(7 years, 9 months ago)
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I beg to move,
That this House has considered the Second Report of the Scottish Affairs Committee, Demography of Scotland and the implications for devolution, HC 82, and the Government response, HC 938.
It is a pleasure to serve with you chairing this short debate, Mr McCabe.
Back in February 2016, the Select Committee on Scottish Affairs launched our inquiry into the demography of Scotland, to better understand the issues concerning our populations and the impact those trends will have on devolved services in Scotland. We had four sessions here in Westminster and one in Edinburgh, and we were delighted to visit the Isle of Skye, where we visited the Gaelic college Sabhal Mòr Ostaig and held an evidence session there. As always, we are grateful to all those who contributed to the inquiry.
May I start with the good news? It is very good news. Scotland’s population is stable and growing. We say in the report that that is good news. Something that differentiates us in Scotland so much from the rest of the United Kingdom is that we welcome population growth in our nation. When we get news of population growth, Ministers put out press releases saying that it is a good thing; when they get similar news down here in the UK, it could not make Ministers more miserable. That says everything about the respective attitudes in Scotland and the United Kingdom.
Only 15 years ago, Scotland was suffering what can only be called structural depopulation, and there was real concern that the population might actually dip below the iconic 5 million mark. Scotland’s population has been turned round and is now at its highest ever level, standing at 5.37 million people resident in Scotland. That population growth—not dramatic, but steady and good—is owed to increased fertility among the indigenous population and, more than anything else, immigration, particularly immigration from the European Union following the accession of nations in the early 2000s. After a century of sluggish population growth punctuated by periods of decline, and following centuries of emigration, Scotland’s population is now stable, and that is good news.
I mentioned our history because we as a nation are probably more familiar with historical issues of emigration than we are with immigration. That flavours and shapes Scotland’s response to the current debate about immigration that is raging throughout the United Kingdom—a debate that probably hijacked the whole conversation about exiting the European Union. There are concerns about immigration in Scotland—we find that in social attitude surveys and opinion polls—but it is absolutely clear to me and other members of the Scottish Affairs Committee that there does not seem to be the same heat in that debate in Scotland as there is in the rest of the United Kingdom. There is a healthy understanding of our immigration requirements as a nation and our need to sustain a healthy population and demography.
That is the good news, and it is welcome. The not so good news is that our population increase is lagging way behind that of the United Kingdom as a whole. That is a critical part of this equation and a critical relationship. The UK’s population is projected to increase to 70 million in 2027 and reach 74.3 million by 2039. That is an increase of 15% over a 25-year period. I know that we are ending free movement, that there are going to be new immigration policies in place and that the UK Government are confident that there will be some sort of Brexitised Canute to stand against this tide of an ever-increasing movement of people throughout the world. That is their ambition and what they intend to do, but according to current figures the population growth of the UK is expected to be 15% over 25 years. In the same period, Scotland’s population is expected to grow by 6%.
That population growth gap will have a huge implication for Scotland’s economy and our ability to support and sustain an increasingly elderly population. That is because Scotland is predominantly funded on the basis of its population in the form of a block grant that we receive and is calculated on the percentage-based Barnett formula. Increasingly, the distribution of resources throughout the United Kingdom will be on a per capita basis. The main concern, therefore, is that Scotland’s revenues will not keep pace with those in the rest of the United Kingdom. That could be increasingly acute as we come to renegotiate the fiscal framework in 2020, where population concerns will once again be factored in, possibly to Scotland’s deficit.
The other issue the Committee found is that population growth is variable across Scotland as a whole. That is why the Committee visited the Isle of Skye to try to better understand the regional variations and the issues in Scotland’s rural areas, in particular the highlands and islands. We found pockets of success, particularly in the highlands, but an otherwise ongoing story of decline in Scotland’s rural areas. For example, most of the new population growth happens in Scotland’s cities and conurbations close to them. In my constituency, in Perth and Kinross, we have solid population growth of around 15%; in Edinburgh, where my hon. Friend the Member for Edinburgh North and Leith (Deidre Brock) is resident, it is in the region of 20%; and in Midlothian it is 26%. That contrasts with areas of the highlands and islands that have experienced net population decline, the worst example being the Western Isles, which is expecting a population decline of some 14%.
Scotland has one of the lowest population densities in the whole of Europe. During the inquiry we heard that Sutherland in north-east Scotland has lower population density than Mali in northern Africa—a nation that is entirely covered by Sahara desert. More than anything, that suggests that Scotland is not full up and that we can accommodate many more immigrants to help us to address some of the issues in our economy.
Lurking underneath the statistics are demographic issues that really need to be tackled. The age profile of Scotland’s population is rising at a faster rate than that of the UK as a whole. Several witnesses we spoke to in the course of the inquiry identified the combination of Scotland’s lower population growth, ageing population and lower life expectancy as one of the key challenges it will face in the delivery of public services in the coming years and decades. Over the next 25 years, Scotland’s population will have a lower proportion of working-age people than it does now, and they will be expected to support an even bigger number of dependants. That is referred to as the “dependency ratio”—several groups took exception to that phrase when we visited Edinburgh, as my colleagues will remember. In the next 25 years, the dependency ratio will increase from 58 dependants to every 100 working-age people to 67 dependants to every 100 working-age people. That has serious implications for the delivery of public services.
The Committee found two particular areas where the dependency ratio might have an impact. The first is the size of the tax base and the ability to service through that tax base an ageing population. Secondly, it will be much more difficult to fill some vacancies in a number of sectors, including health and social care. An ageing population will increase demand for those services without there being a commensurate increase in the pool of working-age people available to fill those vacancies. That will have to be factored in to the planning and developing of Scotland’s public services over the coming years and decades.
Another thing the Committee found during our inquiry is that life expectancy and healthy life expectancy, especially for men, are lower in Scotland than in other parts of the UK. A new report, which we did not have the opportunity to take into account, has emerged in the past few weeks. That report, produced by the University of Glasgow, suggests that for the first time in 150 years life expectancy is not increasing in Scotland. It found a spike of more deaths in 2014 than at any time in Scotland since the second world war. We are not in a position to assess that, but it would be particularly worrying if that was a trend that is beginning in Scotland and was a reflection of some of the social policies that have been carried out not only in the name of this Government, but across both Governments in the United Kingdom. That is something we very much want to keep an eye on over the next few years.
The health inequalities are what concern the Committee more than anything else, and again we saw a disparity not only in the United Kingdom but in Scotland. The most revealing example was given by Professor David Bell, who talked about the train journey from Jordanhill in Glasgow to Bridgeton in Glasgow and how life expectancy declines by 15 years in the course of it. Professor Bell also told us that Jordanhill’s people have the same life expectancy as those of Canning Town here in London. Canning Town is a tube journey away from Westminster, where life expectancy is seven years higher. The disparity across the United Kingdom is 21 years, which surely should set off all sorts of alarm bells when we are planning services and considering how to reduce health inequalities.
The Committee considered what would be required to resolve some of the difficulties that we identified in our inquiry. First, we note the Scottish Government’s target of matching population growth with the EU15, which was set in 2007 to be completed by 2017. The Scottish Government have been relatively successful in ensuring that we have achieved the EU25 mean. Some witnesses praised the Scottish Government for setting the population target, saying that it was in the interests of the nation to aspire to be population healthy and demographically healthy. However, some—primarily those in the UK Government, who did not see much value in it at all—felt that there was no need for a population target and questioned the whole idea.
None of our witnesses could tell us the optimum population size for Scotland, although a few gave valid examples of their efforts to do so. Professor Jim Hunter, emeritus professor of history at the University of the Highlands and Islands, told us that it is difficult to establish Scotland’s optimum population. When we were on Skye, he told us about some of the reasons given for the clearances, including that the population in the particular area was unable to sustain itself, but he also said to the Committee, revealingly, that
“the population of London exceeded the capacity of the London area to grow potatoes and turnips a heck of a long time ago, so it depends entirely what sort of economy you are looking to create here.”
I thought that those were particularly wise words.
We found, unsurprisingly, that what is required to keep a healthy demography and a stable and competitive rate of population growth is an obvious equation between emigration and immigration. We must retain more people in Scotland and do more to attract working-age migrants to Scotland, but that will be a lot harder to achieve with the end of free movement of people from the European Union.
To give an example of the sort of figures that we are talking about, in 2014-15, net inward migration to Scotland was 27,968, while net migration to England was 298,882. That is a huge disparity in our ability to attract immigrants. We must do more to attract migrants to Scotland, but it is particularly difficult to achieve when the legislative levers remain in the gift of a UK Government resistant to immigration and concerned to the point of obsession with immigrant numbers. The UK Government, in their response to the report, defiantly refused to give the Scottish Government responsibility and opportunities to address their immigration concerns, and they have ended schemes such as the Fresh Talent initiative, which allowed us, at least in relation to the student population, to try to increase our population by giving incentives to stay in Scotland.
I mention that because something important and alarming came out in the statistics given to us by National Records of Scotland. There has been a positive spike in Scotland’s immigration figures: the number of people coming to Scotland in the critical 19-to-23 age bracket has risen. That suggests that people are coming to Scotland attracted by the offer from our excellent, world-class universities. However, there is an almost commensurate spike in emigration among those aged 23 to 27. That suggests to me that people are leaving Scotland once they have been educated, because they do not have the opportunity to stay there.
As my hon. Friend might be aware, in 2015-16, Stirling University had 930 EU students and 1,350 overseas students; 20% of the student population came from overseas. It clarifies how important immigration is to solving the problem not just of the skills base, which he correctly identified, but to the universities’ health in the future. What are his views on that?
That is exactly what we found in the course of our inquiry. One of the report’s recommendations was that the Government reconsider their approach and attitude to the post-study work scheme offer. That would address the issues that my hon. Friend raises, but to me the problem is much more fundamental. It is beyond absurd that we attract all those talented young people to Scotland with the quality of our world-class universities and train and educate them to a high standard simply to watch them sail away, when we need those people to help grow and contribute to our community.
