Student Visas - Home Affairs Committee Contents


Examination of Witness (Questions 333-366)

Q333 Chair: Could I refer to the Register of Members' Interests, where the interests of all Members of this Committee are noted, and could I welcome the Minister of the Department for Business, Innovation and Skills. Thank you very much for giving evidence. We know that you have a very busy schedule, as does the Secretary of State. He recommended that you should come before us rather than himself, so I am sure you would be pleased with that recommendation. Minister, I am sure you have been following the inquiry that the Committee has been conducting into student visas. How important are international students to the UK economy?

Mr Willetts: First of all, thank you very much for the opportunity to be questioned by your Committee. There are a range of estimates of the significance of foreign students. We calculate that international non-EU student tuition fees themselves are £2.2 billion a year. UUK have done an estimate of the wider economic value in terms of the spending by those students that came in at £2.3 billion a year, so we are clearly talking about significant extra resources being brought into the British economy.

Q334 Chair: So your department welcomes international students to come and study in this country and feels they make a significant contribution to our economy?

Mr Willetts: We believe that legitimate students coming to British universities and FE colleges are indeed a valuable contribution, yes.

Q335 Chair: How would you define illegitimate students then?

Mr Willetts: There is always the challenge of abuse and this is something that, quite rightly, the UK Border Agency has been focused on. So I wanted it to be clear that our welcome was for people who can genuinely benefit from education here, and it isn't extended to people who don't have the qualifications that would enable them to benefit from the kind of educational provision we have. But, yes, we have an internationally respected education system. People from around the world wish to come and participate in it and will pay for that and it is an excellent British export industry.

Q336 Chair: So you would not want to see any Government policy that stopped international students choosing Britain rather than going to America and Canada or Australia, you want them to come here?

Mr Willetts: Yes, I do want them to come here, but within a framework, which we fully understand the coalition is committed to bringing down net migration, and we do believe that there are abuses—loopholes in the system—that means that, sadly, there are people getting in who aren't in a position to benefit from an education here and who shouldn't be coming here.

Chair: As far as bogus colleges are concerned—and indeed bogus students—I think that everyone is against them coming into this country and abusing the system. There is general agreement across the House on this.

Mr Willetts: Correct.

Q337 Chair: The Committee, in its last report, recommended that we look at the term "college" and one way of stopping people setting up a college above a fish and chip shop in, say, Brighton and calling themselves a college was to limit that term. Your junior Minister has written and said that your department is still against the limiting of the word "college". Could you just explain why?

Mr Willetts: Yes, and of course the letter that John Hayes sent you on 8 February does set it out, I think. The biggest single problem is that the word "college" is used in so many different contexts for such a wide range of institutions that trying to regulate it would, we think, be very hard to do in practice and would place unfair burdens on legitimate institutions. It is such a generic term in the English language, it would be very hard to control it in that way. That is our main concern. I think the second point I would make is that you quite rightly, Chairman, moved from bogus colleges to bogus students. Although this is more for the Home Office than for us in BIS, I think that picture of a kind of PO Box with absolutely no education activity going on, or a single room above a fish and chip shop as the bogus college, I think the effective action by the UKBA has made great progress in eliminating those. The attention is shifting more to people who maybe do not have the education or qualifications they claim to have, perhaps colleges that have rather lax procedures for checking qualifications. So it is the under-qualified or inappropriate student, which I detect from my conversations with the Home Office is increasingly the focus, rather than those absolutely unacceptable and absurd abuses where I believe, and the UKBA say are probably diminishing now.

Q338 Chair: That is very helpful. On the point of the international reputation, when Ministers go abroad, as you have been abroad recently, do you go abroad and you say to governments, "We want you to come and do business with Britain and we would like your international students to come and study here"? Is that one of the messages of the Government, that Britain is open for business as far as international students are concerned?

Mr Willetts: The Prime Minister has said Britain is open for business, and one of the businesses where we excel is education. Indeed, therefore, when I was with him on his visit to India in July, we were very keen to strengthen links between our education arrangements in India. But I would say that the kind of very direct marketing, "Come here and get an education in Britain" does not go down as well as saying, "There are benefits from exchange in education between our two countries". I personally urge British students to do more to go and study abroad and I find that a very good way of having a conversation with, for example, the Indian Education Minister is to discuss how we can also increase—I think from memory it is—the 500 British students currently studying in India, because there are some excellent institutions in India and it is a great way of broadening people's minds. So when I do attend international events, we think of it as a two-way exchange.

