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

Stewart Malcolm McDonald Excerpts

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

[Sir John Hayes]

The chairman of the Migration Advisory Committee has made exactly that point—

[Stewart Malcolm McDonald (Glasgow South) (SNP)]

He didn’t.

[Sir John Hayes]

Will the hon. Gentleman listen? The chairman made exactly that point. He said that the policy of free movement tends to perpetuate a low-skill, low-wage economy. That is precisely what we have ended up with, with a consequent displacement of investment in skills, in automation, in technology and in recruitment.

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[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

I was only going to make a couple of points, but as I have listened to the debate, the number of points has grown. I shall kick off by correcting, or perhaps taking on—I do this on migration quite a lot—the hon. Member for Saffron Walden (Mrs Badenoch). I was very disappointed by the remarks of the hon. Lady, who is not in her place, and the sort of reverse dog whistle when she looked at the SNP Benches. She should be aware that the first ethnic minority Member of the Scottish Parliament was Bashir Ahmad of the SNP, that the first Government Minister in the devolved Scottish Government was Humza Yousaf of the SNP, and that the first Muslim woman from Scotland to be an MP was Tasmina Ahmed-Sheikh of the SNP. I merely put that on record so that people such as the hon. Member for Saffron Walden do not repeat that sort of nonsense again.

This immigration debate is an interesting one. It is not a debate about what we want or what we could do; it is a debate about what we can stop, what we can control and what we can limit, and that is very disappointing. There is actually something really akin to the Soviet central planning of the 1920s onwards: we have Soviet tractor statistics. That is really the sort of theology that is driving this current Home Office—centralised planning and red tape, with Government at the heart of people’s lives and building bureaucracy where there is no bureaucracy at the moment. All the time, what the Government will do is increase the work in MPs’ offices up and down the country as a result of the nonsense we are going to have.

[Stewart Malcolm McDonald]

I am grateful to my hon. Friend for the historical point. In response to what the hon. Member for Stoke-on-Trent South (Jack Brereton) said, does my hon. Friend recognise, as I do, that freedom of movement was actually brought in to replace the extremism of Soviet communism and Nazism? It is one of the greatest achievements in history—economically, diplomatically and culturally. Is it not a great shame that people such as the hon. Gentleman can see it go so easily and cheaply?

[Angus Brendan MacNeil]

Absolutely. When people mix together, rub shoulders and talk to each other, they learn quite a lot from each other. They stop fearing each other and stop believing the demagogues who are telling them all sorts of nonsense about the other.

We will not just see more work in our own MPs’ offices, but add anxiety and angst to people’s lives because of the nonsense that will come before us. What is all this based on? It is based on a voodoo referendum. The question was about leave or remain, but it quickly became akin to slaughtering a chicken, looking at its entrails and claiming that the people meant us to leave Euratom, that the people meant something on standards and tariffs, that the people meant something on the customs union, or that the people meant something on the single market. It is claimed that the people meant something else again on migration and freedom of movement, and on the European Court of Justice. It is nonsense, but people draw all sorts of conclusions. This is voodoo politics based on a voodoo guff referendum that we had a couple of years ago.

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[Stephen Kerr (Stirling) (Con)]

It is a privilege to follow the hon. Member for Birmingham, Yardley (Jess Phillips) and my hon. Friend the Member for Brentwood and Ongar (Alex Burghart). I was not going to mention this, but it now seems appropriate: my mother, Sheila Lillian Harman Kerr, passed away on Thursday evening. She was a daughter of Birmingham, so I have a bit of Brum inside me. Members may not be able to discern it from my accent, but a bit of Birmingham lingers in my heart. I feel she might be smiling at the fact that I am following such an excellent Member of Parliament for Birmingham and someone who represents someone who was a servant of the city of Birmingham.

I rise to support the Second Reading of this Bill on a key matter relating to our departure from the European Union: control over our borders. I thank Ministers for their decision to scrap the charges for the settled status process for EU citizens. In particular, I thank my hon. Friend the Member for Bexhill and Battle (Huw Merriman) for the very significant part he played in bringing that about. I know how much that means to people in my constituency. It is very important that our actions in government match our words. We must send a clear message to our family members, friends, neighbours and colleagues who have come to this country from the European Union, and to whom this country is now home, that they are a vital part our community. They enrich our lives and play a hugely valuable part in our economy, and I deeply regret any suggestion from any source to the contrary. Members of this House owe it to their constituents and the reputation of this House to measure the way they express themselves about such matters, and in interventions they make in debates about our departure from the European Union.

