Immigration

(Limited Text - Ministerial Extracts only)

Wednesday 11th December 2013 Westminster Hall

[Paul Blomfield (Sheffield Central) (Lab)]

It is a pleasure to contribute to this debate under your chairmanship, Mr Howarth. I am pleased to have the opportunity to speak. Although I speak from the Opposition Benches, I am not in the business of defending everything that the previous Government did in relation to immigration, but frankly, the suggestion by the hon. Member for Isle of Wight (Mr Turner) that the decisions that we made about the A8 accession countries—which we recognised were a mistake, and perhaps arose from listening too closely to the calls of the business community and its desire for free movement of labour into the UK—were some sort of ideological plot to transform the nature of our society is perhaps something that is better placed in the pages of the Daily Mail.

Let me describe a personal experience. Last Friday, when I was conducting one of my regular advice surgeries, I was talking to a Romanian citizen currently living in the UK. She is a student and is making a significant contribution to our local economy in Sheffield. She was volunteering for AIESEC, which is a student society committed to promoting business, finding business placements, developing skills in an industrial and commercial context and growing global-minded entrepreneurs. She was enthusiastic when she came to Britain, but she was deeply depressed by the public discourse around Romania and Bulgaria and their citizens, which made her feel unwelcome. I think we need to take care how we debate the issue, not only for her sake and others’, but also for the sake of all those UK citizens who have raised concerns, of which all hon. Members have experience, about immigration. They deserve proper leadership from us as politicians, which means being honest about the facts and coming up with the right solutions to the real problems.

I have some sympathy with the Minister. He was right a couple of weeks ago to talk down the fear of a mass influx of Romanians and Bulgarians. He will not be surprised, however, that I have only some sympathy. Much of the problem has been created through the Government talking up the problems of migration for political advantage. We need an honest debate. We have heard a lot of noise, some of which was reflected in the speech by the hon. Member for Isle of Wight, about benefits for newly arriving EU migrants. The impression being given is that EU migrants are freeloaders who come simply to claim our benefits and to exploit our generosity. However, all the evidence, as I am sure the hon. Gentleman knows, suggests that EU migrants make a net fiscal contribution.

A study was published last month by the centre for research and analysis of migration—CReAM—at University college London, which is one of our country’s greatest universities and one of the world’s leading universities. It concluded that recent immigrants—those who arrived after 1999, who constituted 33% of the overall immigrant population in 2011—were 45% less likely to receive state benefits or tax credits than UK natives. Over the same period, recent European economic area immigrants have on average contributed 34% more in taxes than they have received in transfers. By contrast, over the same period, the total of UK natives’ tax payments were 11% lower than the transfers they received.

We welcome the most talented migrants. In 2011, 32% of EEA immigrants and 43% of non-EEA immigrants had university degrees. The estimated net fiscal contribution of immigrants increases even more if we consider that immigration helps to share the total cost of fixed public expenditure among a larger pool.

The main reasons for the large net fiscal contribution of recent EEA immigrants are their higher average labour market participation than UK natives and their lower receipt of welfare benefits. Professor Christian Dustmann, the director of CReAM and the co-author of the study, said:

“Our research shows that in contrast with most other European countries, the UK attracts highly educated and skilled immigrants from within the EEA as well as from outside. What’s more, immigrants who arrived since 2000 have made a very sizeable net fiscal contribution and therefore helped to reduce the fiscal burden on UK-born workers. Our study also suggests that over the last decade or so the UK has benefited fiscally from immigrants from EEA countries, who have put in considerably more in taxes and contributions than they received in benefits and transfers. Given this evidence, claims about ‘benefit tourism’ by EEA immigrants”—

that myth—

seem to be disconnected from reality.”

Another example of the Government talking up the migration issue but introducing measures that damage the economy by targeting the wrong issue is on the issue of international students. The Minister will not be surprised to hear me speaking about that again. I agree that the Government are right, as were the previous Government, to clamp down on bogus students who not only are exploiting our system, but are themselves in many cases exploited by bogus colleges. However, overall, international students bring huge benefits to the economy.