I wish the hon. Gentleman a happy birthday and congratulate him on securing this debate. He is making an important point. One of the few issues that unites political parties in Scotland is the need to reintroduce the post-study work visa. Does he share my concern about the 80% drop in non-EU students remaining in the UK after graduation since the scrapping of that vital scheme? We must continue to press the Government to stop the brain drain of global talent from Scotland.
The hon. Lady is absolutely spot on. I wish we could do more to convince this Government that they need to reconsider and help us to ensure that we keep those talented people. Our statistics show that we require these people to remain in Scotland; they are welcome in Scotland, but there has been absolutely nothing from the Government in response. They have run some pilots on a post-study work visa scheme, but none of them in Scotland. We saw in the Government’s response why Scotland was not included. All of that is totally unsatisfactory. It is one thing that this Government can do that is straightforward, simple and easy to administer. Give us a break; give us a chance. Do something to help us address one of the pressing issues facing our community. We want it, we are ready to do it, the universities want it and it is in the gift of the Government to make that simple little change to help our higher education sector.
The Government say in their response that Scotland should use its range of devolved powers to attract immigrants, and they highlight powers that we could use to achieve it, talking about things such as health and education. I remember the former Chief Secretary to the Treasury sitting across from us in Committee and telling us that the one thing we could use to attract immigrants to Scotland was our planning powers. That was the sum total of what we had at our disposal. How we are supposed to attract immigrants without the levers of immigration powers is totally beyond me.
What I am hearing from the Government—it is a strange proposal and a sustained one, too, because we hear it practically every day—is that apparently Scotland’s offer for immigrants has been diminished because we now have powers over income tax. Somehow, we are disincentivising people because we have a differential rate of income tax in Scotland. I do not know about you, Mr McCabe, but I do not imagine potential immigrants in town squares in Krakow and Budapest being put off coming to Scotland because the higher rate of income tax kicks in at £40,000 instead of £43,000. I suspect that that would be the last thing on their minds.
It might not have crossed the hon. Gentleman’s mind, but employers considering where to locate might look at the rate of income tax for their new investment.
I am grateful to the Minister. I suggest that although that argument is always convenient, the evidence for it is flimsy, verging on non-existent. Nobody has presented us with anything to support that view.
Yes, income tax is a feature and a factor when it comes to the suite of taxation that people have to pay, but it is just one part of it. England, for example, has higher rates of council tax and higher house prices. We have free education for our young people and free prescriptions. Taxation comes in many forms. The ludicrous suggestion that Scotland is uniquely the highest-taxed part of the United Kingdom does not bear any scrutiny at all. To suggest that it disincentivises people from coming to Scotland is beyond absurd and almost ridiculous. What changes people’s decision whether to come to a nation is powers over immigration and the ability to incentivise people to come through means such as a post-study work scheme, available jobs and a growing economy, and a growing economy needs a healthy working-age population. Those are the very factors we have considered and tried to address in our report.
Emigration from Scotland is an issue. Scotland is still an emigrant country; it is a feature that has characterised our nation throughout the centuries, and we are still losing far too many young people rather than retaining them. The Scottish Government have put in place a number of measures to hold on to young people in Scotland, and we wish them well in those endeavours, but as long as we remain a dependent nation within the United Kingdom, there will always be other attractions, particularly in huge centres such as London. We cannot build that capacity to retain people in our capital and other cities, so for as long as we remain a dependent nation, it will probably always be likely that our young people will be attracted to the bright lights of London. For example, when my son finished at Glasgow University, he came down here to look for work opportunities that he could not find in Scotland, because we have not been able to put in the resources there to develop our economy and give our young people those chances. As long as we remain part of the United Kingdom, I believe that we will always have difficulties.
I congratulate the hon. Gentleman on his Committee’s important report. He knows as well as I do that one of the reasons we are having this debate is the UK Government’s paranoia about getting immigration numbers down to below 100,000. Have he and his Committee given any consideration to addressing some of the concerns that I have heard, particularly in the Irish situation, that if we allow Scotland to have its own immigration policy and bring in as many people as possible, we will not be able to prevent those people from going to Scotland for a fortnight and then coming down to England and completely upsetting the balance that people want to see? I think that is nonsense, but it is one of the reasons behind the Government’s refusal to let Scotland handle immigration. We have to work together to find an answer to that, because it is one of the reasons that the Government will use to prevent Scotland from addressing its genuine needs and achieving what the hon. Gentleman and I want to see happening in Scotland.
It was not within the scope of our inquiry to look at such solutions; we just wanted to get a snapshot of the quality of Scotland’s population growth and some of the demographic issues, and to suggest ways in which they could be addressed—but the hon. Gentleman is right about what the Government say. They say it all the time, but they are totally ignoring the fact that other nations throughout the world are able to manage sub-national immigration policies quite successfully, particularly Canada and Australia, whose policies work perfectly well and have none of the impacts that the hon. Gentleman mentions.
There is another solution, which has just come on the table in the last year. As a result of the Scotland Act 2016, there is now a Scottish rate of income tax set by the Scottish Parliament. We now know where Scottish income tax payers are resident, so if there is any breach, we know where they are. If someone came to Scotland from Krakow or Budapest, for example, with the sole intention of abusing the job opportunities we gave them by then disappearing to London, they would immediately disappear into a black market. They would not be able to work because they would be officially resident in Scotland. Why on earth would somebody want to disappear from a legitimate market, in which they have every opportunity to find a job and contribute to the economy, and go to a black market, in which they will be pursued relentlessly by the Minister’s Home Office team? That is my answer to the hon. Gentleman’s question, but it was a good question and I am pretty certain that we will hear more on it from the Minister.
The Minister is giving me a thumbs up, so we can expect him to address the matter in his reply.
I will finish my speech because I know that other hon. Members want to speak. We will always be fighting a losing battle if we cannot grow our population through immigration. Our report calls for the Government to give us a chance, give us a break, and consider devolving some immigration powers to Scotland to let us grow our population. If the Minister and the UK Government do not do so, they will be holding Scotland’s hands behind its back, because the population gap between us and the rest of the United Kingdom will have massive implications for our economy and our ability to provide proper social services in Scotland. Population and demographic issues will be central to social planning, healthy economic outcomes and growth over the next decade, but Scotland has a UK-wide immigration policy designed by the Minister and his colleagues that practically works against our vital national interests. If there is one thing that the Government can do to help us to address those issues, it is to give us the levers to address them.
I am sure that we all wish the hon. Gentleman a very happy birthday.
My hon. Friend makes a valuable point. In fact, if the number of MPs in one area, the north-west of Scotland highlands, is reduced, the area covered by one MP will be larger than Belgium. That is completely unacceptable, particularly in the face of Brexit and the amount of work that will result from it, which is likely to be a burden for all MPs.
Scotland’s recent population increase is partly due to inward migration. However, UK Government policies will undoubtedly have a negative impact on Scotland’s population growth. Those policies include barriers to immigration resulting from Brexit, which I have already mentioned; the scrapping of post-study work visas, which is already causing considerable damage; and the continuing uncertainty about whether EU citizens will be allowed to remain in the UK.
Our Committee’s report also found that population is a key issue in rural areas in Scotland that already have extremely low levels of population density and a pattern of younger people leaving to look for work elsewhere. On a Committee visit to Dumfries quite recently, we heard that in rural areas it is already hard to fill posts in social and health care, and it is predicted that that situation will get worse.
While Scotland’s land reform and rural broadband schemes are intended to boost economic activity in rural areas, which can only be a good thing, achieving that aim will not be possible if there are not enough people living in those areas to develop the economy. Again, the situation will become even worse if our exit from the EU reduces immigration and leads to more young people leaving Scotland to find work elsewhere.
I will give a more detailed example from my own constituency in Dundee. There are many issues in the demography report that have particularly serious implications for my city. To put things into perspective, Dundee has the highest proportion of students in higher education of anywhere in Scotland. The university sector is vital to the economic health of our city. Indeed, a quarter of University of Dundee students come from outside the UK and, as was set out in a report last week, more than 175 jobs in Dundee are fully or partially funded by EU grants. If Brexit leads to a reduction in the number of international students and a loss of EU nationals working in our universities, without doubt that will have a significant negative effect on the economic wellbeing of my city.
As many Members will know, Dundee is currently undergoing a £1 billion regeneration of its waterfront, at the heart of which is the new V&A Museum of Design. Immigration and population growth have the effect of enhancing economic activity and creating jobs. Therefore, any threat to immigration will hinder the positive transformation that Dundee is currently undertaking.
I will focus on one sector for a moment, because Abertay University was the world’s first university to have a degree in designing video games. I chair the all-party group on video games, so I will touch on that sector briefly. My constituency is a cluster for game designers. To give people a flavour of the kind of games that come out of Dundee, one of them—“Grand Theft Auto”—has already broken six Guinness world records. Within the video games industry, talent is the No. 1 priority for businesses, and it is vital that the industry is able to recruit highly skilled international talent without there being immigration barriers to their working here.
A UK-wide survey by the video games industry body UK Interactive Entertainment, which was published just yesterday, showed that more than 98% of respondents—we might as well say 100%, as we are just about there—believe that EU nationals with skills needed in the games industry should have a blanket right to live and work in the UK.
I turn to a sector that is important in my neighbouring constituencies, in particular that of my hon. Friend the Member for Perth and North Perthshire (Pete Wishart). Each year, large numbers of temporary migrants from the EU come to work in the fruit picking industry in the constituency next to mine. If that flow of workers is cut off by Brexit, that will have a hugely negative impact on this vital part of our local economy.