I have several points to make about the Bill. The first is about the university sector, and the University of Stirling in particular. In a report for Destination for Education, KPMG calculated that every international student recruited to a British university brings a net positive economic contribution of £95,000 in total. For the academic year 2015-16, that was estimated to be worth £20.3 billion. We are talking about a major British exporting success. I am proud of the UK university sector’s global standing, and I am proud that the University of Stirling is consistently highly rated as a destination of choice for international students. Stirling loves its international students and welcomes them with open arms.

Our world-class university system is the envy of the world and an unrivalled source of soft power influence in the world. I do not believe that student visas should be subject to any kind of cap, and I was encouraged by the Home Secretary’s remarks on that matter. We are competing with other English-speaking countries. By making it more difficult to access British universities than those of our competitors, we are doing ourselves no favours. We are in danger of losing market share in a growing global market. International students applying for bona fide courses at bona fide institutions should be allowed to come here. After all, they will support themselves.

We need a visa system that reflects an unabashed bias towards attracting and retaining talent, including newly qualified international graduates and postgraduates from UK universities. Why on earth would we not want such talent to stay in the United Kingdom to the benefit of our economy and the public good? As with other issues that we examine in this House, we must look for the balance of fairness. It is not fair or right to expect an international worker, graduate or postgraduate to earn more than £30,000 per annum, and to say that they qualify as skilled labour only on that basis. That would be a terrible mistake. The average graduate salary in Scotland is in the region of £21,000. Instead of rigidly fixing the system to a formula based on notional taxation contributions, we should look at earnings potential and social contribution.

We must be fair to businesses of all sizes. I ask hon. Members to consider how difficult it is for a small business to sponsor an international worker for employment in the United Kingdom. I worked for a global businesses before coming to this House, but what works for a big business does not necessarily work for a small business. The test of what is good for our economy is not how a global corporation copes with an imposed process, but how it works for a small business with limited resources.

I say this to the Government: beware of a one-size-fits-all approach to skilled labour. I would have thought that it is stating the obvious to say that what works in London and the south-east will not be right for other parts of the United Kingdom, so we must build flexibility into whatever policy we apply. The variables must be weighted to ensure that skilled labour can be attracted and retained in all parts of the United Kingdom and all scales of business.

[Stewart Malcolm McDonald]

I rather suspect the hon. Gentleman will not agree that immigration should be devolved, so let us park that to one side. What role should the devolved Governments have in setting UK immigration policy?

[Stephen Kerr]

I have long said in this House and outside it that the best way forward for the people of Scotland is for Scotland’s two Governments to work closely together, and I have made suggestions about how working together might be interpreted in a constitutional machinery sense. I am very grateful for the hon. Gentleman’s intervention. I think it is important that Scotland’s Governments work together on this issue.

[Stewart Malcolm McDonald]

I am extremely grateful for that. Will the hon. Gentleman explain that point? What should the devolved Governments’ role be? Should they get to set student numbers or have different salary thresholds?

[Stephen Kerr]

I do not think we should be talking about student numbers at all. The Home Secretary said earlier that there should be no cap on student numbers. It is important that we establish a constitutional process whereby the Governments of Scotland work together and talk and listen to each other.

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[Vicky Ford (Chelmsford) (Con)]

Immigration is an enormously sensitive subject, and it is important that we pick our words with sensitivity. I often sit in this place listening to foreign affairs discussions about countries that millions of people are fleeing—we were talking about Venezuela earlier—and I remember how lucky we are to live in a country to which people want to come, not one they want to flee. We are lucky to live in a country in which people have had freedom and where our history has given us freedom. In many European countries, people remember what it was like not to have freedom. Under communism in Poland, people were not allowed to leave the country. In East Germany, people in Berlin were not allowed to cross the wall, even to visit a family member.

[Stewart Malcolm McDonald]

The hon. Member for Stoke-on-Trent South (Jack Brereton) said earlier that we needed to stop freedom of movement to counter extremism. However, is it not the point of freedom of movement to put into the past the kind of extremism that built the Berlin wall?