Oxford Economics conducted research on behalf of the university of Sheffield, which looked at the students’ net contribution after all costs to public services—such as traffic congestion and everything else it could think of. The survey was published in January 2013 and showed that during the previous academic year the 8,000-plus international students at our two universities made a net total contribution of more than £120 million to the Sheffield economy. Probably about 6,000, 7,000 or 8,000 local jobs depend on those students. Furthermore, the net benefits generated by the indirect supply chain advantages were assumed to account for approximately an additional £22 million to the local economy. International students obviously bring further external benefits, such as boosts to demand as a consequence of increased familiarity with locally produced goods and the potential for our status as a city and a country to be boosted by the relationship that they build while they are in the UK.

International students are a growing market internationally. The Department for Business, Innovation and Skills has calculated that by 2020 the market could double. Instead of being worth £8 billion to our economy, it could be worth £16 billion; instead of 6,000 jobs in Sheffield, it could be 12,000 jobs. Currently, international student numbers are flatlining, while our competitor countries are taking advantage of some of the measures that this Government have put in place. We should be concerned about that.

The hon. Member for Isle of Wight expressed concerns about things that are happening in the labour market. My concern is that he did not focus on the things that can be done to address issues in the labour market. The Minister for Immigration made a useful contribution before the Home Affairs Committee this week when he was challenged about a statement from the head of Domino’s Pizza about why it was unable to recruit sufficiently from within the UK domestic work force. The Minister rightly made the point that the company should perhaps look at its employment conditions and wages. It would be helpful to consider positive labour market interventions that can create the sort of level playing field that the hon. Member for Isle of Wight seeks.

[The Minister for Immigration (Mr Mark Harper)]

To be clear, it is worse than the hon. Gentleman suggests. The chief executive of Domino’s Pizza was not arguing that he could not recruit in the UK alone. He was arguing that he could not recruit enough people from the whole EU labour pool, and that we needed to start importing low-skilled workers from outside the EU in order that he could keep low wages in his business. That is why I said he perhaps ought to reflect on the terms and conditions. So he was arguing that we should have an unrestricted free-for-all, but I do not think it is the role of Government policy to let multinationals keep wages low when, frankly, they should pay their staff a little more.

[Paul Blomfield]

I agree entirely with the Minister on that point. We should ensure that multinationals pay wages that will attract people to do the jobs. We should also ensure that companies do not recruit exclusively from eastern Europe, as they seek to do. Jobs should be available to local workers in the market. We should also do more to ensure that companies that flout the minimum wage rules are prosecuted. The number of businesses that are fined for employing illegal workers has halved, plummeting from more than 2,000 in 2009 to a little more than 1,000 in 2012. We can talk positively about those sorts of labour market interventions to address many of our concerns.

I will conclude by commenting on something that the hon. Member for Isle of Wight said about a constituent, who is concerned about the way in which their community has been transformed by the influx of migrants. I am sure that if we look back in 50-year snapshots, we will find that people have always expressed such concerns. I am sure that they expressed concerns about my wife’s family, who came across from Ireland to supplement the work force in the UK. I was brought up in Sheffield in the 1960s and it was a relatively monocultural city. The city in which I have brought up my son in the 1990s is stronger, richer and better for having welcomed people from around the world—some to build better lives, some fleeing persecution. I am proud that we are the country’s first city of sanctuary.

--- Later in debate ---

[The Minister for Immigration (Mr Mark Harper)]

It is a great pleasure to serve under your chairmanship this morning, Mr Howarth, and it is a rare treat to have two Howarths in the Chamber at the same time. I suspect that you are at rather different ends of the political spectrum—although you, as Chair, are completely neutral.

I thank my hon. Friend the Member for Isle of Wight (Mr Turner) for securing the debate. As the right hon. Member for Delyn (Mr Hanson) said, it is always good to have one and a half hours of valuable parliamentary time to talk about issues that are of concern to all our constituents. Some are concerned, as my hon. Friend the Member for Cambridge (Dr Huppert) said, about attracting the best and the brightest. Others are worried about the numbers of people coming here and whether they are all making a contribution.

I am also pleased to see that the right hon. Member for Delyn has some friends today. Last time we debated immigration, he was completely by himself with no Labour Back Benchers to support him. Today, however, one Labour Member spoke in the debate and another is in the Chamber, so the right hon. Gentleman’s powers of oratory are clearly attracting a wider audience.

