Nationality and Borders Bill

Lord Wallace of Saltaire Excerpts

2nd reading
Wednesday 5th January 2022 Lords Chamber

[Lord Wallace of Saltaire (LD)]

My Lords, I noted that in his opening speech the Minister pledged that the Bill is based on fairness, that illegal activities will not be tolerated, that we aim to deprive people of UK citizenship in the event of the most serious crimes and, above all, that access to the UK should be based on need and not on the ability to pay. That is why I want to talk about the visa scheme that enables you to buy access to Britain—the golden visa scheme tier 1 investor visas, which allow wealthy people from dodgy countries to buy the right to live in the UK and, after a period of residence, to qualify for citizenship. It is one law for the rich and another for the poor.

In 2018, after the Salisbury poisonings, Theresa May announced a review of the scheme, which to my awareness has not yet been published. It has been reported that more than 6,000 golden visas, half of those yet issued, are being reviewed for possible national security risks, although those who applied in earlier years will by now have acquired full UK citizenship. Two Court of Appeal judgments in the last year have thrown up questions about the regulation of this scheme and the sources of the finance pledged by applicants. In four of the National Crime Agency’s major cases about illicit finance and unexplained wealth orders in the last two years, those under investigation had originally entered the UK with a golden visa.

Most golden visas have been issued to individuals from countries with a high risk of corruption. Between 2008 and 2020, a third of all golden visas were issued to individuals from mainland China and 20% to people from Russia. Other significant countries of origin included Azerbaijan, Uzbekistan, Kazakhstan, Pakistan, Egypt, Saudi Arabia, Ukraine and Turkey. Between 2008 and 2019, 9% of golden visa applications were refused. By comparison, 42% of asylum applications were refused. The UK has regularly been cited in magazines and other sources that appeal to the wealthy as one of the most popular golden visa regimes in the world, and one of the fastest: applications are turned around within three weeks. For UK asylum applications, the turnaround time is around six months or worse. Whether that is regarded as a fair system is an open question.

Last week, I looked at the Intelligence and Security Committee’s Russia report. I quote paragraph 49:

“the UK has been viewed as a particularly favourable destination for Russian oligarchs and their money. It is widely recognised that the key to London’s appeal was … the UK’s investor visa scheme”.

It goes on to say in paragraph 50:

“What is now clear is that … it offered ideal mechanisms by which illicit finance could be recycled through what has been referred to as the London ‘laundromat’. The money was also invested in extending patronage and building influence across a wide sphere of the British establishment … Russian influence in the UK is ‘the new normal’, and there are a lot of Russians with very close links to Putin who are well integrated into the UK business and social scene”—


and, as we all know, into UK politics, in effect corrupting aspects of British institutions and politics, extending into Parliament and the Conservative Party. The Intelligence and Security Committee’s report goes on to say that “one key measure” to limit the damage that is being caused

“would be an overhaul of the Tier 1 (Investor) visa programme—there needs to be a more robust approach to the approval process for these visas.”

I failed to find this touched on when I read through the Bill. I hope the Government will accept that the Bill provides an opportunity to develop a much more robust approach to this rather shameful visa programme.

UK Borders: Surveillance

Lord Wallace of Saltaire Excerpts

Monday 18th December 2017 Lords Chamber

Asked by

[Lord Wallace of Saltaire]

To ask Her Majesty’s Government what steps they plan to take to improve surveillance of the United Kingdom’s borders, including at smaller ports and harbours, coastal waters and private airstrips.

[The Minister of State, Home Office (Baroness Williams of Trafford) (Con)]

My Lords, the Border Force works closely with other law enforcement agencies, security services and international partners on an intelligence-led approach to identify unlawful maritime and aviation activity. It also uses a combination of cutters, radar, onshore assets and aerial surveillance to detect and stop small craft.

[Lord Wallace of Saltaire (LD)]

I congratulate the Government on the announcement that they are going to double the number of cutters around our coast from two to four. I think that means that we will have one cutter for every 3,000 miles of coastline if they all operate at the same time—rather fewer than the Dutch have for a far shorter coastline. Has the Minister read the Public Accounts Committee’s report of two weeks ago that points out that there are 21 departments and agencies in Whitehall concerned with the management of borders, not one of which is in overall control? Does she know of the report issued last March by the Independent Chief Inspector of Borders, which pointed out that nearly half the small ports on our east coast had not been visited by any member of Border Force in the preceding 15 months? The leave campaign talked about taking back control of Britain’s borders. Is it not the case that we do not have effective control of British borders at present and that perhaps we ought to consider putting more effort into that?

[Baroness Williams of Trafford]

My Lords, I note what the noble Lord says but, of course, it is not a question simply of the number of cutters and RIBs that we have in the sea. We are heavily reliant on the most effective method of border control: namely, the multiagency, intelligence-led information that we have. We deploy on the back of that intelligence and risk assessment. That is the most effective way of manning certainly our maritime borders.

Security: ID Cards

Lord Wallace of Saltaire Excerpts

Thursday 20th July 2017 Lords Chamber

[Baroness Williams of Trafford]

My Lords, we have many numbers that help in assuring our identity. I am not sure that this would add to the mix. I am certainly happy to look at this, but I do not think there is any evidence that a national identity number would improve security in this country. I have already outlined to the noble Lord, Lord Blair, how this country is helping to make us safer.

[Lord Wallace of Saltaire (LD)]

My Lords, under the coalition Government we found ourselves trying to check who was on the electoral register against the national insurance number and discovering that the Government do not have, across their different departments, clear rules on which identity numbers we have. I have different numbers for my passport, the NHS and national insurance. As we move toward more of a database society, is there not an argument for considering how, in the relationship between the citizen and the state, we at least move toward common rules across departments for recording who we are, where we are, where we live and so forth?

[Baroness Williams of Trafford]

My Lords, the Government’s Verify system helps in regard to identity. We are certainly looking, for when the UK leaves the EU, at just what that residency document will look like.

Brexit: UK-EU Movement of People (EUC Report)

Lord Wallace of Saltaire Excerpts

Monday 17th July 2017 Lords Chamber

[Lord Wallace of Saltaire (LD)]

My Lords, for me, the high point of this debate was when the noble Lord, Lord Cormack, remarked that picking strawberries is skilled work. I have spent most of the past three Sundays picking soft fruit, including gooseberries. I have scars all over my lower forearms to demonstrate this. To be told that this is skilled work was very pleasing. I shall go back and tell my wife, who merely did the jam, ice cream-making and other such things, that my work was at least as skilled as hers.

This excellent report emphasises that, fundamentally, movement of people is seen as an issue of sovereignty, on which the whole debate around the EU referendum was extremely confused. As the noble Lord, Lord Spicer, reminds us, the leave campaign was in favour of free trade for companies, for investment and in goods but in no circumstances for people. We are one of the most open economies in the world for foreign investment, so we welcome foreign companies but not foreigners—unless they are really rich, at which point, under the tier 1 investor visas, permanent residence can be bought. Under such visas, a rising number of Chinese and Russians whose wealth came from not entirely clear places were allowed in. Several of us have been involved in trying to change the rules on that and I am happy that the Government have now tightened them.

Given that we are a country which is remarkably open to foreign investment and is therefore dominated by multinational companies, talented young British people who want to rise to the top of those companies need to be able to work abroad and to be able to travel without the complications of getting visas to work in foreign markets. If multinational companies based in Britain, be they European, Japanese, Chinese or whatever, say to themselves: “Well, actually, promoting a Brit and making them work in Frankfurt for this year and Athens the next would be an awful nuisance because of the time it will take them to get visas”, they will promote French people, Germans and others instead. Another part of what has been wrong with our entire debate about leaving the European Union as far as immigration is concerned is that we have not thought about it as a properly two-way relationship.

Robert Goodwill has been quoted as saying to the committee that the UK Government do control their borders, at least in principle, but we have heard in this debate that, in practice, they do not manage that very well. I was struck some months ago when we had a question in this House about how many offshore patrol boats we had around the extensive maritime borders of the United Kingdom, to which the answer was a quarter of those that the Dutch have for their short coastline. I asked the Library to check this morning. I gather that we have fewer offshore patrol boats for our borders than any other EU member state except Belgium. That suggests that we are not really thinking about enforcing the rules. Many of your Lordships will have seen the NAO comment that there are more than 60 small ports within Britain which a member of any public authority, coastguard or police force does not visit for more than 12 months. Again, our borders are entirely open because we have had Governments so concerned with shrinking the state that they have given up on the idea that one must enforce control of our borders and existing immigration controls.

A lot of other noble Lords talked about the problems of statistics. The noble and right reverend Lord, Lord Eames, remarked that when you do not have the facts, perception becomes reality. I am very concerned by what I see as misperception in the white working-class estates of west Yorkshire and elsewhere which voted heavily for leave. There they believe that foreigners from Romania or elsewhere are taking their social housing and their jobs. There is very little evidence of this. An excellent article in the Financial Times on Portsmouth some months ago pointed out the widespread perception that most social housing there was now occupied by immigrants from the EU. Actually, the total number of people from the EU living in social housing in Portsmouth was three. That level of misinformation and lack of information is a tremendous problem for us all.

