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

Holly Lynch Excerpts

Committee stage & Committee Debate: 7th sitting: House of Commons
Thursday 18th June 2020 Public Bill Committees

[The Chair]

Today we continue line-by-line consideration of the Bill. The selection list for today’s sitting is available in the room. I remind Members that the Hansard reporters would be grateful if a copy of any speaking notes could be sent to [e-mail]. We are all beautifully socially distanced.

New Clause 24

Annual review: Impact on the agricultural sector

‘(1) The Secretary of State must commission an annual report from the Migration Advisory Committee on the impact of the provisions of this Act on the number of seasonal agricultural workers in the UK.

(2) In undertaking the evaluation, the Secretary of State must consult—

(a) the relevant Scottish Ministers;

(b) the relevant Welsh Ministers; and

(c) the relevant Northern Ireland Ministers.

(3) The report must be laid before each House of Parliament as soon as possible after it has been completed.

(4) A Minister of the Crown must, not later than three months after the report has been laid before Parliament, make a motion in the House of Commons in relation to the report.’—(Holly Lynch.)

Brought up, and read the First time.

[Holly Lynch (Halifax) (Lab)]

I beg to move, That the clause be read a Second time.

Good morning, Sir Edward. It is a pleasure to serve under your chairmanship once again. New clause 24 is in very much the same spirit as new clause 21, which would require the Government to commission a report on the Bill’s impact on the health and social care sectors. New clause 24 would require them to take the same approach to the agriculture sector and food security.

Significant numbers of EEA nationals are employed on a permanent and seasonal basis, making them an instrumental consideration for the agriculture sector. As things stand, it would not function without them. The coronavirus pandemic has shone a light on certain sectors that we have often taken for granted but are absolutely essential. Food security has been a focus for people as never before. It is another area that brings recognition that food production is essential to life. Its workers have been classed as key workers for the purposes of the pandemic, yet so many of those who have worked incredibly hard to keep fruit and veg, in particular, on our tables throughout the pandemic are paid less than £25,600.

The Government’s February policy statement on their future points-based immigration system simply states:

“We will end free movement and not implement a route for lower-skilled workers.”

Members who served on the Committee that considered the Bill presented during the 2017-19 Parliament may remember that James Porter of the National Farmers Union of Scotland gave evidence. I spoke to Mr Porter about the Bill and about the issue of “low-skilled” workers. He was keen to stress that, although some of his workers may not have qualifications or letters after their names, being an agricultural worker and picker of soft fruits and vegetables is their profession. It requires skill and they take great pride in it.

Mr Porter said that most of his seasonal workers have been coming back to his farm for 10 or 15 years. He went on to explain that the exceptional circumstances of this year meant that attempts to redirect people traditionally from different lines of work and professions into agriculture from the local labour pool had brought out the likes of lawyers, electricians and teachers to pick fruit on his farm. That was welcome, but he made the point that although they were educated and highly skilled in their own field, they were not skilled fruit pickers. They took longer and their yield was not comparable with that of people who specialise in that line of work.

The Government’s February policy paper goes on to say:

“UK businesses will need to adapt and adjust to the end of free movement, and we will not seek to recreate the outcomes from free movement within the points-based system. As such, it is important that employers move away from a reliance on the UK’s immigration system as an alternative to investment in staff retention, productivity, and wider investment in technology and automation.”

I sought to make a point about this matter on Tuesday, during the discussion on the social care new clause. I completely accept the Minister’s point that social care and agriculture are very different sectors. He will look to the unemployment figures and say that we will fill labour shortages from the domestic workforce, but I gave the example of how attempts to channel those who are out of work into other sectors over the course of the pandemic had not exactly been an easy or straightforward process.

I cited the Pick for Britain scheme as an example. The Minister may have more up-to-date figures but, after overcoming some initial teething problems with the website, one of the organisations managing the scheme, Concordia, reported that it had 35,000 applications after the initial appeal for domestic workers. However, only 30% of applicants had farming experience—as was probably predictable—and only 16% of people opted to interview after their initial application, with even fewer actually making it on to a farm.

Some of the pressures have been alleviated thanks to specially chartered flights from EU countries such as Romania, which have provided us with the skilled workers we need, but they have been a warning of what is to come. When we have problems in the sector, we will say with absolute certainty that the writing was on the wall.

The seasonal agriculture workers pilot scheme needs to be much improved if it is to sustain the levels of migrant work needed after the end of the transition period. The pilot allows for 10,000 visas, when actually 70,000 would be much closer to the agreed number of people required. The cost of permits is too high and farms simply do not have the administrative capacity needed to process the bureaucracy that accompanies each individual application.

FLEX, the Focus on Labour Exploitation group, has also repeatedly raised concerns about the potential for worker exploitation in the scheme, citing the issue of tied visas, where the worker is tied to one specific employer and prohibited from changing employer while in the UK under that visa. Debt bondage, where the worker’s wages go towards paying off costs of entering the scheme, such as visa charges and flight costs, alongside recruitment fees paid to labour brokers, is another worrying trend that will need to be addressed in any future scheme.

