Draft Immigration Act 2014 (Current Accounts) (Excluded Accounts and Notification Requirements) Regulations 2016 Debate
Full Debate: Read Full DebateStuart C McDonald
Main Page: Stuart C McDonald (Scottish National Party - Cumbernauld, Kilsyth and Kirkintilloch East)Department Debates - View all Stuart C McDonald's debates with the HM Treasury
(7 years, 8 months ago)
General CommitteesLike the hon. Member for Stalybridge and Hyde, we oppose the Government’s stated policy of creating a hostile environment. The related set of policies is dangerous and probably counterproductive to the Government’s aims. There is no evidence that the policies will be effective in the way that Government hope they will be. Instead, it will probably cause trouble for everyone, because we cannot seal off illegal migrants from those who are here with leave. Everyone will experience that hostility. This policy will probably force irregular migrants even further underground making enforcement harder. It also presumes that information on immigration status passed from the Home Office to third parties is correct, but it is often not, for a variety of reasons.
If any aspect of the whole hostile environment policy has some sort of logic to it, perhaps on paper this measure has. However, like too much UK immigration policy, it is pursued and rolled out without any proper assessment of the evidence of its effectiveness or, indeed, the downsides that the existing policy has brought about.
The hon. Member for Stalybridge and Hyde raised questions about the numbers of people who might be involved. Earlier this year, the chief inspector of borders and immigration noted that the data being shared with banks and building societies about new account openings might not
“be updated with relevant information, e.g. a voluntary return or a lodged appeal, until some months after the event, and that data was often entered in the wrong place,”
often as comment-free text. He continued:
“the list was not always accurate, with both omissions and individuals wrongly included as ‘disqualified persons’ who had departed, or had succeeded in an appeal or had regularised their immigration status and were not in the UK with valid leave”.
An inspection of 169 cases on the database showed that 17—10%—should not have been there: nine had leave to remain, six had applications for outstanding leave to be extended and two had an outstanding appeal. We need to remember that the list contains details of about 200,000 people, so we could be talking about some 20,000 innocent people being affected.
On the other hand, there is no systematic data about whether this policy improves border control in any way. The Home Office gives us its warm intentions that the policy will lead to people leaving. However, there is no evidence of Home Office follow-up or use of the information it receives on data matches and there is no evidence that the policy persuades people to leave voluntarily either. Before rolling out the scheme, we surely we need to see improvements in that regard.
The fact that we are revisiting the policy suggests that there are difficulties. The 2016 Act is there to fill the loopholes left by the 2014 Act, but these regulations suggest that we have to roll back from legislation that was passed just a few months ago. These regulations leave lots of questions unanswered. The Minister went some way in his statement, which I welcome, to explain exactly why we need to exclude certain accounts from the scope of the regulations. Essentially, it is to rule them into line with previous regulations. The explanatory memorandum states that the new exclusions mean
“that firms are not required to make a check on all current accounts, for example corporate or business accounts. This approach is intended to be targeted and proportionate and to take into account the existing prohibitions in the 2014 Act.”
I would like to hear a bit more about the thinking behind that. I would like to know how many checks are envisaged to occur and, if the 10% error rate is applied, how many thousands of innocent people will be caught up in this? If innocent people are caught up in this, what sort of compensation will there be for those mistakes?
In conclusion, I remain sceptical. We too reject the approach the Government take in attempting to create a hostile environment. More importantly, we need evidence of what the regulations will do and the steps the Government will take to resolve some of the already outstanding issues.
The hon. Gentleman raises a valuable point. My understanding is that if that were the case, the Home Office would be open to argument. The instrument is a small piece of legislation in a wide range of tools. I feel obliged to mention the £140 million announced at the Conservative party conference for a controlling migration fund specifically designed to ease the pressures on public services in areas of high immigration.
My hon. Friend the Member for Sittingbourne and Sheppey raised an alternative perspective. It is about getting the balance right and providing the welcome that the UK is famous for—not putting up barriers, being outward-facing and globally-looking—while, at the same time, providing a degree of fairness when it comes to people who should not remain in this country.
This is a genuine question. The only other issue I have with the proposed regulations is the intention to exclude a whole series of accounts from the operation of the rules, including accounts used by an individual
“for the purposes of a trade, business or profession.”
All the Minister said in that regard was that the measures are in line with earlier regulations, but I still do not quite understand the rationale for that. If that happens, surely we will be going after—for want of a better expression—the little people, whereas people with business accounts and so on are being excluded from the force of the rules altogether. I would appreciate some explanation of the rationale for that.
I need to be clear on this. The rationale and scope of the legislation is personal current accounts because that is felt to be the area where the legislation can have the most effect. Businesses of all sizes are unaffected. Businesses are only mentioned should someone have a current account that falls foul of the matching process, when the banks are obliged to provide all the information about the other accounts that that individual may hold. However, it does not stop any business accounts—large or small. [Official Report, Vol 618, 6 December 2016; c. 1-2MC.]
I have done my best to provide assurances on the many points made by Committee members. I know that we all share a desire for a targeted and proportionate system. I am confident that the statutory instrument represents a balanced and sensible approach to continued access to banking services by disqualified persons. I hope that hon. Members support the regulations.
Question put.