Immigration

Debate between Virendra Sharma and Lord Lilley

Thursday 18th November 2010 Commons Chamber

[Mr Lilley]

Absolutely. I was coming on to that issue, which requires intelligent debate and recognition that it is not a matter of “all or nothing”. The absurd idea that we should allow anybody who can be labelled a skilled worker to come here is wrong.

[Mr Virendra Sharma]

Will the right hon. Gentleman give way?

[Mr Lilley]

In a moment, as I want to finish answering the point that was raised.

I am not suggesting that certain categories of skilled workers could not be used during a temporary shortage while domestic employees were being trained, or that there could not be a skills transfer when the skills that were required could not, by their very nature, be acquired domestically or through training. We have traditionally allowed companies to import workers for the purposes of skills transfers when the skills concerned are company-specific.

Let us say that IBM is setting up a factory here. It has an IBM way of doing things. Initially, it will need to bring in the IBM accountant to show British accountants how to run the accounts and the financial system. Those running the production line may have to bring in IBM production engineers to train British engineers in their ways of doing things. It is not possible to buy such company-specific skills on the market; they must be imported temporarily. However, because the people who have transferred the skills invariably return, the transfer does not result in net migration. That is very different from allowing cheap skills into this country.

In a blog that is influential in the IT industry—here I declare an interest—the author of the Holway report constantly hammers home the fact that we are moving slowly towards circumstances in which fewer and fewer entry-level jobs are available in the industry. Last year 9,000 skilled IT workers were brought into the country by a handful of companies under the intra-company transfer scheme. That is not transferring skills from a company to domestic residents; it is importing cheap labour. However, we allow it, although as a result the IT sector has one of the highest rates of unemployment in industry. The Government must think seriously about the issue, and must not form policy on the basis of slogans such as “Skilled work is good” and “Open border to skilled workers”. That is not good in the long run if it means that fewer of those who are already here acquire skills, experience and expertise.

[Mr Lilley]

My hon. Friend’s intervention prompts a number of questions. For instance, why do we not train people?

For a while I was chairman of a small German company as a result of a merger, and the first thing that we did was bring in British employees to train its employees. It is considered automatic: every company, even a small company with only 200 employees, trains people. Sadly, that culture does not exist in this country. All that we think of doing is importing people from abroad, or possibly stealing them from our competitors down the road. At least if we steal them from our competitors down the road, we have to bid up the salaries for the particular skill involved. We encourage more people to acquire that skill, and as a result increase the number of people with such skills in our economy. However, the idea that we should assume passively that this country alone in the world cannot train people to acquire skills that semi-developed countries seem to be able to train their people to acquire strikes me as a defeatism that is sad and deplorable.

I hope we will recognise that there are some skills that we should allow into the country: entrepreneurial skills, for example, I rather doubt whether entrepreneurship can be taught. Some people are natural entrepreneurs while others are not. That is fair enough: if someone has proven success as an entrepreneur abroad, we should let him in, with some of the capital that he has acquired. Only a small number of people will be involved, however. That is not mass immigration. It will generate a lot of jobs and it is a sensible thing to do, so let us do it. However, we must distinguish between those sorts of skills and the sorts of skills we can enable the existing population of all ethnic origins to acquire, so that the well-being of those already here improves.

[Mr Virendra Sharma]

First, let me say that I take the recent sedentary comment of my hon. Friend the Member for Ealing North (Stephen Pound) as a compliment, rather than something negative. The right hon. Gentleman agrees that there is a skills gap within the work force at present, and to fill that gap we need workers coming from overseas because we cannot train people here overnight or in a short period. We need to address both ends of this issue by filling the gaps now from overseas while training the work force here for the future.

[Mr Lilley]

Yes, and that would imply the following policy: if a company says, “No one in this country yet has expertise in—”[Interruption.] Yes, in electric cars, as the hon. Member for Burnley (Gordon Birtwistle) suggests. I do not know whether that is the case, but if it is we might have to introduce that expertise from overseas in the short term, but the understanding should be that that is in order to transfer the expertise to the domestic population, rather than because we have given up on the domestic population ever learning the skills to make electric cars. It should be short-term immigration, not long-term immigration.

[Mr Sharma]

I do not think that anybody is advocating that the work force here should not be trained. However, there is a skills gap in the work force and we need to fill it otherwise we will suffer economically.

[Mr Lilley]

Yes, but above all we need to fill it by training people up. That is what countries that grow and prosper do, and we have got to learn to do it too.