Higher Education Debate

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Lord Bilimoria

Main Page: Lord Bilimoria (Crossbench - Life peer)
Thursday 19th July 2018

(5 years, 9 months ago)

Lords Chamber
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Lord Bilimoria Portrait Lord Bilimoria (CB)
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My Lords, when the most reverend Primate the Archbishop of Canterbury, the then Bishop of Durham, made his maiden speech in the House, he spoke in a business debate. I said to someone, “What is he doing speaking in a business debate?” They replied, “Don’t you know that he was a very successful trader in the oil business for many years?” He spoke with great authority.

Today, we welcome to these Benches the right reverend Prelate the Bishop of Chichester, who spoke so eloquently and superbly about higher education. He spoke about some of his career: he is Dr Martin Warner; he studied at St Chad’s College, Durham, then St Stephen’s House, Oxford; he has worked in the Midlands, Norfolk, St Paul’s Cathedral, where he was treasurer, and York; he is a regular contributor to the Church Times; he is a cyclist; he enjoys the arts; and, most importantly, he is well known for his hospitality and welcome. He has written five books, one of which is Between Heaven and Charing Cross. I think that he was being prescient and talking about the House of Lords.

In a recent interview, he was asked,

“Aren’t you more of a chief executive than a bishop?”


He responded:

“I’d certainly resist the chief executive title—but there are certain systemic and structural issues here which I must address. The word shepherd means someone who takes care of their flock, just like a parent is in charge of a household”.


He was then asked about government cuts. He said:

“For priests, their priority is their work, particularly in areas of deprivation and need. They see first hand what the impact is of government policy … Often they are there to pick up the pieces”.


He illustrated that clearly in his speech today. In that interview, he also said:

“A priest lives in often tough places where no other professional person would live”.


I hope that he will not find this House such a tough place and will, from the Spiritual Benches, temper us on the temporal Benches with his wisdom in the years to come.

I am the president of UKCISA—the UK Council for International Student Affairs—which is celebrating its 50th anniversary this year. At our conference, I stated that,

“the benefits which international students bring to the UK are both ‘enormous’ and ‘priceless’ … this is a view which is widely shared not only by an increasing number of leading politicians but also by the British public in general. International students enrich our campuses and communities”,

and the experiences of our domestic students,

“bring talent and new perspectives to our lives, build links for us all around the globe and help us to contribute to a more prosperous and indeed more peaceful world”.

As the noble Lord, Lord Parekh, said, Universities UK estimates that international students bring £26 billion to the UK economy.

As chancellor of the University of Birmingham and chair of the advisory board of the University of Cambridge Judge Business School, I am active in this sector. I am the third generation of my family to be educated in the UK. Generation-long links are built when foreign students come here. My son is at a British university and my daughter is about to enter a British university. Its universities are the jewel in Britain’s crown. We are renowned for them. In Birmingham degree ceremonies, I often say to the graduands, “When you graduate, walk out of the door and turn left. In front of the vice-chancellor’s office are the pictures of the 11 Nobel Prize winners from Birmingham”. That is more than most countries. Trinity College, Cambridge, has more Nobel Prize winners than France. Cambridge has the highest number of Nobel Prize winners in the world.

I thank the noble Lord, Lord Norton, for this debate. I also thank the noble Lord, Lord Holmes, for his kind words about Cobra beer. As mentioned by the noble Lord, Lord Norton, in his opening speech, the soft power of our universities is amazing. The noble Lord, Lord Holmes, spoke about the 58 world leaders. It is not the United States of America that produces more world leaders from international students than any other country; it is the United Kingdom. The noble Lord, Lord Holmes, spoke about Prime Minister Modi saying, “You want our trade and you don’t want our children”. I was in India when that happened. It was very embarrassing.

Despite our excellence, we do this punching above our weight. We do not invest as much as a percentage of GDP as the United States of America. When it comes to research and development and innovation, we invest 1.7% of GDP compared with Germany and America, which invest 2.8%. Just to match that we would have to spend £20 billion more a year, yet, with less than 1% of the world’s population, this country produces 16% of the highest-rated research papers around the world. We do this not sitting in isolation, but in collaboration. This is where Brexit is a huge threat and uncertainty. Our ability to attract international students is linked to our excellence, which is achieved partly through our collaborations in Horizon 2020 and the Erasmus scheme, from which more than 200,000 of our students have benefited. But this excellence is threatened by Brexit. Students will never get a chance to travel in that manner. More than 725,000 benefit annually through Erasmus.

