Immigration Bill

Debate between Lord Green of Deddington and Lord Howarth of Newport

Tuesday 9th February 2016 Grand Committee

[Lord Howarth of Newport (Lab)]

My Lords, I am very grateful to the noble Lord, Lord Wallace, for proposing this new clause. I am a member of the All-Party Parliamentary Group on Anti-Corruption. Like the noble Lord, I have had the opportunity to examine the statistics in the report from Transparency International UK which he mentioned. I find them extremely concerning.

It would appear that, under the tier 1 investment visa scheme, we are operating a charter for money laundering. An individual is required to invest only £2 million in government bonds, or the share or loan capital of a business trading in the United Kingdom, and after five years they can have indefinite right to remain. As the noble Lord mentioned, there is a tariff on this. If they are happy to invest £5 million over three years or £10 million over two years they get a faster track to the right to remain. It is a pretty cheap ticket for them to come in. Large amounts of money have been brought in— £3.15 billion since 2006—by this route. I am advised that golden investor visa approvals have risen from 153 in 2009 to 1,173 in 2014. The largest number are Chinese, followed by the Russians. At the same time, the Chinese and Russian authorities are telling the world that they are very alarmed about the export of corruptly gained capital from their countries. The Government inveigh against corruption across the world. They propose themselves as international leaders in campaigning against corruption, yet it would appear that the right of potentially corrupt individuals—and there is good reason to think they are actually corrupt—to come, take up residence and remain in this country can be bought remarkably cheaply.

I have some questions for the Minister. Will he advise the Committee what precautions the Government are taking to ensure that those who benefit from these tier 1 visas are not corrupt? What investigations are undertaken? What requirements are there on people to declare their wealth and the sources of their wealth? What due diligence is pursued to ensure that those answers are honest, accurate and comprehensive? Do the Government maintain a list of those who are suspected by police authorities or intelligence sources internationally to be criminals or money launderers? Do they ensure that people who are on that list do not obtain visas? What proportion of applications for tier 1 visas is turned down? Do the Government intend to undertake any retrospective scrutiny of individuals who have already been granted visas under this scheme?

The noble Lord, Lord Wallace, referred to things that have been said by the chairman of the Migration Advisory Committee, Professor Sir David Metcalf. Those of us who know him know that he is a man of very great experience and wisdom. He told the Home Affairs Select Committee that the tier 1 scheme is,

“absolutely not fit for purpose”.

Indeed, that could be said to be an understatement. It is worse than unfit for purpose if it pollutes our national life. The noble Lord, Lord Wallace, alluded to the effects on the housing market. That alone must be a matter of very great concern. There is a cascade of misery that derives from the ability of wealthy individuals to force up prices of houses and apartments in London, and if they are doing that through the use of ill-gotten money, it is even more intolerable, as I am sure the Committee would agree. If this is a scheme to enable people who may be participants in organised crime or actively investing in it, it runs absolutely counter to what should be the main strategic purpose of the Home Office in any case.

Sir David said that the scheme brings “absolutely no gain” to the United Kingdom. It may be that the Government disagree, in which case the Minister will tell us, but it seems a reasonable proposition. Therefore, I hope that the Minister will tell us that he will accept the new clause that has been tabled, but if he intends to keep tier 1 visas, what is he going to do to ensure that there is not the abuse that Transparency International and many others believe there is in consequence of the availability of this scheme?

[Lord Green of Deddington]

My Lords, I speak in firm support of this amendment. We have had two very powerful contributions, and I will not repeat what was said. Listening to them and looking at the study, this is bizarre. It is really quite extraordinary. You can see why it is attractive. There is no need for a job offer or a sponsor, and the visa applies not just to the main applicant but to all his immediate family members. There are no language requirements and, since 2011, the residence requirement has been only 180 days. Talk about an offer. What do we get? We get nothing because these sums of a few million, which are evidently nothing to these applicants, are given back to them after a few years. They can put them in gilts and get their money back. It is absolutely bizarre. I suppose it is intended to give the impression that Britain is open to investors, and investors are a good thing, but we really should not give the impression that we are really quite as naive and foolish as that.

The noble Lord, Lord Wallace, has already quoted some very effective remarks from Sir David Metcalf, as has the noble Lord, Lord Howarth, so I shall not repeat them, but coming from someone of his stature, they should certainly be taken into consideration.

It is hardly too cynical to describe this as a scheme for selling British passports to the very wealthy. There is absolutely no justification for that and this scheme needs to be scrubbed, frankly. It may be that it could be replaced by a more effective scheme that actually brought serious investment and jobs to this country. That is for another day but this has got hopelessly out of hand. It is a useless system and should be abolished.