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

Debate between Diane Abbott and Chris Leslie

2nd reading: House of Commons & Money resolution: House of Commons & Programme motion: House of Commons & Ways and Means resolution: House of Commons
Monday 28th January 2019 Commons Chamber

[Ms Abbott]

I can only thank my hon. Friend for her helpful intervention. She will have to wait for me to complete my remarks.

Let me quote:

“The new immigration system must command public confidence and support the economy. These proposals would achieve neither. The proposals don’t meet the UK’s needs and would be a sucker punch for many firms right across the country”.

Who said that? It was not a Labour MP but the Confederation of British Industry.

One example of how the Government, far from seeking the best talent, will potentially make it harder for industry and the public sector to recruit the best talent is the suggested salary threshold that the Home Secretary has put out to consultation. He has spoken about

“focussing on high skilled migration not low-skilled migration”.

But he is actually proposing an income-based system. It would allow derivative traders, private equity investors and merchant bankers in, but it would exclude nurses, social care workers, scientific researchers and many more. Salary is not a proxy for the level of skill, and a salary-based immigration system will not work for incentivising high-skilled migration. For example, many science research roles have starting salaries of around £22,000, and the 1% pay cap imposed on the public sector has held down wages in public sector science in particular. A salary threshold is wrong in principle and setting it at £30,000 would have an extremely damaging impact on science and public services.

The Home Secretary has pointed out that a salary threshold currently applies to non-EEA migrants, but we would argue that we should not be levelling down at this stage, but assuring fairness all round.

[Mr Chris Leslie (Nottingham East) (Lab/Co-op)]

I read my right hon. Friend’s article in the Morning Star on Saturday, which said that “The…Tory Immigration Bill will deepen the exploitation of workers.” We are not abstaining on the Bill this evening, are we?

[Ms Abbott]

I am grateful to my hon. Friend for quoting from my article in the Morning Star. I am not sure if that is the first time he has read that paper, but I will expand further on that issue in my remarks.

I now turn to the very serious issue of the proposal for new 12-month visas. Nowhere is this flouting of the right to family life more blatant than in the case of the proposed new category of temporary workers. They will only be allowed to come here for 12 months at a time, without the right to bring their families, and perhaps then be deported. Do the Government not realise that their 12-month visas will be attractive only to the most desperate workers? It will potentially lead to huge churn in the workforce, and create a category of second-class workers with no rights who are open to unscrupulous exploitation in the growth of the informal economy.

We oppose the creation of a two-tier workforce. That would have the effect, which some incorrectly claim freedom of movement does, of lowering wages and rights for all. Workers should have rights as workers and not be prey to some of the most unscrupulous employers. There is a genuine need for temporary workers in a certain number of sectors, such as agriculture and some aspects of the hospitality industry. We appreciate that the Government are piloting a new seasonal agricultural workers scheme, but there is no requirement for this type of insecure temporary work to become the norm across the economy. It should not become enshrined in a widely cast law.

Let me turn now to the flimsy nature of this proposed legislation. This may be one of the flimsiest pieces of proposed legislation on a major issue that I, and many others, have ever seen. Worse than that, it is supplemented by a whole slew of Henry VIII powers that the Government and the Secretary of State intend to grant to themselves. It is easy to demonstrate just how undemocratic those powers are. The Government claim they are a tidying up exercise and no new powers will be granted or exercised. However, our current immigration system is so untidy that it has the capacity to ruin lives—indeed, it frequently does ruin lives. If this were a Labour Government attempting to grant themselves these powers, we would be denounced for making a constitutional power grab and mounting a coup, to coin a phrase. We will be opposing the assumption of these sweeping powers without tying them to specific policies. We will not be offering a blank cheque, which the Government can redeem at any time they are in trouble and are tempted to whip up anti-migrant sentiment as a distraction. We on the Labour Benches also say that the Government need to accept the recommendations of the Law Commission. We need to simply and clarify our existing immigration system first before changing anything in relation to EU citizens here.