I am currently Bynum Tudor fellow at Kellogg College at the University of Oxford. Some 45% of students and 48% of academics at Oxford are from countries outside the UK. Some 50.7% of Oxford’s research publications involve international collaboration. The same exists for Birmingham and for Cambridge. Where Brexit is concerned, the bigger threat is not just losing out on the funding—can the Minister confirm that we will keep getting that funding?—but the loss of collaboration, which we are worried about more than anything else.

Yes, the UK is a large destination for international students, but, as has been pointed out, we have probably slipped from second to third in the world—the United States is always number one. We have 450,000 students, 130,000 of whom are from the EU. UKCISA looks after the interests of all of them. The Brexit uncertainty is a huge problem. The Government have given an assurance for those 130,000 EU students for the next academic year—of course they have to; they have no choice but to do that—but what will happen after that? Will the Minister tell us?

I am also co-chair of the All-Party Group for International Students. Our secretariat is supported by higher education. There is no question about it: the UK puts out a hostile impression regarding international students. The post-graduation work visa was removed. I remember being in this House when we brought in the post-graduation work visa for two years. It came in in 2008 and was removed in 2012. In the meantime, the demand for international students is increasing by 8% a year.

The policies are perceived to be hostile. When the Prime Minister was the Home Secretary, she made the statement that international students should leave the day that they graduate. The headlines in India were: “Take our money and then get out”. India feels discriminated against. The noble Lord, Lord Parekh, spoke about India. The fast-track scheme has existed for a long time for student visas for countries such as America and Canada, and 11 new countries were added, including China. India was excluded. Will the Minister tell us why and whether it could be included?

The public are for international students. They do not see international students as immigrants and do not mind them working for a while after they graduate. Why will the Government not introduce physical, visible exit checks at our borders? The Government have lost control of illegal immigration, which we all think should be controlled. If we had those checks, we would have more control. Will the Minister acknowledge that international students do not overstay? Less than 5% of them are now proven to overstay.

The All-Party Group for International Students is conducting an inquiry into international students, with various themes, including the classroom, research, community and policy aspects. It will report in the autumn. We are talking about universities, but that inquiry also covers schools, foreign language institutions, further education institutions, pathway institutions, independent higher education institutions and universities. The spread of our offering to international students is phenomenal. We are one of the best in the world, but Exporting Education UK produced a report in 2016 that suggested that, across all education, the UK has lost £9 billion simply by not keeping up its market share.

Is the Minister aware of the latest UUK report released this morning, Five Little-known Facts about International Student Mobility to the UK, which analyses the shifts in international student enrolments? It contains a table that sums it all up, which describes post-study work opportunities and growth in enrolments. If we look at post-study we see that countries such as Australia allow two to four years, Canada allows three years and Ireland allows 24 months. They all have targets for international student recruitment: we should have targets to increase the numbers of international students. We do not have specific targets. Australia has a target of 720,000 by 2025. Canada has a target of 450,000 by 2022. Look at their growth rates over the past three years: Australia, 18%; Canada, 27%; 43% in the case of Ireland. We are losing out. The global appeal of UK higher education is a national asset, and preserving and building on it should be a national priority.

To conclude, we need to remove international students from the net migration figures. This creates a terrible perception: our competitor countries all exclude them. Does the Minister agree that this should happen? We should have a target to increase the number of international students. We should bring back the two-year post-graduation work visa. We should bring the Indians into the fast-track stream from which they were excluded. Now is a great opportunity: with American policies being hostile, we should jump at that opportunity now. Yesterday I was speaking at the Embassy Education Conference at King’s College London on the 100th anniversary of Nelson Mandela’s birth. Mandela said:

“Education is the most powerful weapon which you can use to change the world”.


We have that most powerful weapon in abundance.

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Viscount Younger of Leckie Portrait Viscount Younger of Leckie (Con)
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My Lords, I am very grateful to my noble friend Lord Norton of Louth for tabling this debate to take note of the value to the United Kingdom of higher education as an export. I am reminded of my own undergraduate days spent in a small city on the East Neuk of Fife. Let me start by unashamedly congratulating my old alma mater, St Andrews. Today, that city welcomes students from over 140 countries worldwide. I know that many other university towns and cities do the same. It is a remarkable demonstration of the global reach of our higher education institutions in the UK.