I will spend a little more time on the question raised in chapter 4: the pull factor of immigration from the European Union and the extent to which British employers prefer to recruit directly from eastern Europe rather than to train their own or recruit directly from here. I spent some time travelling around Yorkshire over the last four of five years asking small and large employers why they recruit directly from eastern Europe rather than look for people here. The answers are, first, that you cannot get trained people and, secondly, that the sort of people you get from Bradford, Wakefield or wherever it may be are often much less motivated, they tend not to turn up on time and go sick more often. Therefore the employers prefer Slovaks, Poles and the like.

That raises some large questions—whether or not we leave the European Union, or whatever we do about freedom of movement—about the structural weaknesses of our education and training system, in particular how it affects what one must call our underclass. That is, those whose grandparents worked in the mills, factories and mines and whose parents often managed to get only occasional work. These people go to underfunded schools—we had an interesting discussion earlier this afternoon about school funding—without decent careers services and they do not find a way into jobs. It is not that they do not want to find places. I work occasionally with a social housing association in Bradford which now runs its own apprenticeship scheme for training and retaining its own plumbers, electricians, bricklayers, plasterers and the like. It took in 10 people last year. It had 400 applications. A lot of young people in Bradford want training and cannot get it. Around Yorkshire I ask what is happening. They say, “Well, the big building employers do not want to take on apprentices because they are not sure they will want to take them through and retain them for four or five years. It is easier for them to recruit people from Latvia, Lithuania or Poland”. That is a huge problem, one that we must all address. It is not part of what the leave campaign told us about.

What about the Government? Nurses and teachers have been mentioned already, with the Government reducing the level of training for nurses when we need rather more of them. I have seen rather too much of the inside of some hospitals in the last year for various reasons. The Portuguese nurses who looked after me in St Thomas’s were superb. When I went into St George’s outpatients for some post-cardiac physio, the first thing that the Polish physio in charge of our course said to me was, “Do you still want us here or do you want us to go home?”. Of course, that was just after the referendum. The answer is that we need them here. They provide a very good service to our economy. We are not training enough nurses of our own, so they are even more important.

Clare Foges in today’s Times talks about the unfortunate bias of the current debate on immigration: the suggestion that somehow voting leave could solve our immigration problems and that European immigration is the key to that. The spectre of 80 million Turks swarming into Britain successfully blurred the issue between immigration from Europe and from the rest of the world. I must say to the noble Lord, Lord Green, that Migration Watch nurtured that popular perception, in alliance with the Daily Mail and others. Yet the Migration Watch website, which I looked at this morning, says:

“In the last decade only around one third of net migration came from the European Union—the rest originated from countries outside the EU”.


The overall population of the EU is falling. The surge of Polish, Romanian, Lithuanian and Latvian migration, which accounts for about half our current stock of EU residents, is finite. There are not that many more to come. Young Poles and Latvians are not having many children. The prospect of Brexit and the falling pound are already leading to a beginning of a return. The long-term immigration challenge we face, alongside other European countries, is from the rest of the world, where population is rising, climate change is making life more difficult and nasty regimes or violent conflict combine to push people north to struggle, if they can, across Turkey or the Mediterranean. For example, the population of Africa doubled in the last 25 years and will double again in the next 25 years. Where are those extra billion people likely to try to go? They will try to get out of their countries into a safer world. That is the immigration issue we should talk about.

So we are struggling with a distorted image. There is also a distorted image popular in the Daily Mail and elsewhere that all our European immigrants are Poles and Romanians living on benefits or taking low-paid jobs from the unskilled British. The Migration Watch figures show that 400,000 of the 3.3 million EU citizens from other countries living in the UK are Irish nationals. They will not go, even if we leave the European Union. It also shows that the third largest group in the UK are 300,000 German citizens, with 200,000 each from Italy and France. Overall, half of the EU arrivals in 2015-16 came from the 14 wealthy states of western Europe, not from Romania, Bulgaria and elsewhere.

The noble Lord, Lord Green, tells me that the reason Migration Watch statistics for Germans in Britain are 150,000 higher than the ONS statistics is that Migration Watch counts children as immigrants where one parent is born outside Britain. That puts me in mind that I am about to become the grandfather of an immigrant because my son’s American wife, currently living with him in Edinburgh where he teaches at the university—

[Lord Green of Deddington]

I think the noble Lord misunderstood what I said outside. I will correct that later with him—it is not of interest to the House generally.

[Lord Wallace of Saltaire]

I was merely about to say that if that were the case, our current Queen would be the first non-immigrant monarch since Queen Anne. Under that criteria, Prince Charles would also be an immigrant since his father was born in Greece. Again, one must be careful how we handle immigration statistics on one thing or another.

To conclude, we need a broader debate about the whole question of immigration. We live in a world in which we hope that our young people will travel, and study and work abroad. Some of them will marry people from other countries and, we hope, bring them back to live here. That is the nature of the world in which we live and we do not want to make that too much more difficult. We recognise that we also live in a world in which the global population is rising and there are many insecure countries from which people want to flee. That poses huge questions for us which are nothing to do with whether or not we stay in the European Union.

Brexit: Customs and Border Staff

Lord Wallace of Saltaire Excerpts

Monday 6th February 2017 Lords Chamber

Asked by

[Lord Wallace of Saltaire]

To ask Her Majesty’s Government what estimate they have made of the number of additional public employees needed to meet the requirements of Brexit, in particular in customs and border control.

[The Minister of State, Home Office (Baroness Williams of Trafford) (Con)]

My Lords, the White Paper published last week set out the Government’s priorities and the broad strategy for exiting the EU. There is a number of options as to how EU migration and customs checks might work once we have exited the EU. We are considering these options, so it would be wrong to set out a further position at this stage.

[Lord Wallace of Saltaire (LD)]

My Lords, half of Britain’s trade is currently within the single market, so presumably customs checks and the space needed for them will have to be considerably expanded. Two-thirds of visitors come from the EU and the EEA, so I assume that the long queues that we already have at the external border for people going through hard border controls will be immensely lengthened and that we will need to treble the number of border staff. Are the Government already beginning to plan for the extra space and staff they need? If they cannot recruit enough, perhaps we will need to recruit border agency people from eastern Europe.

[Baroness Williams of Trafford]

My Lords, the Government will certainly be prepared, if need be, in the way that the noble Lord said. However, the advent of e-passport gates at airports has made it quicker to get through the border, and of course the facial recognition checks at those gates have proved to be very efficient.

Crime: Illegal Arms

Lord Wallace of Saltaire Excerpts

Monday 21st November 2016 Lords Chamber

[Baroness Williams of Trafford]

My Lords, we have increased our maritime capability and Border Force is an active member of the joint Maritime Operations Centre, where it works closely with partner agencies. Border Force is working to enhance its capability by training more firearms dogs and improving detection technologies. The technologies have formed a critical part of the improvement in performance in this area.

[Lord Wallace of Saltaire (LD)]

All these criminal networks smuggling into the country are cross-border and international, and the arms which are sloshing around the African continent and eastern Europe are smuggled by links of criminals across a range of different countries. As we withdraw from the European Union we are in severe risk of losing the co-operation in intelligence and policing that we have built up over the past 40 years. Can the Minister assure the House that, as this danger of arms smuggling rises for the UK, we are taking adequate steps to ensure that that crucial co-operation in intelligence and policing continues, and can she tell us something about the framework within which it will be organised?

[Baroness Williams of Trafford]

My Lords, I can confirm to the noble Lord that we intend to keep up and enhance our joint working capabilities at the border and between member states, both during our membership of the EU and afterwards.

Investor Visas: Money Laundering

Lord Wallace of Saltaire Excerpts

Monday 9th May 2016 Lords Chamber

[Lord Wallace of Saltaire (LD)]

My Lords, on behalf of my noble friend Lady Ludford, who is unwell, and at her request, I beg leave to ask the Question standing in her name on the Order Paper.

[The Advocate-General for Scotland (Lord Keen of Elie) (Con)]

While I cannot disclose the specifics of ongoing investigations, I can assure the noble Lord that the Home Office is working with partners across government and, where evidence of wrongdoing comes to light, robust action will be taken with respect to pre-April 2015 applications.

[Lord Wallace of Saltaire]

I welcome the implications of that statement. We are coming up to the anti-corruption summit, but it is clear from the numbers between 2011 and 2014—when, happily, the Government tightened the rules—that a number of Russian, Chinese and central Asian businessmen were in effect exporting corruption into Britain. It was a breach of British sovereignty, in effect, allowing these people to buy residence and, in some cases, citizenship. There are those who raise the question of criminals from abroad being allowed into this country. This was criminals from abroad being allowed to buy their way into the country. Does not that seem to be a very important issue for the Government to use their retrospective authority to investigate much more closely?

[Lord Keen of Elie]

With respect to the noble Lord, the proposition that no proper checks were carried out prior to April 2015—or, indeed, November 2014 —is not well founded. I believe that Transparency International, in one of its important pieces of work, referred to what it termed a “blind faith” period, but there was no such thing because persons wanting to invest in the United Kingdom pursuant to a tier 1 visa application were required to do that through either a broker, a bank or a lawyer, who would be regulated under the FCA and therefore bound to carry out relevant financial due diligence and anti-money laundering checks.