My hon. Friend the Member for Isle of Wight was right to highlight the failure of the previous Labour Government, and one can argue about whether that was the result of a conspiracy or a cock-up. The former Home Secretary, the right hon. Member for Blackburn (Mr Straw) leans towards the view that a “spectacular mistake”, in his words, was made. A significant number of people came into the country when the previous Labour Government were in power, which is partly why people have concerns. It was partly to do with the fact that at the time of the eastern European accession, we were the only major country to have no transitional controls, so most of those who left their own countries to work came to Britain.

It is worth remembering, however, that eastern Europe was not where the largest number of people came from. During the Labour party’s time in office, more than twice as many migrants came from outside the European Union. Although the shadow Home Secretary, the right hon. Member for Normanton, Pontefract and Castleford (Yvette Cooper), was presented with that information in a clear graphical format during a recent edition of “Sunday Politics”, and she was sitting right in front of the screen, she denied that it is true. I am afraid it is, however. Although the Labour party may argue that it made some mistakes on eastern European migration, in an area in which it had complete control over who came to the United Kingdom, it failed. That is behind many people’s concerns, so we have tried to demonstrate that we are able to take tough decisions to reassure people.

My hon. Friend the Member for Cleethorpes (Martin Vickers) said that even in an area such as his constituency where immigration is low, people see significant numbers of migrants from eastern Europe in neighbouring towns, such as Boston in Lincolnshire. People are concerned about the numbers of people who have immigrated in a relatively short space of time and how successfully they have integrated. That is why we have to address those concerns.

We have made progress. Several Members have referred to the fact that net migration is down by nearly one third since its peak. We are building a system that works in the national interest. Immigration from outside the EU is now at its lowest level for 14 years, and almost back to the level it was when the previous Conservative Government left office.

The good news is that we are being more selective. According to the latest figures, there is a 7% increase in students coming to our excellent UK universities. The hon. Member for Sheffield Central (Paul Blomfield) has made that point before and I am sure he will make it again, as will my hon. Friend the Member for Cambridge. We welcome international students coming to our excellent universities, and both the hon. Gentleman and my hon. Friend have more than one excellent university in their areas. It is important that we welcome students who come to Britain to study. Most will leave, some will stay, some will start businesses and some will help create economic growth, and we very much welcome them. I think my hon. Friend the Member for Aldershot (Sir Gerald Howarth) was being slightly unfair earlier—the “hear, hears” when he congratulated my hon. Friend the Member for Braintree (Mr Newmark) were coming not from him but from the rest of us. He made an excellent speech focusing on those who are going to contribute. People who come here and contribute are important.

I listened carefully to what my hon. Friend the Member for Kettering (Mr Hollobone) said about numbers, which was also a concern of my hon. Friend the Member for Isle of Wight. Two things are worth remembering. First, my hon. Friend the Member for Kettering was concerned that we will see a repeat of what happened in 2004, but the situation now is different, because in 2004 we were the only country to have no transitional controls. This time, we have had such controls and at the end of September, the controls of eight other European countries—including large countries with successful economies, such as Germany—will expire at the same time as ours. We are not the only country that will have a policy change. Secondly, 48% of immigrants come from outside the EU, 36% come from within the EU and 15% of the people coming to Britain are British citizens who have lived overseas for more than a year who are returning home or who have never lived here. It is worth putting the numbers into perspective.

Most hon. Members talked about employment. We have made a difference, which my hon. Friend the Member for Isle of Wight put his finger on when he talked about our immigration policy, our welfare policy and our education and training policy. The difference is in the combination of the three—a tougher immigration policy; a tougher welfare policy that encourages people to work and contribute; and an increase in the number of apprenticeships and more rigour in schools. In the five years to December 2008, under the previous Government, when there was economic growth and jobs were being created, more than 90% of the increase in employment was accounted for by foreign nationals. That is probably what provoked the comment of the previous Prime Minister, the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown), about

“British jobs for British workers.”

Since the second quarter of 2010, under the current Government, more than three quarters of the 1.1 million new jobs in the economy have gone to British citizens, which is of benefit. Talented people are still coming to Britain to fill gaps in the labour market and contribute, but the growth in employment now benefits British citizens. That is, first, what we are in business to do in Parliament, and, secondly, very welcome.

