Immigration (Bulgaria and Romania)

Debate between Nigel Mills and Douglas Carswell

Thursday 19th December 2013 Westminster Hall

[Nigel Mills]

I agree with everything that my hon. Friend says. If he has read the speech I made in Committee, he will have seen that I focused on the argument about the impact on our labour market, which is already and still disrupted by the recession. If he has not read that speech, luckily I can give most of it again, seeing that we are debating much the same topic. I fear that I may have to give the same speech in a few weeks’ time, when we debate the Immigration Bill.

My hon. Friend is right that it is important to get the tone of any debate about immigration right. We are not looking to insult people or make untrue claims; we are looking at what is in our national interest and the public interest. We are still experiencing higher unemployment than we would like; it is higher than before the recession, and even though it has decreased significantly in recent months, it is still the main problem.

That is not to say that the Government are wrong to try to ensure that our welfare system is no more generous than those of other western European nations, and to tackle some of the potential weaknesses, such as the fact that we still have a system based on entitlement, not contribution. A fundamental reform of the system may well be required. I wholeheartedly support the measures announced; perhaps we could have gone further.

I have an interesting question that I hope the Minister will answer later: how many people do the Government think their new measures will catch? How many fewer people do they estimate will come over the next five years than would have come without the measures? I suspect that the number is not very large, but the information would be welcome.

Why are we concerned about the potential level of immigration from Romania and Bulgaria once the restrictions are lifted? We have talked about people coming here to abuse our welfare system, to the extent that that is actually the case, but there are real concerns about the impact on our health service. The fact that we have free health care, which is, of course, very welcome, makes us a little more attractive a destination than many other western European nations where the situation is not quite as simple.

[Mr Douglas Carswell (Clacton) (Con)]

I congratulate my hon. Friend on raising this important issue. The United Kingdom is one of only five European Union member states with a system in which non-contributory unemployment benefits are paid to people looking for work. Surely we cannot have totally unrestricted movement of people within the EU and retain our system of non-contributory unemployment benefits. At the same time, the European Commission is pushing to ensure that all EU nationals have the same rights as British nationals to claim non-contributory payments in this country. Does my hon. Friend agree that that is what is at stake? We must make a choice between the welfare system that the Labour party put in place after the second world war, and the grand project of the European grandees. We cannot have both.

[Nigel Mills]

I agree with what my hon. Friend says. He leads us to a fundamental tension. Can we allow freedom of movement when there are such disparities of wealth between the new nations joining the EU and others, and when the attractiveness of our benefit system means that it is very different from what people experience in their country? There is a tension between the welfare system that we would like and the impact that it has when there is free movement of people, and we must resolve that, one way or another.

It would be far better for the European Court not to produce such ludicrous decisions. Those of us on the Eurosceptic side of the debate probably welcome perverse decisions that further lower the reputation of the EU and the UK, but if I were in the Court’s shoes, I am not sure that I would be quite so creative.

The NHS is attractive to people coming here, and there are also concerns about whether we have enough housing to accommodate large influxes of migrants over the next five years. Those of us who are experiencing great discomfort due to local plans to comply with existing housing targets probably do not fancy adding a few more hundred thousand people throughout the country, and seeing how many more houses we will have to find on our green belt. There are also impacts on other public services, notably schools, in areas where there is high pressure from immigration.

--- Later in debate ---

[Nigel Mills]

That is one of those welcome problems, in that we all want our economy to be growing so strongly that we become a much more attractive place—but there are clearly downsides in dealing with the legacies of recession, with unemployment and especially youth unemployment still far higher than we might like. We need to get our own people who are struggling into the jobs that growth generates.

To return to my contention, if the treaty had allowed the restrictions to continue for a further period, I am in little doubt that we would have wanted to extend them, if we could, and that brings us to my next point. We signed that treaty a decade ago, but we had not at that point predicted a catastrophic recession, which would take many years to recover from—we are still trying to recover from it—and we had not appreciated just what the level of immigration from the previous accession wave would be, which was far in excess of our estimates. I suspect that had we known those two things when we were signing the treaty, we would never have agreed to restrictions on those two countries being lifted so soon or at this point in the economic cycle.

