here - United Kingdom Parliament
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1711 Student Visas<br />
6 JUNE 2013<br />
Student Visas<br />
1712<br />
We have a superb industry and t<strong>here</strong> is a huge and<br />
increasing global demand for its product. It is estimated<br />
that 4.1 million students are studying in different countries<br />
from their home countries and that that figure will rise<br />
to 7 million by 2020. We have top-class universities and<br />
an expanding market of people who want to come <strong>here</strong>,<br />
and we must capitalise on that.<br />
The Government have claimed that their visa policy<br />
is working because, according to the figures, t<strong>here</strong> has<br />
been a marginal increase in the number of international<br />
students applying to come to British universities in the<br />
past year. In reality, t<strong>here</strong> are considerable fluctuations,<br />
with an increase in numbers coming from China offsetting<br />
a huge fall of 25% in those coming from India. I have to<br />
say that Universities UK disputes some of these figures,<br />
but I do not want to get drawn into a debate between<br />
the Government and Universities UK. Everybody<br />
recognises that at a time when t<strong>here</strong> is huge and growing<br />
demand, Britain is, at best, flatlining in terms of the<br />
number of recruits it is getting. In fact, Britain’s share<br />
of this expanding market has dropped from 10.8% to<br />
9.9%. A shareholder of a company that had a fantastic<br />
product and an expanding market would not be very<br />
happy with its management if it were taking a declining<br />
share of that market.<br />
The crucial significance of that was highlighted by<br />
the hon. Member for Beckenham (Bob Stewart). It is<br />
not only about the immediate benefit but the long-term<br />
trading relationships that build up as a result. In the<br />
west midlands, we see that with the Tata brothers and<br />
their investment in Jaguar Land Rover, and with Lord<br />
Paul and his investment in schools and companies.<br />
T<strong>here</strong> is a tremendous potential as regards the immeasurable<br />
contribution that will be made due to foreign students<br />
studying <strong>here</strong>.<br />
This comes at a time when universities are struggling<br />
for finance; they recognise that in these hard times they<br />
cannot be exempt. Recruitment of international students<br />
presents an opportunity for them to bring in extra<br />
money that unfortunately they cannot get from the<br />
Government because of the current financial problems.<br />
My local university, Wolverhampton, currently recruits<br />
800 international students each year, but it estimates<br />
that with a fair and consistent visa process it could take<br />
another 500 a year from India and Sri Lanka alone. If<br />
they contribute £10,000 a year, which is a fairly minimal<br />
estimate, that would amount to £5 million more a year<br />
going into the local university and, above all, into the<br />
black country economy. I think that that situation would<br />
be reflected in other universities that I have spoken to.<br />
Earlier I mentioned the credibility test, which is<br />
undoubtedly one of the major problems. It is not only a<br />
regulatory problem but a process problem. One prospective<br />
Wolverhampton university student was rejected on the<br />
grounds that the amount of money he would spend in<br />
this country meant that he could get the same course at<br />
a domestic university in his own country. Imagine that<br />
happening in any other industry: if somebody told<br />
Jaguar, “You can’t export a Jaguar, because people can<br />
afford to buy one that’s made in their own country,” we<br />
would be up in arms and dancing in rage. In this case,<br />
however, nothing is said.<br />
Mr Virendra Sharma (Ealing, Southall) (Lab): Will<br />
my hon. Friend give way?<br />
Mr Bailey: Yes, I will take one more intervention.<br />
Mr Sharma: I thank my hon. Friend for giving way<br />
and congratulate him on securing this debate. On<br />
immigration policy and practices, I am sure that the<br />
caseloads of most MPs present will show that that kind<br />
of message deters genuine students from coming <strong>here</strong>. It<br />
means that the country loses finances and other resources<br />
as well as the individual student.<br />
Mr Bailey: I agree entirely.<br />
I have another example from Wolverhampton university.<br />
Six international students were refused visas even though<br />
they were sponsored by the Department for International<br />
Development. Moreover, when the Department wrote<br />
to the consulate, they were still rejected. If the Government<br />
cannot get their own people into the country through<br />
the Home Office system, what hope do so many young<br />
people from other countries have?<br />
In its reply to the Select Committee report, the Home<br />
Office argued that other countries include students in<br />
their net migration figures. T<strong>here</strong> are variations from<br />
country to country and I do not want to get bogged<br />
down in that argument, but the crucial thing is that,<br />
whether they do that or not, they do not use the figures<br />
as the basis for their immigration policy. The Government’s<br />
target of reducing net migration to fewer than 100,000<br />
can only be achieved by reducing numbers. The current<br />
drop to 157,000 has been achieved mainly by reducing<br />
numbers in the further education sector and by increased<br />
numbers going abroad. The Migration Advisory Committee<br />
calculates that to reach the target, non-EU student<br />
numbers need to be reduced by 87,000. That would be<br />
catastrophic to the finances of the FE and higher<br />
education sectors.<br />
In conclusion, a policy whose success relies on damaging<br />
a great export industry needs re-examination. This is an<br />
industry with a great brand, a huge demand for its<br />
product and incredible potential for boosting the economy,<br />
both locally and nationally, and it should be backed all<br />
the way. It is an industry that should be helped, not<br />
handicapped. The current visa regime, whatever the<br />
legitimacy of the broad objectives of the immigration<br />
policy, is not doing that. It is handicapping our universities.<br />
The answer is to change the policy and focus on the real<br />
immigration issues that are, I recognise, of great concern<br />
to the public.<br />
Several hon. Members rose—<br />
Mr Deputy Speaker (Mr Lindsay Hoyle): Order. Many<br />
Members want to speak, so may I gently suggest that<br />
they speak for up to 10 minutes? Unfortunately the<br />
opening speech lasted 23 minutes, so it has pushed us<br />
back. It was a very good speech—I am not knocking<br />
that—but I remind Members that we have to stick to<br />
the timetable because we need to fit in the Front Benchers<br />
as well.<br />
1.13 pm<br />
Nadhim Zahawi (Stratford-on-Avon) (Con): I shall<br />
attempt to take less than 10 minutes, Mr Deputy Speaker.<br />
Ever since Erasmus came to study Greek at Cambridge<br />
500 years ago, our universities have attracted the best<br />
and the brightest from around the world, but the world<br />
is changing. In the modern global marketplace, we have<br />
no God-given right to a competitive advantage in higher<br />
education. We have to fight for it.