My Lords, I supplement the remarks of my noble friend Lady Williams with two specific points about the implications of the caps for universities. The first relates to the tier 1 cap. I believe the number of points needed to gain entry through this category is likely to be increased. This raises a problem. The points required under tier 1 already place considerable weight on an individual's prior earnings and probably insufficient weight on their qualifications. This disadvantages academics and researchers, who tend not to be as highly paid as businessmen and bankers but, in many senses, create economic value in a different way. I ask the Minister: is there likely to be a review of the criteria and weightings used within tier 1 of the points-based system to prioritise those with skills and qualifications most likely to generate long-term economic benefit for the UK, and not just the highly paid?

My second point relates to tier 2. I understand that tier 2 applies to occupations where there is a recognised UK national shortage. Academics and researchers are not currently listed as shortage occupations. They tend to fill very specialised and niche vacancies. This change would mean that the tier 2 route would effectively be closed to universities and research institutes. This would severely affect many universities because it would affect both PhD students and the post-doctoral students who come over and fill many research posts in institutions. As the noble Lord, Lord Ryder, implied in last week's debate, it would impose severe restrictions on what such research institutions could do. Will the Minister ensure that tier 2 is sufficiently flexible to respond to future economic growth areas, and not just to existing skills shortages? I also urge the Government to consider the introduction of a specific new immigration category for research collaboration and exchange, aligning the UK with other EU countries that have already made such a commitment to such collaborations.