I am grateful to my hon. Friend for mentioning my constituency, and he is absolutely right that we have great concerns about what will happen in our world-class berry fruit sector. However, the situation is even worse than that. I am sure that he will have heard examples similar to those I have heard of European nationals in our constituencies who, just because of the current climate, are thinking about leaving, because there is a sense that they are not welcome here any more. They are feeling the chill wind blowing from the UK Government, which is putting their very existence here at risk, as they are used as bargaining chips. Has he come across anybody like that in his constituency?
Yes indeed. In fact, tomorrow, which is my constituency day, I have four surgery appointments with EU nationals who are similarly concerned about the future. The biggest issue that we have is in social and health care, particularly in our care homes, where there is a large percentage of EU nationals among the staff. As Dundee is growing to meet the needs placed on it to be a creative hub for Scotland, we also have a growing hospitality sector, which is again largely served by EU nationals.
However, despite all the evidence that the UK Government received though the Scottish Affairs Committee report, they have once again completely disregarded calls to ensure that any new immigration policies meet the needs of Scotland’s demography. Not only that, but they have once again completely rejected calls for a more flexible post-study work visa system for international students in Scotland. Therefore, it is crystal clear that Scotland has different immigration needs from other parts of the UK, and a one-size-fits-all approach simply is not working.
In 2014, the UK Government told Scotland to lead the UK and not leave it, claiming that it would be treated as an equal partner within the UK. Last weekend, however, the Prime Minister said that control over policy areas that have already been devolved, such as fishing and agriculture, may not go to Holyrood in the wake of Brexit, further raising fears that devolution will be undermined rather than enhanced. That is nothing short of a scandal and flies in the face of the devolution settlement of 1998.
If anyone is in any doubt about how difficult the UK Government have made our immigration system, they only have to look at a tweet put out by Faisal Islam the other night. It pointed out that under the same EU law a permanent residence form in Ireland is five pages long and free; in Germany, it is two pages long and costs eight euros; and in the UK, it is 85 pages long and costs £65.
Scotland is not full up. As I have said, our demographic and workforce needs are different to those of the rest of the UK. With the UK Government’s current rhetoric signalling a move towards a hard Tory Brexit, it is becoming increasingly obvious that their polices will seriously damage Scotland’s population growth. The UK Government’s immigration policy in no way recognises Scotland’s needs or serves our economic and societal interests. The UK Government continue to resist pragmatic change that would not only reduce the impact of Scotland’s ageing demographic but help Scotland to attract international students. What would really benefit Scotland would be the full devolvement of immigration power, so that we can ensure our country’s prosperous future. If the UK Government are unable to tailor their immigration needs for Scotland, then Scotland’s independence will be the only solution.
It is a honour to serve under your chairmanship, Mr McCabe. I thank my hon. Friends the Members for Edinburgh North and Leith (Deidre Brock), for Dundee West (Chris Law) and for Argyll and Bute (Brendan O'Hara) for taking part in today’s debate, as well as those who made interventions—my hon. Friends the Members for Stirling (Steven Paterson) and for Glasgow East (Natalie McGarry) and the hon. Member for Edinburgh South (Ian Murray).
I am grateful to the Liaison Committee for selecting the report for debate, and to the very accomplished Chair of the Select Committee on Scottish Affairs, my hon. Friend the Member for Perth and North Perthshire (Pete Wishart). I wish him a very happy birthday. He shares his birthday with Yuri Gagarin and today also marks 31 years since the space station Mir was launched. Whatever his plans are after today’s debate, I hope he has a truly stellar day.
I did not know that—I am genuinely surprised. I am always told that I share a birthday with Martin Fry from ABC, who had much greater success than I did in music, selling many more albums than I did in his illustrious career.
I thank my hon. Friend for that informative intervention, which will now be in Hansard. Mir was succeeded, of course, by the international space station—arguably one of humankind’s greatest achievements, and a reminder that we achieve more working together than we do apart. That is an important thing to bear in mind, particularly as we enter an ugly, post-Brexit, insular, isolationist, anti-immigrant phase in British politics.
We are often referred to in this place simply as “the nationalists” but, in truth, we have more than proven ourselves to be the largest group of internationalists in the House. Of late, I and my colleagues have received what can only be described as a barrage of pro-EU and internationalist correspondence from all corners of the UK. It is, in fact, a lovefest for our strong, principled stances on the EU and immigration. What is very clear from those reaching out to us is that many people feel unrepresented in this place as we go through the process of exiting the European Union. The people of Scotland are being ably represented by a strong team of SNP MPs here and an incredibly effective SNP Government in Holyrood. We will continue to push for solutions that will help to solve the unique challenges that we face.
The UK Government cannot simply continue with their one-size-fits-all approach to policy. In their response to the Scottish Affairs Committee report, the Government state:
“Our immigration system is designed for the whole of the UK, taking account of Scotland’s needs.”
That is demonstrably not the case. It is completely at odds with the views of Scottish businesses and universities and of civic society in general. Scotland faces demographic challenges in the coming years. We are not unique in that respect, but our needs are not the same as those of other nations in the UK, and, despite the UK Government’s protestations, they are not being taken account of by the Home Office. While the UK Government continue with their increasingly bitter and nasty narrative on immigration, the SNP Scottish Government are focused on increasing population growth, which has been historically slow in Scotland compared with England, while also making Scotland an attractive place to work and live.
My hon. Friend attended the same sessions as I did and she would have heard from a swathe of Scottish public opinion—from business leaders, to trade unions, to higher education, to everybody involved in business and academia—that we require a differentiated type of immigration system. Does she therefore believe that, as we approach leaving the European Union, it is much more important and pressing that Scotland now has some sort of bespoke immigration system, in order to deal with the challenges we face as a nation?
I completely concur—I will come on to that point later in my speech. Population growth is a vital contributor to a more dynamic society, and it is crucial if we are to ensure our economy is fit for the challenges of the future. With an ageing population, Scotland will undergo a significant demographic shift in the coming decades, which will present us with challenges that we must be prepared for.
The Scottish Government want to address Scotland’s changing demography through population growth, which will provide a larger tax base to pay for services, as well as ensure that we have more people to carry out essential jobs. Immigration policy obviously plays a huge part in that. As we have heard again and again today, EU and international citizens play a crucial role in making Scotland’s economy successful. They and the contribution they make to our society are valued. It is utterly shameful that the UK Government have failed to guarantee the rights of EU citizens to remain in the UK almost a year on from the Brexit referendum.
It cannot be repeated often enough how much we respect those who have chosen to live and work in Scotland. In the words of our First Minister:
“You’re not bargaining chips, you are human beings with families, jobs, friends and lives here. I believe you have a right to certainty and peace of mind.”
We have heard it already today, but let us just stop this nonsense about speaking up for people who live abroad. Let us take the first step today and tell EU nationals who are living here that they are valued and that they can stay; then we can move on, because it is just going to be repeated again and again. We need action from the Government now before the issue causes any more distress to families and damage to Scotland and across the UK. One thing is abundantly clear: UK immigration policy is at odds with the values of the Scottish people. It does not meet our needs and the UK Government need to listen to those legitimate concerns.
The Government’s response to the report is disappointing in many ways. The report clearly sets out that, based on the evidence we received, there is a case for further consideration of sub-national migration powers for Scotland. The report calls for closer co-operation between the UK and Scottish Government on that. Simply put, the UK Government must deliver an immigration system that meets Scotland’s needs and they should allow Holyrood to have more say. By insisting that the immigration system is designed for the whole of the UK, the Government fail to take into account that Scotland’s demographic needs are different from those of other parts of the UK.
The UK Government remain absolutely committed to reducing migration to the UK to tens of thousands, as we heard from the hon. Member for Blaydon (Mr Anderson). Growth in our population is crucial to the growth of our economy. Scotland’s people, including those who have chosen to live and work there, are key to our future prosperity and a strong economy.
I am confounded by the fact that the Government are not listening to those people. We heard that in all of our Committee’s sessions, and we are now hearing it from all universities and businesses. I am not sure why their pleas are falling on deaf ears.
I am not going to take another intervention, because I am aware that we have hit the time for the Front-Bench spokesmen.
The Minister must surely realise that the trialling of the new tier 4 scheme in universities in England will be seen as a kick in the teeth for Scottish universities. It may very well be that
“There was no agenda to limit those involved to universities in any region of the UK”—[Official Report, 8 December 2016; Vol. 618, c. 182WH.]
but given the repeated and sustained calls from Scotland for the reintroduction of the visa scheme, it is in poor taste that the Government are acting in this manner.
I hope the Minister will take my points and those of other hon. Members on board. It has been fantastic to have the opportunity to debate the issues raised by the report. I ask that the Government revisit their poor response to the report and acknowledge that they have got this very wrong.
I will make some progress, if I may. On post-study work visas, which I suspect are the issue to which the hon. Lady was referring, the Government’s position has been set out clearly in evidence to the Scottish Affairs Committee and in Parliament, most recently in a debate on the topic in this Chamber on 8 December. For the reasons I set out in that debate, the Government do not intend to reintroduce a general post-study work scheme for Scotland.
For clarity, will the Minister name one body or organisation, whether in Scotland or in the United Kingdom, that supports the UK Government position on a post-study work scheme? Everyone I know, everyone I speak to and everyone I have heard from wants one for Scotland. Will he name one organisation in Scotland that supports him on that?
I am grateful to the Minister for leaving me a few minutes to sum up what has been an important and informative debate. First, I thank my colleagues from the Scottish Affairs Committee, my hon. Friends the Members for Dundee West (Chris Law), for Rutherglen and Hamilton West (Margaret Ferrier) and for Edinburgh North and Leith (Deidre Brock), for contributing to the debate. I thank my hon. Friend the Member for Argyll and Bute (Brendan O'Hara) for contributing, too, as well as the hon. Member for Blaydon (Mr Anderson) and the Minister.