Q339 Mr Winnick: Minister, I noticed a slight hesitation on your part when you were replying to the Chair about whether or not we need more students. I note that the Home Secretary said in a speech on 23 November 2010, "However, the majority of non-EU migrants are in fact students. They represent almost two-thirds of non-EU migrants entering the UK each year" and then she spoke about reforming visas. I can understand obviously the need to clamp down very firmly, as the previous Government started to do, on bogus colleges, bogus students; we could do without them. But as far as genuine students are concerned in genuine colleges, is it firmly the Government's view that it is the desire of the United Kingdom authorities to encourage, as previously, students to come here?

Mr Willetts: You are quite right, Mr Winnick, about my hesitation, and the reason why I hesitated was that I was considering some of the other aspects of that question, for example, students who come here and do have a qualification, but they stay here and study for so long that they build up a strong claim for settlement, so in reality it has become a route into this country, even if it was not necessarily their intention when they started, or students who come here with dependants. There is a blurred division between simply coming here to study and then going back home, and on the other side, the bogus student. There are some areas in the middle where you could argue—and it is in the consultation paper—that the education route has become a route to settlement and has become a route for bringing other people who are not themselves studying. That was the reason for my hesitation.

Q340 Mr Winnick: We have taken evidence about some students who stayed on and they have been much welcomed by the academic community and have become very distinguished, but that is not an argument of ever-increasing numbers of students, once they finish, to stay on in the United Kingdom. I accept that entirely. So the division line as far as the Government is concerned is the difference between students coming here for genuine reasons to genuine colleges and then there is another factor: the desire to make sure that most of them do not find some excuse—genuine as it may be—to stay on permanently in employment in Britain.

Mr Willetts: That is certainly one of our concerns, correct.

Q341 Steve McCabe: How damaging do you think the impression that you want to clamp down on students has been in terms of our reputation abroad and the likelihood that you will succeed in the future in attracting the types of students that you are interested in coming to the UK?

Mr Willetts: We tracked the statistics, and the current application process is not completed, but the evidence so far is that applications to study here from abroad remain buoyant, so we are not seeing a tailing off of applications. I do get asked sometimes when I am at conferences on this subject. I was in Russia last week and students at the Moscow University were asking me, "Can we come and study in Britain?" and I was able to say, "If you have excellent qualifications and are coming to a mainstream British university, yes, you can come". So you do get asked about it but, as I say, if you look at the application figures, they appear to be holding up.

Q342 Steve McCabe: So no one has given you the impression that, in fact, Canada, the United States and increasingly Australia are developing much more favourable regimes for attracting high-quality foreign students and that we are in danger of losing out? You have not heard that?

Mr Willetts: You are right. Those are our leading competitors. We always keep an eye on the competition and some of them are growing market share. Our reading at the moment is that New Zealand and Canada are the ones that are making the biggest effort to grow their share of this market and we keep an eye of their offerings. But so far I would say there is still strong international interest in coming to study at our education institutions.

Q343 Dr Huppert: How much has your department been involved in the consultation?

Mr Willetts: We have been in close touch with the Home Office and of course especially now that the consultation process is over, we are, between us, sifting through the responses that have come in.

Q344 Dr Huppert: Roughly how many meetings would there have been between BIS officials and Home Office officials?

Mr Willetts: I think there have been several meetings and we are in close touch. I think there have been seven meetings of officials since the outcome of the consultation. I have had three meetings with the Minister at the Home Office, Damian Green.

Q345 Dr Huppert: I am struck that you described that the test for students being valid is whether they could benefit from study. That is not what the Home Office has been saying and is not what the Immigration Minister said when we questioned him. They clearly have a very different concept of what the test would be. Are you still trying to persuade them of the voracity of your position?

Mr Willetts: We are working together to reach an agreed position in the light of the consultation. I am not in a position, sadly, to bring to this Committee the final outcome. We are still considering all this. The Government has a shared belief and a commitment in the coalition agreement on bringing down net migration and the Government also recognises the strength of education—not just as a good thing in its own right, but a successful British export business—and we are working together to reach a satisfactory outcome to the consultation.

