Leading article: We need a new foreign policy

Published: 20 October 2005

The drop in overseas students becoming obvious this term is affecting old and new universities alike. The big boys such as Warwick and Birmingham are experiencing falls, just as Derby, Greenwich and Southampton Solent are. We won't know the exact figures until mid-November (when Universities UK collates its survey), so we don't know yet whether overall overseas student numbers will be down. But we do know that a substantial number of universities are worried. Overseas students have kept British universities afloat, particularly in some subjects. Universities cannot afford a meltdown.

The reasons for the fall are complex. According to Mary Stiasny, the director of education and training at the British Council, huge competition is building in the overseas student market. Australia, New Zealand, America and Canada have raised their game, and new competitors are emerging, such as Singapore and Malaysia. And China, which used to send large numbers of students abroad, is now recruiting overseas students to its shores.

One major cause of the fall in students from China is the strength of the pound. Nations that peg their currencies to the US dollar, such as China, find the UK very expensive. Combined with stories (apocryphal or otherwise) about changes to the visa regime, this deters overseas students from coming here, the argument goes.

Despite Tony Blair's efforts to make the UK more welcoming to overseas students, we seem to be performing poorly. The US has a more streamlined visa system. Australia has introduced new recruitment measures, with a huge financial investment. It is clear that a second initiative is urgently needed from the Prime Minister. This is now in planning. It needs to be rolled out as soon as possible.

In addition, Blair must ensure that government departments sing from the same hymn-sheet. It is no good launching a new recruitment campaign if entry clearance officers in China and India are thinking up ways to keep foreigners out. It is good news that the Government is consulting about introducing a new immigration system for students. We need procedures that are objective and transparent so that bona fide students can enter freely.