--- Later in debate ---

[Lord Keen of Elie]

The premise underlying the question is fundamentally wrong. It is not necessary to have a tier 1 visa or visa application to invest in property in the United Kingdom. Conversely, an investment in property in the United Kingdom is not a qualifying investment for the purposes of a tier 1 visa application.

[Lord Wallace of Saltaire]

Have the Government noticed the Spanish Government’s prosecution of a number of Russians resident in Spain taking place over the last week? Is the Minister aware that the Panama papers have provided a good deal of new evidence on some people who are now British citizens and where their money came from within Russia?

[Lord Keen of Elie]

I am not going to comment on individual cases at this time.

Brussels Terrorist Attacks

Lord Wallace of Saltaire Excerpts

Wednesday 23rd March 2016 Lords Chamber

[Lord Rosser (Lab)]

I thank the Minister for repeating the Statement made in the House of Commons earlier today. We share fully the abhorrence and condemnation expressed in the Statement about the attacks in Brussels yesterday, which were in reality yet another attack on all Europe. We support the Government in confronting this threat. Our thoughts are very much with the families of those killed and of the missing British person, with those injured and their families, and with the people of Brussels and Belgium—and indeed the people of Ankara and Istanbul, who have also been the subject of attacks in recent days.

I have a few questions and points to raise. Can the Minister say what guidance is being offered to our citizens who were intending to travel to or through Brussels over the holiday period in particular? Can he say more about the collaboration that is taking place with Belgium and other European partners, including the support or expertise that had already been given or offered to Belgium prior to this attack? If ever the case still needed to be made for closer working and collaboration and sharing of intelligence to combat these acts of terrorism, this is it.

On the issue of border security, we welcome the steps that have been taken to step up checks at our air, sea and rail borders with Belgium and France, and security on our own transport network. Are all passports now being checked on exit from the UK, as the Government said they would be by the end of last year, and were 100% passport checks in place between the UK and Belgium in advance of yesterday’s attacks?

Border Force operates juxtaposed controls at, I believe, six locations in France, covering ferry services, the Channel Tunnel and Eurostar. As I understand it, however, in respect of Belgium juxtaposed controls cover only Eurostar foot passengers and not ferry terminals. Is that the case and if so, will there be a review of our borders with Belgium with a view to strengthening them?

Further cuts are coming following the spending review. The Border Force has faced years of cuts and is already stretched. Are further cuts to the force going to be made in 2016-17? Surely now is the time to strengthen our borders, not to go in the reverse direction.

We know that a number of terror plots have been foiled in the past year and we take this opportunity to express our gratitude to all those in the police and security services who work so determinedly to keep us safe. The public, however, will want reassurance about our ability to thwart a Paris or Brussels-style attack. We know about plans to improve firearms capability in London but there is concern about the ability of cities outside London to cope. Last year a Home Office report on police firearms capability found that the number of armed officers had fallen by 15% since 2008, including a fall of 27% in Greater Manchester and 25% in Merseyside. Have the Government reviewed the ability of all major cities to respond, and can they provide reassurance that, if there were a Paris or Brussels-style attack outside London, our police and fire services would have the necessary capability to respond?

In his statement on the strategic defence and security review, the Prime Minister promised a new contingency plan to deal with major terrorist attacks, with up to 10,000 military personnel available to support the police. Can the Minister update the House on those plans and say when the full 10,000 military personnel will be trained and in place?

We know that at moments like this, great anxiety will be felt in the British Muslim community over fears of reprisal attacks and hate crime as a result of the acts of terrorism in Brussels—which are simply that, and a perversion of Islam. Do the Government recognise that concern, and will they send an unequivocal message that anyone who seeks to promote division or hate on the back of these attacks will be dealt with severely?

Will the Government also condemn the ill-informed comments from Donald Trump on UK television today and take this opportunity to distance the Government from them? Mr Trump appears to have suggested that Muslims do not come forward to report concerns in order to assist our security authorities in combating potential acts of terrorism. Generalised slurs, from whatever source, on all Muslim people, who have the same revulsion over what happened yesterday as everyone else, serve only to drive a wedge between the Muslim community and the rest of our diverse country. This is a time for maximum unity among people of all faiths—and none—in rejecting those who preach extremism. We stand together as a united country, and we stand with our neighbour Belgium in its time of need, determined that whatever it takes, and however long it takes, we will face and defeat this threat to our way of life together.

[Lord Wallace of Saltaire (LD)]

My Lords, if I may start on a personal note, while watching the television report on the Istanbul attack I noticed that it took place only a few days after I had walked down that street between meetings in Istanbul. To see the pictures of Brussels, where my wife was walking through the site the day before this happened, is to make one feel that we are not cut off from all this. This is part of our world. I find it despicable that the Brexit campaign should have tried to suggest that we could cut ourselves off from the world and that what happens 100 miles away from London, in Brussels, is no concern of ours. This was, after all, an attack by Belgian citizens in Belgium. We should recall from the IRA campaign in Britain that what was in many ways a domestic terrorist campaign also included cells and co-operation in Spain, Gibraltar, France, Belgium and Libya and that, in dealing with a series of global terrorist threats, we are forced to co-operate with others as closely as we can.

Perhaps the Minister would care to confirm this: if we were to try to secure our borders completely, we would have to return to the sort of controls that we had in the 1960s. I first began to travel between Britain and France then; all bags were opened and it often took 10 to 15 minutes for each person to go through passport control. Given the enormous increase in cross-border travel between Britain and the continent, it would be a severe disincentive to all our citizens—and, incidentally, an intense inconvenience to the noble Lord, Lord Lawson, in travelling each week between his home in France and the House of Lords. It would also be very difficult given the large Middle Eastern presence we now have, particularly in London. There are not just people from the Middle East working here and living as refugees but rich Arabs from countries from which money flows, unfortunately, to mosques and madrassahs in Britain to support a radical version of Islam. We all have to be deeply concerned about that.

I second everything that the noble Lord, Lord Rosser, said about visible co-operation and contact with our Muslim community. I was extremely proud to take part in a service in Westminster Abbey some months ago in which an Imam read from the Koran, as a representative of one of Britain’s faiths in one of our national Christian institutions. I suggest to the Government that they need to do more in demonstrating how far we accept British Muslims as part of the British community, and the moderate version of Islam as the appropriate representation of their faith.

Can the Minister say a little about the importance of the Prüm convention and British participation in it, in terms of the rapid exchange of information among different services across Europe on suspected terrorists and others? I noted the reference to the counterterrorism group in the Statement which, as the Statement recognises, brings Britain together with other EU members and with Norway and Switzerland, as all are concerned with this. Can he say a little about further moves that we think may be necessary towards the closer exchange of intelligence, information and co-operation among national police and security agencies with our neighbours, all of whom are also members of the European Union?

[Lord Bates]

I thank both noble Lords for their remarks and I agree very much with their points and observations. Let me start with that point about the Muslim community. Following the experience of previous attacks, we have sadly seen an increase in Islamophobic-style attacks around our country. One of the things which we put in place to retain confidence, as part of the counterextremism strategy, was to ensure that the police are visible in those areas and offering some protection and reassurance, particularly at sensitive spots within those communities.

I also make it clear to those overseas in the United States who wish to intervene in our affairs that in this area, as in many others, a little knowledge would be helpful because the police have gone straight on the record to point out that in so many of the cases which we have had success in disrupting, the intelligence and information has very much come from within that community. It is an absolute partnership—an essential partnership—that we have with that community and anything which drives a wedge between it and the wider community in the UK will serve only to weaken our security. We do not want that to happen. I know that my noble friend and ministerial colleague Lord Ahmad, who leads on the counterextremism area and sits in the Home Office and in the Department for Transport, is working on a daily basis in that respect.

Let me go through some of the points which were raised, in order if I can. The noble Lord, Lord Rosser, asked about the travel advice. It has already been updated for Belgium and while it does not advise against travel, it is stressing the importance of maintaining vigilance in that area. We will continue to keep that under review and change it if necessary.

On broadening the number of locations, these special juxtaposed controls which we have are of course a tremendous part of our defence. The Channel is an important part of our defence but the juxtaposed controls are a crucial part of our security at our borders. The Immigration Minister, James Brokenshire, has had meetings with his Belgian and Dutch counterparts about the possibility of strengthening relationships, particularly at some of the ferry terminals, in the light of intelligence. We hope to have more to say on that in future.

In relation to the Border Force, I know that the story is in a sense running because we have not yet announced the final budget for that. We will need to come forward with that very quickly indeed. But I hope that all noble Lords will be reassured that when we have talked about putting an extra £2.5 billion into the intelligence and security apparatus and recruiting another 1,900 people to the security services, and when we have protected in real terms the police and security budgets and announced uplifts for firearms, we are not going to do anything which would do other than strengthen these crucial front-line capabilities in the face of the threats that we receive.