Talking of cities, we have rather done the rounds this afternoon. We heard about Winchester, with its cultural and educational focus, and, from the noble Lord, Lord Smith, about Cambridge and Pembroke—but above all, we heard about Chichester. I was particularly pleased to hear the right reverend Prelate’s warm, interesting and informative maiden speech about this remarkable city, a place where I spent every summer as a boy. In the way that he marketed that great city to us, he provided us with an educational insight. Chichester’s excellent mix of arts, science and cultural and theological life clearly remains a great asset. Speaking of which, the right reverend Prelate will clearly add considerably to the contributions to this House. I also note the excellent appreciation that the noble Lord, Lord Bilimoria, gave to the right reverend Prelate’s speech.

Universities generated a £52.9 billion gross value added contribution to UK GDP in 2014-15. Yes, that is a large figure, representing 2.9% of all UK economic activity, and international students are a very important part of that. As the noble Lord, Lord Smith, said, we attract the brightest and best from around the world, and that has been a theme of today’s debate. According to the latest data, in one year alone they contributed an estimated £11.5 billion to the UK economy through only tuition fees and living expenditure. This means that higher education generates more output than many other sectors, including advertising and market research, legal services, computer manufacturing, basic pharmaceuticals and air transport, to name a few.

Statistics published by the DfE earlier this year estimated that the total value of UK education exports and transnational education activity was £19.3 billion in 2015. That is an increase of 22% since 2010. Higher education accounted for 67%—£12.9 billion—of this exports value. Let me attempt to define what we mean by value, although my noble friend Lord Norton covered it with his customary experience and was very thorough. There is, of course, a financial aspect—the money that education exports bring to institutions and the UK—but, as he said, there is also value in the cultural diversity that international students and internationalised institutions bring. For example, our world-renowned research base is enriched and better connected. International alumni form a resource to market our higher education offer around the world, as well as becoming ambassadors for the UK. International education collaboration also helps to generate diplomatic good will and soft power for the UK.

The UK is very successful in attracting students from around the world. Indeed, only the US attracts more than we do—although I took note of the points made about Australia. Perhaps this is unsurprising given the UK’s excellent higher education reputation around the world. Eighteen UK higher education institutions feature in the top 100 of the QS World University Rankings 2018, and four in the top 10. International and EU students make up an important part of the student body. There were 135,000 EU students and 308,000 non-EU students in the academic year 2016-17. So it is encouraging that the latest data show a 2% rise in the number of UCAS applications from the EU and, separately, a 6% increase in university-sponsored visa applications for non-EU international students. We also recognise that international and EU staff are important for the UK higher education sector. Non-UK nationals made up 30% of academic staff in 2016-17 and 10% of non-academic staff. These numbers have been growing steadily.

I want to address some of the points raised by the noble Baroness, Lady Deech, and the noble Lords, Lord Smith and Lord Storey, about the importance of how international students are welcomed to the UK. This has to include the initial welcome, the introductions that are made, dealing with any language issues that might crop up, support when they first come, and ongoing advice that might be needed. Some noble Lords might say that the same should apply for UK students, but I am obviously talking about international students here. I reinforce the point that we very much welcome international students. We hope that they enjoy their time living and studying in the UK. In a recent report by UUKi, the UK ranked top among its competitor nations in the five key measures of student experience, including overall satisfaction, arrival and orientation, and support services. Some 91% of international students across all levels of study reported that they are satisfied with their experience in the UK.

The noble Lords, Lord Parekh and Lord Bilimoria, asked what action the Government were taking to welcome the Indian diaspora, which is a fair point. I recognise that we have had a period of reduced numbers of Indian students. That is why I welcome the 30% increase in the number of study-related visas granted to Indian nationals to 15,171 in the year ending March 2018. This follows a targeted programme by the British Council in India to welcome Indian students to the UK, but there is more we can do.

UK universities are also forging ahead with innovative ways of delivering their services overseas. The noble Lord, Lord Storey, mentioned our reach to China. The University of Nottingham was invited to become the first foreign university to establish an independent campus in China. Lancaster University is the first British branch campus in Ghana and the only one of its kind in sub-Saharan Africa. UK universities are often at the forefront of pioneering alternative forms of international provision, including online learning, blended programmes and joint degrees. These opportunities are open to our universities because they offer a high-quality education to students from around the world. Only a couple of days ago, I had the pleasure of hearing directly about the work of the Open University—a pioneer in distance learning and flexible study.

