Immigration

Debate between Lord Stevenson of Balmacara and Lord Taylor of Holbeach

Monday 12th May 2014 Lords Chamber

[Lord Taylor of Holbeach]

Yes, my Lords. As my noble friend will know, institutions which were guilty of that practice are no longer able to sponsor students. I accept that universities are acting in good faith in conducting their responsibilities in this regard. All I am saying is that the Government’s position is that we want to back them in making sure that we tell the world what a good offer we have in this country for students.

[Lord Stevenson of Balmacara (Lab)]

Is not the problem that the Department for Business, Innovation and Skills is actively trying to make sure that many students come here but the Home Office is doing its best to make sure that they do not get in? This has been exemplified by the warm words said by the Minister today, which are simply not believed in many of the places that traditionally have sent students here. What is he going to do to go on the front foot and get out there and persuade people that Britain is indeed open for business and that our education system is something that they should be joining?

[Lord Taylor of Holbeach]

I do not think that the noble Lord would have any doubts as to my good faith in this matter, and I am sure that that is true of most noble Lords because it is not the first time that we have discussed this issue. Indeed, it has been a theme over the past 12 months since the committee reported to the House. I am anxious to join noble Lords who have responsibility within universities in making it clear that the Home Office policy is not about making it difficult for these people to be here; it is about facilitating their studies and encouraging them to do so. As the noble Lord will know, during the passage of the Immigration Bill through this House we debated this very issue and I said that I hoped to meet Universities UK to talk about it, and that remains my intention.

Immigration Bill

Debate between Lord Stevenson of Balmacara and Lord Taylor of Holbeach

Monday 10th March 2014 Lords Chamber

[Lord Stevenson of Balmacara (Lab)]

What an excellent debate this has been, my Lords. I have counted 16 speakers on one side, and one on the other. I congratulate the noble Lord, Lord Bourne, on putting his head above the parapet. Although I think he picked up some of the arguments, I did not think his heart was entirely in it, but he put up a brave show. There was lots of vigorous nodding on the Front Bench, but all to no avail.

This amendment seeks to exempt bona fide overseas students from the provisions relating primarily to housing and health charges because I do not think, despite the fact that the amendment says so, that bona fide students are caught by the measures on bank accounts and driving licences, but I would be grateful if the Minister would confirm that when he responds.

This amendment has received considerable support from around the House. We should not really be surprised at that. I took part in a debate about nine months ago that was led by the noble Lord, Lord MacGregor, whose committee had reported on just this point. That debate was again virtually unanimous in recommending that the Government’s then policies should be reviewed carefully to ensure that they supported the arrival and proper education of students from overseas, but here we are.

There seem to be two main thrusts to the arguments which have been made by noble Lords today: first, that this series of measures is one of a number of hurdles and burdens that, taken together, represent an attack on our universities, making it more difficult for students from overseas to study here and thereby endangering one of our most successful exports; and secondly, that the measures are unworkable, possibly discriminatory and overly bureaucratic, will not achieve what they set out to do and should be withdrawn. We have a great deal of sympathy with both those arguments, and we will be listening carefully to what the Minister has to say on the questions that have been raised this afternoon, and I am certain that we will be returning to this matter on Report.

At Second Reading, I referred to the recent BIS publication International Education: Global Growth and Prosperity. Its introduction states:

“There are few sectors of the UK economy with the capacity to grow and generate export earnings as impressive as education”.

It goes on:

“Overseas students who come to Britain to study make a huge contribution to our economy”.

As we have heard, the most recent estimates are that overseas students paid about £10.2 billion net in tuition fees and living expenses in the UK. They boost the local economy where they study as well as enhancing our cultural life and broadening the educational experience of the UK students they study alongside.

This BIS report makes it clear that attracting international students is not an easy matter and that we have many competitors. If the numbers of international students in higher education is to stay as it is or even to grow, there are a number of things we must do right. The report picks out that,

“we must show that the UK values international students, will provide a warm welcome and support while they are here and will keep in touch after they go home".

The questions for the Minister when he comes to reply are, first, whether the measures proposed in the Bill support the assertion made by the Government that the UK is open for international students and that they are welcome to come here; and secondly whether the measures in this Bill help, not hinder, both that general supposition and the reality faced by overseas students in gaining a visa and making a success of their studies here.