The noble Lord, Lord Wallace, asked about Prüm. We did opt in to Prüm, which again is an important part of our co-operation with our European colleagues in this area. We have so many areas in which we co-operate with them, such as on criminal information networks and in Schengen information sharing. Prüm was very important because it has those elements of sharing data on DNA, on vehicle licensing and on fingerprints. We have signed up to those elements and they will be ready in 2017-18. Without tempting members of the Home Affairs Sub-Committee of the European Union Select Committee, if it is represented here, to leap to their feet the committee wrote a strong report saying that we need to go further and faster on that. In fact we organised a meeting with the very people who are introducing this at the Home Office, from a technological point of view. They have promised to come back with regular updates for the House on how we are doing.

I was asked what more could be done through counterterrorism. There are some items on the agenda. The Home Secretary has said that it is very important that we have passenger name records, not just for flights from outside the EU area but within it. It is vital that that happens; it was supposed to be on the agenda of the Justice and Home Affairs Council, which was to meet this week. Understandably, it has either been pushed back or, potentially, postponed. I thank noble Lords for the concerns in their questions.

Immigration Bill

Lord Wallace of Saltaire Excerpts

Monday 21st March 2016 Lords Chamber

Moved by

[Lord Wallace of Saltaire]

144B: Clause 80, page 65, line 7, at end insert—
“(3A) Regulations under this section must provide for exemption from a charge under subsection (1) in the case of an application for entry clearance or leave to remain made—
(a) to fill a skills gap directly concerned with the provision of education;(b) by an institution whose primary function is the provision of education or skills training;(c) to fill a skills gap directly concerned with the provision of health services; or(d) by an institution whose primary function is the provision of health services.”

--- Later in debate ---

[Lord Wallace of Saltaire (LD)]

My Lords, the immigration skills charge is a major innovation in UK immigration policy and very difficult to debate this late in the evening. Since Committee, however, I have had representations from the British Medical Association, Oxford and Cambridge universities, Universities UK, the Russell group and a very large number of other research institutes which regard this as a very important issue. I hope that the Minister will be able to provide at least some information, because we have not had any communication from him since we raised questions in Committee, nor have we had any letters. There is a real problem here of how we address a major innovation which the Royal Society, on behalf of the national academies, says will cost universities £25 million a year merely to deal with short-term secondees from foreign universities working on two-year post-doctoral fellowships in British universities. This is a serious issue to have to discuss late at night.

The idea was first floated by the Prime Minister in a speech last June. He stated that he would ask the Migration Advisory Committee to report on the subject. The Migration Advisory Committee reported on 20 January this year, after the Commons considered the Bill and had spent five minutes at the end of its Committee stage discussing this clause. In other words, it was not considered properly at all in the Commons. The Government have not yet had time to respond to the MAC report. The chairman of the MAC will be giving a briefing to parliamentarians on this issue tomorrow, the day after we have completed our Committee and Report stages. We raised a number of questions in our short Committee stage to which Ministers, as I have just said, have not responded.

The Minister, in responding in Committee, could assure us only that,

“details about the rate and scope of the immigration skills charge will be set out in regulations to be laid before the introduction of the charge. At that point there will be an opportunity for an informed debate on the details ... There are likely to be legal implications of introducing exemptions”.

I understand that to mean that the Government do not think they necessarily can introduce exemptions from the charge for some sectors. He went on:

“the Government need time fully to consider the evidence about the likely impact … and whether any exemptions should be applied”.—[Official Report, 9/2/16; col. GC 174.]

I am told there are discussions under way with representatives of the universities and the medical profession and that various suggestions of ways forward have been hinted at but nothing has been made available to Parliament to guide any scrutiny of the proposals. Those consulted are not yet happy with the Government’s responses. Yet Clause 88(4) sets out that:

“Section 80 comes into force at the end of the period of two months beginning with the day on which this Act is passed”.

That is far earlier than most other provisions of the Bill. So much for the Prime Minister’s proposal last June that:

“As we improve the training of British workers, we should—over time—be able to lower the number of skilled workers we have to bring in from elsewhere”.

So much for the Minister’s comment in Committee that,

“the Government need time fully to consider the evidence”.

The immigration skills charge is to be rushed into effect before the beginning of the next school and university year—I assume deliberately—to catch recruitment from outside the EU of teachers and academics for the 2016-17 year. I cannot see how either House of Parliament will have time or opportunity to consider the necessary detailed regulations that will be required between May and July this year, or how the Home Office, BIS, the Department for Education and the Department of Health will be able to agree by then what those regulations should spell out.

Amendment 151A seeks to delete subsection (4) of Clause 88. If the Minister cannot provide a justification for this rush to implementation, we may wish to return to this question at Third Reading.

I stand shoulder to shoulder with the noble Lord, Lord Green of Deddington, in accepting that the failure to train sufficient British citizens in skills in demand is one of the most powerful pull factors in UK immigration. When hospital trusts announce that they need to recruit 15,000 nurses from outside the EU, when head teachers are searching Australia, west Africa and Asia for maths teachers, and when IT companies are forced by shortage of skills within Britain to look for recruits in India, large numbers of additional migrants are pulled into the UK. That represents a long-term failure of labour market policy stretching back over several Governments. Net migration, as we all recognise, will not fall until vital parts of both the private and the public sector are able to train enough skilled workers from within the UK workforce.

The promise of 3 million apprenticeships by 2020 should do much to close that gap, if the Government are successful in hitting the target. But we do not yet know enough about the apprenticeship scheme either. I read the Grayling public affairs comment on last Thursday’s Budget, which warned that,

“a current lack of policy clarity and consistency … may undermine the government’s target of 3m apprenticeships … With so little information available, employers will rightly be concerned about how the … system will work”.

Last June, the Prime Minister stated that improvement in training would come first, and then reduction in skilled immigration, but here we are presented with charges to reduce skilled immigration before the training scheme has been set up. We are promised an institute for apprenticeships from April 2017, the details of which also remain unclear. The skills charge is supposed to flow towards funding a scheme which will not be in operation for 12 to 18 months after it is imposed.

Of course, many skilled jobs are not subject to apprenticeships within the UK. Nurses are not apprentices and teachers are not apprentices. University researchers and teachers come with advanced degrees, not apprenticeship qualifications. Logically, therefore, such professions should be exempt from the levy. However, the Minister suggested in Committee that there may be legal problems with this. Can he confirm whether the Government see this as a universal charge on all entrants under tier 2 visas or whether exemptions for health and education, for example, are envisaged? The idea of charging Health Education England for visas for overseas doctors coming here for advanced training, or hospital trusts for recruiting nurses, seems absurd—funding them with one hand and fining them with another.

There is a large air of unjoined-up government about all this. We have just had announcements from other Ministers about extending maths teaching in schools, and the whole apprenticeship scheme depends on finding additional teachers in specialist subjects and skills. But there has been no announcement about a crash scheme for training extra teachers in maths or IT within Britain, no more than there has been any announcement on an emergency scheme to train more British citizens as nurses. Are we going to search for extra teachers from around the world and then penalise the schools and FE colleges that take them on?

Imposition of the charge on universities would be even more damaging, as many of those who have been in touch with me have argued. I am sure that they have sent similar briefings to other Peers. The global standing of British universities depends on the global circulation of academic researchers and teachers, with British citizens studying for advanced degrees abroad and experts from other countries researching and teaching here. Do the Government really want to discourage our universities from international exchange? Would they be happy if other advanced countries outside Europe followed this example and imposed penalties on British researchers whom they invited to join their research teams? None of us yet knows enough about the implications of what the Government are proposing in this highly permissive clause, and I see no sign that the Government understand the implications either. We cannot leave such important issues to regulations that have clearly not yet been drafted. I beg to move.

[Lord Renfrew of Kaimsthorn (Con)]

My Lords, I support this amendment in so far as it applies to the university sector and, indeed, to university research. It is the role of universities to employ the best people internationally and it is very important that they should be free to do so without the imposition of a charge which might, one gathers, amount to about £1,000 per researcher. That would have an unfortunate effect on many universities. It would cost several of our greatest universities several hundred thousand pounds a year and could be very detrimental, so I hope that the Minister will say a word or two to indicate that it would not fall directly on the university sector in so far as international research goes.

--- Later in debate ---

[Lord Bates]

My Lords, I thank the noble Lord, Lord Wallace, for moving the amendment. We have to remember that what we are seeking to do here is to introduce a levy in order to bring about some behavioural change in the way that people think about recruitment. For far too long it has been an automatic thought to recruit people from outside the European Economic Area without giving proper attention to whether those skills are there in the resident labour market. The immigration skills charge is seeking to provide some funding, first, to see if it causes the organisation to stop and think about whether there are alternatives from the resident labour market and, secondly, to provide some additional support through the funds raised by the levy.

Given the hour—and of course the noble Lord is familiar with the points I made in Committee—I am happy to put further thoughts in writing to him if that would be helpful. I will just deal with some of the particular points that he and other noble Lords raised.

