Accession of Croatia (Immigration and Worker Authorisation) Regulations 2013

Baroness Smith of Basildon Excerpts

Tuesday 4th June 2013 Grand Committee

While these regulations apply transitional controls until 30 June 2018, the need to maintain these restrictions will be kept under review. We are required to notify the Commission about whether we intend to maintain the restrictions beyond the first two years, and we will review the case for their continued application at that point. In addition, the regulations can be extended for a further two years beyond 30 June 2018 if to do otherwise would cause, or risk, serious disturbance of the labour market. I beg to move.

[Baroness Smith of Basildon]

My Lords, I am grateful to the Minister for that explanation, which answered a few of my questions, which I know he is always pleased to do. I wish to clarify a couple of points by asking a few questions. The Minister mentioned a seven-year transition period, yet the order refers to a five-year transition period and 2018. I assume he referred to seven years because there is a possibility of extending the transition period for a further two years at another date, but this order is for only five years. In case I have misunderstood, will the Minister clarify that?

I am interested in the enforcement regime regarding those who come from another country and try to work. Is it the same as the regime for other employment visa requirements or will there be something different in place for transitional arrangements? Can the Minister say anything about how this will be monitored? I would be interested to know the details, and if he wants to write to me I would be happy for him to do so.

Obviously, we support transitional arrangements. As the Minister acknowledged in his comments, we brought them in for Bulgaria and Romania. I fully understand why it is not possible to get an accurate assessment of the numbers involved, but the Minister said that this order is being brought forward today because of the fear of uncontrolled flows of workers from Croatia to the UK. He also said that there is no anticipation of large numbers coming to the UK. That seems somewhat contradictory. Has there been any assessment of the numbers involved, or was the assessment that it was not a large number and the order is just to minimise the risk in case that is wrong? It is not quite clear as the Minister’s comments were contradictory. If there has been some assessment, I am interested in the flows in the other direction. How many people from the UK want to go to work in Croatia?

On the more general points, from what has been said today and from comments made by other Ministers in the past, is the Minister able to clarify the Government’s longer-term position on free movement within the EU and say whether there are any plans to change the rules on it? I noted the Minister’s comments about unskilled workers from Croatia or, indeed, any other country when local workers are available. On that point, which is slightly tangential but very relevant to this discussion, how can we ensure that unscrupulous employers do not illegally employ those who are not entitled to work in this country and exploit them by doing so? I am thinking of things such as ensuring that the minimum wage is paid and that health and safety regulations are taken note of because cutting back on those issues is one way that unscrupulous employers exploit foreign workers and therefore undercut and undermine the local workers to whom the Minister referred. Will the Minister give us an assurance that the Government will not weaken those protections, and that when they are not upheld they will take action?

I know that the Government have been very slow in enforcement. There has been a lax approach to the minimum wage legislation. I was very pleased to hear this weekend that HMRC has recently brought a swathe of prosecutions on this, because it had fallen by the wayside. I am pleased that it is picking up now. An assurance from the Minister on those particular issues would be very welcome. I appreciate that that is slightly tangential but it is an important issue. This is the point he is making; we must ensure that people who are not legally allowed to work in this country do not do so.

We are broadly content with the order before us today, but if the Minister is able to address the questions I have raised it would be helpful.

[Lord Taylor of Holbeach]

My Lords, I thank the noble Baroness for her contributions. As usual, she sets me a high standard if I am to avoid writing in detail, although I certainly would not hesitate to do so if I felt I was not able to answer satisfactorily.

I should like to reiterate that these regulations implement the commitment contained in the Government’s programme for government to apply the toughest possible transitional restrictions to any future member state in the EU. That is why we are presenting them. We do not expect levels of migration from Croatia to be significant, however. I made that clear in introducing these regulations.

It was interesting that the Baroness said that she was concerned that we had not given an actual estimate of these figures. We know there could have been considerable numbers from other countries if we had not set these restrictions in place in the past, so we feel that the policy that we arrived at in the coalition agreement was the right one.

I will first explain the business of the five years. I did so in introducing the speech when I explained that these regulations go up to June 2018 but provide for a further extension of two years; they can go up to 2020. They put in place the mechanism whereby the Government can indeed have a seven-year transitional regime.

The noble Baroness asks, “Why apply transitional regimes?” and, “Is it contradictory?”. I hope the noble Baroness supports that.

[Baroness Smith of Basildon]

I thought I made it clear that I did support transitional regimes. I never asked, “Why transitional arrangements?”. My query is about the Minister’s contradictory comments. I recognise that it is difficult to make an accurate assessment of the numbers involved, but the Minister used the term “uncontrolled flows” when he was talking about the need for this and then said he did not expect large numbers. That was the point I was making. The two comments seemed contradictory. I was trying to square the circle on that. I hope I was clear that we support transitional arrangements—indeed, we brought them in previously for Romania and Bulgaria. So that was not the point I was making. I want to be clear on that.

[Lord Taylor of Holbeach]

I am grateful for that explanation. As a result, I now understand the position of the noble Baroness. Thank you.

She asked me about the details of how these figures would be monitored. Obviously, where transitional permits are actually applied for, we know how many people are coming from Croatia to this country. As to how they will be enforced, the noble Baroness will know that we now have within the Home Office an immigration enforcement unit that ensures that illegal workers—and, indeed, illegal employers—can be prosecuted. These matters can be dealt with much more forcefully than before.

I am pleased that the noble Baroness noted HMRC’s assault on minimum wages. There has been a lot of cross-departmental working on these issues as the Department for Work and Pensions has an interest in them as well as the Home Office and HMRC. The rather amusingly entitled Operation Pheasant was designed to seek out exactly this problem in the part of the world in which I live, and successfully identified weaknesses that we do not want to see. After all, an exploiting employer is also an unfair employer who presents unfair competition to those who respect the law. The enforcement of the law is an important aspect of making sure that business in this country is conducted on a level playing field.

The noble Baroness also asked whether we would seek to reopen the free movement directive and what our approach to that was. We are examining the scope and consequence of the free movement of people across the EU as part of the general balance of competences review. We monitor enforcement issues and publish the outcomes on the Home Office website. All details of instances where employers have been discovered to be illegally employing individuals are published on that website. I hope that that satisfies the noble Baroness and that she will approve the regulations.