I could have written that Government response. We saw it with the woeful response we had to our report, which was an in-depth look at the demographic requirements and population needs of Scotland. We hear this again and again—it always seems to boil down to the same thing. We raise lots of important issues and facts, and we sit and take evidence across Scotland, going to places such as the Isle of Skye, and people tell us clearly that we have particular issues when it comes to the demographic quality of our community and society. They ask us as a Committee and as Members of Parliament to take that issue forward, to do a report and to look at what we could do to resolve these problems and give Scotland some sort of chance to address them properly. We bring them to the Minister and the Minister says, “We’re not interested. All we are interested in is a one-size-fits-all UK immigration policy right across the United Kingdom.”
That is a singular failure to take into account the specific requirements and difficult challenges we have. We are left in a dreadful situation by the Minister. We are leaving the European Union against our national collective will. We wanted nothing whatever to do with that. Only one Member of Parliament was returned from Scotland with a pledge to have a referendum on the European Union. We voted against that referendum when it came to Parliament. Our nation voted to remain in the European Union. We put forward the solution that would spare us the worst of the madness by keeping us in the single market, which is just about to be rejected by the Government. Again and again, they give us no opportunity and no hope to try to address the real issues, problems and concerns that we consistently raise.
I do not know what a single UK immigration policy is. I do not think even the Minister knows what a single immigration policy is as we approach Brexit. I thought it was going to be a points-based system, but the UK Independence party’s points-based system is actually too liberal for the Government, so they are looking to design something else. He talks about a single UK immigration policy, but I would like to know what that looks like. I suspect and suggest that he does not even know that himself—and he is only the Immigration Minister, bless him.
We need to say that there is something going on within our United Kingdom; something is singularly not working. A part of the United Kingdom has emerged, the nation of Scotland, which has a whole different history, culture and approach to issues of immigration and emigration, and that requires to be addressed. There is a particular difficulty with the quality of our demography, our ageing population and the shrinking of our working-age population, and that needs to be looked at and needs solutions. If the Government are not prepared to do that for Scotland—I sense they are not, because we keep bringing it to them and they keep on saying no and, to a certain extent, “Just get stuffed”—they must devolve responsibility to the Scottish Government, who are prepared to do the work. If the Minister sits complacently, just telling us that we have to go along with what the UK Government decide, that is not good enough. He must devolve these policy areas to the Scottish Government so that we can do the critical work required to address the issues identified in the report.
The requirements, problems and challenges are many, and they are manifest. If we do not start to challenge and address them, Scotland will be economically disadvantaged. We cannot proceed with a population gap to the rest of the United Kingdom, and we cannot proceed with a dependency ratio that is out of kilter with the rest of the UK. If we try to do that, there will be a cost to our economy and our community, and that will have an impact on every single constituency in Scotland.
England is different. We accept that. We know there is something particular going on when it comes to immigration in England that requires a different type of solution. However, the situation for England practically works against the interests of the nation of Scotland. That is why we require a different immigration solution. We require the powers to attack and challenge the issues we are confronted with.
If the Minister is not prepared to work with us in order to do that, he has to devolve the powers to us now. He has to give us the opportunity to address them, because if he does not there will be real issues and problems for Scotland’s economy. We have a way to deal with that if the Minister does not do it: we are at 50% for independence today—what a place to start for a new independence campaign. If he will not listen and will singularly, defiantly refuse to give us the powers, we will take them in a referendum of the Scottish people. Then we will get the powers, and then we will make progress.
Motion lapsed (Standing Order No. 10(6)).
Backbench Business
(7 years, 10 months ago)
Commons ChamberI hope they will.
Let me go through the group in order. New clause 6 refers to the recommendations by GREVIO—the Council of Europe’s Group of Experts on Action against Violence against Women and Domestic Violence—and the Committee of the Parties to the Council of Europe Convention on Preventing and Combating Violence against Women and Domestic Violence (Istanbul Convention), and would mean that those recommendations were not binding on the UK Government. The convention has a two-pillar monitoring system to ensure that all members live up to their commitments. [Interruption.]
It is interesting to note that nobody—particularly on the SNP Benches—wants to listen to the debate, which is surprising because it was exposed on Second Reading that they did not actually know what was in the Istanbul convention. You would think that they would have learned their lesson and would actually want, this time around, to learn what was in the convention—but apparently not. I am not entirely sure whether the position of the hon. Member for Perth and North Perthshire (Pete Wishart), who is on his knees and facing the wrong way, is in order during a speech, but it is certainly not normal behaviour from him. [Interruption.] He may not be listening, but he could at least give the impression that he is interested in knowing what is going on in the debate.
He is not. We are very grateful to him for clarifying that he is not interested in the debate. There is no wonder the SNP is so authoritarian.
The Istanbul convention has a two-pillar monitoring system to ensure that all members live up to their commitments. The aim is
“to assess and improve the implementation of the Convention by Parties.”
We therefore have two groups: GREVIO, which is initially composed of 10 members and which will subsequently be enlarged to 15 members when the 25th country has ratified the convention, and a political body—the Committee of the Parties—which is composed of representatives of the parties to the Istanbul convention.
The last thing we need is another group from a supranational body that is set up to make it look as if that body is doing something on issues but that just becomes a talking shop. It is not the implementation of the Istanbul convention that will make any real difference to levels of violence generally—and certainly not to levels of violence against women—but harsher sentencing of perpetrators. The idea that having a group of experts pontificating about how well or badly something has been implemented will make any material difference to the levels of violence in the UK is for the birds.
GREVIO’s task is to monitor implementation, and it may adopt general recommendations on themes and concepts of the convention. The Committee of the Parties follows up on GREVIO reports and conclusions, and adopts recommendations to the parties concerned.
There are different procedures that these two bodies can use to monitor each country’s implementation, such as a country-by-country evaluation procedure whereby GREVIO considers evidence submitted by the relevant countries. Should it find the evidence insufficient, it has the power to organise country visits and fact-finding missions.
(8 years ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I beg to move,
That this House has considered the Fourth Report of the Scottish Affairs Committee of Session 2015-16, Post-study work schemes, HC 593, and the Government response, HC 787.
Mr Rosindell, it is a pleasure, as always, to serve under your chairmanship in this short debate on the Scottish Affairs Committee’s report about post-study work schemes for Scotland. One of the first things that we did after I assumed the Chair of the Committee, which is obviously a pleasure and a privilege, was to go to Scotland and ask the people of Scotland, regular contributors to the Committee’s work and other stakeholders what they wanted from the Committee. I felt that was the right thing to do, and I think colleagues on the Committee who are here today found that a valuable and worthwhile session. It helped us to create a report about the Committee’s work and decide what work we would undertake during this Parliament.
One key theme that emerged, and that people stressed to us that they were really keen for us to debate and discuss, was the prospect of a post-study work scheme for Scotland. We would expect the higher education sector to say that, and of course it did, but we also heard clear representations from business, trade unions and practically every sector in Scotland. We therefore decided to publish a report on post-study work schemes, and we are pleased that it has received so much attention in Scotland.
During our inquiry, the Committee heard from Universities Scotland, the UK Council for International Student Affairs, Colleges Scotland, the Scottish Council for Development and Industry, the Institute of Directors, the Scottish Trades Union Congress, the Scottish Government, and the Immigration Minister himself and his colleague the Secretary of State for Scotland. Essentially, we heard a practical chorus of overwhelming support for the reintroduction of a dedicated post-study work scheme for Scotland. The only discordant voices in that general chorus of desire for such a scheme to return were those of the man who has his hand up—the Immigration Minister—and his colleague the Secretary of State for Scotland. Everywhere else we went, every submission that we secured and every piece of evidence that we heard during the many sessions that we had on this issue very much supported the idea that Scotland should have a dedicated post-study work scheme to retain our international students.
It is perhaps fortuitous that we are having this debate the week after the Committee published our report “Demography of Scotland and the implications for devolution,” which I very much recommend to the House. The Committee is particularly pleased with the report, as it offers a fascinating snapshot of the population and demographic trends in Scotland. Essentially, it concludes that Scotland’s population is growing, which practically everyone in Scotland welcomes. Population growth could not make the Immigration Minister more miserable when he gets his figures for the rest of the United Kingdom, but in Scotland we welcome it and recognise it as a key factor in our economic growth and wellbeing.
Some of our findings in that report are interesting and pertinent to this debate. There are troughs and spikes in Scotland’s population. One of the peaks is among 17 to 19-year-olds, among whom there is immigration to Scotland. The Committee interpreted that as people coming to Scotland to be educated because of our wonderful higher education sector. Our universities are world-class; three of them are in the top 100. However, the Committee was somewhat concerned by the trough in 22 to 25-year-olds, among whom there is not immigration but emigration. People at that critical age, who are at the start of their working careers and could make a real contribution to Scotland’s economy and wellbeing, are actually leaving Scotland. That worried us. The Committee interpreted that as students who we had educated to a high standard in our wonderful universities leaving the nation of Scotland. We found it hard to understand why on earth we would open our doors to international students who wanted to come to Scotland and enjoy the experience of being there, educate them to a high standard, and then boot them out. We found that very difficult to comprehend.
Let me outline the current situation and conditions in Scotland. In 2014-15, there were 29,210 non-EU international students enrolled in Scottish higher education institutions, representing 12.6% of the total higher education student population. In 2013-14, the last year for which we have figures, fees from non-EU international students made up 12.5% of the total income of Scottish HEIs. It is hard to get economic assessments, but it has been estimated that non-EU international students contribute more than £400 million in off-campus expenditure, which obviously benefits the many towns and cities that have a wonderful university as part of their community.
That financial contribution is obviously welcome—it was welcomed by practically everyone we spoke to—but my colleagues on the Committee will remember clearly that when we visited Aberdeen and were hosted by the University of Aberdeen, it was stressed to us that although that was great, those international students also enriched our college and university campuses with their experiences from different nations and made those campuses multicultural and multinational. Learning alongside students from all around the world gives indigenous Scottish students a fantastic experience. Universities Scotland stressed to us that that was as important as international students’ financial contribution.