There are a number of other questions that I hope the Minister will respond to. He has a good record, not of answering across the Dispatch Box, but at least in writing to us, and I hope he will pick up the various points that have been made. As I was listening, the questions that struck me included: has the department an assessment of the continuing viability of certain STEM courses in particular, of courses offered in higher education in general, and of certain institutions as a result of the decline in student numbers that we think will happen if these measures are introduced? This was spoken to very positively by the noble Baroness, Lady Williams, and others. The noble Lord, Lord Cormack, wanted to know more about the impact on soft power. Have the Government made an assessment of the reduction of soft power as a result of these measures? Has the Minister talked to the CBI about its call for changes in the way in which the visa arrangements operate for various important aspects of supporting the economy? Has the department made an assessment of competitor countries, such as Canada and Australia, and their measures for supporting overseas students? If it has done that, will the Minister put a copy of the evidence in the Library so that we can look at it, because it would make interesting reading? What assessment has the department made of the point made by the noble Lord, Lord Phillips, about personal contact? That is something that we all have experience of and recognise. He said that we cannot measure it in economic terms, and he may be right, but I think you probably could value it. It is certainly important in terms of the world that we live in.

In the commentary circulated after Second Reading, the Minister did not really engage with the issues that have been raised this afternoon. He wafted away rather airily some of the points made by several speakers and did not feel that the discouragement of international students would affect the way they choose the UK, although we have heard differently today. I think the view around the Committee is that these additional procedures and costs will create the impression that it is harder to secure a visa to study in the UK than it is in other countries. Even if that is not the case, it will add significantly to the up-front visa cost compared to our competitors. What evidence is there that the Home Office recognises the risks it is taking in relation to our competitiveness in this market?

On the detailed points, residential accommodation has attracted the most attention. There is no suggestion from what we have read from the Government that they have any interest in how this system must look to prospective students. As we have heard, international students already face difficulties in securing accommodation and are often made to pay large fees and advance rent payments. As the noble Lord, Lord Patel, reminded us, this Bill may result in landlords refusing even to consider international students as tenants or charging higher rents or additional fees to cover the extra hassle and administration costs. Does the Minister not agree that this clause could cause considerable anxiety and could add to the perception that the UK is unwelcoming?

In the Minister’s commentary, he said:

“I do not think the measures would discourage private landlords from letting to international students”,

because,

“landlords in our university towns and cities are familiar with their clientele and know that they represent a sound and stable choice of tenant for their properties, in the main for at least an academic year if not longer”.

So that is okay then. To his credit, the Minister conceded in his commentary that certain categories of student accommodation would be exempted from the landlord’s provisions and said,

“we will look closely at the rationale for doing so when we consider this in Committee”.

I look forward to his further thoughts on this important point this evening.

Some noble Lords raised the position of international students who need to arrange accommodation in advance of their arrival. In the commentary, the Minister said:

“The Government intends to make regulations under the Bill which will provide for overseas students to be able to arrange accommodation in advance of taking up their studies in the UK, and for such tenancies to be entered into conditional on the production of the relevant visa or residence permit when the student arrives and takes up residence”.

It would be useful if we can have further information on that because it is clearly a very important point.

Given that overseas students with the requisite visa are often offered accommodation owned or administered by the university which is offering them a place, why does the Bill not recognise this and simply exempt all such university-provided accommodation, including the currently exempted halls of residence?

A number of noble Lords expressed concerns about the proposed introduction of the NHS charges. The main argument seems to be that international students and staff already make a significant contribution to the UK economy. International students bring in over £10 billion a year, while international academic staff pay taxes and national insurance while they are here.

The Government’s plans are for a health surcharge for access to NHS services of about £200 in general and £150 a year for students. As the noble Earl, Lord Howe, said in his letter to all noble Lords, over a working life, the payment of taxes and NI contributions usually provides a contribution to the NHS but new arrivals have not yet done so, and are not likely to be able to build up the long-term commitment and contribution that those permanently settled here have made. We do not object to the principle, since it is legitimate for those who are coming to partake in the system to make a contribution, particularly when the NHS is under pressure, but it is legitimate to press the Minister on whether a one-off cost, payable in full at the time that the visa is obtained, is actually in the best interests of our commitment to overseas students. That is the question.