Q346 Mark Reckless: Regarding your answer to Mr Winnick's first question, I think you accepted that it was more than just about clamping down on bogus students at bogus colleges. We asked a similar question to the Minister for Immigration and I am still not entirely clear where we are on this. If you look at the consultation, there were various restrictions that make it less attractive perhaps to become a student here in terms of dependants, working, post-study work, what language you had to have and so on. Do you expect these changes to lead to some sort of genuine but marginal students or marginal colleges perhaps not carrying on under the new regime in the way they are now, or do you see it restricted to bogus students at bogus colleges?

Mr Willetts: As I said, Mr Reckless, this is where there is a fuzzy boundary. This is precisely what we are exploring with the Home Office at the moment. Take one of your examples, the language requirement: you can argue that if a college or university takes on someone with rather rudimentary English, are they able to participate in the educational process in the way they should? That is a legitimate concern. Universities say that they are the custodians of their admissions procedures and are best able to judge whether someone has the English to be able to properly study. Dependants: again, where we look at what other countries do, bringing in dependants, that can increase the migration figures and they are not coming here to study. To what extent does people's ability to bring in dependants affect their own willingness to come and study here? These are the grey areas that we identified in the consultation document and we now are considering with the Home Office.

Q347 Michael Ellis: I would like to move on slightly, if I may, to look at economic impact. Hitherto in recent years, absence of proper scrutiny has undoubtedly led to discussing bogus students and bogus colleges and examples of colleges without students and students without lecturers and the like. Have you or your department a plan to undertake some type of internal economic assessment of the impact of this policy and of the reduction in student numbers that may well occur as to the impact on the BIS department and its policy areas?

Mr Willetts: The impact assessment that is being prepared as part of the Government's review of this policy will cover these economic impacts—it is intended to do so—and of course we will then release our overall impact assessment as part of the process when the decision is taken. So yes, the regulatory impact assessment is intended to capture those sorts of effects and it is being prepared as a shared analysis, agreed starting point for the discussions, that should be agreed between BIS and the Home Office.

Michael Ellis: When are you expecting that?

Mr Willetts: The impact assessment has been sent to the Regulatory Policy Committee for its consideration as part of this policy process.

Q348 Chair: In terms of the timetable, the Committee has written to the Minister suggesting that they might like to see the Select Committee's report before announcing their proposals. Do you know if there is any date for the announcement of the final proposals?

Mr Willetts: I do not believe there is such a date and agree with you, Mr Chairman, I think it would be very helpful if we had sight of this Committee's report before any final decisions were taken.

Q349 Nicola Blackwood: Just to follow up on that point briefly: do you think that it would cause a problem for universities or language colleges if the announcement were to come later in May? Would it cause problems with admissions, do you think?

Mr Willetts: The uncertainties about exactly what the visa regime will be are raised with me by universities. The sooner universities know where they are the better. But equally, the process of Government has to work. The consultation period has only just ended so we are working flat out. That is why I have already had meetings with the Home Office Minister, so we are trying to get this resolved as quickly as we can.

Q350 Nicola Blackwood: Could we talk about the post-study work route? You have mentioned that you think that British education has a cache regardless of the visa system perhaps and regardless of the right to work, but we have received quite a lot of evidence from students saying that it is one of the major reasons why they do come to study in the UK: because they are going to have this two years' post-study work opportunity, in particular for MBAs, lawyers and those whose study courses require some kind of work experience attached. How do you respond as Minister of Education to the recommendation to entirely abolish that route?

Mr Willetts: You rightly identify a strand of argument that has come in in the responses to the consultation document. Going back to Mr McCabe's question, as we look around our competitors, they vary. The US does not quite have an offer as generous as our post-study work offer. New Zealand and Canada—who I said are growing market share—they seem to be using post-study work as part of the appeal. So it is a feature, but there may be ways we can tighten it up or make sure it is not abused and becoming a route to settlement. It is part of that fuzzy boundary that we are investigating.

Q351 Nicola Blackwood: Yes, but you think something short of abolition would probably be more useful from the higher education rather than the immigration standpoint?