[Vicky Ford]

Let me continue my point. Under communism, people were trapped in a prison in their own country, and to many across Europe, especially eastern Europe, freedom of movement is a deeply cherished right and we must remember to respect it in our own language.

How did we get to where we are today, when so many people in the UK feel that freedom of movement is not right for us? For me, there were two huge errors in our history. The first came under the Labour Government in the early 2000s when 10 new countries joined the EU and the then Government vastly underestimated the impact of migration and did not introduce transitional controls. I remember the impact on many towns across the east of England, which I represented as a Member of the European Parliament. I am thinking of towns such as Wisbech, Thetford and King’s Lynn, which saw a huge influx of people, putting real pressure on local services.

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[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

My hon. Friend the Member for Cumbernauld, Kilsyth and Kirkintilloch East (Stuart C. McDonald) spoke in great detail and with great skill about the many deficiencies of this Bill. I want to focus on just one: ending freedom of movement.

Since 2016, we have listened to those who wish to rip Scotland from the European Union speak triumphantly about the prospect of ending freedom of movement. They speak of this as if it is a victory that will benefit the people of this country. In truth, we cannot measure what will be lost. We will lose countless opportunities, relationships, stories, and human experiences that would have been worth just as much to us culturally and socially as the billions of pounds that our EU membership generates every year.

I know that this will be hard to believe, but, by the end of this week, I will be one birthday away from my 40s. [Interruption.] It is the truth, yes. A clear majority of Members in this place are clearly older than I am. [Interruption.] My hon. Friend the Member for Na h-Eileanan an Iar (Angus Brendan MacNeil) is clearly one of those. I am angry about the impact that ending freedom of movement will have on my generation and on those of older generations, but that anger is as nothing compared with the rage felt about the impact that this will have on younger generations—those who overwhelmingly voted to remain in the EU, or who were left voiceless due to this Government’s opposition to giving the vote to 16 and 17-year-olds.

I equate the situation to the support that the Tory and Labour parties gave to the various versions of tuition fees at university. They were happy to accept all the benefits of free tuition and the unburdened opportunities that it afforded themselves, but are now happy to pull up the ladder of opportunity behind them. So it is with EU membership and freedom of movement—it is selfish, self-defeating and utterly, utterly senseless.

[Stewart Malcolm McDonald]

Will my hon. Friend give way on that point?

[Gavin Newlands]

On the words “utterly senseless”, I give way to my hon. Friend.

[Stewart Malcolm McDonald]

I hope to make some sense with this thought, Madam Deputy Speaker. Thinking of the generational shift, does my hon. Friend think, as I do, that, in the past, the waters and the skies of Europe were filled with warring air forces and warring navies, whereas now they are filled with easyJet, Ryanair and low-cost airlines, and with people not thinking twice about darting across the continent, opening up economies and opening up people’s minds? Is it not the case that only the historically illiterate would cheer the ending of such a diplomatic channel?

[Gavin Newlands]

As usual, far from being senseless, my hon. Friend makes his point with force and alacrity, as is befitting of a budding statesman. I could not agree more—[Interruption.] I think that I have perhaps gone too far with that, Madam Deputy Speaker.

We had to listen to vacuous calls for reductions in the number of EU citizens making their homes and their lives here. We saw the Eurosceptics’ de facto leader stand in front of Nazi-inspired political advertising that cynically equated desperate refugees fleeing war-torn areas of the world with EU citizens. Those Eurosceptics lied about money for the national health service and they lied about Turkey joining the EU. Some even promised that we could stay in the single market and yet still somehow end freedom of movement.

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[Afzal Khan (Manchester, Gorton) (Lab)]

We have heard passionate speeches from Members on both sides of the debate. By my count, 27 Members have contributed. The hon. Member for Chatham and Aylesford (Tracey Crouch) raised the niche but important issue of immigration in football. I thank the SNP spokesperson, the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East (Stuart C. McDonald), and I hope he will continue to work with us in Committee.

A new immigration system must not damage our economy and our society. My speech will cover the four broad areas that Labour’s objections to the Bill fall into.

[Stewart Malcolm McDonald]

Abstain or against?

[Afzal Khan]

We will be against. Is that good enough?