There are exemptions to the charge. An exemption will be applied to migrants undertaking occupations skilled to PhD level. I would have thought that the noble Lord, Lord Renfrew, in terms of academia—

[Lord Wallace of Saltaire]

My Lords, I am very interested to hear that. It was suggested to me in an email I had the other day from one of the groups that the department has been consulting that this had been floated but had not yet in any sense been agreed. Can the Minister guide me to where I could discover the status of such a proposal?

[Lord Bates]

In that case, I will return to my speech and go through it in context. This is something additional. The Government have considered advice from the Migration Advisory Committee and additional views from employers. Following careful consideration, I am able to announce that the immigration skills charge of £1,000 per migrant per year will be paid by employers who sponsor tier 2 migrants. The charge will be collected by the Home Office.

A reduced rate of £364 per annum will apply to small businesses and charities as defined in the Immigration Rules. This is consistent with other lower fees applied to these organisations. In addition, an exemption will be applied to migrants undertaking occupations skilled to PhD level. A list of these occupations is included in the Immigration and Nationality (Fees) Regulations. They are primarily science and research roles. There will also be an exemption for graduates who switch from tier 4 to tier 2 in order to take up a position in the UK. These two exemptions build on the Government’s strong post-study work offer for international students and are intended to protect the UK’s position as a centre of excellence for education and research.

The Department for Business, Innovation and Skills has confirmed that it will continue to consult with stakeholders. Indeed, when the Migration Advisory Committee was asked to look at this measure, it consulted with a wide range of groups, including the Russell Group of universities, of which of course Cambridge is an eminent member. The Department for Business, Innovation and Skills is continuing to engage with stakeholders, including devolved Administrations and other government departments, on how best to introduce these skills.

On the proposition that the legislation mandates an independent review one year from the date that the implementing regulations come into force, the Government believe in consulting those affected by proposed changes, and we have done that. As is good practice with any new measure, the Government will review the operation and impact of the immigration skills charge after a suitable period of operation. In addition, the Migration Advisory Committee will continue to provide independent advice to the Government on the UK’s migration policy.

The skills charge will help address issues that I know are of concern to many of us here: net migration and skills shortages. However, I hope that a commitment to a reduced rate and the exemptions I have described, together with a commitment to publish the draft regulations setting out the detail of the charge, will assure the noble Baroness and the noble Lord of the Government’s commitment to implement the charge in a balanced way.

The noble Lord, who has a distinguished academic background himself, rightly talks about the impact of this on universities. We are very conscious of our leading role in this area and will of course continue to engage. But it has to be remembered that, in the international competitive marketplace, other countries such as the United States, Australia and Singapore, all of which have both highly sophisticated labour markets and distinguished academic institutions, operate a similar levy. Of course, when the Migration Advisory Committee looked at this, it looked at international examples before agreeing to set the rate.

I hope the noble Lord will accept this in a spirit of generosity. In his Amendment 151A, he raises a point about the timing and when Clause 80 will come into effect, which the noble Baroness, Lady Hamwee, also mentioned. I hear the points that the noble Lord makes and I give him an undertaking that we will reflect on this and come back at Third Reading with, I hope, something which addresses the concerns that he expressed. I hope, in the light of that commitment, that the noble Lord may feel able to withdraw his amendment at this stage.

[Lord Wallace of Saltaire]

My Lords, the Minister has been able to provide some reassurance, but not yet very much, and I would like to ask for a great deal more information. I have been able to discover a little about the levy in some other countries—I was not aware that the United States had a levy on skilled workers, let alone teachers at that level—and I would welcome, as I think would all noble Lords interested in this area, some more comparative information on this.

We have touched on the university question, which, given the strength of the academic lobby in this Chamber, is something which a large number of noble Lords are likely to be concerned about—although not just them. As I think I said to the noble Lord on an earlier occasion, I have talked to several head teachers in the last three months who have said to me that they are scouring the world for maths and computer science teachers. They cannot find them in Britain. The Government’s response to that has to be either to say that for the next two years they will exempt from any immigration skills charge people who are going to help build up the skills within the younger workforce in this country in those key areas or to provide a crash course for training people and encouraging them into those professions—or possibly both. The same is true of nursing. We need a joined-up government approach and to expand rapidly the numbers of nurses in training in this country. Otherwise, we will go on importing large numbers of people from the Philippines, South Africa and elsewhere.

I am only half persuaded that the Government yet know what they are doing. An active labour market policy and signals to the private sector seem to me to be very important. But I look forward to hearing further from the noble Lord—perhaps he would like to arrange an all-Peers meeting before we get to Third Reading so that we can discuss some of these things in detail with those around the Chamber who are interested in it. We need a lot more information before we can be confident of what the Government are saying. On that basis—

[Lord Bates]

The picture I am trying to paint for the noble Lord is that we have listened very carefully, including to the advice from the Migration Advisory Committee. BIS continues to consult and engage with stakeholders on this. On the particular point he raises about teachers of mathematics, schools do not just have to scour Britain but can seek maths teachers from the whole European Economic Area market. They can also recruit them from among people who have graduated from tier 4, and we have a PhD level which, to give a little more information, covers chemical scientists, biological scientists, biochemists, physical scientists, social and humanity scientists and natural and social science professionals not elsewhere classified, including researchers in research organisations other than universities.

My point is that we have done quite a bit. We have listened to the Migration Advisory Committee, we have consulted and I have said that I will give further consideration as to when they are introduced. On the other points which the noble Lord raises, if he really feels strongly about them, our position is that we have made our case strongly and that he should test the opinion of the House.

[Lord Wallace of Saltaire]

My Lords, it might help the House if the Government could tell us when their response to the Migration Advisory Committee will be published. The committee made the strong statement that the impact of this immigration skills charge on the public sector was such that it should be carefully phased in, perhaps over a number of years. Will that be one of the issues that the Government will address in their response to the MAC report?

[Lord Bates]

With the leave of the House, I will just say that I have recounted our response to the Migration Advisory Committee. We have listened to what it recommended on this. I said that we were looking at phasing it, which is in the noble Lord’s Amendment 151A. On the other amendments, we believe that the policy is very important. We will not change our position between now and Third Reading and, if the noble Lord wishes to test the opinion of the House, he should.

[Lord Wallace of Saltaire]

My Lords, a quarter to one in the morning is not the ideal time to test the opinion of the House. The Labour Benches appear to be almost entirely empty—they have abandoned their position. On that basis, I will not test the opinion of the House at this stage.

[Lord Bates]

I should just say for the benefit of the record that I notice on the government Benches a significant number of colleagues here present and very interested to listen to this debate and the Government’s position. The fact that the noble Lord’s Benches and the opposition Benches may be a bit thin at this hour of the morning is not the point; a lot of people are here who are interested in this debate.

[Lord Wallace of Saltaire]

There is a strong argument that the way to make legislation on important issues is not in the early hours of the morning. However, on the basis that will have extensive further information and further consultation from the Government between now and Third Reading, I will withdraw my amendment.

[Lord Trefgarne]

No.

Immigration Bill

Lord Wallace of Saltaire Excerpts

Tuesday 9th February 2016 Grand Committee

Moved by

[Lord Wallace of Saltaire]

239BA: Clause 44, page 44, line 10, at end insert—
“( ) The Secretary of State must by regulations made by statutory instrument provide for the application of the provisions and penalties under this section to those responsible for assuring that border controls are enforced on arrivals and departures at general aviation sites, private landing strips and helipads.”

[Lord Wallace of Saltaire (LD)]

My Lords, we are now on to Part 6 of the Bill on border security. This is the first of a number of amendments on that. I welcome government Amendment 239C, which recognises that border security is not only about maritime security; we have a land border in Northern Ireland. Many years ago when I was at Chatham House and dealing with the beginnings of European co-operation in police, I kept coming across policemen, as well as Conservatives, who said, “But we’re different. We only have a maritime border”. They should go to Dublin and try to explain that. The delicacy of the border between Northern Ireland and southern Ireland is very considerable and would be very sharply affected if we were to leave the European Union. It is very good to see the government amendment.

My initial interest in this area came from looking at the Channel Islands as a very odd, semi-British dependency. I noted that the owners of the Daily Telegraph—a newspaper that bangs on about border security and the defence of British sovereignty—have a company that owns at least one helicopter, which advertises that it flies between Brecqhou and Monaco. Since the Channel Islands’ authorities rarely, if ever, send a policeman to Brecqhou, let alone a border security officer, I assume that this is a means of entirely avoiding border security. I mark that as one of the many oddities of the way the debate on sovereignty and border security in this country takes place.

Thinking more widely on this, we can see that it is clearly a serious loophole. I am one of those people who occasionally looks at the Financial Times weekend supplement, How to Spend It, just to see how people who earn £3 million a year or more get through it. The editor of the Daily Mail, another newspaper that bangs on about sovereignty and border security, is supposed to earn £3 million a year, so now doubt he thinks about spending his money on things such as that. There are advertisements in How to Spend It for yachts with their own helicopters, so you can fly directly from your yacht in the Mediterranean to your helipad on your estate in Surrey—or, for that matter, the helipad close to us in Yorkshire, where you can get straight on to the grass moors, if you like, again without passing through border controls.