Mr Willetts: I am trying to avoid the model. There are two standpoints and because we are working as a team in the Government, coming from two different departments, trying to solve it.

Q352 Chair: We do understand that, Minister, but of course we have called you here because we have heard such powerful evidence from the universities and the colleges of higher education. We want to know about the impact on your department. So we do understand that you are part of a Government, but I think Nicola Blackwood's question is quite pertinent. Will it have an effect? There must be an opinion or a paper on this.

Mr Willetts: I think it would depend on exactly what was proposed, and there are a whole range of options between complete closure of the route and the status quo. Obviously one thing we are discussing with the Home Office is what those options might be.

Chair: But complete closure would not be something you would favour?

Mr Willetts: There are certainly universities that tell us very clearly that if they were to completely lose the post-study work option that would put them at a disadvantage compared with the competition.

Chair: Are you still a visiting professor at John Cass?

Mr Willetts: I believe I have lapsed. I am not aware of having any communication with them for two or three years now, but I certainly was a visiting professor several years ago.

Q353 Chair: The MBAs have sent us a table that was published in the Financial Times and I was astonished to note that the London Business School was the top business school in the world. I always thought it was one of the American universities, but it is UK first above Wharton, Harvard, Stanford and Colombia, and the MBAs in their evidence are unanimous that any abolition of the post-study work route would devastate their position in the lead table. Of the top 100, I think ten to 15 are UK universities, including Imperial, Cambridge, Oxford, Cranfield School of Management, which surprises me.

Mr Willetts: Oh, no, it is an excellent institution, if I may say so.

Chair: These are world-beaters. Are you satisfied that we might lose our status if—

Mr Willetts: That is a classic example of where we can be so proud of excellent institutions that also are a very sensible export business, and I think the Home Office has worked to not doing things that would damage their international performance.

Q354 Mark Reckless: I recall the Foreign Secretary, who is an INSEAD graduate, telling students at London Business School in his speech that they should not believe everything that they read in the Financial Times in respect to these rankings. I did though want to ask you about this post-study work, their argument, "It gives us a leg-up on the competition and if you take this away we will be less attractive". Is that a proper argument? Should they not be attracting students on the basis of their educational offer?

Mr Willetts: Yes, I understand that argument. In reality, there may be benefits. It does go, strictly speaking, beyond the education offer, but you could argue that as there are other countries that have something like it, and I accept the US is not quite so flexible, but Canada and New Zealand I think have similar offers. When you are looking at the competition, you have to assess what we offer compared with other countries. But you are certainly right: there are purists who would say that if the argument is they are coming here for education, they are coming here for education; they cannot get a kind of free pass into work. But we are working with the Home Office for ways in which we can reach a sensible way forward.

Q355 Bridget Phillipson: Much of this so far was focused on university students, but we have had a lot of evidence from the further education sector on this area, firstly for those standalone courses, but also evidence that many students would not be able to go on and study at British universities if they were not able to come and study some degree-level courses in the UK in order to get their language skills up to scratch, but also because some of them study for a year less in their home countries than we would do in the UK. What discussions have you had with the Home Office on the area of further education and the impact any changes could have?

Mr Willetts: Yes, I very much agree with that point, and I think the Home Office recognises that there are several countries from which we recruit where you finish your school education at what we regard essentially as AS-level, and so part of the British market is doing a course where you move on from AS-level to A-level and improve your English at the same time and might have a kind of conditional offer from a university that depends on your getting up to the A-level standard and improving your English. So, yes, I think there is a very legitimate activity and I hope as we work through the proposal in the consultation that that continues to remain possible as a route into universities in Britain.

Bridget Phillipson: We visited a language school in Brighton, and what struck me was the number of students that had come over to study English, often coming with very little English, who now had offers from the top universities in Britain and were very keen to stress that. I think that is an important part of this we need to not overlook, and I think the figure was something like 40% or 50% of those international students of British universities had come and studied some degree-level course. While obviously we want to crack down on bogus students and bogus colleges, some of the language schools I think feel that their good work is perhaps being undermined by the constant talk of that, whereas much of the work cracking down on those bogus colleges has already been very successful.