Right across the sector there are problems. The Select Committee on Environment, Food and Rural Affairs took evidence on this in May, with Ian Wright, the chief executive of the Food and Drink Federation, telling the Committee that the crisis had shown how vital the food industry was. He said:

“If you can’t feed a country, you don’t have a country. That has been borne out in this crisis in massive order.”

He went on to explicitly say:

“We don’t think the current Immigration Bill addresses the sort of country we want to be. I think it is surprising that, given the lessons of the last eight or nine weeks, the Immigration Bill is back in parliament unchanged, given what we have learned about the people working in food and drink, in distribution centres and the care sectors.”

[Mr Robert Goodwill (Scarborough and Whitby) (Con)]

The hon. Lady is right to identify some of the exploitation that can occur. Does she agree that the Gangmasters (Licensing) Act 2004 addressed many of those problems and that the situation is much better than it was because of legislation passed by the Conservative-led Government?

[Holly Lynch]

I am grateful for that intervention and I welcome the point made by the right hon. Member for Scarborough and Whitby—

[Dame Diana Johnson (Kingston upon Hull North) (Lab)]

That was us.

[Holly Lynch]

Further to my hon. Friend’s correction, James Porter was keen to stress that that has been a helpful intervention to improve standards for workers. I hope that the hon. Gentleman agrees that there is still much more to do to ensure that we are looking after these workers.

[Mr Goodwill]

May I correct the record? It was because of legislation passed by the last Labour Government, which I do not recall that we opposed.

[Holly Lynch]

That is one of the best interventions I have taken during the course of this Committee, and it was a welcome addition.

The Royal Association of British Dairy Farmers has estimated that in the UK, 56% of dairy farmers have employed workers from the EU; 60%––around 22,800 EU migrants––make up the workforce in poultry farming. According to the NFU, the UK’s horticulture sector is completely reliant upon seasonal migrant workers to collect crop yields: 99% of all harvesters in the UK come from Europe. All these working relationships have been forged over time due largely to the flexibility granted by freedom of movement.

The British Poultry Council has warned that the new immigration plans are likely to have a crippling impact on UK food businesses. A report of the kind outlined in new clause 24 is therefore necessary to safeguard the UK’s agriculture industry, during a time of much upheaval. As both the National Farmers Union and National Farmers Union of Scotland have stressed, fruit and vegetable picking requires a high level of manual skills, and farms can only operate efficiently when they recruit workers with this skillset.

This is the one sector where we can say that we have just been through a trial for the ending of free movement, brought about by lockdown. Migrant labour dried up due to lockdown and the Government tried to recruit from the domestic labour force. Nowhere near the required numbers joined up, fruit and veg started to rot in the fields and we were forced to very quickly get migrant labour from Europe back in on chartered flights. It is vital that the Government learn from our experiences during the crisis and develop a proactive and pragmatic agricultural policy for implementation after the transition period. New clause 24 would give us the information required to do this.

[Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)]

It is a pleasure to serve under your chairmanship again, Sir Edward. I can be relatively brief because the shadow Minister has spoken to the National Farmers Union of Scotland and represented its interests pretty well. There is real concern about shortages in the labour market for agriculture, particularly in relation to seasonal workers. Research on seasonal migrant labour from 2018 showed that in Scotland alone the number of seasonal agricultural workers required in any year is not far short of 10,000.

More recently, the NFUS and the UK farming unions have given evidence to the UK Government, demonstrating that for the whole UK around 70,000 seasonal staff are required in the horticultural sector and 13,000 seasonal staff are required in the poultry sector every year. That is obviously many times more than the number of places in the current pilot.

Challenges in recruiting seasonal workers have already been seen in recent years. In 2018, the NFUS conducted a survey of its horticultural membership in which every single respondent reported being “concerned” or “very concerned” about the impact worker shortages would have on their businesses in 2018 and beyond. Almost 60% of respondents said they were “likely” or “very likely” to downsize their business and the remaining 42% said they would have to cease current activity.

The NFUS was opposed to the end of free movement but, even while free movement was retained, farmers increasingly needed to look beyond the EU to fill such posts, with countries such as Ukraine, Russia, Belarus and Moldova already supplying a significant proportion of the workers required. The seasonal agricultural workers scheme pilot has been described as a step in the right direction, but it does not provide nearly enough permits if shortages such as those experienced in recent years are going to continue.

The NFUS is calling for a seasonal scheme that is open to both EU and non-EU workers, with capacity to provide farmers with access to returnee employers. It also calls for the scheme to be open to a wide number of labour providers and direct recruiters. Some concerns have been expressed about the expense and the somewhat laborious processes that are involved in taking advantage of the scheme.

