Universities: British and Overseas Students (Hansard, 16 July 1991)

§ Baroness Blatch
My Lords, their charters and statutes rightly leave universities free to determine their own recruitment policies. However, substantial public funding is provided in the clear expectation that places continue to be made available for the increasing demand from well qualified UK applicants.

§ Earl Russell
My Lords, I thank the noble Baroness for that reply. I am aware of the point she has made. But if she has studied the press release of the Committee of Vice-Chancellors and Principals issued on 15th May she will be aware that universities believe that they are undertaking these services at a loss either of profit or of quality. Does the Minister accept that it is a good business principle to give up loss-making activities and concentrate on profitable ones? If universities should reach that conclusion, will the Government undertake to act according to their free market convictions?

§ Baroness Blatch
My Lords, I could answer in greater detail if I agreed with the premise in the noble Earl's remarks. Since this Government came to power the number of UK students in higher education has increased faster than the number of students from abroad. The number of full-time equivalent UK students has risen from 545,000 to 795,000; that is an increase of 46 per cent. The number of overseas students has increased to 71,000; that is an increase of only 16 per cent.

§ Earl Russell
My Lords, I am aware that the noble Baroness does not accept the premise of my remarks. However, is she aware that I was referring to beliefs held in the universities? In commercial matters one must act on one's own judgment and not that of someone else.

§ Baroness Blatch
My Lords, as regards universities alone, UK student numbers increased by 16.5 per cent. between 1979 and 1989 compared with a 32 per cent. rise in the numbers of students from abroad. However, there was an increase of 46,000 university places awarded to home students during that period. That figure was substantially larger than the increase in the number of places awarded to students from abroad. The latter were awarded only 13,000 additional places.

§ Baroness Blackstone
My Lords, is the Minister aware that universities are under considerable pressure to recruit overseas students paying full cost fees? That means giving priority to those from outside the European Community over those within the European Community. That policy is a result of the consistent underfunding of British universities that has occurred over some years.

§ Baroness Blatch
My Lords, I am afraid the noble Baroness is wrong. The greatest increase in the number of overseas students is attributable to the European Community. They of course do not pay full cost fees. The proportion of full-time overseas university students who pay full fees has remained constant over the years 1979 to 1989. In 1979 the figure was 11.7 per cent. compared with 11.8 per cent. in 1989. There was a small dip when a change in policy occurred.

§ Lord Peston
My Lords, I hope the noble Baroness can clarify one matter in case anyone has been misled. Will she confirm that universities are private institutions which have their own charters and that therefore they can admit whoever they like, irrespective of what the Government may say? The universities determine their own entries.

§ Baroness Blatch
My Lords, the noble Lord is absolutely correct. As I said in my original Answer, universities have their own charters and statutes, but the funding that the Government provide for universities is given in the expectation that they will ensure that UK students are properly provided for.

§ Lord Grimond
My Lords, is the Minister aware that what has been said is perfectly correct in that universities have been forced to take in as many overseas students as they can get because of their position over funding? Will she also make it clear to the House that universities have done an exceptionally good job overseas? They have run extremely efficient recruitment programmes. Does the Minister accept that the students from abroad who come to this country do a great deal of good for our country as well as for our universities?

§ Baroness Blatch
My Lords, I absolutely agree with the noble Lord's final point. Universities have done an exceptionally good job in this area. Overseas students add a great deal to the life of our universities. However, I positively disagree with the noble Lord when he alleges that universities are forced to take in overseas students. Over the 10-year period that has been mentioned, the percentage of full fee paying overseas students admitted to British universities has hardly changed. It has changed by only 0.1 of a per cent. There has been no element of compulsion. Universities have their own charters and statutes and are entirely free to determine their intakes.