A couple of other questions were raised during the debate, and I shall mention them for completeness. Has the department done any research to test whether this new system will discourage undergraduate and postgraduate applications and, if it has, will the Minister place a copy in the Library so that we can look at it? As the noble and learned Lord, Lord Hope, said, given that the Bill deals mainly with illegal immigrants, not those with leave to be present, why is Clause 33 really necessary? The point here is that the students are already covered by the visa application. Surely that can be considered sufficient on this point. Can the Minister when he responds, or separately in writing, give us the argument for the £50 discount on students? It is £200 for most people but £150 for students. If there are reasons for that, I would be interested to know what the economic argument would be, given the disproportionate use that is made of the NHS by students. Fifty pounds seems an odd figure to have chosen.

Fees, charges and living costs already make the UK a relatively expensive destination for study. As others have said, the Government cannot on the one hand impose new procedures and costs for prospective overseas students and on the other blandly claim that we are “open for business”. As the noble Lord, Lord Tugendhat, said, it would be wrong to think of this amendment as special pleading for the students. This is actually about our standing in the world, our history and our culture, and about our economy going forward.

Taken as a whole, the requirements for students who wish to study in the UK are in many cases much more stringent than in our competitor countries, particularly when you take into account language requirements, academic progression, limits on study time, the ability to bring in dependants and police registration. These new challenges will have an effect. Do the additional cost and hassle, and the impression that we are tightening up, justify the risk? Perceptions, as the noble Lord, Lord Cormack, reminded us, are important in this matter. Are we, as the noble Baroness, Lady Williams, said, killing the golden goose?

I look forward to hearing the Minister’s response. However, like the noble Lord, Lord Hannay, I believe that we will need to return to this issue on Report.

[Lord Taylor of Holbeach]

Well, my Lords, this subject certainly engenders good and powerful debates. If arguments are repeated, perhaps noble Lords feel that they are worth repeating. I have to repeat my arguments. I am afraid that the Government cannot accept the amendment, but perhaps I can help noble Lords by telling them why that is, and why we feel that, despite our policy of welcoming the brightest and the best with no limit on numbers, students are an important part of any strategy which deals with immigration.

I start with that strategy. The noble Baroness, Lady Warwick of Undercliffe, challenged me on the whole business of net migration. Reaching the tens of thousands remains the Government’s objective. We chose a net migration target because we want to control immigration due to its effects on social cohesion, infrastructure and public services. These arguments are frequently discussed in other areas, but they form the background to why this legislation has come forward. Jobs and wages are affected by migration but, when it comes to students, there is no cap on numbers—I repeat, no cap on numbers—of genuine students who want to come here. They are welcome. Those who have the right qualifications, sufficient funds to cover their fees and maintenance costs and a good level of English can study here, and there is no limit on numbers. Our reforms, to tackle the widespread abuse that was occurring in the system we inherited, have favoured our world-class universities.

Those reforms are working. The number of issued student visas has dropped by around 27% from the high in 2009, while visa applications from university students were up 7% in the year ending December 2013 and applications from students going to Russell group universities were up by 11%. Higher education statistics show that numbers of international students in our universities held steady in 2012-13, with a small decline of 1%—but numbers of UK and EU students have fallen by more than that. It is true that there has been a decline in the number of Indian students at our universities, but this followed a period of soaring numbers and, by contrast, there has been strong growth in numbers of students from China, Malaysia and Hong Kong in 2012-13.

Leveson Inquiry

Debate between Lord Stevenson of Balmacara and Lord Taylor of Holbeach

Friday 11th January 2013 Lords Chamber

[Lord Stevenson of Balmacara]

It would be helpful for the House if, in closing, the Minister could sketch out the timescale for these debates. I appreciate that it is not entirely in his hands and that other factors may be going on. I think that everyone thought that this process would move reasonably fast. There are difficulties. There is a lot to learn, a lot to listen to and a lot to discuss, but frustration will build up if nothing is going to happen. Perhaps a word on the timetable would be helpful.

[Lord Taylor of Holbeach]

I cannot give a timetable, because it is not in my gift, of course. There are a number of different bodies involved. But I think it would be helpful, after such a productive debate today, for the usual channels to take notice of it—and we will have time to debate this issue as it progresses. I suspect that this is not going to be a Moses-like event, with tablets of stone coming down. I think that we will work our way towards the truth. I hope that it is the sentiment of Members of this House that we all feel that we have played some part towards getting a solution. I am sure that the usual channels would be quite happy to enable us to talk further about it. I am sorry that I cannot give a timetable.