Non-EU students currently study in Scotland on general tier 4 student visas. Under the conditions of that visa, those students can study and work while they are in Scotland, but critically, they have four months to find secure employment after they complete their course or they have to leave the United Kingdom. It seems that the only available route for students to try to secure employment is the route between tier 4 and tier 2—a route that was described to us by employers’ organisations, trade unions and industry representatives as complicated, tortuous and almost impossible for some employers to secure. To be eligible for that route, graduates must have completed their course and have a job offer with a salary of at least £20,800 from an employer that is licensed to sponsor a tier 2 visa. Employers’ organisations told us that that was cumbersome and burdensome and some employers did not even bother trying, because they knew that it would be a tortuous process.
That £20,800 minimum salary for a tier 2 visa applies right across the UK; it makes no difference whether you are in London, Inverness or Northern Ireland. It may be possible for a 22-year-old in London to get a graduate entry-level salary of £20,800, but that is almost impossible for a new graduate in Scotland to secure. We see that in the evidence. We found during our inquiry that tier 2 sponsors are mainly in London and the south-east; in 2013, 63% of them were located there, compared with only 6% in Scotland and Northern Ireland.
I am grateful to the Chair of the Select Committee for giving way. He will recall that one of the key parts of the evidence that the Committee heard was Scottish universities themselves saying that when they take on some postgraduate employees, they do not pay them £20,800 a year. Even they are not able to retain the very best of the staff they train.
The hon. Gentleman is absolutely spot on. The Committee took issue with the idea that £20,800 is somehow applicable to the Scottish situation. I will come back to that point, but first I will make a few other remarks about how we could resolve this general situation.
In the past, we had a dedicated post-study work scheme in Scotland—the famous Fresh Talent initiative, which ran so successfully between 2005 and 2008. It was initiated by the former Labour First Minister Jack McConnell and had the overwhelming support of the Home Office down here. I still meet students in Perth who studied at the University of the Highlands and Islands who are products of Fresh Talent and are now making an incredible contribution to my community and constituency. Fresh Talent was subsumed into the general tier 1 post-study work visa scheme that ran from 2008 to 2012. Although that was still a post-study work scheme, it ended Scotland’s advantage in being able to secure and keep international students. We did not mind that as long as we still had some means to secure international students who wanted to remain in Scotland. It was only with the election of a Conservative-led Government in 2010 that we saw the beginnings of the end of any dedicated post-study work scheme.
I will try to understand the Government’s motives for all that. In the response to us, they said that the scheme was apparently “too generous”. I would hazard a guess—perhaps I am out of place here—that that is something to do with the Government having almost an obsession with immigration numbers, and that their general desire to get immigration down from hundreds of thousands to tens of thousands was behind the idea of closing any notion of a post-study work scheme. International students were an easy target—of course they were—and we could see where they were coming from. Everything has to be done through the book—in order to secure international students, universities and higher education institutions have to go through a complicated process. It was so easy to close those routes and, instead of doing the hard work about illegal immigration, target the students. However, targeting students was a singularly self-defeating initiative. The people we want to stop coming into the country and staying here are the most educated—those we spent a fortune on—who want to stay in our country.
Of course, a lot of things were said about what the Government did. The Scottish Affairs Committee, before I assumed the Chair, did a report about that and warned of the consequences, as did the Select Committee on Home Affairs, of which I believe you were a member in those days, Mr Rosindell. Those reports said that there would be consequences and an impact, and an impact there has been. One thing the Committee was keen to discover and determine was what sort of impacts the closure of that route had had on Scotland, and the clear message we got from practically everyone was that the impact has been significant, negative and stark.
We cannot get a proper picture because the evidence is patchy, so the only thing we could look at was migration from tier 4 to tier 2, but we were able to estimate that there has been a fall-away of 80% in international students continuing to work in Scotland after their studies. That has had an immense adverse impact on our access to talent, and it has resulted in increased skills shortages in all key sectors the length and breadth of the Scottish economy.
More than that, there is the disincentive value of not having a particular route. We heard again and again from representatives of the education sector that Scottish universities are now losing out in the race to secure international talent from across the world. We are moving into a different type of working environment in the ability to share and transfer knowledge. The knowledge economy will be so important to economic growth as we go forward, and Scotland is in a great position because of the quality of our universities and the research done in Scotland, but we are now told that there is a massive disincentive to coming to Scotland.
Students sitting in, say, India, Australia or Kenya, and looking at the UK will be hearing all this stuff about Brexit and the splendid isolationism that the UK seems to want to be part of. If they are hearing that all the debate about leaving the European Union was about immigration and people not being welcome, they are not going to be particularly inclined to seek out a university in Scotland, as part of the United Kingdom, to come to and study. They will be thinking, “What on earth would I go there for, when I would be made most unwelcome and probably get booted out the minute I finish my course?”
Does my hon. Friend agree that there is a real risk that we will lose competitive advantage to other Commonwealth and English-speaking nations such as Canada and Australia because of these restrictive rules? The University of Glasgow has expressed exactly the concerns he highlights and we all have constituency examples of those. I had a constituent who was literally a rocket scientist who was determined to work here and the UK Government’s visa restrictions meant that she could not.
I am grateful to my hon. Friend for his intervention. We all have examples of that, and it is utterly depressing that we are booting out young people of supreme ability and talent whom we have spent a fortune educating and who have such potential to add to our community. I come to his important point about the options that are available. We are obviously an Anglophone country—we have had the English language since Gaelic, and I know that he is keen on that particular issue—but there are now options in Canada, Australia and the United States. I know the Minister, when he addresses us, will tell us that there is still growth in international students. Yes, I concede that there is still growth in the number of international students coming to Scottish universities, but it is just 1%. Growth in Canada, Australia and the US is 8% to 11%, so we are obviously falling behind.
What we conclude is that the current post-study work routes do not meet the needs of Scotland, and by quite a margin. To try to be helpful to the Minister—we thought we were being helpful, anyway—we suggested doing a few minor things, which would not upset anybody, to tweak and improve the current situation. We started from the minor tweaks and moved through to suggesting a stand-alone post-study work scheme for Scotland—we looked at all the options available.
There are things that the Government could do so readily and easily without destroying their reputation for immigration obsession. For example, they could extend the length of time to find a tier 4 job. Why is that four months? What reason is there for that? They could create some bridge to enable students to move from tier 4 to tier 2, because all of a sudden they are at a cliff edge where, if they have not got a job or a sponsor, they are out. They could give people help to try to find a job. Then there is the issue of a regional salary. The minimum salary is set at £20,800. That does not work for Scotland—it is almost impossible to find a graduate-level job at that. How about regional variation? We suggested to the Minister that the Migration Advisory Committee look at that. I thought that was a very reasonable suggestion. Another thing the Government could do, which is totally within their gift at the tweaking end of how they could help to address and sort this problem, is reduce the burden of tier 2 sponsorship on employers. Overwhelmingly, employers told us that it was really difficult to secure international students. Those are things that could be done.
We also recommended that there should be a return to a post-study work scheme—we even suggested that a Scotland-only scheme could be possible. We have had the experience of Fresh Talent, which worked perfectly well. I know the Government had issues with it—we will probably hear a little about that from the Minister—and there were problems associated with it, but we learned from that experience and we could bring forward another scheme.
Things have changed since 2008 when Fresh Talent ended—I accept that. The immigration system has changed and we have a much more—I will use the word “cautious” approach to immigration issues, but, because of that caution, the Government have put a number of things in place. For example, landlords are now required to carry out rent checks before entering into tenancy agreements, whereby one could check the residency of international students. For some time now, employers have been required to carry out right-to-work checks on employees, and the partial devolution of income tax means that we have a perfect register to ensure that people who come to Scotland remain in Scotland—we can check where they are.
I think the Minister will tell us that that would not work for Scotland because people would go to the south-east and to the rest of England, but there is now a range of means and mechanisms available to Scotland to ensure that people who come to study in Scotland remain in Scotland. The thing is, if they break any of the conditions—if they are checked and they are in the south—they will just get kicked out. What is the point in that? They could come to a country that would welcome them, that wants them to be there and that recognises their ability to contribute, or they could go to the south-east and into the black market and be ever fretful of being pursued by the authorities. So of course this could work; there is no good reason that a Scotland-only scheme could not work.
Lastly, there is the commitment that the Government have already given us on trying to resolve the situation. I do not think that the Minister recognises our particular issues on this or understands some of these points. I think he has heard the chorus of complaints about the issue and the desire for a post-study work scheme to return to Scotland, but let us remind him of the commitment that the Government have to work with the Scottish Government in order to pursue that. That was in the Smith commission, which said:
“The Scottish and UK Governments should work together to explore the possibility of introducing formal schemes to allow international higher education students…to remain in Scotland and contribute”.
Nothing has been done on that, and I am not surprised by that given where the Government are when it comes to this. Instead, the Government response—I do not really want to go into it—was singularly disappointing, almost frustrating. To turn around and tell us, as they did in their short response, that the current arrangements are “excellent” is almost a slap in the face to the higher education institutions of Scotland and those who depend on them. They are not excellent, Minister—they are woeful, pitiful and not working for Scotland.
We are asking the Government to have another look at the matter and to have a look at our population and demography, because they are linked and they suggest a way forward for Scotland on the issue. We in Scotland do not share the Government’s obsession with immigration. In fact, quite the opposite; we actually value people coming to our country. We are not full up in Scotland. We see the value to our economy of immigration, particularly high-value immigration. The Government must try not to put their immigration obsession upon Scotland.