The NFUS has also expressed concerns that the future immigration system proposed by the Government is not based on realistic expectations of the ability of the UK to fill the jobs currently carried out by migrant workers. It says that

“to maintain the productivity of the agricultural sector, immigration policy must allow recruitment on a seasonal basis for workers from both the EU and non-EU, at a non-restricted level.”

I echo what the shadow Minister, the hon. Member for Halifax, said about the SAWS scheme and how we always have to be cautious about the need to carefully protect workers against exploitation. She was right to highlight concerns raised by Focus on Labour Exploitation during the passage of the Bill last year.

To come to the rescue of the right hon. Member for Scarborough and Whitby, the gangmasters legislation was very welcome, but so too was the introduction of the director of labour market enforcement in 2016, under the Conservative Government, which may have been what he was thinking about. Those are both welcome moves, but we have a long way to go to build on the creation of those posts in ensuring that migrant workers—and workers generally—are properly protected.

One criticism of the new clause is that it is not just on seasonal workers that we need to have a report; we need a broader report on the impact on access to labour in the agricultural industry. The concerns of organisations such as the NFUS go further than seasonal work, and include the cost of sponsorship under tier 2, which it has described as

“prohibitively expensive in terms of both financial and administrative burden.”

It is fair to say that the NFUS has welcomed some of the recent developments, for example the decrease to the salary threshold that has been introduced by the Government, but it asks how non-salaried roles will fit into the points-based system; how the revised shortage occupation list will generally take account of the range of occupations that exist in agriculture; whether the Government will consider targeted routes for remote and rural areas—unfortunately, from what the Minister said the other day, it sounds as if it will be disappointed in that regard—and how the expense and bureaucracy of the system can be improved. It simply calls for close engagement as we move towards the implementation of the new system.

The new clause is sensible and will contribute to our understanding of what is going on in a future debate about labour in the agricultural sector.

--- Later in debate ---

[Kevin Foster]

We expect to undertake that evaluation later this year and then announce the results as part of confirming the final details of the future migration scheme. If the hon. Gentleman’s next question is about whether we will take into account the unique circumstances this year, the obvious answer is yes, given the restrictions on travel. We have found that the net is going wider in trying to recruit. Just creating migration opportunity does not automatically bring workers to the United Kingdom, as we have seen with free movement—for example, it used to be common for people from parts of western Europe to come here to do this work, but now it is not. Again, migration cannot be seen as an alternative to providing attractive terms and conditions that will encourage people to wish to do the work. Our intention is to make that announcement later this year and then confirm our intentions, in good time for next year’s season.

The Department for Environment, Food and Rural Affairs already conducts quarterly seasonal labour in horticulture surveys, explicitly looking at the questions of supply and demand of seasonal labour in horticulture. I am therefore not persuaded that a further annual MAC report would significantly add to our knowledge on this matter, especially when the MAC will in future have more ability to work on matters of its own choosing, including an annual report on the migration system, in which it can choose to cover the areas suggested in the new clause. If we are giving the MAC the ability to choose what it sees as the priorities in its annual report, with debate in the House on that report, it seems strange to give it that freedom and then compel it to do a number of reports by primary legislation. With those reassurances, I hope that the hon. Member for Halifax will feel able to withdraw her new clause.

[Holly Lynch]

I am grateful to the Minister for those assurances. We welcome the increased flexibility that the MAC will have. I wonder whether there will be an opportunity for Opposition parties and MPs to cast a particular spotlight on an area, so that MPs can feed into that process with the MAC.

It is in everyone’s interest that we continue to see the wide availability of fresh fruit and veg for families. I accept the point made by my friend the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East that we would like to see any assessment of this sector be broader than seasonal agricultural workers and take into account the requirements of the workforce right across the food sector.

Having said that, I do not intend to push the new clause to a vote. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 25

Report on status of EEA and Swiss nationals after the transition

“(1) This Act shall not come into effect until a Minister of the Crown has laid a report before each House of Parliament setting out the impact of the Act on EEA and Swiss nationals in the UK.

(2) A report under subsection (1) must clarify the position of EEA and Swiss nationals in the UK during the period between the end of the transition period and the deadline for applying to the EU Settlement Scheme.

(3) A report under subsection (1) must include, but not be limited to, what rights EEA and Swiss nationals resident in the UK on 31 December 2020 have to—

(a) work in the UK;

(b) use the NHS for free;

(c) enrol in education or continue studying;

(d) access public funds such as benefits and pensions; and

(e) travel in and out of the UK.”—(Holly Lynch.)

This new clause would require Government to provide clarity on the rights of EU nationals in the EU in the grace period between the end of the transition period, and the closure of the EU Settlement Scheme.

Brought up, and read the First time.

Question put, That the clause be read a Second time.

--- Later in debate ---

Brought up, and read the First time.

[Holly Lynch]

I beg to move, That the clause be read a Second time.