As the super-rich extend their ability to fly in light aircraft and helicopters across national boundaries, there is a growing problem that needs attention. When I first came into government I was briefly spokesman for that aspect of the Home Office that dealt with counterterrorism and border control. I spent a very interesting day with the West Yorkshire Police and the combined Yorkshire serious crime squad, learning about how they work. One of the things I remember most strongly from that was that there is no domestic serious crime. All serious crime involves criminal networks; all important criminal networks are cross-border.

The idea that we do not need to be too careful about helipads at luxury hotels, golf courses or estates in Surrey because the people who go there are rich and therefore law-abiding is not necessarily accurate. Some of them may be rich and not entirely law abiding. Some of the richest people in this country are Russian oligarchs. They may, or may not, be law abiding in this country, but the origins of their wealth may not have been entirely according to British legal standards. Others are from Gulf royal families. Most of them are entirely honourable people, but occasional ones claim diplomatic immunity because they represent St Lucia on the International Maritime Organisation or whatever. There are, therefore, occasions when they may not be entirely in accordance with British law. We have no idea who they may bring in and out of Britain in their private aircraft or helicopters. They may even be bringing domestic workers without visas to work for them here under conditions which we regard as illegal and against the Modern Slavery Act.

I raise this question as there is a major loophole in border security and incursion into British sovereignty. I hope the Government will provide a sign that they are aware of the seriousness of this loophole, which is growing as air traffic from private aircraft and helicopters grows, that they are doing something about it and that they will close the loophole. I beg to move.

[Lord Teverson (LD)]

My Lords, I shall speak to Amendment 241A in my name. At the end of the debate at Second Reading, the noble Lord, Lord Bates, responded extensively to a wide range of questions and comments. One of them, brought up by me and a number of other noble Lords, was about the fact that we have so little information in this area. In his response, the Minister read off a whole lot of evidence and research that the Government had possession of. I was unsatisfied by that, because most of the information did not help to determine an evidence-based policy towards migration, particularly the illegal migrants who are in the country. I therefore set myself a challenge: if I was making a decision, as a Minister, on the basis of evidence, what would I want to know? If, in my business life, I was looking at market research, what would I try to determine? I then asked myself if it was possible to determine them, because that is clearly the second stage of this. I have put in the amendment the sort of information that I would want to know if I was a Minister or Secretary of State making decisions about how I approached this subject. Illegal migrants in the country are clearly a problem: no one denies that. If they are here illegally they should not be here, and we should be able to take action. I have a list of eight or 10 things that I would want to see. I will be interested in the Minister’s response in terms of actually finding those things out. Are they, indeed, the sort of things they should know?

The second question is: is it possible to know about and explore something that is an illegal activity? There have been studies of the number of illegal migrants in the UK but I understand that the last major one—maybe by the LSE—was in 2009. It estimated that there were somewhere between 400,000 and 800,000 in the UK. There is quite a large margin of error between the minimum and maximum numbers in that estimate. Is it possible to measure illegal activities? I expect that noble Lords are aware that in May 2014 the Office for National Statistics started to include in GDP figures the amount of GDP generated by illegal drugs and prostitution. Prostitution is not strictly illegal, but in terms of how it is carried out it is broadly seen as an illegal activity and therefore had not been brought into GDP before. The total GDP for those two activities was about £12 billion; more or less 50%, or £6 billion, related to illegal drugs, and approximately the same figure related to prostitution. It is therefore possible to estimate those types of figures with a reasonable standard error, if not with certainty.

The techniques that have been used to measure illegal migration are the Delphi method, the capture-recapture method and the residual method, which has been used to make these estimates in the United States. I am not for a minute saying that this is an easy or totally accurate exercise, but for decisions around such important areas as this, which we all want to solve, we should spend a little more resource and time moving away from rhetoric and into understanding what is going on. By doing so, we might have a lot better decisions about migration management, and there might be legislation that we can all agree on, rather than taking rather normative views.

--- Later in debate ---

[Lord Ashton of Hyde]

The Home Office understands that because it takes advice from the law enforcement agencies. Of course, we also take advice from my noble friend. It is not true to say that the Home Office does not recognise the security situation. In fact, the Home Secretary regards it as her highest priority.

[Lord Wallace of Saltaire]

My Lords, the noble Lord must clearly be too young to remember who abolished exit controls. It was indeed Margaret Thatcher, when Prime Minister, as an economy measure. She thought that they were unnecessary and cut the number of people employed by the border service. That was some time ago.

[Lord Green of Deddington]

Perhaps I may correct the noble Lord. Exit checks to Europe were abolished by the Conservative Government in 1994 and exit checks to the rest of the world were abolished by the Labour Government in 1998. Both decisions were wrong.

[Lord Ashton of Hyde]

They were amended by this Government.

[Lord Wallace of Saltaire]

My Lords, I tabled my amendment simply to make sure that the Government and, in particular, the Home Office took this point on board. I am very happy to talk further. We are looking for a response from the Government on this. Of course we recognise that 3,000 private airports cannot be entirely covered. One has to use intelligence. As the noble Lord replied, I was thinking of the days when as a schoolboy I used to dip sheep on a farm. The policemen always turned up to check that you were dipping the sheep properly. In those days, there were ways in which they made sure that the law was enforced in all sorts of places around the country. Clearly, we need a degree of intelligence.

The use of private planes and private helicopters is clearly growing. This is not a static situation. The Government’s response therefore cannot be entirely static. They have to be much more aware of what is going on and of the potential for abuse and for people who are engaged in illegal activities, possibly even terrorism, to use this route as well as many legitimate people.

The noble Lord did not mention the Channel Islands loophole. I have asked a number of Written Questions on it. I am struck that the liaison between the British Border Force and the authorities in the Channel Islands may not necessarily be as tight and mutual as we would wish. If one looks for areas where our border controls may not be entirely secure, the Irish land border and the Channel Islands maritime border are the most vulnerable. I will be interested to hear what the Government have to say on that in particular.

Above all, we need to be sure that the Government do not give the impression that there is one law for the rich and another for the rest of us. There are a number of other areas where the Government are edging towards a situation where unkind people, or Private Eye, could indeed suggest that there is now one law for the rich and another for the rest of us. I look forward to further discussions off the Floor with the Government. I beg leave to withdraw my amendment.

Amendment 239BA withdrawn.

--- Later in debate ---

[Lord Wallace of Saltaire]

My Lords, when I was in government I asked on a number of occasions how many British citizens hold dual nationality. We all know that we run into a number of problems with dual nationality, particularly when a British citizen of origin of another country is taken into custody in the country of origin. Dual nationality is a very cloudy concept. I should simply like to add that it would be very helpful if the Government would take this back and possibly even provide a Green Paper on the whole issue of dual nationality within Britain. We all have friends in that situation. I have a nephew and niece who hold British and Irish passports and a nephew who holds British and South African passports. My niece, who works for a development charity, sometimes finds it extremely useful not to be a British citizen when she is in a rather difficult country.

There are some major issues here. A substantial minority have British and Pakistani citizenship, and another substantial minority have British and Bangladeshi citizenship. These are delicate issues. They raise large public policy questions and some security questions. It would be useful if the Government would commit to looking at this matter further and reporting back to Parliament.

[Lord Ashton of Hyde]

My Lords, I am grateful to all noble Lords who have spoken. Perhaps I should first declare an interest in that one of my daughters has dual nationality. Indeed, she has two passports.

I start by saying that the noble Lord, Lord Green, very kindly asked me to ask my officials rather than answer his question. I certainly will ask my officials. Equally, I will take on board the comments of the noble Lord, Lord Wallace, and take them back to the department.

My noble friend Lord Marlesford has form on this question. I am conscious that I am but the latest in a long line of Ministers—“distinguished Ministers” is being whispered to me—including my noble friends Lady Anelay, Lord Taylor of Holbeach and of course Lord Bates, who, within a very short space of time, have answered the question put by my noble friend Lord Marlesford during debates on immigration Bills, counterterrorism Bills and in Questions in the House. As I said, I am just the latest in a long line and so, in hope rather than in expectation, here goes.

My noble friend will be aware from his long-standing interest in this matter that Her Majesty’s Passport Office requires holders of passports issued by another country to provide details of that passport at the time of application. He made the point that he understood that; the question was whether it would be on an electronic, searchable register. The reason for asking for other passports is to minimise the ability of the British passport applicant to obtain a British passport in a name and identity which is not consistent with an overseas passport. The holding of dual or second nationality is not in itself relevant to the issuing of a British passport. Instead, HMPO collects the information on any other passport held in order to help confirm the identity of the applicant. It provides an additional element of identity verification.

