Immigration and Social Security Co-ordination (EU Withdrawal) Bill

Debate between Lord Hodgson of Astley Abbotts and Lord Horam

Report stage & Report stage (Hansard): House of Lords & Report: 1st sitting & Report: 1st sitting: House of Lords
Wednesday 30th September 2020 Lords Chamber

[Lord Horam (Con)]

This is about the resident labour market test and I find it quite astonishing, like my noble friends who have spoken to the amendment, that this should be removed at the point when we are entering a period of huge unemployment, as predicted by the Chancellor in his Statement only a few days ago. It is completely astonishing that that should be the case at the moment.

It is also amazing that the noble Lord, Lord Kennedy, has so far not supported such an amendment: it beggars belief, frankly, that the Labour Party spokesman is willing to give this up in such circumstances. I hate to attack—rather, argue—with the noble Lord but he did take me on in our last debate. I will not take long over this but he did ask, “Who is this think tank, Onward?” It is a perfectly reputable, charitable think tank. The point it was making, as am I, is that Australia has had a cap on immigration for years. We have imported half the Australian points-based system but are refusing to import the rest, which is the cap. They say in Australia, “no cap, no control”, and that is why they have a cap.

It is the same in Canada, where they have the same system and it is debated in Parliament. It is all perfectly transparent and its Parliament has a role. It is the same in New Zealand. The noble Lord, Lord Kennedy, also said that he was worried about the economy, but Australia and Canada have successful economies and caps on immigration; New Zealand has a successful economy. They are all rather more successful than we are, in many respects. I advise the noble Lord, as a true friend—we served together on the Electoral Commission and I really appreciate him as a stalwart Labour man—to think again about this and reposition his party. Believe you me, if the Labour Party does not reposition itself on immigration, I can tell him, it is in real trouble.

[Lord Hodgson of Astley Abbotts (Con)]

My Lords, I support this amendment, as the House would expect, but before I get there, the noble Lord, Lord Kennedy, threw down a challenge and I had better get to that first. I am pleased to be able to tell him that I paid for every single bit of that pamphlet. Every single envelope, stamp, and bit of printing was paid for by me and I am happy to share the receipts and information with him if he wishes. The only time that I used any of the facilities of the House was to distribute the pamphlet, a copy of which went to every Member of your Lordships’ House and every Member of the House of Commons.

I support the remarks of the noble Lord, Lord Green, and my noble friends Lady Neville-Rolfe and Lord Horam. I do not want to go over all that again now. In my remarks on Amendment 6, which we have just dealt with, I explained how employers have become addicted to cheap labour from overseas because it is in their commercial interests to do so. As a result, we have become thoughtless and careless about the employment opportunities for our settled population. We have young people locked into zero-hours contracts. We have members of minority communities locked into low-paid, low-prospect jobs. Increasingly, and really seriously because they are a larger part of our population, the over-50s find it hard to get jobs even as we raise the retirement age. A 2018 House of Commons report revealed that 1 million people over 50 would like to work or work more; 14% of 50 year-olds are out of work and 35% of 60 year-olds are out of work. Removing the resident labour market test opens them up to an even greater degree of unemployment risk.

As many noble Lords have said, as the impact of the pandemic makes itself felt, all these problems will get worse. How do we protect and look after our settled population in these circumstances, particularly since these same economic pressures will make employers ever keener to game the system and access cheaper labour from overseas? The first line of protection would have been a cap but we are not going to have it because my noble friend the Minister has told us so. This amendment is a second line of protection, as explained by the noble Lord, Lord Green of Deddington, since the resident labour market test prevents the grosser excesses of undercutting wages by recruiting from overseas.

I apologise to the House for not having been present in Committee, but I have read the debates and, following a point made by my noble friend Lord Horam, I was really astonished by a comment made by the noble Lord, Lord Rosser, at col. 843 of Hansard, about the trade unions. Why every union at the Trades Union Congress is not down here supporting this amendment as a way of helping and protecting the working man they seek to represent, absolutely astonishes me. Now, that is for the party opposite to sort out.

The strains that our society will face do not just come from the pandemic. They will come also from the impact of the fourth industrial revolution—from artificial intelligence and robotics, not often mentioned in our debate so far. In those circumstances, policies that will likely result in close to 1,200 people arriving on an average day cannot be sensible.

A key determinant of a person’s self-confidence and sense of self-worth is, undoubtedly, purposeful and secure work. Professor David Blanchflower said in his book Not Working, published last year:

“Unemployment hurts and it hurts a lot.”


The amendment, if the Government accepted it, would help reduce but, sadly, not eliminate that level of hurt, which is why I support it.

