SCOTTISH Secretary David Mundell is willing to consider re-introducing a scheme to allow overseas graduates to work in Scotland after they complete their studies.
In a significant climbdown, Mr Mundell said he would think about detailed proposals to revive the post-study work visa, which was credited with attracting talented students to Scotland and boosting the economy when it ran from 2005 to 2012.
Mr Mundell has come under intense since appearing to rule out such a move earlier this month.
Scotland's universities and colleges and MSPs from across the political spectrum reacted with dismay when he issued a ministerial statement saying existing graduate schemes were "excellent" and the Government had "no intention" of reconsidering post-study work visas.
But speaking at a lunch with Holyrood journalists, Mr Mundell said: "My understanding is the Scottish Affairs select committee are preparing a report which will provide evidence as to why we need to make changes in relation to the student visa regime.
"I've been very clear I want to see that report and hear what they have to say.
"If a case can be made for a different regime then obviously we'll look at that."
He said he was "surprised" his statement updating Westminster on the new Scotland Bill was interpreted as closing the door on reviving the post study work visa initiative.
"It's not," he said. "The statement was simply a statement of where we are."
Scotland's only Conservative MP will face questions on the issue when he appears before Westminster's Scottish Affairs committee today.
David Cameron also appeared to rule out changes to the system when he was questioned by the
SNP's Westminster leader Angus Robertson during Prime Minister's Questions last week.
He said existing schemes were "world beating".
He said a "disadvantage" of the post work study visa was to allow "the world's brightest and best to come here to study then do menial jobs".
The visa was originally negotiated by then-first minister Jack, now Lord, McConnell in 2005 as part of his "Fresh Talent" initiative to tackle the country's falling population.
It was rolled out across the UK in 2008 but scrapped four years later.
In his statement earlier this year, Mr Mundell was updating MPs on loose ends left by the cross-party Smith Commission, whose agreement on further devolution formed the basis of the new Scotland Bill.
The commission recommended that new graduate schemes should be "explored".
Mr Mundell also gave the clearest backing of any cabinet minister to date for an early referendum on the UK's membership of the EU.
He said holding the poll in late June would not interfere with the Holyrood election on May 5 and would still give enough time for voters to engage with the debate.
He said "all the indications" pointed to a successful renegotiation of Britain's terms of membership and, on that basis, he would campaign for an In vote.
David Cameron has said a June vote is his preferred option though, depending on his negotiations with other EU leaders, it could take place in September or next year.
Nicola Sturgeon, the First Minister, has called on the Government to avoid a June poll, arguing it might leave too little time to secure an In vote.
Taking questions from journalists, Mr Mundell also called for a mature relationship between the Scottish and UK governments in the months and years after May's Holyrood election.
He said he was "confident" the Conservatives will win more seats than Labour at the election, making them the parliament's second-biggest party after the Nationalists, who enjoy a commanding lead in the polls.
However, he would not be drawn on party leader Ruth Davidson's future if she fails to become the "official leader of the opposition" at the Scottish parliament.
He also publicly thanked the Prime Minister, the First Minister and others in politics for their support following his announcement last week that he is gay.
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