We in the Committee think we have produced a rounded report. It suggests a number of things the Government could do, from minor tweaking, which would help the current situation, to wholescale reform. It is disappointing that the Minister has singularly refused to do any of those things. With my colleagues from Scotland behind me, I tell the Minister to think again, to do the right thing for Scotland and to allow us to have a post-study work scheme to grow our economy and to keep international students in Scotland.
It is a pleasure to serve under your chairmanship, Mr Rosindell. I am grateful for the Scottish Affairs Committee’s work on this most important subject.
In Scotland we usually associate depopulation with rural areas that struggle to create jobs and retain young people in their communities. Areas such as the highlands and islands and Argyll and Bute do indeed contend with depopulation and have done so for hundreds of years. However, what is less recognised is that my constituency of Inverclyde, just 40 minutes from Scotland’s largest city, has some of the highest rates of depopulation in Scotland.
A report from Inverclyde Council concluded that Inverclyde’s rate of depopulation was proportionally higher than that of any local authority in the UK between 1981 and 2009. Over the same period, the number of young people in Inverclyde aged under 24 has fallen by 42%—almost double the rate of decline we have seen across Scotland as a whole. Since 1951, Inverclyde’s population has shrunk by more than 57,000 people and is projected to decline for at least 20 more years. There are no easy or simple solutions to that problem, but if we are to see Scotland and Inverclyde reach their full economic potential, we need people. To help to get those people, we need a favourable immigration policy that addresses our specific circumstances.
The UK Government told us that they are
“delivering an immigration system which works in the national interest and is fair to British citizens.”
Unfortunately, that is simply not a realistic appraisal of the effects of UK immigration policy. Whether it is spousal, work or post-study work visas, our immigration system does not work in the interests of Scotland or my constituency. The UK Government have also said:
“Uncontrolled, mass immigration also makes it difficult to maintain social cohesion, puts pressure on public services and can drive down wages for people on low incomes.”
I assure the Minister that I am more concerned about uncontrolled emigration and its effects on social cohesion and our ability to maintain social services, as well as the way in which it stifles investment and employment opportunities. In fact, over the years, the immigrants who have chosen to live in Inverclyde have contributed far more to our community than they have taken out of it.
The UK Government’s lack of understanding of our situation derives from their interpretation of the “national interest” to mean the interests of the south-east of England. The UK’s nations have a range of needs, and my constituency is not well served by an immigration policy tailored to population pressures in the south-east of England. It is therefore disappointing that the UK Government refuse to budge on post-study work visas, especially as there is overwhelming support for them to be reintroduced in Scotland. Liz Cameron, chief executive of the Scottish Chambers of Commerce, says that
“it simply beggars belief that the UK Government is closing the door on an opportunity for talented international people to contribute to our economy.”
I want to draw my hon. Friend’s attention to our Committee’s very fine report on Scotland’s population and demography, which shows that Inverclyde is the second to last when it comes to immigration, with a projected -12% population change compared with the Scottish average. He is on to a very important point; there are regional variations in Scotland, but Scotland is way behind England when it comes to these things. I support him in saying we need to ensure we have these people coming to areas such as his.
I thank my hon. Friend for his timely intervention and for highlighting my point.
The inevitable result of the UK Government’s irrational commitment to reducing non-EEA migration is a Scotland that is less attractive to international students. The millions of pounds that those students contribute to our higher education sector will be under threat, and we will see a reduction in the influence and soft power we currently exert throughout the world. The frustrating aspect of this self-destructive policy is that it is entirely unnecessary and avoidable. We need only look to Canada, where regionally tailored visas are resulting in a more even distribution of migrants. If Canada and other countries can introduce regional variations in immigration policy, there is no reason the UK cannot do likewise.
The UK Government say the introduction of such a scheme would overcomplicate our immigration system. As the Minister is aware, Scotland previously introduced the Fresh Talent initiative, which allowed the Scottish Parliament, in partnership with the Home Office, to create a tailored policy to combat depopulation. The Fresh Talent initiative was not perfect, nor did it solve all of Scotland’s problems, but the fact that it existed at all is proof of the UK Government’s ability to introduce regional variations in our immigration policy if there is a political will to do so. I do not agree that there are insurmountable practical barriers to implementing such a policy.
If the UK Government will not listen to Scotland’s elected representatives, perhaps they will listen to the experts in Scotland’s higher education sector. Universities Scotland said that the UK has
“one of the least competitive policies on post-study work in the English-speaking world.”
The University of Edinburgh warned that the removal of the post-study work visa was a “damaging” change that would lead to a
“‘brain drain’ of highly skilled global talent from Scotland.”
The principals of Glasgow University, Aberdeen University and Robert Gordon University have also voiced their concerns and called for the reintroduction of the post-study work visa in Scotland. If the UK Government are intent on maintaining their current policy, they cannot claim that it truly represents all of the UK’s nations. The Scottish higher education sector and Scotland’s elected representatives have made it very clear: Scotland wants the post-study work visa to be reinstated. It is not too late for the Government to make this positive change.
I am sorry, I will not take any interventions, because other Members want to speak and we want to hear from the Minister.
Scotland’s universities are world-class and a destination of choice for students and academic staff from overseas. Five of our universities are ranked among the top 200 in the world, which is not at all bad for a wee nation of 5 million-plus people. The University of the West of Scotland, which is in the process of building a new campus in my constituency, ranks among the top 5% of universities worldwide. We are punching above our weight, yet the Home Office seems insistent on trying to disadvantage us by tying our shoelaces together.
UK immigration policy poses a significant risk to universities in Scotland, which are losing out to key competitors in attracting international students. We have seen a significant fall in the number of new entrants from some countries since 2010-11. The number of Indian students has fallen by 59%, the number of Pakistani students has fallen by 38% and the number of Nigerian students has fallen by 26%. It is no coincidence that other countries are experiencing large increases in the number of international students in higher education.
In 2012-13 to 2013-14, international students in Canada increased by 11% and in Australia by 8%. In 2013-14 to 2014-15, the number of international students in higher education in the United States increased by 10%. It is likely the Government will say that there could be other factors affecting the figures, but they cannot escape the fact that the UK is becoming an increasingly hostile environment for immigrants in general. That fact, combined with the promise of a more attractive and accessible route to post-study work options in other countries, means we are losing out.
If the Government are truly committed to higher education in Scotland, they must start listening to the concerns of every main political party in Scotland, businesses, the education sector and trade unions, which are united behind a return of this visa to Scotland.
I do not know whether my hon. Friend is as impressed as I am about what we observe in the Scottish Parliament, where every political party supports the call for a return of a post-study work scheme. Even the Minister’s colleagues in the Conservative party are working constructively to make the case. Does she agree that the calls from Scotland should not be ignored, particularly when they are cross-party and Conservative colleagues are involved?
My hon. Friend makes an extremely good point. It is not just on the post-study work scheme that our voices are not heard loudly and clearly. Will the Minister liaise with his Conservative colleagues in the Scottish Parliament and move this ahead? It is apparent from the Government’s response to the inquiry that there is a real unwillingness to do so. We need a change of direction and a change of attitude. As my hon. Friend the Member for Dundee West (Chris Law) said, we need a move from ideology to pragmatism. If this Tory Government are not prepared to do that, they should hand the power to do so to the Scottish Government, who stand ready to do a much better job.
It is a pleasure to serve under your chairmanship, Mr Rosindell. I warmly congratulate my hon. Friend the Member for Perth and North Perthshire (Pete Wishart) and his new colleagues—the fresh talent—on the Scottish Affairs Committee on their excellent work on this important issue and on bringing this debate to the House.
I thank all hon. Members for their contributions today. All of them, in their own eloquent way, added to the convincing—indeed, overwhelming—case for reintroducing the post-study work visa in Scotland. It is really an open-and-shut case. In short, reintroducing the visa would be good for our universities and students, for business and the economy and for Scotland—for the country as a whole.
On the first point, we have heard already how non-EU international students are of great value to Scotland’s universities and the economy. Each year, they bring in about £444 million in fees alone and an estimated £488 million in off-campus expenditure—not all, I hope, in the pubs of the hon. Member for Edinburgh South (Ian Murray). Universities Scotland has calculated that Scotland has lost out on at least £254 million of revenue since 2012 as a result of the closure of the tier 1 post-study work visa. That figure does not include the considerable additional economic benefits from highly skilled international graduates contributing to the Scottish economy after university.
We should always remember, however, that in addition to the positive economic benefit from attracting these bright international students, they contribute immeasurably to the quality of the educational experience for all students. Domestic students and staff are exposed to different perspectives, contributing to their international experience and the development of critical thinking. International students create a more culturally diverse environment.
On the second point, hon. Members have highlighted how important retaining some international students here can be for business. They broaden the skills base and bring new ideas and links. In 2014, about 25% of all job vacancies in Scotland were hard to fill because of a shortage in available skills. That was up from 15% in 2011, and the closure of the post-study work route has certainly not helped in that regard.
On the third point, hon. Members have spoken about how Scotland as a whole benefits from a post-study work scheme, not only because of the demographic challenges that we face—an issue to which I will return shortly—but because attracting international students is, as my hon. Friend the Member for Inverclyde (Ronnie Cowan) said, key to a nation’s soft power. Scotland and the UK as a whole would benefit by gaining a vast network of global ambassadors among our international alumni.
Against that background, the very bad news is that removal of the post-study work scheme has had a substantial impact on the ability of students to remain in the United Kingdom after graduation. As my hon. Friend the Member for Perth and North Perthshire said, last year only 7,000 international students from across the UK made the transfer from tier 4 to tier 2; in 2011 that figure was close to 50,000, so there has been an overwhelming drop of more than 80%.
