The Scottish Affairs Committee has published a report calling for reform to visa rules for non-EU students studying in Scotland who wish to remain in the UK to work after their studies. In their report the Committee have found that current rules for students studying here to remain in Scotland are too restrictive and are preventing businesses from finding skilled workers. Scotland faces different demographic challenges to the rest of the UK, with a much lower birth rate and significant skills gaps in the workforce. Sectors, such as health, energy and finance face particular problems in recruiting skilled graduate workers. The Committee found that the closure of the Tier 1 (Post-Study Work) visa in 2012, has harmed Scotland by making Scotland less competitive in the global education market, with other nations able to offer prospective students greater employment opportunities after graduation. Closing this visa has also prevented Scotland from making use of a pool of skilled workers, educated in Scotland, who could help mitigate Scotland's demographic challenges. Since the Post-Study Work visa was closed in 2012 the number of non-EU students remaining in the UK after graduating has fallen by 80%.
Defence and aerospace industries in Scotland generate nearly £2.31 billion in sales and together with the MoD support almost 50,000 jobs and a record number of apprentices. As well as a recognised expertise in naval ship building, Scotland also has a strong defence electronics industry and a strong aerospace industry based around Prestwick. This report examines the delay in the signing of the contract for two new aircraft carriers: the Committee is concerned that similar delays during the construction phase could lead to job losses and damage the ship-building skills base the UK needs to support if it wishes to retain sovereign capability in key areas. The Committee also comments on the Government's decision to treat the Military Afloat Reach and Sustainability (MARS) vessels as commercial rather than naval vessels, making them subject to EU competition law. There is confusion over the status of these vessels. The report also looks at the supply of skilled, semi-skilled and graduate workers, the Modern Apprenticeship programme, and the funding for adult apprentices. It is vital for Scottish industry to look at upskilling throughout the workforce, including mature workers who were not able to access apprenticeships as school leavers. The issue of constitutional change also affects the future sustainability of the Scottish defence industry. In the long term it is unclear what naval requirement an independent Scotland would have and whether this would make up for the potential loss of UK MoD orders. Government and industry need to work effectively together to ensure that Scotland's engineering and manufacturing base continues to be world class.
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