Immigration

James Brokenshire Excerpts

Thursday 18th November 2010 Commons Chamber

[The Parliamentary Under-Secretary of State for the Home Department (James Brokenshire)]

I, too, congratulate the right hon. Member for Birkenhead (Mr Field), my hon. Friend the Member for Mid Sussex (Nicholas Soames) and the cross-party group on balanced migration on securing the opportunity to discuss a very important issue. We have had thus far, and I am sure we will have for the rest of the debate, a measured discussion, which shows how much the issue has progressed. The nature of today’s contributions has been striking, and I welcome the Opposition’s suggestion that they will act constructively and examine proposals carefully. We will need to see how that progresses, but I hear what the hon. Member for Bradford South (Mr Sutcliffe) says.

The Government fully recognise that there are, and have been, many economic and cultural benefits from immigration. Under this Government, Britain is, and will remain, open for business, and in today’s globalised economy we will ensure that we continue to attract the brightest and the best so that UK companies remain competitive and economic growth is supported. Several contributors have already highlighted that important point this afternoon.

We must also ensure, however, that migration is properly controlled, and we believe that we can reduce net migration without damaging our economy. We have committed to reduce the number of non-EU migrants, and we will shortly make our proposals, which will form a comprehensive package on all aspects of the immigration system, not only economic migration. This afternoon, I shall outline the challenges that we face and the context in which we will take those decisions.

Britain can continue to benefit from migration, provided it is controlled. That has been the broad tenor of this afternoon’s contributions. We must manage the pace of change in local communities and the pressure on our public services, while ensuring that those who come to work or to study are those who will really benefit from it and who, in turn, will benefit our economy. As well as controlling migration, we also need to secure the border, and that is why the coalition Government are committed to establishing a national crime agency, including a border police command, which will enhance security and improve policing at the border, supporting e-borders, reintroducing exit checks and cracking down on abuse and on human trafficking.

I turn to the central issue of net migration. In August, the Office for National Statistics published the 2009 statistics, which showed an increase in net migration from 163,000 in 2008 to 196,000 in 2009, the figure to which the right hon. Member for Birkenhead referred. That follows the pattern of recent times. Between 1997 and 2009, net migration to Britain totalled more than 2.2 million people, more than twice the population of Birmingham. Such migration is unsustainable in terms of population growth and the consequent pressures on services and community cohesion. We therefore aim to reduce net migration to the levels of the 1990s—tens of thousands, not hundreds of thousands, each year by the end of this Parliament.

It has been suggested that we are wrong to focus on net migration figures because they contain the inward and outward flows of British and EU citizens, which we do not control. But, in recent years, those flows have largely cancelled each other out; the issue is that the number of non-EEA migrants arriving is exceeding the number leaving. In 2009, of the net migration of 196,000, about 184,000 were non-EEA migrants. Reducing non-EEA net numbers can therefore reduce net migration overall. That is why the coalition programme states specifically that we will introduce an annual cap on the number of non-EU economic migrants admitted into the UK and that we will introduce new measures to crack down on abuse of the immigration system.

We believe that the points-based system introduced by the previous Government provides a framework, but it evidently does not give us the control that we need to bring the annual net migration figure down to sustainable levels, as the 196,000 figure for net migration in 2009 illustrates. We need an approach that will not only get immigration down to sustainable levels, but protect those businesses and institutions that are vital to our economy. That will not be easy and we will not be able to achieve it by focusing on just one area of the system or on one route into Britain. As the Home Affairs Committee report recently illustrated, we will need to take action on students, families and settlement as well as on people coming here to work.

We are already taking action on the economic routes. As the House knows, interim limits on economic migrants using the highly skilled and skilled migration routes under tiers 1 and 2 of the points-based system were introduced on 19 July. As Members will know, tier 1 is for highly skilled migrants with sufficient skills and expertise to qualify to come here and seek employment, while tier 2 caters for skilled workers who already have a job offer from a sponsoring employer in the UK. The limits were introduced to prevent a surge in applications during our consultation before we introduce our permanent limits in April 2011. They also set a reduction in numbers of 5%—of 1,300—compared with the same period in the previous year. That has been achieved.