We are committed to continuing to bring net migration down. My hon. Friend the Member for Aldershot referred to removing people who have no right to be here. The Immigration Bill currently before Parliament contains measures to reduce the rights of appeal and make it easier to remove foreign national offenders, for example, from the UK when they have no right to be here, which is welcome.

[Sir Gerald Howarth]

I salute the Minister for what he is doing. My point is not so much that further measures, which I welcome, are being taken, but that many people in this country have already exhausted the extensive appeals procedures and have still not been removed. Despite people like me writing to say, “Why aren’t they being removed?”, officials do not seem to take action.

[Mr Harper]

I agree with my hon. Friend. We will certainly give ourselves the powers to take action. Since we split up the UK Border Agency earlier this year, there has been a change in the culture of the two new parts. The immigration enforcement branch now feels that it is a law enforcement organisation and its job is to deal with those who break our immigration rules.

On the subject of those who break the law and want to come to the UK, I would like to make a bit of a public service announcement. I noticed in media coverage this morning that Mike Tyson, who wants to visit the UK, is not able to come here because we changed the immigration rules for those guilty of serious offences. A column in The Sun says that he received a “knock out blow”—the first time I have ever, in effect, got in the ring with a boxer. Mr Tyson is a convicted rapist. If people have been convicted of an offence for which they have been sentenced to a period of imprisonment of at least four years, we will refuse them entry to the UK. I say that because his publisher, who organised his UK book tour, said:

“There was a change in the UK immigration law in December 2012 of which we were unaware.”

That is a fault on their part. I will say in Parliament, therefore, to make the position clear, that we have toughened the immigration rules and people who are criminals who want to come to the UK will not be able to if they are guilty of serious crimes. The measure is welcome and has been welcomed by many who support victims of violence. The child protection campaigner, Sara Payne, said:

“I think the Home Office got it right.”

I savour those words; I do not often hear people say them. She said:

“The rules don’t change just because the offender is famous.”

That is an important point. People have to obey the law. The Government make no apology for toughening up the rules in 2012, and those rules will apply to people equally, whether they are famous or not.

Before I move on, I shall pick up on the intervention from my hon. Friend the Member for Aldershot. The Immigration Bill will reduce the number of appeals and tighten up the rules on article 8, putting them in primary legislation. People who have no right to be here, for example a foreign national offender we are trying to remove, will have fewer opportunities to argue that they should be able to stay, and we will be able to remove them more effectively. I hope my hon. Friend welcomes that.

There was much discussion about labour market rules. The right hon. Member for Delyn mentioned advertisements that aim to hire only foreign nationals, which are unlawful already. I said during a debate on the Immigration Bill that I would draw such advertisements to the attention of the Equality and Human Rights Commission, which is the regulator and enforcement body in that area, and I have done so. It wrote back to me and, to paraphrase a relatively lengthy letter, it is on the case. I will be able to update hon. Members when the Bill returns to the Floor of the House.

My hon. Friends the Members for Cleethorpes and for Braintree referred to what we are doing as we move towards the end of the year. We are preparing for the transitional controls expiring. Last week, I signed an order, which we laid before the House on Friday, amending the European economic area regulations, to take steps to restrict access to benefits, guard against the abuse of free movement and prevent individuals who are removed from the UK for not fulfilling the requirements of the free movement rules from coming straight back again. Those changes will be helpful. A number of them come into force on 1 January. Those we remove for begging or rough sleeping, for example, will not be allowed to come back unless they can demonstrate that immediately on re-entry they will be exercising a treaty right, coming back to work or study, or that they will be self-sufficient.

I am pressed for time and I want to deal with the other issues my hon. Friend the Member for Isle of Wight raised. We will restrict access to jobseeker’s allowance to six months for foreign nationals who become unemployed. This week, the Department for Work and Pensions is rolling out a toughened habitual residence test to increase the range and depth of evidence collected from benefit claimants to ensure that they are entitled to be here. The Home Secretary has consistently raised that issue at the Justice and Home Affairs Council, and she did so again last week. She received support from a number of member states and, I note, robust support from my hon. Friend the Member for Aldershot.

The Government are taking the tough measures necessary. We are bearing down on numbers, but also ensuring that Britain is open to those who want to come to contribute, to put something back and to make our country wealthier. We have the balance right. I want to continue to make changes and I am confident that hon. Members on both sides might even support them.