We have been through a great deal of this subject matter earlier in the debate on clause 2. I was grateful to the Minister for some of the clarity he was able to provide at that stage. New clause 27, however, goes that little bit further and asks the Government to produce a report on the associated rights given to citizens in the common travel area.

The aim of this proposed change is to ensure that Ministers set out in detail the scope of what has been officially referred to as the reciprocal rights of the common travel area, and to compare and contrast them with the rights that can be retained under part two of the withdrawal agreement, as provided for domestically under the EU settlement scheme. The Minister’s predecessor stated that Irish citizens do not need to apply to the EU settlement scheme because of the CTA, but since then the Government have instead suggested that individuals whose immigration status is covered by the CTA may wish to register under the EU settlement scheme. Inevitably, this has caused a degree of confusion about possible gaps between where free movement rights finish and CTA rights start.

As highlighted by the Northern Ireland Human Rights Commission, the EU SS is enshrined in law through the withdrawal agreement. Comparatively, however, the CTA is upheld essentially by a gentlemen’s agreement, the non-legally binding memorandum of understanding between the UK and Ireland on the CTA of May 2019. A report on the associated rights of the CTA would therefore be incredibly helpful to ensure that Irish citizens can receive equal rights to EEA and Swiss nationals.

We also believe that the report on the associated rights granted through the CTA would provide scope to begin to answer the pertinent questions about clause 2 raised during the evidence given by our expert witnesses. As previously discussed, while we welcome the provisions set out in clause 2 for Irish citizens, there is still outstanding ambiguity regarding the status and legality of the associated rights that are prescribed by the common travel area.

We believe that it would be incredibly welcome if the Government were to take this opportunity to clarify any ambiguity before the Bill takes effect. A report would provide unequivocal guidance on the status of Northern Irish citizens who identify solely as Irish. It would hopefully guarantee the same provisions for deportation and exclusion as those for Northern Irish citizens who identify as British. It would also clarify issues raised by the Committee on the Administration of Justice on questions relating to cross-border provisions and the right to vote in referendums. More must also be done to tackle the current problematic loophole whereby someone with an Irish passport is not granted protections on arriving in the UK, because they have travelled from a country outside the common travel area. Professor Ryan illustrated the opacity surrounding the status of acquisition of British nationality for British-born children, children born to Irish parents and Irish citizens wanting to naturalise. He stressed that this is currently an unanswered question in British citizenship law.

Finally, the report could also lead to a more sustained debate on Alison Harvey’s proposal on the right to abode, which was raised during evidence. The right to abode would grant citizens a plethora of citizenship rights, while simultaneously safeguarding people’s right to identify solely as Irish. We hope the new clause will catalyse discussions on this issue that will lead to a definitive conclusion.

[Stuart C. McDonald]

I can be very brief. I echo and support what the shadow Minister has said. I am not going to repeat what I said on clause 2; that is a welcome clause, although we have one or two concerns about the detail. What this whole debate has shown us is that, even though we are told that the common travel area pre-existed the European Union and everything is fine, in actual fact it is hard to discern what precisely is involved in the CTA and precisely what rights it confers on individuals.

My understanding from the debate we had last week is essentially that the Government propose to progress this in a rather piecemeal way, changing bits and bobs of the legislation on different subjects to ensure that Irish citizens will continue to enjoy equivalent rights in this country. Okay, that will get us to where we want to be, but it does prohibit us from having a comprehensive overview of what progress has been made and what exactly we are trying to achieve by restoring the common travel area and making sure that there is not a loss of rights because of the loss of free movement.

The new clause would be genuinely be helpful for MPs to understand what the CTA is all about, what exactly the Government are trying to achieve and what progress they are making towards that. It is a genuinely helpful suggestion.

--- Later in debate ---

[Kevin Foster]

I thank the hon. Member for quite a constructive intervention. He obviously will appreciate that those arriving after the transition period would not have free movement rights, but those arriving before are covered by the withdrawal agreement. I am more than happy to get a letter to him setting out how we will make sure of the position that he mentions. I suspect that his concern is that when an Irish citizen is in the United Kingdom, talking to a person at a Department for Work and Pensions office, or a landlord, and presents them with an Irish passport, it should be understood inherently that it has exactly the same status in terms of renting, or accessing a service or employment, as a British passport, particularly given the different commentary. I am more than happy to set out in writing to the Committee the work that will be done on that point.

In summary, the Government have already made clear the rights available to individuals under the common travel area and the EU settlement scheme following the end of free movement, and we will continue to do so. I therefore respectfully ask the hon. Member for Halifax not to press the new clause for the reasons I have outlined.