Moving on to the question of freedom of movement, the Labour party is clear that when Britain leaves the single market, freedom of movement ends. We set that out in our 2017 manifesto. I am a slavish devotee of that magnificent document, so on that basis the Front Bench of the Labour party will not be opposing the Bill this evening.

Infrastructure (Financial Assistance) Bill

Debate between Diane Abbott and Chris Leslie

Monday 15th October 2012 Commons Chamber

[Chris Leslie]

Amendment 7, which stands in my name and those of my hon. Friends, seeks to ensure that the Bill provides a safeguard for taxpayers’ money. After all, £50 billion of guarantees could be underwritten for the private sector on pretty much any kind of scheme, and we heard fuzzy logic from the Minister earlier, when he said that infrastructure is not quite as defined as it appears in the Bill, and that some projects could be national and some foreign.

In some circumstances, underwriting can be beneficial and welcome—it can make schemes viable that were not viable previously and unlock infrastructure developments that might not otherwise take place, but in other circumstances there are disadvantages to underwriting. Underwriting means that gains from a private endeavour are privatised, but that any losses are socialised. The entrepreneur, the shareholder and the owner of a private company or project that benefits from the safety net provided by the taxpayer could profit well for many years if a scheme bears fruit, but if the scheme goes wrong and if there are failures in it, the losses fall on you, Mr Gale, on me, on hon. Members and, most importantly, on our constituents.

I make no apologies for standing up for the taxpayer’s best interests. It is important that we ensure that Ministers consider introducing clawback provisions that safeguard best value for taxpayers. The amendment is so unobjectionable that I cannot understand why the Government would object to it. The Opposition are simply saying that, in any agreement to give financial assistance, the Chancellor or Secretary of State

“shall give reasonable consideration to clawback provisions which safeguard the taxpayer.”

What do I mean by “clawback provisions”? Hon. Members who have served on the Public Accounts Committee will know that from time to time Governments have entered into contracts and sold privatised parts of the public sector. The purchasers have then gone on to make millions of pounds when they have sold on some of those assets. In this case, the guarantor has ended up facilitating a project, but the beneficiary of the guarantee went on to make significant sums.

We are simply saying that the Treasury needs to make sure that there are clauses in the underwriting contracts—the offers—that ensure that if significant gains are made in the long term, the taxpayer can have a share in some of the future profits. It is a basic principle—if the taxpayer helps to create profitability for a person and bears the risk of loss, that person can reasonably be expected to share some of the excess profits with the taxpayer. It is a basic principle of prudent stewardship of taxpayers’ money. It would also ensure that we deal with the question of moral hazard. We know that in some circumstances underwriting can cause difficulties if a scheme that might be shaky goes ahead as a result, which is of course a distortion of the market environment.

If schemes go ahead and make significant gains and provide future returns that are in excess of what might be expected, the taxpayer could have some rights to those. For example, in a prime executive housing site in central London developed thanks in part to the Government underwriting property market risks, the units may sell at multiples of expected initial prices, with vast profits for the developer. In the current situation, what would the taxpayer get? Foreign-owned energy companies want a pipeline stretching from our shores across the continent, which could well be underwritten by the provisions in the Bill. If we fund part of that as taxpayers, but the company makes significant long-term returns on the oil and gas, what should be the taxpayers’ share in that?

[Ms Diane Abbott (Hackney North and Stoke Newington) (Lab)]

Do not the Government appear to be privatising the profits, but socialising the losses? How can that be fair?

[Chris Leslie]

That is indeed the approach taken in some of the underwriting provisions. Of course there can be circumstances in which that makes sense, perhaps to tip a project that is viable and in the national interest from something that might not happen to something that moves ahead in a way that benefits everyone.

The amendment does not even say that every contract should have a clawback provision: we are simply saying that the Treasury should be under a statutory obligation to give reasonable consideration to the insertion of clawback clauses in the contracts. That is the be all and end all of amendment 7 and I hope that the arguments are fairly straightforward. I look forward to hearing the Minister’s view.