House of Lords Reform Bill [HL]

Debate between Lord Hunt of Kings Heath and Earl of Erroll

Friday 3rd December 2010 Lords Chamber

[Lord Hunt of Kings Heath]

I am so sorry. I am already overcome by the tension in winding up on the noble Lord’s Bill.

I also welcome the noble Marquess, Lord Lothian, and the noble Lord, Lord Hennessy, and congratulate them on their excellent maiden speeches. I hope that they will contribute to our future debates on Lords reform, and I am sure they will find one or two more opportunities to do so in the months ahead.

The noble Lord, Lord Steel, deserves congratulation on finally persuading the previous Government to allow for retirements and ending hereditary Peer by-elections. It was disappointing in the wash-up that the Conservative Party would not agree to those provisions going through. I suspect that it now wishes that it had allowed them, and the noble Lord, Lord Hunt of Wirral, would not now have the arduous task of helping the House to come to a view on how noble Lords might be encouraged to leave your Lordships’ House. No doubt the noble Lord, Lord Steel, is now hopeful, as he is now in the coalition, that his colleagues in that Government will be somewhat more sympathetic to him than they were in the past, and we very much look forward to hearing the noble Baroness perhaps saying that she accepts the principle of the Bill.

I do not think that there can be any doubt about the Government’s concern about the size of your Lordships’ House. That is why a Leader’s Group has been established, under the excellent chairmanship of the noble Lord, Lord Hunt of Wirral. I also have the honour to serve under him and we are examining ways of encouraging Members to leave your Lordships’ House. Our first report was published on 3 November, which shows that the great majority of noble Lords who responded to the consultation felt that there needed to be some way by which Members could leave the House permanently in order to reduce the size of the House. Other noble Lords have commented that the report also makes it clear that primary legislation is required to allow that to happen. The Leader’s Group will of course continue its work, although I think we might need to take account of the five tests of the noble Lord, Lord Taverne.

One cannot help pointing out the irony of the situation in which we find ourselves. On the one hand, the noble Lord, Lord Strathclyde, the Leader of the House, is evidently concerned about its size and has asked the noble Lord, Lord Hunt, to lead a group to see how it can be reduced. On the other hand, he has presided over a massive increase in the appointment of life Peers. We are promised many more. Indeed, as a number of noble Lords, including my noble friend Lady Royall and the noble Viscount, Lord Falkland, pointed out, only two days ago we had the promise from the noble Lord, Lord McNally. He reiterated the coalition Government’s intention to have a second Chamber reflective of the share of the vote secured by the political parties at the general election. The noble Baroness, Lady Boothroyd, quoted from the work of Meg Russell, who estimates that if that were to be the case we would end up with a House of 977 Members. Apart from the sheer impracticality of that, it would make reform much harder to achieve. It certainly would make the transition arrangements much more difficult.

The noble Viscount, Lord Falkland, said that there is method to this. He believes that it is the coalition Government’s intention to show that the House of Lords is not working and that is why more substantive reform should take place. I have another view on why the coalition Government want to create many more Peers. Earlier in this wonderful debate, we heard from the noble and learned Lord, Lord Howe, the noble Baroness, Lady Boothroyd, the noble Marquess, Lord Lothian, and the noble Lord, Lord Bilimoria, who talked about the impact and effectiveness of this House as a revising Chamber. However, we are in different circumstances. Already we see that with the size of the coalition Benches, and the evident intention of the Government to create dozens of new Peers on top of that is to ensure that they cannot be defeated in your Lordships’ House. The problem is that I do not think this House can do its job effectively if the Executive are virtually guaranteed to win every vote that takes place. You cannot be a revising Chamber unless you can revise. You cannot revise unless you have a decent chance of defeating the Government from time to time.