Research in the UK is world class. The noble Baronesses, Lady Deech and Lady Greenfield, and the noble Lord, Lord Smith, alluded to this area. The UK is home to 0.9% of the global population but of 4.1% of the world’s researchers, and it accounts for 2.7% of global R&D expenditure. At the same time, we produce 6.3% of articles, 9.9% of downloads—I can give an explanation later about what that means—10.7% of citations, and 15.2% of the world’s most highly cited articles. The UK places a high value on international engagement. Over 51% of all UK publications in 2014 were internationally co-authored, with a diverse range of countries. The UK’s share of international co-authorship has been increasing annually from 2010.

Continuing to work with international partners is critical. Our research strength and our innovation have been built upon a history of collaboration—a word we have already heard, when the case for collaboration was made strongly by the noble Lords, Lord Bilimoria and Lord Smith. Collaboration has helped the UK to become the centre of excellence that it is today. That is why the Business Secretary, Greg Clark, has launched a prestigious, £900 million UK Research and Innovation future leaders fellowship scheme, which is open to the best researchers from around the world. This investment will fund at least 550 new fellowships for global business talent. Our investment of £65 million makes the UK a major partner in the world-leading deep underground neutrino experiment—the first international “mega-science” project on US soil. Programmes such as the global challenges Research Fund and the Newton Fund help us to foster international collaboration as we work together to address some of the most pressing challenges of our time, such as clean energy and automation.

The noble Baroness, Lady Deech, the noble Lord, Lord Bilimoria, and the noble Earl, Lord Dundee, asked about Horizon Europe and if we will maintain involvement. We wish to explore association with innovation and research programmes, including Horizon Europe and Euratom research and training. We intend to engage fully and constructively in the design of these programmes, and we welcome the chance to discuss these specific arrangements with the European Commission.

There are other benefits of higher education exports that are perhaps more difficult to measure, yet no less critical. International students in the UK add to the diversity of the student body, contribute to the academic debate and help to create a more global mindset for our own young people. Higher education exports also make an important contribution to the UK’s “soft power”—which is probably not the greatest term, but I think that we probably have to live with it.

Students from all walks of life return home having built a positive experience and knowledge of the UK—as my noble friend Lady Redfern said—not to mention important alumni networks and lifelong friendships. Indeed, studies suggest that many world leaders attended higher-level education in the UK. That came out in the speech from my noble friend Lord Holmes. These personal connections with Britain help to build long-term social, political and trade links with other countries—and what value that brings the UK in terms of diplomatic and soft power.

I turn now to what the Government are doing to support education exports. The sector is making great efforts to promote and expand HE exports. The British Council, Universities UK International and individual universities all do this vital work. It is right that the sector itself plays a leading role, but the Government are committed to supporting its ambitions. We believe that we are in a very strong position with our global market share, but know that we cannot rest on our laurels in the face of international competition. I picked up many messages concerning that in the Chamber today. Australia, New Zealand and Canada are now seeing increases in overseas students, as are European countries that are increasingly offering courses in English. That is why we established the Department for International Trade education sector advisory group. Chaired by the Department for International Trade, Ministers from both the DIT and the DfE attend this group, along with organisations representing all areas of the education sector. It ensures that the Government understand what the sector needs and that we work together to boost UK education exports.

The DIT supports UK business by organising trade missions and inward delegations to the UK, and by publishing export opportunities online to inform the UK education sector. My noble friend Lord Norton raised an important point about the marketing of universities. I reassure him that we actively promote study in the UK through the GREAT campaign, which was mentioned, and through the British Council, which promotes the UK in over 100 countries, connecting millions of people.

To answer the point of my noble friend Lord Holmes, not just on India but perhaps all countries: we want you and your children. We can offer curry—I say this from my particular position—as well as a well-known beer brand.

My noble friend Lord Norton of Louth asked what more we can do to boost the GREAT campaign. We are always looking for ways to make it even more effective. The Department for International Trade and the DfE are working closely with the sector to explore how best to boost exports in education, including through programmes such as the GREAT campaign.

