estimate, that would amount to £5 million more a year going into the local university and, above all, into the black country economy. I think that that situation would be reflected in other universities that I have spoken to. Earlier I mentioned the credibility test, which is undoubtedly one of the major problems. It is not only a regulatory problem but a process problem. One prospective Wolverhampton university student was rejected on the grounds that the amount of money he would spend in this country meant that he could get the same course at a domestic university in his own country. Imagine that happening in any other industry: if somebody told Jaguar, “You can’t export a Jaguar, because people can afford to buy one that’s made in their own country,” we would be up in arms and dancing in rage. In this case, however, nothing is said. Mr Virendra Sharma (Ealing, Southall) (Lab): Will my hon. Friend give way? Mr Bailey: Yes, I will take one more intervention. Mr Sharma: I thank my hon. Friend for giving way and congratulate him on securing this debate. On immigration policy and practices, I am sure that the caseloads of most MPs present will show that that kind of message deters genuine students from coming here. It means that the country loses finances and other resources as well as the individual student. Mr Bailey: I agree entirely. I have another example from Wolverhampton university. Six international students were refused visas even though they were sponsored by the Department for International Development. Moreover, when the Department wrote to the consulate, they were still rejected. If the Government cannot get their own people into the country through the Home Office system, what hope do so many young people from other countries have? In its reply to the Select Committee report, the Home Office argued that other countries include students in their net migration figures. There are variations from country to country and I do not want to get bogged down in that argument, but the crucial thing is that, whether they do that or not, they do not use the figures as the basis for their immigration policy. The Government’s target of reducing net migration to fewer than 100,000 can only be achieved by reducing numbers. The current drop to 157,000 has been achieved mainly by reducing numbers in the further education sector and by increased numbers going abroad. The Migration Advisory Committee calculates that to reach the target, non-EU student numbers need to be reduced by 87,000. That would be catastrophic to the finances of the FE and higher education sectors. In conclusion, a policy whose success relies on damaging a great export industry needs re-examination. This is an industry with a great brand, a huge demand for its product and incredible potential for boosting the economy, both locally and nationally, and it should be backed all the way. It is an industry that should be helped, not handicapped. The current visa regime, whatever the legitimacy of the broad objectives of the immigration policy, is not doing that. It is handicapping our universities. The answer is to change the policy and focus on the real immigration issues that are, I recognise, of great concern to the public. Several hon. Members rose— Mr Deputy Speaker (Mr Lindsay Hoyle): Order. Many Members want to speak, so may I gently suggest that they speak for up to 10 minutes? Unfortunately the opening speech lasted 23 minutes, so it has pushed us back. It was a very good speech—I am not knocking that—but I remind Members that we have to stick to the timetable because we need to fit in the Front Benchers as well. 1.13 pm Nadhim Zahawi (Stratford-on-Avon) (Con): I shall attempt to take less than 10 minutes, Mr Deputy Speaker. Ever since Erasmus came to study Greek at Cambridge 500 years ago, our universities have attracted the best and the brightest from around the world, but the world is changing. In the modern global marketplace, we have no God-given right to a competitive advantage in higher education. We have to fight for it.
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