[Holly Lynch]

I welcome the fairly constructive way in which the Minister has engaged on this point. The points made in intervention by my friend from the SNP, the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East, do still stand. I reinforce that there will continue to be a desire and unanswered questions in this area. There are certainly merits to committing more of what we have discussed to primary legislation, but I will not press the new clause at this point. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 28

Annual review: Higher education

(1) The Secretary of State must commission an annual report from the Migration Advisory Committee on the impact of the provisions of this Act on the number of overseas students in the UK from the EEA and Switzerland.

(2) The report must be laid before each House of Parliament as soon as possible after it has been completed.

(3) A Minister of the Crown must, not later than three months after the report has been laid before Parliament, make a motion in the House of Commons in relation to the report.—(Kate Green.)

Brought up, and read the First time.

[Kate Green (Stretford and Urmston) (Lab)]

I beg to move, That the clause be read a Second time.

It is a pleasure to see you in the Chair again this morning, Sir Edward. The new clause would require the Government to commission an annual report from the Migration Advisory Committee on the impact of the Bill’s provisions on the higher education sector.

As the Committee will know, the UK higher education sector has a world-leading reputation, which helps it to attract international students. The proportion of international students is a measure in most global university rankings, meaning that by choosing to study here, international students contribute directly to the sector’s world standing. Today, 18 of the UK’s universities rank in the world’s top 100, and 76% of UK research is ranked as excellent or world-leading. International staff and students are crucial to the UK’s economic success, and it is important that the UK continues to attract both EU and non-EU students and staff in the future.

International students deliver more than £26 billion to the UK economy. They bring more than £6.9 billion in income to universities in tuition fees. They generated £13 billion of export revenue in 2016, an increase of 41% since 2010. Universities UK estimates that universities supported more than 200,000 jobs and were worth £3.3 billion in tax revenues.

Aside from the direct economic benefits, international students and staff are crucial to the provision of skills, the conducting of research and the culture of the UK’s universities. In 2017-18, UK higher education institutions reported a £4.3 billion deficit between research income received and the costs of delivering research activity. Much of that gap was covered by international tuition fees, so international students are key to the UK’s research capacity.

In 2018-19, there were 485,645 international students enrolled at UK universities, an increase from 436,600 international students in 2014-15. Some 342,620 of those international students—that is 70%—were from outside the European Union. The remaining 143,025 students were from EU countries, but the UK’s market share has dropped in 17 of the world’s top 21 sending countries. The Office for Budget Responsibility has identified higher education as the sector likely to take the hardest hit from the covid crisis.

Given the pressures, it will be vital to understand the impact of immigration policy on future student numbers. The impact assessment attached to the Bill is optimistic, suggesting that a potential reduction in the number of EEA students attending UK universities of 25,000 after the first five years of the new points-based system will be offset by a corresponding increase in non-EEA students.

However, some of the assumptions in the impact assessment are highly speculative—as, indeed, the Government themselves acknowledge. Paragraph 160 of the impact assessment states that

“measures such as proof of funds and employment rights might have an additional deterrent impact—but there is little evidence on which to base an estimate. The impact of any administration cost or visa fee or change to student funding will also impact student choices. Therefore, the estimates presented here will only reflect the potential impacts from changes in immigration policy and not the overall impacts on EU student numbers.”

Paragraphs 163 and 164 state:

“The restrictions on the rights to bring dependants, which will apply to EU students from 2021, may also have an impact on inflows under the future system, as only those who are studying a full-time course which is a least nine months long at a postgraduate level of study are allowed to bring family members to the UK…Applying these potential deterrents, the reduction in EU student inflows are estimated to be around 15,000 per annum in the first five years of the policy.”

In paragraph 165, expected-length-of-study data is applied to the change in inflows, pointing to:

“an estimate of up to 25,000 fewer EU higher education students in the UK by academic year 2024/25 relative to the baseline.”

The paragraph also argues that

“any places not taken by EU students may be occupied by non-EU students, so the overall impact on foreign student numbers is not clear.”

In paragraph 166, the Government estimate that

“non-EU enrolments might increase by up to 10 per cent, depending on the level of study”,

but the paragraph also notes:

“This assumption is very uncertain, not least because other drivers could have affected non-EU inflows over the period of the last post-study work visa.”

None the less, paragraph 167 states:

“The assumption of around 10 per cent increase in enrolments is estimated to lead to an average annual increase in non-EU enrolments by around 25,000 over the first five years of the policy.”

That is a strikingly convenient conclusion in the light of the assessment of 25,000 fewer EU students at the end of the same period.

Paragraph 172 notes:

“Changes in the numbers of students enrolling will affect tuition fee income for universities. Overall, projected tuition fee income is estimated to increase under the future immigration system. This is primarily driven by the”—

assumed—

“increase in tuition fee income from additional non-EEA students which is expected to more than offset the decline in EEA student tuition fee income. The increase is estimated to be between £1 billion and £2 billion over the first five years of the policy.”

However, paragraph 172 goes on to state:

“Estimates do not take any account of behavioural impacts, nor any changes in universities expenditure.”