Therefore, requiring a British passport holder who holds or held dual nationality to supply information outside the British passport application process would be an unnecessary and additional function for HMPO. Failure to notify any acquisition or loss of citizenship would require an enforcement and penalty structure. This would in our view be disproportionate and likely result in legal challenges as the failure to notify would have no impact on the validity of the British passport. As I said, it is already a mandatory requirement for all applicants to submit any other passports that they hold, British or otherwise, when applying for a new passport. However, I can tell my noble friend that the Home Office continues to explore ways in which information held within the department is shared effectively to help to prevent and detect crime. My noble friend will be pleased to learn that HMPO is looking at enhancing how information at the point of application is collected and shared across Home Office agencies by making better use of technology. This would include information collected on dual national passport holders at the point of application. Information is held by the Home Office on dual nationals who apply for British citizenship and who subsequently apply for a British passport. Such information is necessary to progress the application for citizenship or when making jointly an application for citizenship and a passport. Outside of either process, the need for information on dual nationality would be unnecessary and would not serve any useful purpose.

Finally, I recognise that my noble friend has concerns about the security implications if his suggestions are not accepted, and I agree that the security of the public is of the highest importance. That is why we ask the views of the law enforcement agencies each time this matter is raised. Their response remains consistent—that the establishment of a dual national database is not considered operationally essential. Despite that, I fear that my noble friend will not be convinced by this response, but I hope that he will acknowledge that information on dual nationality is already collected and maintained. We do not see additional security benefit in extending the data collection process. I respectfully request that the amendment be withdrawn.

--- Later in debate ---

Moved by

[Lord Wallace of Saltaire]

242L: Clause 55, page 49, line 12, at end insert—
“( ) Regulations under this section must provide for exemption from a charge in the case of an application made—
(a) to fill a skills gap directly concerned with the provision of education;(b) by an institution whose primary function is the provision of education or skills training;(c) to fill a skills gap directly concerned with the provision of health services;(d) by an institution whose primary function is the provision of health services.”

[Lord Wallace of Saltaire]

My Lords, I recognise that it is late. This is an important proposal on which the House of Commons spent precisely five minutes during its wind-up in Committee. I have another important amendment still to come, Amendment 242S on the tier 1 investor charge, to which I attach a great deal of importance. I have received quite a lot of outside support and some outside briefing on both these amendments. I am conscious that time is short, but these are important issues. It is always the case that the last clauses of a Bill get the least attention.

The proposal for an immigration skills charge is a major innovation, not yet fully developed. It was first floated in a speech by the Prime Minister two weeks after the May election, less than nine months ago. He said,

“we will reform our immigration and labour market rules— reducing the demand for skilled workers and cracking down on those who exploit low-skilled workers. That starts with training our own people.

For too long we’ve had a shortage of workers in certain roles. Engineers, nurses, teachers, chefs—we haven’t had enough Brits trained in these areas and companies have had to fill the gaps with people from overseas. With Sajid Javid as the new business secretary we’re going to get far better at training our own people. This involves creating 3 million more apprenticeships—and we will consult on getting the businesses that use foreign labour to help fund them through a new visa levy.

And today I can announce we will consult on another big change. As we improve the training of British workers, we should—over time—be able to lower the number of skilled workers we have to bring in from elsewhere. So as we embark on this massive skills drive, we will ask the Migration Advisory Committee to advise on significantly reducing the level of economic migration from outside the EU”.

Note that the Prime Minister emphasised that the Government would focus on a massive skills drive and consult on another big change that would follow. He noted that some of the skills in greatest shortage are for teachers and nurses—he could have added doctors. However, in spite of an earlier reference in his speech to “a whole government approach” to the immigration issue, he does not note that these are public sector jobs, for whose training the Government lay down targets and conditions, and for which government departments such as health and education bear some responsibility. There is no mention of these departments in the speech—BIS is the only one mentioned.

The Government asked the Migration Advisory Committee to advise on how to take this loosely defined idea forward. The Migration Advisory Committee report was published on 19 January 2016, just three weeks ago, after the Commons had completed its consideration of the Bill. It addresses the issue of the introduction of a skills charge in the context of a review of the entire tier 2 visas category. It recommends raising the minimum salary thresholds, limiting the period in which skills shortages can be declared for any particular sector, and introducing a charge at a level it suggests should be between £500 and £2,000 per year—I emphasise “per year”. The Government intend this to be a perpetual charge, and they have chosen £1,000 for every year that someone from outside the EEA is employed by a British company, university, school or hospital. One university has estimated that this will cost it £800,000 a year; others suggest higher figures, particularly for universities with global reputations in science and engineering. The CBI has warned that it will impose additional charges on top of the new apprenticeship levy on innovative firms.

This new MAC report also notes in paragraph 1.25 that,

“the public sector may require time to transition to the new salary thresholds”,

since it is in the public sector that recruits from outside the EEA are paid less than their UK equivalents, rather than more. The MAC’s “strongest recommendation”,

“is for any changes to be kept under active review”.

It is hardly surprising, therefore, that James Brokenshire, in a speech in London in late January, declared that the Government are “in listening mode” on this proposal, which, as we all know, is code for saying that Whitehall has not yet worked out what it means and still needs advice from the outside.

So why are we being presented with such a blunt proposal today? Why have the Government not consulted further on its implications for the public sector, above all for the health service, universities and schools? The Prime Minister said that he was going to do so, but it has not yet happened. Have the Government yet consulted with the NHS and the education sector on the likely impact of this charge? Have the Treasury and the Department of Health taken into account the impact of this charge on the NHS budget once it is applied, or on BIS and the DfE, given the implications for the education sector? Will the Government allow the public sector time to manage the transition or are they going to impose it, just like that?

Overall, the Government are relying on the market to provide the 3 million additional apprenticeships they are promising, with the penalty of the apprenticeship levies to spur it on. The massive skills drive that the Prime Minister promised is to be left to the market; it neither starts nor finishes with the Government, in spite of what the Prime Minister says.

The Explanatory Notes to the Bill suggest that the Prime Minister’s creation of 3 million additional apprenticeships will depend almost entirely on this charge. It says:

“The primary purpose of this clause is to increase funding available for apprenticeships in the UK and address the current skills gap in the UK workforce”.

How many apprenticeships will the estimated £240 million to be raised from this charge pay for? Will it get anywhere near funding 3 million apprenticeships? Business, not unnaturally, sees the double imposition of the levy and the immigration skills charge as adding to the burdens on the private sector, without a coherent government approach to labour market policy that is linked to education, at all levels, and to training. In the public sector, the Government have lifted the cap on numbers in nurse training while, at the same time, ending nursing bursaries, and so deterring potential nurses from entering the profession. They have done that at the same time as they recognise the need to increase their numbers.

There are particular issues for UK universities and for medicine—and I thank Universities UK for the brief that it gave me. The global reputation and quality of UK universities and medical research depends on the international circulation of academic and medical careers, with British students spending time studying and working abroad, and overseas students and professors coming to work in the UK. I have visited universities in several countries as an academic where the majority of the staff began their careers as local students, moved on to conduct graduate research there, and were then appointed to the faculty, without much, if any, intellectual challenge from exposure to other institutions or countries. None of these universities is anywhere in the global rankings, but our world-class universities depend on scholars coming in and out. The Prime Minister loudly declared that he wanted to attract the “best and the brightest” from outside the UK; imposing this charge is more likely to keep them out.

This charge will obstruct the circulation of scholars into the UK, and impose additional burdens on university budgets. It will have a particularly adverse effect on the STEM subjects, where over 15% of current staff are from outside the EU. But then, a substantial proportion of UK citizens in these disciplines in British universities have studied and taught overseas in their turn. Have the Government thought through how far this principle of penalties and charging might extend? Should British universities receive credits, say of £1,000 a year in perpetuity, for attracting British scholars with American PhDs back to this country? My son has just taken up a post at a UK university, having benefitted from American funding for his entire graduate education and two post-doctoral fellowships. Should that benefit to the UK as he returns generate a financial credit for the British university that has hired him, or does the Home Office assume that the traffic in academic excellence is all one way—foreigners into Britain? If we are so concerned about the nationality of those employed in the higher education and medical sectors, should the Government also impose fines on UK-trained doctors who then opt to leave Britain to practise elsewhere? Would the British Government be happy if a future Republican Administration in the United States were to impose charges on American institutions that sought to recruit from the UK?

I see no evidence that this has yet been thought through. Some free market economists, no doubt from some right-wing think tank, appear to have convinced the Home Office that the price mechanism will sort everything out, without the need for more active government intervention. That is as daft an idea as imposing central London economic rents on core government buildings in Whitehall, to be then taken off existing departmental budgets—but then the Government have just said that they are going to do that as well. What is even more striking is that the Government do not propose to apply the price mechanism to tier 1 investor visas, in spite of recommendations from the Migration Advisory Committee, where super-rich foreigners would no doubt bid happily against each other for the privileges offered. We will come to that in a later amendment.

We therefore offer in this group a number of amendments which protect the public sector, require consultation with those affected by the charge, and require, as the MAC report suggested, the earliest possible review. We particularly emphasise that it would be idiotic to impose the charge on teachers in shortage subjects in the UK, given the Government expect that domestic demand for education and training in shortage sectors will have to rise, and when funding for further education is already being cut savagely. Two weeks ago, I met three secondary head teachers who told me that maths and computer technology teachers are so hard to recruit that they are looking to Australia to find them, without yet realising, of course, that that would bring an extra charge on their budgets of £1,000 per maths teacher for the foreseeable future.