I know that the sector wants to know what EU exit will mean for its students. To help give certainty, we have given guarantees on student finance for EU students starting courses in the 2019-20 academic year or before, and assurances on research funding. The noble Lords, Lord Bilimoria, Lord Smith and Lord Watson, asked what assurances the Government can give about students for the following academic year. We recognise how important it is that students and institutions have information on student support eligibility before course applications open. Applications for courses starting in the academic year 2020-21 do not open until September 2019, but we will ensure that students and institutions have the information they need well in advance of this date.

My noble friend Lord Dundee asked about the reintroduction of post-study work for tier 4 students to stay and work for two years of the study. He will note that the Government closed the post-study work route under tier 1 of the visa system in 2012 to tackle the large numbers of fraudulent applications and graduates remaining unemployed or in low-skilled work. Graduates can stay on to work in the UK by switching into a number of easy routes such as the tier 2 skilled worker visa, which over 5,000 students did in 2016.

The noble Lords, Lord Holmes, Lord Norton, Lord Parekh, Lord Smith, and nearly every Peer who spoke in this debate, raised the important issue of student numbers being kept within the net migration target. What I am about to say will not necessarily be new to noble Lords, and I am certain that we could have a long and full debate about it. However, I have listened to the points raised this afternoon, and they will be passed on. I say again that migration statistics are independently produced by the ONS. Like other migrants, international students who stay for longer than 12 months have an impact on communities, infrastructure and services, so they are included in the net migration statistics to provide necessary data. However, this does not act in any way to their detriment. There is no limit on the number of genuine international students who can come to the UK, or any plans to limit any institution’s ability to recruit them.

To help inform decisions on the future migration system, the Government have commissioned the independent Migration Advisory Committee to provide an objective assessment of the impact of EU and non-EU students by September. This has provided an important opportunity for the sector to feed in views, and I am pleased to see that it has actively engaged with the review.

In the meantime, we continue to support the competitiveness of our world-leading HE providers: for example, by rolling out the tier 4 pilot, mentioned by my noble friend Lord Norton, which streamlines the visa process for postgraduate students at 27 universities. Just as importantly, it gives them extended leave of up to six months to find a graduate-level job. I hope that, if the pilot is successful, it can be rolled out further so that more institutions and their international students can benefit.

The noble Lord, Lord Storey, asked a question about maintaining academic integrity by stopping contract cheating. I know that he works tirelessly on the subject, and we recently had a short debate in this House on it. We believe that the best approach to tackling this issue is, as he knows, with a sector-led, non-legislative initiative in the first instance, and we are working closely with the OfS and the QAA’s new academic integrity advisory group—I believe the noble Lord is a member—to evaluate the effectiveness of the guidance. We remain open to the future possibility of legislation, but certainly there is no guarantee of that.

I begin my concluding remarks by saying a few important words about where we are with higher education. I strongly believe that the UK continues to be an attractive destination for students globally, which is reflected in the continuing high numbers of overseas students who choose to study here. We are highly competitive in the global mobile student market, second only to the US in the number of international, EU and non-EU students that we attract, but we are not resting on our laurels.

On the back of the Higher Education and Research Act that we took through last year there will be the provision for a faster and simpler route for high-quality new providers to enter the sector and gain degree-awarding powers. We want to ensure that those with new and innovative ideas for setting up institutions can do so and make as much of these opportunities as possible, which of course encourages students from all over the world.

Lord Bilimoria Portrait Lord Bilimoria
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I appreciate, as I think do all noble Lords, the thorough way in which the Minister has answered so many of the questions we have raised, and we appreciate the British Council and the GREAT campaign. But I asked an important question about India being excluded from the 11 countries that were added for the fast-track scheme for student visas. In fact, yesterday the attaché from the Indian High Commission was very upset about that. A clear answer to that question was not given.

Viscount Younger of Leckie Portrait Viscount Younger of Leckie
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I recall that the noble Lord raised that point. I do not have a definitive answer, but I will write to the noble Lord to give him a full answer as to why that has happened and what the Government are doing about it.

In the spirit of new providers starting up, I mention once again the Dyson Institute of Engineering and Technology. It exemplifies the diversity and innovation of the offer we believe we have in the UK, which we must support the sector in showcasing to the rest of the world. We are rightly proud of what our universities contribute to research, academia, the economy, and the enrichment of lives across the globe, and we are committed to promoting the UK’s offer of excellence in higher education around the world.