The case for a post-study work scheme for Scotland is therefore a powerful one. Unfortunately, the response from the UK Government has been hugely frustrating. Their arguments just do not stack up. The Government argue that international student numbers have remained steady or even increased slightly since the post-study work scheme ended, but, as my hon. Friend said, that misses the point. There is no doubt that we could have attracted even more students with a post-study work offer that was commensurate with what our rivals in other English-speaking countries such as Australia, New Zealand and Canada offer. As my hon. Friend the Member for Rutherglen and Hamilton West (Margaret Ferrier) pointed out, Scotland has seen a 59% decrease in the number of students from India since 2009-10. Indeed, the year after the post-study work route closed, recruitment of students from India fell by 26% in a single year. In their argument on the numbers, the Government miss another point: in Scotland, not only do we want students to come, but we want some of them to stay afterwards, and the current system has impacted on that severely.
The Government also argue, on the basis of a small and imperfect evaluation report, that the Fresh Talent scheme had flaws. I agree with my hon. Friend the Member for Perth and North Perthshire that the scheme was a great success, but as my hon. Friend the Member for Dundee West (Chris Law) said, no one is arguing that it was absolutely perfect. The point made by the hon. Member for Edinburgh South was absolutely right: we should not ditch a whole scheme on that basis but address its imperfections, improve it and make it work.
The principal argument is that a significant number of students graduating from Scottish universities then went to work in other parts of the UK. However, the key point is that the visa did not prohibit that happening. Those students were doing absolutely nothing wrong, so the answer is simple: make it a formal condition on the face of the visa that the person lives and works in Scotland. That should be no more difficult than making it a condition of a person’s visa that they study on a particular course or work for a particular employer.
The Government argue that there is already a competitive post-study work offering, but the UK post-study work offer barely exists, in that there are basically four months of additional leave after graduation in which to find a job that qualifies for tier 2. That does not remotely compare to the offerings of competitor countries in north America or Australia and New Zealand.
I could spend my whole speech discussing why tier 2 is not working well for Scotland in particular; my hon. Friend the Member for Perth and North Perthshire also touched on that. Our small and medium-sized enterprises are at a significant disadvantage in complying with the rules and regulations, compared with the big multinationals that make full use of them in other parts of the UK economy. Suffice it to note—as my hon. Friend did—that just 6% of tier 2 sponsors are in Scotland and Northern Ireland compared with 62% in London and the south-east, so the rules are working for London. However, it is not just Scotland that is struggling to compete—other parts of the UK are losing out as well.
I am glad my hon. Friend picked up on the point about 62% of tier 2 sponsors being in London and the south-east. That area does not require the international students, so I am pretty certain that he would agree that we should try and make the situation equitable across the United Kingdom and incentivise people to come to Scotland. That surely reinforces the call for regional variation on these issues, so that we can get international students in Scotland and not where they are probably not required—that is, in London and the south-east.
My hon. Friend is absolutely right. This is not just about Scotland—Northern Ireland, Wales and parts of England are struggling to compete with London. The one-size-fits-all rules are set according to the economic needs of London and the south-east, so an extra couple of months, as is offered in the Government pilot scheme, will not alter the position. As other hon. Members have said, the failure to include any Scottish universities in that pilot was a slap in the face and a political own goal.
The Government are trying to defend the indefensible. I will close with two broader points. First, as has already been touched on, this is ultimately being driven by the Prime Minister’s obsession with the net migration target, which is making her pick the low-hanging fruit—in other words, international students. In fact, the current Home Secretary has tried to ditch or water down the net migration target—I think she probably knows it is a nonsensical target. We also know that both the Foreign Secretary and the Chancellor think that students should be taken out of the net migration target. The Home Secretary was asked about this issue three times on Monday, but she dextrously avoided saying whether she agreed with her colleagues. Perhaps the Minister will answer instead: does he agree that, if we are to be stuck with this ludicrous net migration target, the target should exclude students? While we are at it, there is a strong case for excluding Scotland from the net migration altogether as well.
My second broader point is about what this debate means more generally for Scotland’s population. The post-study work visa is significant for Scotland but, in another sense, it is just a smaller aspect of a much bigger question about the extent to which the UK Government are prepared to consider particular immigration rules for Scotland. That question is of immense importance. As hon. Members have said, our demographic needs are different, as the Committee’s report highlighted. The challenge for Scotland has now become growing the population and retaining the proportion of our population that is of working age. If the Government are not even going to engage meaningfully on post-study work, what chance do we have of meaningful engagement on broader issues about managing Scotland’s population?
Government must come to terms with the idea that different parts of the UK can have different immigration policies. The idea is not novel—Australia and Canada do it and the Minister has often said that there is a different shortage occupation list for Scotland, so it can be done—and its time has come. An important forthcoming example is the issue of free movement. If free movement of people is not to be retained for the whole United Kingdom, the Government must quickly get working on how it can be retained for some parts of the UK, including Scotland. As my hon. Friend the Member for Edinburgh North and Leith (Deidre Brock) said, if the Government do not get that message, then to put it mildly, they are playing with constitutional fire.
In conclusion, I know that the Minister met with Minister Alasdair Allan from the Scottish Government yesterday afternoon. I do not expect the Minister to perform a 180-degree U-turn today, welcome as that would be, but I expect and hope for more than a straightforward “No”. I expect a genuine willingness to engage, negotiate and resolve the impasse that has developed not just between the UK Government and the Scottish Government, but between the UK Government and Scotland’s universities, businesses, trade unions, students and civic society—all of Scotland, essentially.
It is a great pleasure to appear under your chairmanship today, Mr Rosindell. I welcome the report, and not just because I was part of the Committee that drew it together back in February. I am a huge supporter of the Select Committee system. It does the House credit because, by and large, the people who serve on Select Committees park their partisanship to try to do a piece of work for the benefit of the people they are doing it for.
An exceptional thing that the Scottish Affairs Committee does is take the Committee out to the people. It goes around the country and not only takes advice from experts during sittings, but invites the public to come to play their part in discussions. Before, during and after the formal part of discussions, it engages with people who have an interest, which gives a much broader view that shapes the Committee’s reports. Our discussion today reflects both that and how seriously people take this issue in Scotland.
What is the situation in Scotland? It is a nation that needs to stem population drift. I welcome the news from the Chair of the Committee that that is being reversed to some extent—I had not picked up on that, but it really is good news. It is a nation that welcomes students and workers from across the world and that has an education system that is second to none. It is a nation that has always welcomed strangers warmly, a nation that has a cultural history without compare, a nation that offers a lifestyle and standard of living as good as anywhere on this planet, a nation that wants and needs to build up its ranks of workers, researchers, scientists and everyone else capable of driving this great country forward. Where I come from, we call that a win-win situation for all concerned.
What do we have against us? We have a Government in Westminster who act as if Scotland is some sort of colony, still under the rule of empire; a Government who are driven by fear of their own rabid Back Benchers and the xenophobes hounding them across the country; a Government who sign up to a ridiculous populist commitment to reduce immigration to below 100,000—they have to accept that they have failed repeatedly to reach their own targets—a Government who are ignoring the needs of the nation as a whole to bolster their own political status in this House.
That is all shown not only by this debate, but, for example, by the desperate plea made last week by fruit growers in the east of England. This year they have seen a 14% drop in the number of applicants to come for the fruit-picking season from eastern Europe. The fear is that it will only get worse and could lead to the ridiculous situation of produce being left to rot in the fields of England and the whole country, all because of the attitude the Government have taken towards immigration.
Everything is a direct result of that policy, with the blurring of lines between asylum seekers, refugees and economic migrants in the mind of far too many in this country, and we in this House have allowed that to happen—all those people being lumped together into one group is a negative for this country. Anything that can be done to drive down the immigration numbers to reach the Government’s ridiculous targets is being done by our civil servants on behalf of the Government.
The Government are paralysed by the policy, and sensible discussions or suggestions such as that of my hon. Friend the Member for Edinburgh South (Ian Murray) and the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East (Stuart C. McDonald)—that students are taken out of the immigration numbers—the Government dare not do. They dare not be seen as backsliding, because they know they will be attacked by people from the far right. Instead of having the bottle to stand up and take them on, saying, “It’s the right thing to do because it’s what the people of this country need,” the Government are far too worried about the electoral consequences.
Everyone in this House will have seen immigration cases in their own case loads in recent months and years, with people saying that they, their family or dependants are not being allowed access to this country, whereas in the past they would have been allowed in on exactly the same applications. More and more obstacles are being put in the way of people simply as a mechanism to get the numbers down to a ridiculous target. If the Government were really serious about controlling immigration, they would start by putting real pressure on exploitative employers.
The hon. Gentleman was a very valued member of the Scottish Affairs Committee. I must say, on behalf of the Committee, that we miss him and we are very grateful for his remarks today. Does he share my concern with where we are going with all this? Currently, EU students can come to UK and Scottish universities uninhibited by any immigration rules. Maybe we will hear from the Minister himself, but does the hon. Gentleman share my fear that EU students might be treated similarly to non-EU international students? Will they also be expected to fall into all these immigration tests?
Thank you for the opportunity to say a few quick words at the end of what has been an excellent debate, Mr Rosindell. I thank everyone who has helped out and participated in this important inquiry for the Scottish Affairs Committee. In the new Committee’s very early days, we were requested to look at these issues.
I take it from the Minister that that will be a no, then. We have made a sustained case, and it is not just the Scottish National party. Every sector in Scotland—higher education, the trade unions, representatives of business organisations and the Minister’s colleagues in the Scottish Parliament—is saying that post-study work schemes are required. He fails to recognise what post-study work schemes offer. It is not about trying to find unskilled employment, and there would be conditions on the type of employment that people would be expected to get. It is about giving people the opportunity to find and secure employment.
Nobody has told us that four months is adequate to secure such employment, particularly for £20,800. We suggested a few modest tweaks that could have helped to address the situation. I listened, but the Minister does not sound amenable to our proposals. Have a look at the regional cap for Scotland. It is a privilege that international students want to come to Scotland to study and that some decide to make Scotland their home. Give them a chance to find meaningful, constructive employment in Scotland that will enhance their community and develop our economy.