The question becomes, does Parliament say, “We have to accept that we approved the treaty”—it was passed by this House—or actually do we have the right to say, “With hindsight, that was a mistake and it is now not in our national interest to continue with what we agreed”? We need to change that. Let us simply keep the restrictions already in place for a further defined period—that is a proportionate response to a clear problem—at least until our economy is fully recovered from the shock experienced in the recession. That is not an unreasonable or disproportionate thing to do.

It is worth noting that I was only trying to keep the restrictions that have been in place since Romania and Bulgaria joined the EU. That would not stop completely people from those two countries finding work here. If able to find work in this country and get a work permit, they have been permitted to work here since they joined the EU—that would not change. So my suggestion of not lifting restrictions that are already in place is proportionate at this point. If the Government are not minded to accept that relatively gentle and proportionate measure, I sincerely hope that they think again in the two weeks left before the new year and try to find some other way of keeping the restrictions.

Some interesting policy ideas have been announced as different ways to tackle the problem. I was quite attracted by the idea that accession countries whose gross domestic product per capita is well below the EU average should not get full access to freedom of movement until their GDP was nearer the EU average—perhaps three quarters of the average. That would tackle the issue raised by my hon. Friend the Member for North West Leicestershire (Andrew Bridgen), because it would mean that the brightest people in those countries could not leave; they would have to stay there and find ways to grow their own economy.

The gross national income per capita in both Bulgaria and Romania is about $16,000, compared with our GNI of $37,000, so those two countries would fail the test, were we to apply it now. That test is attractive, but its prospective introduction would not fix the problem that might well hit us from 1 January. Surely it would therefore be better to keep the restrictions we have in place while we are trying to achieve those reforms.

The second idea, which was leaked this week, was to have a cap on EU migration. Again, that is an attractive idea and one that, I suspect, would contribute greatly to enabling us to meet our target of net migration in the tens of thousands, although there would be some practical issues with enforcing a cap, and I suspect that other EU member states might not be as keen on the idea. But I find it intriguing that although it is seemingly impossible to try, in response to a clear issue in our employment market, to keep in place for a bit longer restrictions that have been allowed until now by the accession treaty, it is thought that a complete and utter unravelling of freedom of movement—even between the main western European nations—might be possible. I am afraid that I am not so optimistic that we could achieve that aim in a renegotiation; but even if it could, it is a measure for a long time in the future, not one that can help us out in the coming years if large amounts of people decide to come here.

Finally, I have some questions for the Minister. I understand that Governments have had their fingers burnt making estimates in the past, but will he set out whether the Government believe that a large number of people from Romanian and Bulgaria will try to come to the UK when the restrictions are lifted? Independent estimates suggest figures of between 30,000 and 70,000 people a year for the next five years, which would put the total at something like 350,000. I do not expect an accurate assessment, but do the Government think that number is way over the top, is an underestimate or is about right? The people of this country want to know whether their fears are unrealistic or entirely realistic.

Given that nearly all western European nations have kept the restrictions in place until the last minute, I would presume that those countries fear that there might be an issue. It is also worth noting that Romania and Bulgaria will not be joining Schengen on 1 January, as they were meant to, again because of concerns across Europe about what that might entail.

[Mr Carswell]

My hon. Friend is looking at public policy responses to this problem and has outlined some important ideas, but surely there is one blindingly obvious policy solution that we need to consider seriously, which is to withdraw this country from the EU completely. Is it not absurd that people need a visa to come to this country from Singapore, a country with an incredibly high number of talented and able people—we would benefit from greater labour mobility for such people—but we have unrestricted movement of people from Bulgaria? If we were outside the EU, like Switzerland, where one in five members of the labour force is a non-Swiss national, we could benefit from all the advantages of labour mobility and have all the necessary requirements to control it.

[Nigel Mills]

My hon. Friend is clearly right. However, sadly, I do not think that we can convince the Government to pull us out of the EU in the next fortnight, and so we probably need to take some different measures in the meantime. He may have noticed that the five-year period I am proposing for keeping the restrictions will take us well past the referendum that we hope will take place on our EU membership. At that point, the people will have been able to choose whether they want to stay in and have unrestricted migration or to leave and reintroduce our border controls. I hope he would agree that a five-year time frame for keeping the restrictions would be one way of helping to meet his aspirations in that situation.