Mr Willetts: Yes, I accept that the worst-case bogus college problem is less acute than it was. We are fortunate, people want to come and study to learn English and they want to come and study in its home country, so to speak, and that is something that is a great business for us to be in, and of course it is one route into university. Again, it has to be policed and there are issues about exactly what people's language competence is, but yes, I agree with your broad point.

Q356 Chair: You would agree with the point that if people want to learn English very, very well they would want to come and live in England. Similarly, if I wanted to learn Spanish, of course I could go to Linguarama or whatever it is called, but at the end of the day, the pathway from language school to university is an important one for the British economy?

Mr Willetts: Otherwise they might be speaking it with an American accent.

Chair: Or even worse, an Australian accent.

Mr Willetts: I think it is great that people want to come here. Of course we have to accept—and this is another interesting strand that we are very interested in at BIS and I am working on at the moment—that education, as it becomes more international, there is going to be distance learning. There are campuses at British universities and other institutions set up abroad. There are ways in that people can benefit from a British education without physically coming here and there must be capacity limit to what we can do. So in parallel with trying to get a sensible way forward on student visas I am very proud that the Open University is something that people around the world use and that there are British universities that want to operate abroad directly.

Chair: The Committee has just come back from Turkey, where we have been looking at the implications of enlargement and what was interesting was the desire of a lot of middle-ranking officials in the Turkish authorities to come and study here. If they were going to learn English, of course they could learn it in the English school in Istanbul or Ankara, but they prefer to come to a college like Brighton.

Mr Willetts: Yes, I understand that argument.

Chair: What has also been interesting in the evidence is that the universities faced with these proposals are not trying to throw the language schools overboard by saying, "Government, look at them and limit their numbers". They were quite supportive of the pathway from language school to universities.

Mr Willetts: Yes, we understand that, and that is a legitimate route into university and I accept that, and I think the Home Office does as well.

Q357 Mark Reckless: You told us about £2.2 billion of fees and I think a study showing about £2.3 billion of other economic benefits, but what about the soft power element? How important do you think that is and is that something you have been pushing forward in any discussions you have had with the Home Office on the subject?

Mr Willetts: Yes, that is the case, and you do come across ministers in other countries, business people, who have very fond memories of studying at university here and it is very hard to measure precisely, but I think it is a source of enormous good will.

Mr Winnick: Muammar Gaddafi's son currently.

Q358 Mark Reckless: The issue with overseas campuses, could universities not be encouraged to put a sort of greater emphasis on expanding there and developing the reach to the United Kingdom in that way?

Mr Willetts: I think we are at the early stages of globalisation in our education and it is going to play out over the next decade. At the moment they do have to commit a significant amount of management resource and financial resource to setting up a campus abroad. You can imagine university partnerships, a bit like what happened in the airline industry, networks of universities linking together. I think a lot of this is going to develop in the years ahead.

Q359 Mark Reckless: Finally, the Prime Minister, when he was in China, spoke to some Chinese students and said one of the issues was about them having to pay such high fees when our fees here were so low. Is there a prospect that studying in Britain may be more attractive to international students because international fees may become less high than they otherwise would because of the fee reforms here?

Mr Willetts: We do keep them separate. There is control over student numbers and regulation of fees for British and EU students and no such regime for non-EU students, so they are separate issues. But I think anything that gets our universities to focus on high-quality teaching should improve, which is one of the crucial reasons for our reforms, and should also be something that overseas students appreciate as well.

Q360 Steve McCabe: In order to clear up a bit of the fuzziness you have referred to, in your discussions with your Home Office colleagues, of the two-thirds of non-EU migrants who are students, have you argued that the reduction should be only in bogus students or is there a part of that two-thirds figure that you think can safely come down without doing any damage to our universities and other institutions? What advice have you given to your colleagues on that?

Mr Willetts: When I say it is fuzzy, it is because it is fuzzy. The question is on issues like the terms on which dependants come or the terms on which people are going to do post-study work, you are talking about something that is different than an individual student coming to study here. It is that penumbra around the edge where the universities say, quite understandably—

Q361 Steve McCabe: So if a student has dependants with maybe somebody you would want to discourage, is that a message that you would want us to understand?

