Extracts from Parliamentary Proceedings - March 13

Lord Purvis of Tweed (LD): My Lords, the United Kingdom currently enjoys free trade agreements with 32 out of the 52 Commonwealth countries by virtue of our membership of the European Union customs union. The Commonwealth Secretariat has said that if we leave that union and revert to World Trade Organization rules, such positive trading relations with those countries cannot be guaranteed, and not only that; the secretariat has also calculated that, on 2015 figures, the least developed Commonwealth countries would have faced $800 million of increased tariff payments to export to the United Kingdom if we were on WTO rules. Which part of that does the Minister agree would be, to quote the Foreign Secretary, “perfectly OK”?

The Minister of State, Department for International Trade (Lord Price) (Con): The main point of our meeting last week with Trade Ministers from around the Commonwealth was to agree a smooth transition, whether there will be an association agreement, a GSP scheme, an EPA or even an FTA. As the noble Lord pointed out, there are a number of countries in the Commonwealth with which we currently do not have FTAs, or any agreement other than WTO. At the moment, we are on WTO terms with Australia, New Zealand, Canada, India and many others. We believe that in the new world all those can be improved to the benefit of the UK and the Commonwealth as a whole.

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Extracts from report stage (Lords) (day 3) of the Higher Education and Research Bill

Lord Hannay of Chiswick (CB):...The 2015 figures tell the story: for the USA the numbers are up 10%; for Canada, up 10%; for Australia, up 9%; and for the UK, up by less than 1%. By far the most startling numbers are those for Indian students coming to the UK, which since 2010 are down 53%. India is surely a country we all believe and hope we will have a much closer relationship with when we negotiate trade relations following Brexit. We are becoming heavily overdependent on one source of overseas students: China, which now provides four times as many overseas students as any other foreign country. I would have thought this was a source of some vulnerability in an uncertain future...

Baroness Royall of Blaisdon (Lab):...If the Government agree to the amendment, this perception will be changed immediately and the flow of Indian students and others now choosing to study elsewhere will be stemmed. I hope the Minister will not rely on the argument about best practice in migration calculations, which requires us to follow the stipulations of the UN. This has always been a weak argument, but post-referendum, when the Government proudly assert their determination to take back control, it is risible—likewise, the Minister’s statement that it would be inappropriate for the Government to seek to influence how statistics are compiled. What are the Government for?

Lord Holmes of Richmond (Con): My Lords, I rise to support Amendment 150 in the name of the noble Lord, Lord Hannay, and, in doing so, declare my interest as set out in the register. When, many years ago, I went from a Midlands comprehensive school to Cambridge University, in many ways I felt that I was a foreign student. That aside, there is no social, economic, political, moral or legal reason not to support this amendment.

I wish to add the following comments to those made by noble Lords, with which I wholeheartedly agree. “You want our trade, you don’t want our children”, said the Prime Minister of India, Mr Modi. If that is the impression being received in India and other nations around the world, how can we possibly expect to attract the brightest and the best to come to study in the United Kingdom? That is what we need and want. Our doors and our arms should be wide open to the brightest and the best to come to study here because there is no downside to that. International students come, pay and study. If they stay, they work and contribute. If they go home, they are the best advocates for soft power. The GREAT campaign is indeed, as its name suggests, great, but it is as nothing compared with the advocacy of international students who have had that experience in the UK. British higher education is the most gleaming jewel in our soft power crown...

Lord Bilimoria (CB): My Lords, I declare my interest as a former international student and the third generation of my family in India to be educated in this country. I am chair of the advisory board of the Cambridge Judge Business School, which has just been ranked No. 5 in the FT global MBA rankings. As the noble Lord, Lord Holmes, said, our universities are the best in the world along with those of the United States of America...

...As the noble Lord, Lord Hannay, said, the global environment is one in which the international student demand from countries such as India is increasing by 8% year on year. We have no target to increase the number of international students. This amendment very clearly says that the Government need to make that a priority. I go further and say that there should be a target. Countries such as France, for example, have a specific target to double the number of students from India by 2020. As the noble Lord, Lord Hannay, said, the number of Indian students went up to nearly 40,000 around 2010. It has now dropped by over 50%. Canada, the United States and Australia all have programmes to increase the number of international students. In fact, Australia has a Minister for international students. Last year in India, the Australian high commissioner said to me, “Thank you for your immigration policy on international students. You’re sending them to us instead”. That is ridiculous...

...I would go one step further: this poll suggests that the Government are entirely out of line with public opinion when it comes to international students. I need only mention the current, and first Indian, president of the Royal Society, Sir Venki Ramakrishnan—Nobel laureate and fellow of Trinity College, Cambridge...

Lord Green of Deddington (CB):...Lastly, subsection (3) of the proposed new clause seeks to legislate to prevent any tightening of conditions for foreign students. Surely that is a matter for policy and not law. The House will be aware, I hope, that there are very strong pressures on our immigration system and, in particular, that there has been widespread abuse at the college level. The National Audit Office estimated that in one year, to 2010, about 50,000 students from the Indian subcontinent came here to work rather than to study. That largely explains the drop in students from India, which has been referred to once or twice. The House certainly knows that 900 bogus colleges have lost their licence to bring in foreign students. That is a massive number. This has been a scandal that has gone on for years and I very much regret that from the academic lobby, which should be powerful, accurate and on the case, hardly a word have we heard. I sometimes wonder whether some of the stuff put out by Universities UK gives a negative impression of our universities. These are the people who have been complaining and complaining for six years—of course foreign students are going to think that something is up and they are not terribly welcome...

