International students fleeced by privatised visa system

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The Guardian has reported that international students in the United Kingdom are facing “unacceptable” costs after the nation’s visa system was outsourced to a private company charging up to £200 for appointments:

Universities say that the system, run by the French IT services company Sopra Steria, is already struggling to cope with the numbers renewing their student visas within the UK, and fear that it will be chaotic in September when more than 40,000 students are expected to use it…

Until March applicants were able to use a service provided through post offices to check documents and provide biometric information such as photographs. But since then they must book appointments through six Sopra Steria-run centres around the UK or pay extra for appointments in other cities.

Universities UK, which represents more than 130 British higher education institutions, has received a stream of complaints about Sopra Steria from its members, and from students unable to book free appointments required to scan documents and take fingerprints.

Sopra Steria offers “enhanced” appointments at its main offices for extra fees, including next-day or emergency appointments from £100 to £200. Appointments can be made online, or through the company’s phone line which costs £2.50 a minute. The company’s website also offers appointments at a “premium lounge” in the City of London starting at £200, “for customers who desire a service with added comfort and privacy”.

What relevance does this have to Australia, you ask? Well, the Morrison Government last year announced plans to privatise Australia’s visa system, which could see access being sold to those that can pay:

Government plans to privatise the visa application system could include “premium services for high-value applicants”, different access for those able to pay more, as well as “commercial value-added services”…

A briefing delivered to potential commercial partners by the first assistant secretary of the immigration department, Andrew Kefford, outlined in detail the department’s plan to move visa applications to an automated “global digital platform”.

The department is seeking a private-sector partner to design, build and operate a commercial “user-pays” visa application and approval system, with limited human involvement.

“We are genuinely seeking a partnership to design, implement and run Australia’s visa business,” Kefford told companies. “We are keen to explore commercial value-added services that will assist in attracting people to Australia.”

Kefford said the privatisation and modernisation of the visa system would be the “most significant reform to the Australian immigration system in more than 30 years”.

… the government appears to want to make its “visa business” profitable under the new system.

“This is not just about digitising what we do today, but just as importantly about establishing an innovative commercial model that creates new opportunities for government, our clients and providers,” Kefford said.

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So, Australia appears to be going down the same path as the United Kingdom with similar outcomes likely. It will also place Australian taxpayers on the hook when the inevitable privatisation disaster needs to be fixed down the track.

According to media reports, a final decision on whether or not to proceed with privatising Australia’s visa system is expected to be made in October.

About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
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