Mr Willetts: The universities and colleges say, and I quite understand this, "It is part of the offer. If you come here and you are a post-graduate aged 35 saying you are going to come here for more than a year and yet you cannot bring your partner, your husband or wife, that makes the offer less attractive". On the other hand, the partner is not coming here themselves for education, so we are trying to find a sensible way forward that does enable us to deliver the coalition agreement without damaging the core offer from our excellent education institutions, and I think we are making great progress on that.

Q362 Steve McCabe: When the British Government second staff overseas, we do not say that their families and dependents cannot go with them. We think it is quite reasonable as part of the package that when we send someone overseas for four years their family go with them. What is the big distinction? If someone is coming here to a high-quality university and is a high-quality student who will make a contribution, is it numbers? You are prepared to see a reduction in those numbers in order to get your overall migration numbers down. Is that what you are saying?

Mr Willetts: The question is at what point is a perfect legitimate desire to carry on with one's family life while studying—or in your example, working for one's country abroad—does that slip into an attempt to come to this country, where the real aim is to get your partner working and the student bit is the junior element in the deal, so to speak? But you are using the student route to get your partner in and in employment. It is very hard to draw that line, but those are the kinds of issues that we quite rightly have to consider as part of this exercise.

Q363 Chair: But you are not a marriage guidance counsellor, you are the Business Minister, are you not, and therefore what concerns me is that there should be fuzziness at this stage. Surely the fuzziness should have been sorted out in the coalition before the proposals were put to the public? It seems that these discussions are ongoing because of the coalition, which if it was not a coalition Government perhaps we would have had one clear policy that all departments would have signed up to. Should the business department be part of the consultation? Should it not be part of the proposal?

Mr Willetts: These are all the issues that were brought out, quite rightly, in the consultation document and the final—

Chair: Minister, one second, should the Government not have had a firm set of proposals first and then put them out to consultation, rather than the poor old business department putting its views forward as part of the consultation?

Mr Willetts: No, I do not think that is how it has been conducted. It is absolutely right that this is put out for consultation so that all the outside bodies affected—and my understanding is that there has been 30,000 responses to the consultation—it is absolutely right to do a proper consultation, and now what is happening is there is a shared exercise by the Home Office and BIS working together now developing precise proposals in the light of that consultation. What I have been trying to do is to share with this Committee the area that our discussions are focusing on and how we are trying to draw the boundary in some of these genuinely rather tricky areas.

Chair: You have been very helpful. I did say the words "final question". It is an elastic final, because other colleagues just want to ask very brief final questions.

Q364 Dr Huppert: My apologies for my brief absence; I had to be in the Chamber for a question. You made it relatively clear, I think, that there is this tension between what you would most like to see happening with students coming in and the Government's drive to reduce net migration. Do you think that students ought to count as part of net migration, because presumably roughly as many arrive as leave, which ought to suggest that it is zero? Secondly, most of the public, including organisations such as Migration Watch, would say that students coming in, studying then leaving, is a completely different category from people coming to settle. Would you agree with those suggestions that we should reclassify what we are looking at?

Mr Willetts: Setting aside your rather tendentious introduction, I am assured that the international measures of migration—the statistics that are used across the world—do count essentially as people coming to one country for more than a year as migrants, and therefore the fact that students are enclosed is not some eccentric British policy. It is, I am told, how the international statistics are compiled.

Q365 Dr Huppert: Australia analyses it differently, but one can certainly categorise them differently. What message would you like to be sending to international students considering applying to study in Britain?

Mr Willetts: That we have a clear, fair, robust visa regime and a legitimate student coming to a legitimate British education institution of high quality will be welcome to come and study.

Q366 Nicola Blackwood: I wanted to take you back to your comments on globalisation and the Open University and the fact that we are delivering British education in all sorts of places in the world. There is also a need—I hope you agree—for immersion, especially in cases of English language education especially for students coming from abroad. Is that something that you are factoring into discussions?

Mr Willetts: Yes, and of course people want to come and study here and improve their language in that way. The only point I was trying to make, and I think it is very topical at the moment—and forgive me, this is from memory and I apologise in advance if I have this wrong—but I believe reading somewhere that more women in the Arab world have access to higher education through the Open University than from any other education institution. It is when you come across points like that, you realise that there are various ways in which people can have that opportunity. I think we can be very proud of institutions like the Open University, so I just did not want those kinds of routes to be overlooked.



 
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