We are, of course, aware that employers, businesses, universities and research institutes have raised issues about the operation of the interim limits. I assure the House that we will take account of those concerns in designing the permanent limit. The interim limit on tier 2 is based mainly on past allocations to individual employers, with a reserve pool for new requests. In many cases, though, employers and institutions have not yet used their allocations, and intra-company transfers are excluded from the interim limit to give additional flexibility.

We have also recently revised the criteria for issuing additional certificates of sponsorship to respond more flexibly to employers’ needs. A particular concern that has been raised, including by my hon. Friend the Member for Carshalton and Wallington (Tom Brake) this afternoon, is the position of scientists and researchers. We are confident that next year’s limit can be made to operate in a way that ensures that universities and research institutions are not prevented from recruiting top scientists and other workers with key skills.

[Mr Frank Field]

I apologise for not having been here for half an hour of the debate. I had a meeting that I wanted to keep, but I regret not having heard the speech made by my hon. Friend the Member for Bradford South (Mr Sutcliffe); I shall read it with interest tomorrow.

Net migration is almost 200,000. Surely it is not beyond the wit of man to cater for the legitimate demands expressed in the House today about industry’s legitimate needs while meeting the Government’s target of reducing the numbers to the ’teens of thousands?

[James Brokenshire]

I entirely agree with the right hon. Gentleman. I have made it clear that we want to attract the brightest and the best to this country. We believe that it is possible to introduce limits and take account of the concerns of business and of the scientific institutions to which I referred.

We consulted business and other interested parties extensively on how the limit should work, and more than 3,000 responded. We also asked the Migration Advisory Committee—the well-respected and independent advisory body on migration policy—to consult on what the limit should be, taking into account the economic and social impacts of migration. The MAC report has been published today. I thank David Metcalf and the other members of the committee for their very full and helpful report, which we will continue to study in great detail. We will consider its findings alongside the responses to our own consultation on how the limit should operate, and we will announce how it will work in the near future. I will not comment this afternoon on the detail of the committee’s recommendations, as that would pre-empt the Government’s final announcement, which will be made in due course. However, this is a complex issue, and it is vital that we consider the best and broadest advice, including the responses made to the Home Office’s consultation on economic migration.

I now want to talk about the issue of intra-company transfers, which has been highlighted in the debate. Of course, we want companies to be able to transfer senior managers and specialists to enrich their UK operations. For that reason, the Prime Minister has already indicated that we have heard the concerns of business on this matter. However, in 2009 such transfers accounted for 22,000 migrants out of the 36,500 admitted through the tier 2 route, and about half of those 22,000 were in the IT sector—a point made by my right hon. Friend the Member for Hitchin and Harpenden (Mr Lilley). Given the numbers involved, we need to ensure that the ICT route is being used for its original purpose, and not to undercut regular jobs here, particularly in the IT sector. Last week, a study published by the Higher Education Careers Service Unit showed that graduate unemployment was highest among graduates in computer science, out of all the disciplines. We are therefore looking carefully at the rules on ICTs.

[Mr Brazier]

My hon. Friend is making a very powerful speech. Six years ago, a study showed that computer scientists and mathematicians enjoyed the greatest premium of all on graduating, so there has been an astonishing change in that sector of the market.

[James Brokenshire]

My hon. Friend makes that point, and that is why we are considering these issues very carefully.

[Tom Brake]

The balance at which the Government must arrive is one whereby the IT sector is addressed as the Minister wants but the Japanese ambassador’s concerns that very senior engineers may not be able to come to the UK as part of an ICT arrangement, thereby stopping the creation of seven jobs in the UK, are taken into account.