Paragraph 173 expands on that, stating:

“EU students are currently classified as ‘home’ students, and therefore benefit from accessing student loans and paying domestic tuition fees which are currently capped at £9,250 for undergraduates. Estimates above assume home fee status and access to student loans will remain the same as the current system. However, any changes to this will have an impact on both EU student enrolments and the projected tuition fee income of universities.”

Paragraph 175 concludes:

“As a result of changes to net student enrolments modelled above, a cumulative net fiscal benefit is estimated of under £1 billion over the first five years of the forecast period.”

That is a bold statement that will be true only if the assumptions in the impact assessment are correct and the reductions in EU students are indeed replaced by non-EU students.

We can already identify a number of policy choices that could affect those assumptions. The current situation for EEA students coming to the UK is that for academic year 2020-21, they retain the same status as domestic students. However, delays in start dates and term times as a result of the covid crisis may mean that there will be students who enrol on to academic year 2020-21, but do not enter the UK until 2021. Which immigration system will apply in such circumstances is uncertain.

--- Later in debate ---

[Kate Green]

I welcome much of what the Minister has said. I welcome his and the Government’s ambition to be and to continue to be a leading player in the international student market. I very much welcome what he said about the commitment either to continue our association with Erasmus+, if that is possible, or to find other ways to continue to offer international exchange opportunities to students. He gave useful assurances in relation to the guidance published this morning—which I apologise for not having read—on greater flexibilities in respect of the covid-19 crisis. I am sure that the MAC will have heard what the Minister said about encouraging its continued active review of the international student market. Given the Minister’s comments, I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 29

Report on arrangements for temporary entry and stay for business purposes for EEA and Swiss nationals

“(1) A Minister of the Crown must, within 12 months of this Act coming into force, lay before Parliament a report evaluating the effects of this Act on the arrangements for temporary entry and stay for business purposes for EEA and Swiss nationals.

(2) That report must include—

(a) the qualification requirements for a short-term business visitor

(b) the activities that can be undertaken by a short-term business visitor;

(c) consider the reciprocal arrangements for UK nationals travelling to the EEA and Switzerland.”—(Holly Lynch.)

This new clause would require the Government to consider the requirements of short-term business visitors.

Brought up, and read the First time.

[Holly Lynch]

I beg to move, That the clause be read a Second time.

The new clause is not unlike some of the other proposals we have made in this sitting to ask the Government to go away and develop an evidence base, shining a spotlight on certain sectors, which we hope would then inform more concrete proposals. This proposal has a particular focus on the creative industries, temporary migration and visa requirements for working arrangements.

We understand that the Government are currently negotiating a reciprocal agreement with the EU that would allow UK citizens to undertake some paid business activities in the EU without a work permit on a short-term basis. However, the precise details, including the range of activities, the documentation needed and the time limit, are all still to be negotiated; certainly the details are still to be put into the public domain.

One sector directly affected is culture, music and the performing arts. The creative sector contributes over £100 billion a year to the UK economy and employs over 3 million people, according to the Confederation of British Industry. There are growing concerns in this sector about the lack of progress on a reciprocal agreement being reached before the end of the transition period, and whether it would guarantee short-term work and visits for EU nationals, all of which is critical for the survival of the music profession.

Britain’s music industry has long attracted world-class artists, entertainers and musicians to perform in the UK, but this is all very precarious if visa issues are not resolved by the end of the year. This is also one of the sectors hardest hit by the coronavirus, as events and performances will no doubt be one of the last elements across society to return to normal.

Working in the European Union, whether that involves performing, recording, teaching or collaborating, is an essential part of the music professional’s ability to earn. The music industry is very transient and often there is not enough work available in the UK for musicians to sustain livelihoods, but going abroad has often provided a solution. We are not talking about performers earning megabucks, although of course we want the UK to be an attractive stage for them and for our international talent in the rest of Europe—for example, UK performers who may go to work in a holiday resort for two months of the year, or may tour venues in a number of European countries.

If the UK leaves without a comprehensive arrangement in place, musicians could very quickly find themselves trying to navigate the entry requirements for each of the 27 EU member states, which risks causing major disruption to the UK’s music industry. Without effective reciprocal arrangements, the UK may see a decline in skilled culture sector workers entering the country from the EU. If the music industry is to survive and we are to continue attracting the best talent from across the world, musicians and performers must be able to continue travelling abroad to work with ease after the transition period. It is the same for many other businesses and industries.

The Home Office previously pledged that it would allow EU bands to enter the country freely for gigs post Brexit, and that it would continue to include special arrangements for creative workers. A potential solution might be a multi-entry touring visa valid for about two years and EU-wide, covering all 27 member states, which I know is the preference of the Incorporated Society of Musicians.

I hope the Minister agrees that the UK must continue to attract musicians and performers from all over the world with an immigration system that is fit for purpose. Providing the best possible situation to do that would be achieved by commissioning the report set out in new clause 29.