First, the Bill is not a blueprint for a new immigration system, but a blank cheque. It contains broad Henry VIII powers that would allow the Secretary of State to amend both primary and secondary legislation. That point was made by my hon. Friends the Members for Bristol North West (Darren Jones) and for Birmingham, Yardley (Jess Phillips), who drew on her constituent’s awful case to highlight the importance of parliamentary scrutiny. The White Paper on immigration is not a final draft; it is out for a 12-month consultation. In any case, the Government are not tied to doing what is in the White Paper. The Secretary of State could use the powers in the Bill to introduce an immigration system that is entirely different from anything that has been discussed without parliamentary oversight or scrutiny.

If the Government go with what is in the White Paper, that would spell disaster for our economy and our society. Their own impact analysis points out that the plans would reduce GDP and would have a cumulative fiscal cost of between £2 billion and £4 billion in the first five years. The suggested short-term visa route would open the door to widespread labour abuses, creating a second class of migrant worker and enormous inefficiencies for businesses. That point was made by the hon. Members for St Austell and Newquay (Steve Double) and for Stirling (Stephen Kerr).

The Government’s plans have come under fire from their allies, as much as from their critics. The CBI described them as a

“sucker punch for many firms right across the country.”

The TUC called them

“a disaster for every worker”.

The British Chambers of Commerce accused the Government of leaving businesses with their “hands tied”. We will be looking to put sensible limits on those powers in Committee to ensure Parliament has a say on our future immigration system.

Our second big concern is about social security co-ordination. The Government already have the power under the European Union (Withdrawal) Act 2018 to ensure continuity in social security in the event of no deal. In fact, the Department for Work and Pensions has already tabled a series of negative statutory instruments that do just that. As the Government admit in the explanatory notes, the powers that they are asking for in the Bill would enable them to bring in a new approach to social security. That is a massive overreach and is entirely undemocratic. At least we have an immigration White Paper that indicates the Government’s thinking. We have no idea what they plan to do on social security.

The third issue relates to EU citizens in the UK. Despite the Government’s warm words about how much they value the contribution of EU citizens and want them to say, there is nothing in the Bill that protects their rights in primary legislation. More than 3.5 million EU citizens in the UK have spent two and a half years under a cloud of uncertainty. The Government have already started rolling back on their promises—for example, not to deny settled status to EU citizens who have not been exercising treaty rights, despite the Prime Minister’s guarantee that that would not happen. Basic fairness to those who have already moved between the UK and the EU, as well as our ability to attract talent in the future, rely on our getting this right.

Fourthly, the problem of accountability and transparency goes far beyond the Henry VIII clauses. The Tories have made it harder and harder to live as a family in this country, and my hon. Friend the Member for Birmingham, Edgbaston (Preet Kaur Gill) made the powerful point that the income threshold disproportionately affected women. The most stark and tragic illustration of this was the Windrush scandal. Let us be under no illusion: the cause of the Windrush scandal was the hostile environment. If we are to avoid a repeat of Windrush for EU citizens, the hostile environment must end. A system cannot be transparent if it is incomprehensible and inaccessible to the average person. The Government must simplify the immigration rules, follow the Law Commission’s recommendations, bring back legal aid and restore data protection.

We find the Bill a missed opportunity to address the moral and humanitarian failures of this Tory Government towards refugees and asylum seekers, as set out emotively by the hon. Member for Westmorland and Lonsdale (Tim Farron) and my hon. Friend the Member for Bristol West (Thangam Debbonaire). There is nothing in the Bill, and very little in the White Paper, on refugees and asylum seekers. At a minimum, we must bring an end to indefinite detention and fix refugee family reunion. I thank my right hon. and learned Friend the Member for Camberwell and Peckham (Ms Harman) and the right hon. Members for Haltemprice and Howden (Mr Davis) and for Sutton Coldfield (Mr Mitchell) for their cross-party work to end indefinite detention.

In conclusion, on immigration and social security, the Government have not done their homework. They have come to Parliament asking that we grant them extensive powers without any idea what they might use them for. We are not willing to grant the Government such broad powers to introduce as yet unknown rules on immigration and social security. Listening to the debate, it has become clear that Ministers’ intentions are even worse than we had expected, so we will be voting against the Bill on Second Reading.