Lord Stevenson of Balmacara:...The noble Lord, Lord Holmes of Richmond, quoted the Prime Minister of India, who said: you want our trade but you do not want our students. It is about the perceptions that have built up. I am sure that when he comes to respond the Minister will say that there is no cap and that every overseas student who is qualified to do so can come. However, as the noble Lord, Lord Cormack, said, the signal being sent out to the world, and which the world believes, is that we do not want students to come here. We have to take a stand and make our case absolutely clear to the world. The fight back can start now. This is a flag that we should all be waving. We must join together, around the House and across the country, to say that this is something that we want to happen. I leave it to the Minister to say that he agrees....

Viscount Younger of Leckie:...The noble Lord, Lord Hannay, spoke eloquently, backed up by statistics, about the importance of overseas students to the UK. We continue to look for ways to promote the UK as an attractive place to come to study and we have a very generous offer for international academics who want to come to work in UK universities. The Chancellor’s recent Budget acknowledged that the continued strength of UK research and innovation depends on access to world-class skills, ideas and talent. It set out how the UK is investing in our industries of the future and that the Government have committed to invest more than £100 million over the next four years to attract the brightest minds to the UK. This will help maintain the UK’s position as a world leader in science and research. It includes £50 million ring-fenced for fellowship programmes to attract global talent and more than £50 million from existing international funds to support fellowships that attract researchers to the UK from emerging research powerhouses such as India, China, Brazil and Mexico...

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Extracts from Budget debate (Commons)

The Secretary of State for Foreign and Commonwealth Affairs (Boris Johnson):...Since the hon. Gentleman has interrupted me, let me remind him that today is Commonwealth day, which provides an opportunity for us all to celebrate that remarkable institution which embraces one third of humanity and now includes some of the fastest-growing economies in the world—a free association of 52 countries, spread across every continent and dedicated to advancing the values that we share. I am proud to say that Britain will host the Commonwealth Heads of Government summit next year. Although we may not be able to sign free trade deals with our Commonwealth friends now, we can see them in outline and taking shape. Let me say this to our friends from the Scottish nationalist party, who seem so determined to wrench themselves out of the UK, even though they had a decisive referendum on the matter, as Members will recall, only a couple of years ago: never mind haggis; Scotch whisky exports to the Indian whisky market, a potentially huge market—the Indian thirst for whisky is colossal—account for only 4% of Indian whisky consumption. That is because at the moment, without a free trade deal, the Indian Government impose a 150% tariff on Scotch whisky.

Imagine a free trade deal that lifted the exports of Scotch to India by only a few per cent.—to, say, 6% or 10%. Dare to dream that Scotch whisky, which everyone in the House would concede is the original and authentic whisky, were slaking just 15% of that gigantic Indian thirst for whisky. We would be talking about an increase in profits for the Scotch whisky industry, for this country and, above all, for Scotland every year running into hundreds of millions of pounds. That means jobs, growth and investment for Scotland. It means the prosperity that comes with having a truly global outlook, which unfortunately Members on the Opposition Benches signally seem to lack...

Mr Virendra Sharma (Ealing, Southall) (Lab):...We have heard many Members speak of the positives and negatives of our imminent departure from the European Union. I voted both in my constituency and in this place to remain. However, I wish to draw our attention to matters a little further afield—first, to the USA. It does our place in the world no good to be seen as too keen an ally of the American President. As America loses influence, we will be dragged down, tarred by his racist policies. When the Prime Minister visited Washington, we saw that she and this Government do not intend to question his policies or to counsel a different course. His racist policies have already led to a climate of fear in which two Indian men were shot in Kansas, and one killed. It is being investigated as a hate crime. We must not allow the same climate of distrust and malice to grow in this country.

With that sober warning behind me, I wish to turn to more positive matters. I look to India, once the jewel in the crown, offering succour today in a way it once did to our predecessors sitting here. I hope I can offer a different perspective from that of some other Members in this Chamber. I am a British Member of Parliament of Indian origin born in India. India must be not only our key strategic partner but our friend and ally at the crossroads of Asia. We have much to gain from each other, not just financially but culturally. There are deep-rooted bonds. Indians and the British understand each other. The Indian diaspora in the UK acts as a bridge between the UK and India. The Indian legal system is modelled on our own, and English is a shared language for almost everyone.

Those relationships, however, cannot be nurtured by business as usual. During the February recess, I led a cross-party delegation to India and we met many businesses. They want to work with Britain, increase trade and create jobs and opportunities, but many are frustrated by the punitive visa policies in place. When we met the Indian Prime Minister, he was keen to stress how much he valued a strong relationship with the United Kingdom. However, good will on the Indian side is not enough; it must be met with actions from us—actions that show that we, too, value the strong relationship. Platitudes alone are not enough...