[Kevin Foster]

It might help if I briefly outline how the current system for those visiting the UK for business purposes operates. I note the shadow Minister has focused on creative purposes, but the wording in the new clause is “business visitor”.

The Government welcome genuine visitors to the UK, and this is not going to change once free movement has ended. We want to ensure legitimate travellers who support our economy and enrich our culture can continue to come to the UK smoothly in future. The UK’s current immigration rules for visitors are already fairly generous. Visitors can, in most cases, come to the UK for up to six months, and take part in a wide range of activities beyond simply tourism, or visiting family and friends.

Visitors can attend conferences, carry out independent research, undertake work-related training and maintain and install equipment where there is a contract with a UK company. We also allow audit activity and knowledge transfer where these take place in an intra-company setting. Visitors can undertake creative and sporting activities, and there are also some exceptional instances in the visitor rules whereby we allow payment by a UK source for certain activities, including performing at a permit-free festival, such as the Edinburgh festival. There are also provisions for paid performance engagement—or PPE, as we call it—whereby an individual who has been invited by a creative organisation can be paid for a short period for performing in the UK.

Those are already available to non-visa nationals, such as Canadian, Australian, Japanese and New Zealand citizens, and we have made it clear that EEA and Swiss citizens will not need a visa to undertake these activities, and will be able to travel and enter the UK on that basis. The EU has already legislated so that UK nationals will not need a visa when travelling to the Schengen area for short stays of up to 90 days in any 180-day period, as opposed to our slightly more generous provisions for visitors.

The Government recognise that it is desirable for UK nationals to have greater certainty about what they can do when travelling to the EU on a temporary or short-term basis, hence future arrangements on entry and temporary stay in the EU are subject to ongoing negotiations. Further, we look forward to reaching agreement on the future entry and temporary stay of natural persons with Switzerland and the EEA-European Free Trade Association states. For obvious reasons, we cannot legislate that the 27 member states of the EU offer a deal to the UK, but we hope we can come to a mutually beneficial agreement.

The UK’s visitor rules are kept under regular review. In our points-based system policy statement from February, we committed to

“continue our generous visitor provisions, but with simplified rules and guidance”.

We have engaged with stakeholders to understand how the rules can be simplified and improved and will continue to do so once free movement ends. For these reasons, there is no requirement for an additional report, and the new clause would be an odd addition to the Bill, for reasons I have set out in response to previous new clauses. I would therefore ask the hon. Member for Halifax to consider withdrawing the new clause.

[Holly Lynch]

I am grateful to the Minister for that response. At this stage, we will continue to follow the negotiations on the additional reciprocal arrangements, and on that note I beg to ask leave to withdraw new clause 29.

Clause, by leave, withdrawn.

New Clause 30

Procedures for amending Immigration Rules

“(1) The Immigration Act 1971 is amended in accordance with subsection 2.

(2) After section 3(2) insert—

“(2A) Any statement of the rules, or of any changes to the rules, which affect the rights and obligations of persons who will lose their right of freedom of movement under the provisions of the Immigration and Social Security Co-Ordination (EU Withdrawal) Act may not be made or have effect unless the Secretary of State has complied with subsections (2B) to (2F) below.

(2B) If the Secretary of State proposes to make changes to the rules under subsection (2A) above, the Secretary of State must lay before Parliament a document that—

(a) explains the proposal; and

(b) sets it out in the form of a draft order.

(2C) During the period of 60 days beginning with the day on which the document was laid under subsection (2B) (the “60-day period”), the Secretary of State may not lay before Parliament a draft order to give effect to the proposal (with or without modification).

(2D) In preparing a draft order under section (2A) above, the Secretary of State must have regard to any of the following that are made with regard to the draft order during the 60-day period—

(a) any representations; and

(b) any recommendations of a committee of either House of Parliament charged with reporting on the draft order.

(2E) When laying before Parliament a draft order to give effect to the proposal (with or without modifications), the Secretary of State must also lay a document that explains any changes made to the proposal contained in the document under subsection (2B).

(2F) In calculating the 60-day period, no account is to be taken of any time during which Parliament is dissolved or prorogued or during which either House is not adjourned for more than 4 days.”—(Stuart C. McDonald.)

This new clause would amend the Immigration Act 1971 to ensure that any changes to the UK’s Immigration Rules which affect EEA or Swiss nationals must be made under the super affirmative procedure.

Question put, That the clause be read a Second time.

Question negatived.

New Clause 32

Annual report on labour market

“Within 12 months of this Act coming into force, and every 12 months thereafter, the Secretary of State must lay a report before Parliament setting out how any changes made to the Immigration Rules for EEA and Swiss nationals have affected the extent to which UK employers have adequate access to labour.”—(Stuart C. McDonald.)

This new clause would mean the Secretary of State must lay a report before Parliament on how changes to Immigration Rules for EEA and Swiss nationals are affecting access to labour.