--- Later in debate ---

[Lord Horam (Con)]

The contributions to this debate are getting shorter and shorter, and I intend to adhere to that pattern. The simple point I want to make is that this is part of a loosening of the arrangements—I would not call them controls—which were put in place at the beginning of this year and then amplified in July. Of course, since then we have had the coronavirus pandemic. We have the prospect now of an additional two million unemployed, and young people coming into the job market face a very bleak situation. These are not normal times.

The Treasury has responded rapidly and comprehensively to this situation with a major package earlier in the year and the less pronounced package of the last 10 days. What I hope and expect is that the Home Office reacts similarly and recalibrates the ideas it had before the world changed when the coronavirus set in. We really do need it to respond. I do not believe that the Home Office is unfit for purpose, as was once said by a Labour Minister. It has many able civil servants who are perfectly capable of responding to a changing situation, but they need to show it now; otherwise, people will lose faith in the Government.

[Lord Hodgson of Astley Abbotts (Con)]

My Lords, one of the weaknesses of the whole Bill is the extent to which the detailed implications are contained in regulations which are only now beginning to emerge. Every Member of your Lordships’ House will be aware that the scrutiny of regulations is much less effective than that of primary legislation; the noble Lord, Lord Pannick, raised that issue in the debate on one of the previous amendments. I should perhaps, just for the record, declare that I am the chairman of the Secondary Legislation Scrutiny Committee, but I am speaking for myself, not for the committee.

As the noble Lord, Lord Pannick, said, the regulations are unamendable, so the House is left with what I call the “nuclear option” of complete rejection. Unsurprisingly, the House has veered away from that course of action, except on the rarest of occasions. That is one of the reasons why I support the noble Lord, Lord Green, in this case, because he is actually trying to wrest back a bit of control by having some more specific plans built into the Bill. They are necessary for the reasons that he, and indeed my noble friend Lady Neville-Rolfe, laid out. In its way, this amendment is the third and last line of protection in regulating the extent to which the employment opportunities of our settled population can be undermined.

We already know that there is no cap and that we will have no resident labour market test. Therefore, if my noble friend the Minister refuses to accept this amendment—and I fear that if I could glance over her shoulder at her speaking notes, I would see that she might just be going to do that—it is extremely likely that our future levels of immigration will continue, probably in excess of a quarter of a million each year. It may be slightly below what we have now, at 320,000, but it will be well over a quarter of a million each year.

In Committee I chided the noble Lord, Lord Kennedy, who has been coming back at me this afternoon, when he refused to back my proposal to establish an office for demographic change, which was a planned idea, independent and transparent, to look at the complexities of these issues in the round—environmental, ecological, societal. It is easy to laugh—the noble Lord is already grinning—but the reality is that there are serious issues around water, land quality and species loss which are all related to how our population is growing. They are not entirely due to it, but they are very largely related.

I said to the noble Lord, I hope, gently, because I do not want to upset him—he is a sensitive soul—that his party had to decide where it stood on demographic growth, of which immigration is a part, because it is an issue that really resonates in the country. We have heard the percentages; 60% to 70% of people are concerned about it. In particular, his party must decide where it stands, or all the possibilities of recovering the red wall, now blue wall, seats will be vanishingly small.

However, it is perfectly fair to say that this is not without dangers for my party. We will face quite significant challenges. If those of us who are concerned about what happens if our population grows by 6 million or 8 million are right, and the package of policies before us continues to allow rapid growth—it is not about whether they are foreigners, black or white, or what their colour is; it is about the number of people—we will have two big challenges. First, a lot of the people who turned the red wall seats into blue wall seats did so because we promised a sustained reduction in the level of immigration. If we do not deliver that, they will feel betrayed and let down.

In parallel with that, every year we will have to build 100,000 houses to accommodate the quarter of a million people likely to arrive. The noble Lord, Lord Paddick, says that they pay more in tax than they draw in benefits, but there is a much more complicated issue, with which I will not bore the House this evening, about the capital investment to maintain and extend our roads and structures. They are not covered just by taxes; a much bigger level of capital expenditure is required. He and I can discuss this over a socially distanced cup of coffee, but I will not bore the House with it now.

We will build 100,000 houses a year, and they will be built in our shire counties. These people will not be delighted about it. We know that; housebuilding is intensely unpopular. The coming storm about the planning algorithm, which is now doing the rounds, is just the beginnings of the trouble there will be if we continue down this road. My noble friends Lord Horam and Lady Neville-Rolfe are right. The Government are wrong in believing they have the situation under control.

My noble friend the Minister nobly and loyally marches to the beat of the Home Office drum, which essentially says, “Don’t worry; it will be all right on the night”. I wish I shared the department’s confidence.