Let us consider the Public Bodies Bill, which gives draconian Henry VIII powers to Ministers. Noble Lords on all sides of the House know that it is a bad Bill. They also know that if my party in government had produced the Bill, it would have been ripped to shreds. There will be a test of the coalition partners in this House over the next few weeks. A number of Peers from the coalition parties have told me of their horror at the Bill. Unless it is substantially changed, how can this House claim to be an effective revising Chamber?

The noble Lord, Lord Steel, clearly recognises that. I acknowledge the careful drafting that he has undertaken. A number of noble Lords referred to Clause 8(2), in which the noble Lord sets out that a coalition of parties forming a Government shall not have a majority of Members in the House of Lords. He goes on to state that in the event of a coalition, the largest party in the coalition shall be entitled to a larger number of Members than the Official Opposition but that the majority of the larger party should normally be no more than three per cent over the Official Opposition party. Clearly, the noble Lord has gone into this matter carefully. I ask him nonetheless whether a coalition, whatever parties are it, would still have an effective majority because of the relatively low voting turnout of the Cross-Benchers. I take on board the comments of the noble Baroness, Lady Deech, who spoke of the careful judgments made by Cross-Benchers when they come to vote. However, their turnout is roughly 20 per cent, compared with the turnout of Members of the main parties, which is more than 50 per cent. This is a matter for consideration in Committee but it is a factor when one comes to a view about getting the right balance between the parties and the Cross-Benchers in your Lordships' House. I would suggest having more Cross-Benchers, but of course we are trying to reduce the number of noble Lords.

[The Earl of Erroll]

Perhaps I may suggest that the important thing is that, when all Cross-Benchers vote in one direction, it shows that one side has got it wrong. It is not the regularity of the voting that matters, but certain critical votes in which the Cross-Benchers really show that someone has got it wrong.

Immigration and Nationality (Fees) (No. 2) Regulations 2010

Debate between Lord Hunt of Kings Heath and Earl of Erroll

Wednesday 17th November 2010 Lords Chamber

[The Earl of Erroll]

My Lords, I rise to speak on the Motion as the regulations have a direct impact on a tiny company—on whose advisory board I sit—called Pingar UK, which is developing contextual search engine technology for a number of years. We are a subsidiary or offshoot of a New Zealand company that is funding the research and wanted to have a research establishment over here. This information is highly relevant as it will explain why this government policy is a disaster that will drive small companies such as Pingar offshore.

Tomorrow night, I will take part in a conference call with the New Zealand company in which we will almost certainly decide to move out of this country because of the immigration policy and the visa policy. A company employee took a degree at a Welsh university. He is a Hong Kong citizen. He obtained an 18-month postgraduate visa to do further development work, but that has expired. In the summer, we applied to get the visa extended, but we got caught up in the mish-mash of everything when the new immigration cap of 24,100 visas was suddenly introduced. We needed a certificate of sponsorship.

We got the certificate of sponsorship just in time, which was amazing since we employ hardly anyone over here and the chap in question will really be the first serious employee. That was the right thing to do. However, we were given a zero visa allocation. All the time that we put into the matter was completely wasted because we cannot sponsor him. We have now been told that, for £1,000, we might get a visa after all. The decision has been taken that, as a small business, we cannot afford to pay out £1,000 on a gamble. As another director of the company said, “It is a lottery”, so there is absolutely no point in doing it.

I am intrigued that the Explanatory Memorandum’s paragraph 11, “Regulating small business”, states:

“The legislation does not apply to small business”.

The very reason that we will have to relocate offshore is because, indirectly, the legislation does apply to small business. We will probably try to relocate the research arm in either Singapore or Hong Kong. Pingar is not the only company that I know of in this situation. Many people are considering relocation. I am afraid that the Government’s immigration policy is about the most stupid thing that they could have done for small business.

I have heard, and read in the papers, about the new entrepreneurship visas that are about to be issued. I would love to know how to get one for the chap, if we can. We do not have long to make up our mind. He is currently abroad as, under the law, he is required to be. In the next week or two, we have to decide where he should move to. I should be delighted to hear from the Minister how these new entrepreneurship visas will work. Why should we pay £1,000 to enter a lottery to see whether we can exist in this country?

