Non-EU Citizens: Income Threshold

Debate between Martin Docherty-Hughes and Paul Scully

Monday 7th March 2016 Westminster Hall

[Paul Scully]

If that were the case, then yes, it would be, but I think that is where the shortage occupation list comes in. For example, a classical ballet dancer has an exemption of £20,800 and so will not be affected by the £35,000 limit. The threshold is far lower. I cannot say what the market rate is for a classical ballet dancer, but there are such exemptions. That is why it is very important that the Migration Advisory Committee should keep the list under regular close inspection and review, covering such examples as the hon. Lady has mentioned.

Tier 2 is intended for skilled workers. The majority of reasonable people—if we can get past the people who say we should stop all immigration now—would consider immigration to play a positive economic and cultural role in the country. We bring in some fantastic migrant entrepreneurs and, as has been said, nurses, as well as pharmacists and people who work in the cultural industries such as music, dance and the arts. Those people contribute to the UK and the fabric of the country. In some cases they do jobs for which we cannot find the skills in this country, and they can help to train and upskill our own citizens.

[Martin Docherty-Hughes (West Dunbartonshire) (SNP)]

In response to an intervention by the hon. Member for Wycombe (Mr Baker), the hon. Gentleman talked about extending the policy to European Union citizens. Would he allow other European Union member states, where 1.26 million UK citizens live, to do the exact same to UK citizens?

[Paul Scully]

At the end of the day, when we talk about the European Union, we are talking about being able to control our own borders. We are talking about the skilled people we want in this country. My personal view is that I would like the UK to leave the EU, in order to get skilled people from other countries across the world. However, in the context of our debate, the best we can do is look at tackling immigration from outside the EU, work out the skills we need and the various industries that need particular help from outside, and work through the tier 2 visa rules in terms of the threshold and the various exemptions we have talked about.

--- Later in debate ---

[Paul Scully]

Frankly, it would not, which is why I am not going to make that case. Leaving the EU would mean that we did not have to pinpoint all our immigration policy on tackling immigration from outside the EU, which at the moment is the only lever we have to pull. We cannot do anything about immigration from within the EU because of rules on the free movement of people. People from, say, Bangladesh or India—countries that are going to dominate the world economy for the next few decades—are therefore at an unfair disadvantage to unskilled people from within the EU. I was therefore not going to make that case.

The threshold will apply only to workers in graduate occupations. Given the way our skills and skills agenda have changed over the past few years, more and more occupations are falling into that category. Years ago, nurses did not need a degree, but now they do, as nurses are taking on more and more responsibilities—responsibilities akin to those of doctors, in many cases. They are highly qualified and highly skilled, and rightly so. We certainly need to ensure that we can attract the very best nurses to this country.

Any employer that wants to take someone on under the skilled work category needs to carry out a resident labour market test, in order to prove that the job cannot be filled from within our domestic market. PhD-level jobs are exempt, and as I said, shortage occupation list workers are also exempt.

[Martin Docherty-Hughes]

The hon. Gentleman mentioned the domestic market. Would that exclude Ireland, with which we have had a free movement agreement since the early 1920s, and every Irish citizen?

[Paul Scully]

That is an interesting point. All I was saying about leaving the EU is that we would have control of what we do. We have had control of what we do with Ireland for a number of years, well before we were members of the European Union.

The Migration Advisory Committee looked at this issue in December 2015 and recommended a salary cap of about £30,000. It acknowledged:

“The Government’s core objective is to significantly reduce the level of economic migration from outside the EEA.”

The Prime Minister has made it clear that the Government’s focus is on training domestic workers. That is the right long-term plan. I talked about curry chefs earlier. I know that the Government have talked about setting up training colleges, apprenticeships and that sort of thing. In the long term, that is absolutely the way to go. The curry industry and a number of other industries have struggled to get to grips with and adapt to the change in Government policy over the past few years. Those industries have been trying to push against the changes, but now that the rules are starting to come in and bite, they have realised that it is too late to make changes that they could have made over a number of years.

Even if the Government do not reverse their policy, I hope that they will be understanding and sympathetic to these industries, working with industry leaders and trade bodies to ensure that, where possible, compromises can be made to help the industries cope. The curry industry that I keep talking about is worth £3.5 billion to the UK economy and employs around 100,000 people. It would be a tragedy to see a UK industry of that level wither on the vine.

Tier 2 has a role to play. When I was campaigning, immigration was certainly the No. 1 issue on the doorstep. It came up time and again. Everybody was saying to me, “You know what? We need a points-based system.” Well, we have one; we have had one since 2008, and the tier 2 visa system forms part of that process. To work out whether someone can get a tier 2 visa, they need to be able to show their income, and information in a number of other categories, and they then get points on the basis of that information.

Several Members here will have received the briefing from the Royal College of Nursing. I know that the threshold is of concern to the RCN, and nurses have already been mentioned today. I am glad that nurses are on the shortage occupation list; that is important, especially when we are trying to recruit more nurses and bring more of them into the national health service. Obviously, it takes time to train nurses, so we have to find them from somewhere. According to the RCN, 3,365 nurses would have been affected if they had not been on that list. The shortage occupation list has to iron out unintended consequences, but it still provides the default position that the UK should supply its own workforce wherever possible. That is the right thing to do.

We must bear in mind that the tier 2 visa system is only one tool in controlling immigration. The Government have done a number of very good things on immigration, such as closing down 920 bogus colleges, slashing 45,000 visas from the further education route, cutting family visas by a third, restricting access to public services through the Immigration Act 2014 and cutting abuses of those services. All those measures have had an effect, but there is still more we can do, and we must do so for the reasons I have given.

There are only a certain number of avenues that the Government can control. The issue of unskilled labour from the EU is not one of them, unfortunately. The UK economy is the biggest pull factor for migration. We have talked a lot in debates in the main Chamber about welfare changes, but ultimately the biggest pull factor for migration is the state of the UK economy—it is the fact that we have had the fastest-growing economy in the western world and have been creating more jobs in the UK than the rest of Europe put together. When there is double-digit unemployment in parts of southern Europe, of course the UK will be an attractive place to come, so we need to do more on immigration.

It is important that we have a good debate. We have to keep on controlling mass immigration, which affects infrastructure and can often affect social cohesion. I hope that the Minister will look kindly on some of the industries and occupations that are struggling to keep up with the pace of change, and at least acknowledge that they need comfort, support and the right words, so that they realise that they are valued in the UK economy and throughout our public services. I look forward to a vibrant debate.