I will end with the words of Professor Diamond, who spoke of what happens when we have international students who value their experience here. They enrich our campuses and allow indigenous Scottish students to be educated in their company. They are also fantastic ambassadors when they go back to their country. If they have a positive experience of Scotland, it is carried for years and generations, resulting in goodwill towards our nation in the future. All we want is a chance for people who have chosen to come to Scotland to have an opportunity to find meaningful employment and to make a significant contribution. Scotland is different in our immigration and demographic requirements. We have a different set of population issues and challenges, and we need assistance in trying to address them. I hope the Government think once again about the Committee’s very modest demands.
Question put and agreed to.
Resolved,
That this House has considered the Fourth Report of the Scottish Affairs Committee of Session 2015-16, Post-study work schemes, HC 593, and the Government response, HC 787.
(8 years, 6 months ago)
Commons ChamberMy right hon. and learned Friend has made the point about incomprehensibility previously. Indeed, when we debated the draft version of the Bill, one of the telling points he made was that new legislation was needed in part because it should be more comprehensible, easier to navigate and thus more understandable to more people. He is right that the fact that existing provisions are to be found in a number of places makes it hard to determine exactly what powers there are and how the abuse of those powers will be dealt with. I happily concede the point that he has made, because it is important that all Members of this House, particularly he and the Committee that he chairs, are fully aware of the kinds of penalties that might apply. I have described them as “severe”, and I have made the point that wrongdoing cannot be tolerated. Therefore, the least I can do is agree with him that it would be helpful to set out those penalties as he has described. We will do so before the Bill completes its passage through Parliament, because it is only right for us to do so.
The purpose of the amendments and new clauses that we have tabled is to reflect the consideration of the Committee chaired by my right hon. and learned Friend, and to reflect the character and content of the debate that took place when the Bill enjoyed scrutiny in Committee. As we considered privacy to an increasing degree, it became clear that as well as the implicit emphasis on private interest, which runs through the Bill, there was a compelling case for an explicit commitment to privacy in the form of a new clause. To that end, it is right to say that both the minor parties on the Committee—in this case, the Scottish National party—
The hon. Member for Perth and North Perthshire (Pete Wishart) shakes his head, but given that the SNP had only two Members on the Committee, I cannot describe it as the major contributor. Before he started shaking his head, I was about to say that the SNP made an incredibly helpful contribution, because it tested the Government, held us to account and made a number of useful and thought-through proposals. The Opposition—by the way, I say to the hon. Gentleman that they are Her Majesty’s Opposition—equally added immense value to our consideration by making the proposal for this new clause, among others. In my judgment, it was absolutely clear that the Opposition were determined to improve the legislation, rather than to weaken or dilute it. In that spirit, I am happy to propose the Government new clauses and amendments in this group.
To allow as many colleagues as possible to contribute to this important debate, I will now finish, except to say this: when Bills come before the House and are considered on Second Reading and debated in Committee and on Report, different circumstances apply and different shadow Ministers and Ministers approach the matter in their own style, but I take the view that although circumstances are beyond human control, our conduct, to quote Benjamin Disraeli, “is in our power”, and our conduct in consideration of this Bill, which is in our power, should continue to be as measured, reasonable and moderate as it can be.
As usual, my hon. and learned Friend is making a powerful case. Does she agree that the judicial commissioners are the big flaw in the Government’s proposals today? This idea that somehow the Prime Minister could simply just agree with what has been suggested by judicial commissioners is concerning, because he could also disagree with what has been proposed and suggested. Does she have any concerns about that?
I do, but let us suppose the judicial commissioners have been selected by an independent board. The Judicial Appointments Board of Scotland, the Judicial Appointments Commission—in England and Wales—and the Northern Ireland Judicial Appointments Commission are not made up just of lawyers; there are lay people and people from other walks of life on these bodies. That is to give the public confidence in the independent appointment process of the judiciary, and it is very important that the public—our constituents, who have concerns about how far the powers in this Bill are going—have confidence that the judicial commissioners who will be performing the oversight functions and enforcing the safeguards on this Bill are appointed independently, rather than being the right chap for the job being chosen. I choose my words advisedly there.
I am very conscious of not eating up too much time, Mr Deputy Speaker. I have discussed two crucial amendments that I would like to put to a vote on part 8. I have tabled other amendments that others will perhaps be able to speak about, such as the measures on post-notification following surveillance and the notification of errors. I briefly wish to turn to amendment 482, which is designed to put it beyond doubt that voluntary, unsolicited disclosures are protected and that a whistleblower is protected from criminal prosecution. The amendment reflects our concern that provisions in the Bill may inadvertently risk discouraging or preventing individuals within public authorities or agencies, or in communication services providers, from approaching the Investigatory Powers Commissioner with concerns or communicating with the commission frankly. Throughout the Committee process, we attempted to amend the Bill by inserting a public interest defence for whistleblowers. Regrettably, the Government were not prepared to accept it, but I was happy that when I proposed an amendment similar to this one to part 8, the Solicitor General said in Committee that he recognised the sentiment behind the amendment and was of a mind to give it further consideration. I urge the Government now to make a gesture by supporting this amendment, which I may push to a vote if I get the chance to do so.
(8 years, 6 months ago)
Commons ChamberThe Government certainly do recognise the contribution that skilled and talented people from outside this country can make to our economy, and I have been very explicit about the way in which our immigration rules are designed to facilitate that. We announced the closure of the post-study work route in March 2011, which was before the family arrived. However, I will certainly continue to reflect on further representations and to consider those—and, indeed, any further application that the family may wish to make—very carefully.
Does this case not confirm that UK immigration policy simply does not work for Scotland? Scotland needs families like the Brains—we need dynamic young families such as them to come to live and work in Scotland. We have different demographic challenges, and we simply do not share this Conservative Government’s obsession with immigration figures. Will the Minister at least start a conversation with us about a sub-national immigration policy throughout the United Kingdom so that we can fashion an immigration system fit for Scotland?
We have an immigration policy that we continue to reform to ensure that it acts in the best interests of this country. I do not accept the characterisation that the hon. Gentleman gives. We will remain open to discussions with the Scottish Government about a range of issues. We are very clear about attracting skilled and talented people. There are ways in which people can move from education into work, but it is important to have that separation to avoid the abuse that we saw in the past.
(9 years, 6 months ago)
Commons ChamberIn this House, we generally argue for subsidiarity within Europe. We should not stop at Europe; we should have subsidiarity in our own country, too—in all the different parts of the UK.
During our time in office, we pioneered much of the devolution that we now see across the United Kingdom. It was not perfect, but given the creation of the Greater London Authority, the Mayor of London, the Scottish Parliament, and the Welsh and Northern Irish Assemblies, we did much to devolve power down. We also established regional development agencies in England, which did important work. We are proud of that record.
I am sure that this was just a slip of his mind, but the issue of English votes for English laws was not on the list that the hon. Gentleman presented. The Labour party was the stoutest defender of Scottish voting rights in this House. Will he back us in insisting that, rather than simply changing the Standing Orders, the Government bring forward a Bill for something as significant as the voting rights of hon. Members?
As has been discussed during the series of debates held since Her Majesty delivered the Queen’s Speech, we do not want two tiers of MPs to be created in the House of Commons.
We devolved power then and we support the principle of devolving more power now, in the Bills that I mentioned, for two principal reasons—one economic and one democratic. I turn first to the economic case. Decisions on how to grow our economy are often best made at a sub-regional and local level. Local actors, whether policy makers, business people or trade unions and others, best understand the unique combination of history, geography, demography and institutions that give their area a niche—a competitive edge, a comparative advantage—in the global marketplace.
The fact is crucial because in this era of globalisation, nations and regions need to concentrate their efforts on producing the services and goods that they are best at and then to trade them to generate the good, secure, well paid jobs of which we want more all over the UK. That matters because we have a higher incidence of low paid work than other developed nations. Despite the fact that our people work among the longest hours in Europe, output per worker in the UK lags behind that of our competitors.
To address the issue and raise productivity levels, areas need to harness their specific local skills and strengths and use them to become clusters of expertise and innovation. The simple fact is that one-size-fits-all policies devised in remote departmental silos are simply incapable of nurturing specific local strengths. It is the different players in our local areas and regions that are best placed to do that. We have to give them the tools to be the masters of their own destinies.
I thank the hon. Gentleman for his question and I assure him that I will come to just that point in a moment, but I hope he will please allow me to refer to Scotland first.
Of course, Scotland has had its referendum and its people chose to stay in the United Kingdom, which was the right decision. However, the referendum also sent a clear message that Scotland wanted a greater say over its affairs and greater control over its economic destiny. That is why we will deliver the Smith commission agreement in full.
The right hon. Gentleman may be one of the many in England, but in Scotland the Conservatives are most definitely the few, with their one Scottish MP and their 14% of the vote, their lowest share of the vote since the 19th century. Will he listen carefully to the clear demands from the Scottish Government about strengthening the Scottish Bill to give us the job-creating powers that our Scottish Parliament wants and the Scottish people voted for?
I remind the hon. Gentleman that although the Scottish National party did remarkably well in the election—and I congratulate it—still almost half the Scottish people did not vote for it, and there are all sorts of voices across Scotland that need to be represented in this Chamber.
Once the Smith commission agreement is in place, the Scottish Parliament will have additional powers on income tax and air passenger duty. All told, more than half the money spent by the Scottish Government will be raised in Holyrood. This package is an historic one for Scotland, which will soon possess arguably the strongest devolved Government anywhere in the world, empowered to build on the progress made over the past five years. Yet Scotland will retain the huge benefits of remaining part of a strong United Kingdom: the economic benefits; the social benefits; the defence benefits: and many more besides.