[Lord Hunt of Kings Heath]

I thank the noble Baroness for her careful explanation of the regulations. The noble Earl, Lord Erroll, has taken us into a rather wider debate. His comments were very interesting and I hope that we will be able to hear more about that issue. There is great concern that the way in which the current cap is operating is doing real damage not just to British business and industry but to the arts and academia, as we have discussed in the House on several occasions in the past few weeks. I hope that we will receive an early announcement from the Government that they will look at the policy again and make it more flexible.

Having said that, we support the general principles that the noble Baroness has outlined. We recognise the challenge of balancing the burden of the administration of the system between the migrant and the taxpayer. My reading is that the burden on the migrant is increasing slightly, although not significantly. Perhaps the noble Baroness can confirm that. I should also be grateful if she could say what impact the fees increase is likely to have on the number of applications. Has an analysis been carried out of the possible impact on at least the main categories of application and whether there will be any unwelcome impact on regular migration when fees are increased? The Minister rightly mentioned some of the benefits of migration, which I must say was welcome.

Has an analysis been carried out of where there is clear benefit to our country from the skills that have been brought in and of our costs and prices as compared with those of other countries, such as Australia, European Union countries and the US? To extend the theme that was mentioned by the noble Earl, we need to be mindful that this country is a great global trading nation. We must be wary of any action that we take that would undermine the ability of UK companies to attract the best people. That has been one of our great strengths over the past 30 years, which it is important that the policy on immigration should not undermine. It is worrying to hear of small companies looking to, say, New Zealand for R&D purposes because of the constraints of the current system.

I would also be grateful if the Minister could confirm whether the increase in the cost of visas, particularly settlement visas, is part of a more general policy to bear down on numbers. Is the price increase part of a general policy of reducing net immigration? Perhaps the Minister would also refer to the matter of the migration impact fund, which was raised by my right honourable friend when the regulations were debated in a committee of the other place. I understand that the visa fee increases of the previous year took into account a £50 million contribution from migrants to that fund, which was intended to pay for projects in constituencies with a sudden increase in the number of immigrants. The Government have decided to abolish the fund, but the amount to cover the fund is staying within the visa fee. If the Minister could give us an explanation of that, it would be extremely welcome.

Will the Minister also provide a little more explanation of the alignment between fees in country and fees out of country, which she referred to in her introduction? Is the goal to have equalisation? Given the policy of looking at the proportion or cost of the administration of the fee, what measures will be put in place in that regard?

I note the significant increase in the fee for dependants. We do not oppose that, as there is a huge benefit to the dependant, but is that increase part of a deliberate policy to deter immigrants from bringing in dependants? Is it in line with the reductions of the rights of dependants, such as work rights, as part of the scheme, or is it just a method of raising extra resources when there is pressure on budgets?

Will the Minister also reassure me that no fees or charges will be imposed on Members of Parliament or Members of your Lordships' House who make inquiries about the progress of an immigration application, on behalf of a constituent, in the case of an MP, or of someone who has approached a Member of your Lordships' House, as happens from time to time?

I have no doubt that the noble Baroness will be able to respond to these questions, orally or in writing. She may take it that we support the general principles, although I share the noble Earl's concern about the wider aspects of the cap, which are doing great damage to British business at the moment.

Identity Documents Bill

Debate between Lord Hunt of Kings Heath and Earl of Erroll

Wednesday 17th November 2010 Lords Chamber

[The Earl of Erroll]

If noble Lords will indulge me for two seconds, the only person who is the exception here is the noble Duke, the Duke of Montrose. Otherwise, we are all Lords and Ladies. We are Peers, so socially we refer to each other as Lord and Lady. Even a Baroness is a Lady, and we put the true title in front.

[Lord Hunt of Kings Heath]

With the greatest respect to the noble Lord, the Earl Ferrers—