[James Brokenshire]

My hon. Friend speaks with experience of the IT industry. He was involved in that industry before coming to this House, so he offers a fair degree of knowledge on this point. We are examining these issues extremely carefully in the context of the reforms and changes that will be made.

Employers have indicated to us that they are mainly concerned about the tier 2 route, rather than the tier 1 route. We know from recent research that looked at a sample of highly skilled migrants that nearly a third of tier 1 migrants did not find highly skilled work. An example of that is the individual who was issued with a tier 1 visa and later became duty manager at a well-known high street chain of fried chicken restaurants. Perhaps that highlights some of the challenges involved in this matter. We cannot afford a mismatch between what employers need and the profile of those coming to this country. We will therefore have to ensure that those coming to do skilled work are undertaking a suitable job with a sponsoring employer.

At present, the minimum skills level for a job is a national vocational qualification level 3, and the English language requirements are at a basic level. In the shortage occupation list, some wage levels are as low as £7.80 an hour. The question that we need to consider carefully is whether that is really the right level of skilled migrant, when we have many unemployed people in this country. We believe that many employers are currently using migrant workers to fill vacancies because they cannot get the right people from the domestic or European labour market. That inability to recruit local talent is frustrating when we have people out of work in this country. That is why the Government are using their welfare reform policy to get people back to work. British employers need to be committed to developing a skills base here, and we need them to look first at people who are out of work and who are already in this country.

[Andrea Leadsom (South Northamptonshire) (Con)]

In the job clubs that I have been running for some time in my constituency, countless people have said to me that it simply does not pay for them to get a part-time job of the sort that my hon. Friend talks about.

[James Brokenshire]

rose—

[Madam Deputy Speaker (Dawn Primarolo)]

Order. Before the Minister responds, may I very gently remind him and others that this is a Back-Bench debate, and that some nine Members who have been sitting patiently in the Chamber for quite a long time wish to participate? I think the Front Benchers need to take some notice of that.

[James Brokenshire]

I am very grateful for that reminder, Madam Deputy Speaker. It is certainly important that we have as many contributions on the subject as possible, so I will seek to be as quick as I can in addressing some of the points. However, I hope that you will appreciate that this is a debate of interest, and I will therefore seek to put it in context.

The hon. Member for Ealing, Southall (Mr Sharma) mentioned talented individuals and entrepreneurs, and we want to make Britain a more attractive destination for those people. Last year the UK attracted only 275 high-value investors and entrepreneurs. As the Prime Minister said recently, we will reform the rules for entrepreneurs so that:

“If you have a great business idea, and you receive serious investment from a leading investor, you are welcome to set up your business in our country”.

Contributions have been made about students, and we know that work routes accounted for less than a quarter of the non-EU citizens entering Britain last year. The majority of non-EU migrants are in fact students. Including their dependants, they account for about two thirds of the visas issued last year under the points-based system. Many come here to study courses below degree level, and we have to question whether they are the brightest and best that Britain wants to attract.

Home Office data on compliance and student behaviour show that students studying in privately funded colleagues are much more likely not to have left the country after their visa expired than their counterparts in universities. Although we need to preserve our world-class academic institutions above and below degree level, we also need to stop abuses. I know that other Members have made that point.

We must also consider the issue of temporary versus permanent settlement. We realise that some argue that many of the workers and students who come here are temporary migrants who return home. However, in many cases that is not true. Of the skilled non-European economic area workers who came here in 2004, 40% were still here by 2009 and 30% had settled. We will need to return to that important issue.

Clearly change is seldom easy, particularly for those who have benefited directly from the current system, but if we do not create wider public confidence in our immigration system, public concern about immigration and social tensions will only increase. This Government are determined to create an immigration system that controls migration for the benefit of everyone in this country, and we shall bring forward our specific measures shortly once we have had a chance to consider all the points raised in the consultation, including here today.