Brought up, and read the First time.

[Stuart C. McDonald]

I beg to move, that the clause be read a Second time.

I can be relatively brief, since we covered much of this territory in earlier discussions, but it is a useful opportunity to push the Minister on a few issues. What progress can he report on raising awareness of the new tier-2 procedures in which so many small and medium-sized enterprises will have to participate, and what support is being rolled out for those businesses to help them to navigate the new system? What change has he noticed in the number of applications for tier-2 sponsorship licences, and what work is under way to streamline the system, which we have spoken about at length previously?

I suspect the Minister’s answer to the new clause will be that there is to be an annual MAC report. If so, can we ask that it is laid before Parliament and then have a debate on it? The Home Affairs Committee spoke about an annual debate on migration in a repot two or three years ago in trying to build a consensus on migration. It looked at how other countries developed immigration policy, and one issue that featured heavily in other jurisdictions was, at the very least, an annual debate on immigration policy generally.

We are talking about seismic changes to the way in which many businesses will go about recruiting and accessing the labour market, and the number of industry bodies that have come to me to express concerns is unbelievable—industry bodies I did not even know existed until they got in touch—across food and drink, agriculture, tourism and hospitality, fishing, manufacturing, engineering, logistics, financial services, social care, education, and many more. There is significant apprehension, and it is not because any of these industries want to exploit low wages; it is their realistic assessment that they are struggling already to access the labour they need in the UK at a price they can afford and which keeps them competitive. Now they are going to struggle to access labour from abroad, because of immigration rules.

--- Later in debate ---

[Holly Lynch]

I lend our support to the new clause. I anticipate that the Minister will reflect on the developments with the MAC, in that plans are afoot for an annual assessment of labour requirements across the UK, which will influence our immigration approach. However, I echo what my friend from the SNP, the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East, has said. We would very much welcome that report being placed before both Houses, so that there can be further debate across this place.

We have called for reports on the sectors we are most concerned about, which we have debated and discussed this morning, but there will be so many others. As with any change like this, there will be unintended consequences. We want the opportunity to mitigate the impact of the end of free movement, and to debate that in Parliament. That would, we hope, lead to much more dynamic decision making on changes to mitigate the impact of the ending of free movement on further sectors. We welcome the new clause.

[Kevin Foster]

I thank the shadow spokespeople for their comments and the constructive way in which they have put forward the new clause, which hits on an important point. Certainly neither I nor anyone else in government wants businesses to fail due to an unavailability of labour, although, sadly, as many outside this room would note, the impact of covid-19 on our economy means that not many people would see that as a likely issue over the coming period, for all too obvious reasons.

It is precisely for that reason that the Government are bringing forward the new points-based immigration system. It will be a single global system that will treat everyone alike and will allow people to come to the UK on the basis of their skills and the contribution they can make, not their nationality or where their passport is from. It will be a fair system, and we are introducing a number of important elements, such as reducing the skills and salary threshold below those in the tier 2 system, and abolishing the cap and resident labour market test, which will remove a lot of bureaucracy for employers engaging with the system.

The system will also be flexible. We are making it points-based, precisely so that we can facilitate the entry of those with the greatest skills or those who are coming to fill jobs where there is the greatest need. The system will be kept under careful review.

I do not think anyone would disagree that it is profoundly important to look at the effect that immigration is having on the labour market. That means looking at the situation for employers and the impact on UK workers seeking employment. The new clause, focusing as it does solely on employers, would give only one side of the story, leaving workers’ interests at a disadvantage. I also do not believe that the Government are best placed to look at this issue; this type of request is why the independent Migration Advisory Committee exists and is commissioned to produce expert, independent reports on the interplay between immigration and the labour market. I do not believe that what it produces could be further improved by another report from the Government. As part of its work, the MAC already looks at which occupations in the UK are currently experiencing a shortage of workers and, crucially, where it thinks it would be beneficial to fill vacancies through immigration. We maintain shortage occupation lists to recognise that.

The work of the MAC and the reports it produces go beyond the narrow scope of the work proposed by the new clause. The MAC looks at the whole immigration system, rather than just changes to the immigration rules. The MAC also looks at the impact of all migration, rather than limiting itself to EEA and Swiss migration, as the new clause seeks to do, although I accept that the wording is probably because of the scope of the Bill. The future immigration system will be a global one, where an EEA citizen has the same basic rights to migrate to the UK as someone, for example, from the Commonwealth.

The new clause would simply result in duplication of work already being undertaken by the pre-eminent labour market economists and migration specialists of the MAC. Parliament regularly debates the MAC’s reports. I hope that the MAC’s annual reports will help to inform regular, structured debates on migration—something to which Opposition Members alluded—allowing us to take a more considered view, rather than simply reacting to particular proposals or events. I have outlined the role that the MAC will play. I hope that the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East will feel able to withdraw his new clause.