This clause attracted almost no attention in the Commons. In any event, the Government had not provided the information on which to assess the proposal. That makes it even more appropriate to test the opinion of the House on Report, unless the Government can come up with their own substantive amendments and a good deal more explanation of what this means in practice. I beg to move.

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[Baroness Hamwee]

My Lords, before my noble friend responds on our amendments, I wonder whether the Minister can advise the Committee how noble Lords should deal with this when further government thinking becomes clear. As he well knows, we can scrutinise to our heart’s content but we cannot actually do anything about what is in regulations.

I thought that the Minister said at the beginning of his response that there had not been a decision and that this was permissive of regulations, but at the end he confirmed that this is what is in the Government’s mind, which is obviously common sense. However, by bringing forward such a significant new policy proposal as this, having given the Commons five minutes to debate it, as my noble friend said, I do not know how we can really deal with this just through regulations.

[Lord Wallace of Saltaire]

That is precisely what I was about to say. At present, the House is extremely nervous about allowing the Government to legislate by regulation for very obvious reasons based on what has recently happened. Having listened to the Minister, the words “pig” and “poke” come very much to mind. We are being asked to accept something on which the Government have not quite made up their mind about how it will work. They have not yet managed to consult, but if we pass this they will produce some regulations when they work out what they want to do. If we are no clearer than that when we get to Report, it will be very difficult to persuade any of the major groups in the House, apart from the Conservatives, to accept something so unclear.

The noble Lord, Lord Green, and I agree strongly on one thing in the migration debate—that better training and education in Britain are absolutely part of what we need to have—but that should not replace the circulation of highly skilled and intelligent people which is a vital part of our research network in medicine, STEM subjects and elsewhere. If we are beginning to block that, which this suggests it will do, we will damage our standing in the global academic and intellectual world. That is what universities are most concerned about at present. We absolutely need some assurances on that. Last week, I was talking to a vice-chancellor in Wales who was not aware of the implications of this proposal. As the Minister will know, the academic lobby in the Lords is not entirely without a degree of influence. I will do my best to make sure that it is aware of it by the time we get to Report.

There are some large issues here about the private and public sectors, including the question of how we persuade the private sector to invest more in training. This is a Government who need a rather more active and concerned labour market policy. Someone said to me last week that further education funding is about to fall off a cliff. If the Government are looking to further education colleges to help to train apprentices, this proposal is not a good thing to do as part of a whole-government approach.

This proposal suggests that some young man aged 23 in either Policy Exchange or the Institute of Economic Affairs, with a first from some university or other, has written it at speed and the Government have swallowed it. There have been previous occasions in other Governments when those sorts of things have happened. This clearly has not been thought through. If the Government can publish some more detail on what they have in mind by Report, we might be able to make some progress. If they do not know by Report what the details of the policy will be, the House will find it very difficult to accept the proposals in the way the Government have put them before it.

[The Deputy Chairman of Committees (Lord Geddes)]

I assume that the noble Lord would like to withdraw his amendment?

[Lord Wallace of Saltaire]

Just temporarily. I beg leave to withdraw the amendment.

Amendment 242L withdrawn.

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Moved by

[Lord Wallace of Saltaire]

242S: After Clause 55, insert the following new Clause—
“Tier 1 (Investor) visa
(1) The Secretary of State must make rules which shall come into force no later than 1 January 2017—
(a) to close the Tier 1 (Investor) route;(b) to close applications to extend leave under Tier 1 (Investor) to applicants in the United Kingdom before 1 January 2017.(2) Nothing in this section shall affect leave to enter or remain of the holder of a Tier 1 (Investor) visa granted before that date in accordance with that leave.”

--- Later in debate ---

[Lord Wallace of Saltaire]

My Lords, special arrangements for foreigners from outside the EU, the EEA and Switzerland who were willing to invest—actually, only to loan by investing in government bonds—a minimum of £1 million were introduced by the Conservative Government in 1994. The introduction of a tiered categorisation for visas in 2008 placed them in tier 1.

The Migration Advisory Committee issued an extremely critical report in 2014. The chairman’s foreword is strongly written. It says that,

“the main beneficiaries are the migrants”,

although,

“the law firms, accountants and consultancies that help organise the affairs of such investors”,

argue that their arrival is “self-evidently beneficial” to the UK—that is, these advisers to the very rich act as a lobby to bring more very rich in—“But”, the chairman continued,

“we do not need such investment to fund the deficit”,

and, if we were hoping that they might become entrepreneurs in the UK,

“we already have an entrepreneur route”.

The foreword goes on that,

“it would be injudicious for the UK to enter into a ‘race to the bottom’, matching special offers recently introduced by, for example, Malta, Portugal, and Antigua”—

and, I might add, St Kitts and Nevis.

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[Lord Wallace of Saltaire]

My Lords, I have some sympathy with the noble Lord in having to reply to this debate. I am fascinated by the caution expressed by the Labour Front Bench and I hope that the Labour Party will not find itself in a position of wanting to defend the super-rich against the criticism from the Liberal Democrats—of course, I speak for the Liberal Democrat Front Bench on this. Perhaps the Labour Party will reflect a little further on that between now and Report. I hope that I will not miss Report. I have to admit to everyone here that I am going on holiday for the first two weeks of March. I am going to Antigua, but I shall not ask whether I can buy citizenship while I am there.

[Lord Bates]

I will put a special plea to the business managers that we schedule Report then.

[Lord Wallace of Saltaire]

My Lords, I hope that the Minister will be able to write to all noble Lords on the Committee between now and then with a number of answers. Have the Government examined the Canadian experience and looked at why the Canadians abolished their category? Have we considered the same? Can the Government explain why they accepted all of the Migration Advisory Committee’s proposals on tier 2 for the immigration skills charge, but did not accept two rather important proposals from the Migration Advisory Committee that there should be a limited number of sealed bids and a substantial donation to a good causes fund as part of the conditions?

I admit that the origins of my interest in this are from when I went as a representative of Her Majesty’s Government to the capital of a former Soviet state and found myself talking with someone who was clearly very much part of the oligarchy running the country. He told me that he had just been appointed ambassador to Britain and this was rather difficult for him because at that moment he held British citizenship as well as citizenship of his state. He was going to have to come back to his own country for some weeks while this was sorted out, but he had recently bought his son the house next door to his in Chelsea and as his son was rather young he did not want to leave him on his own for so long, so he was not quite sure how he was going to manage it. I began to think it was a little odd. I decided in my two days in that country that it was not a particularly democratic one and the distribution of wealth was clearly in the hands of a very small number of people, although one or two of them offered me some extremely generous gifts, which I, of course, had to pass on. It opened my eyes to something not desirable, not in the interests of this country and not contributing to our economy.

I would have been much happier if the figures I had discovered on tier 1 had shown that the exceptional talent category had 2,000 to 3,000 people in it, the entrepreneur category 3,000 to 4,000 people and the investor category 50. That is the sort of thing we should have if we believe the Prime Minister in his commitment to attract the brightest and the best. We have got it the wrong way round at present. I wish the coalition Government had been able to push a little further in that respect, but we will make up for it. We will do our best to push the Minister and see how far we can go. For the moment, I beg leave to withdraw the amendment.

Amendment 242S withdrawn.

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Moved by

[Lord Wallace of Saltaire]

242U: Schedule 12, page 155, line 5, leave out paragraphs 1 and 2

[Lord Wallace of Saltaire]

My Lords, at this stage I shall be extremely brief although I am very happy to talk further, out of Committee. The purpose of the amendment is to probe. A Government who are deeply and publicly committed to the promotion of marriage appear to be imposing charges on it. Before I run off to the Daily Mail to tell it that the Conservatives are making marriage more difficult, perhaps we could explore the implication of some of these additional charges and discuss what the Government really intend with them. We are in favour of settled relationships, both civil partnerships and marriage. The Government have said many times before that they want to promote them. That is the purpose of this probing amendment. I beg to move.

[Lord Bates]

Currently, both the local registration service and the Registrar General provide a range of services in connection with the registration of births, marriages, civil partnerships and deaths for which, in some instances, there is currently no power to charge a fee. The existing fee-raising powers are restrictive and out-dated and do not cover the full range of services provided. For example, the Registrar General is involved with the verification of around 5,000 divorce documents each year which have been obtained overseas and also provides blank certificate stock to over 30,000 buildings for use in certificate issue. These are just two examples of services provided by the Registrar General for which there is currently no provision to charge a fee to the end-user and where the expense must be recovered from central funds.

Schedule 12 will modernise the process of setting fees for registration services and enable fees to be set for those services which have previously been provided without charge. The provisions also move existing fee-charging powers into regulations, providing more flexibility and making it easier to amend them in the future. This will allow the local registration service and the Registrar General to recover more of the costs of providing registration services. It will reduce the reliance on central funding and ensure that, where possible, any costs are borne by the users of the services on a cost-recovery basis in line with Treasury guidelines.

I hope that helps the noble Lord and he will feel able to withdraw his amendment.

[Lord Wallace of Saltaire]

That is extremely helpful. I am happy to withdraw the amendment.

Amendment 242U withdrawn.