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Debate between Baroness Blackwood of North Oxford and Lilian Greenwood

Tuesday 10th June 2014 Commons Chamber

[Lilian Greenwood (Nottingham South) (Lab)]

It is a privilege to follow my hon. Friend the Member for Clwyd South (Susan Elan Jones), who spoke so eloquently and passionately on a vital issue of deep concern.

Last week, my right hon. Friend the Leader of the Opposition said that one of the tests for a Queen’s Speech is whether it responds to the anxieties people feel in their communities. Many of us will recognise that one such anxiety expressed by some of our constituents is about immigration. We should be able to debate immigration, both in Parliament and with our constituents, because it has a vital place in the history of our country. Our success as a nation was built on being outward-facing and welcoming, and over centuries, immigration has made Britain the country we are proud of and it has an important role in our future. However, it must be controlled and managed to ensure that the system is fair and works in the interests of everyone, and of course that it has public confidence and support.

Despite its importance, immigration did not get a single mention in the Queen’s Speech. This Government’s policies over the past four years have not promoted an open and honest debate, or delivered the progressive and fair approach that this country needs. Instead we have seen the use of irresponsible “Go Home” vans and heard a lot of tough talk, while at the same time the ill-conceived targets for net migration that the Government set have been missed by a mile. The Prime Minister promised to reduce net migration to the tens of thousands, but it has actually risen to 200,000.

Indeed, it is worse than that. Not only are the Government failing to tackle some of the very real issues affecting our communities—such as the way some employers exploit cheap migrant labour to undercut local pay and conditions, or the impact of cuts to our vital public services—but their policies on immigration are damaging the future prosperity of cities like Nottingham by discouraging bright overseas students from coming to study at our universities. Back in March I met the pro-vice-chancellors with responsibility for international students from Nottingham Trent university and the university of Nottingham. They were extremely concerned about the impact that Government changes to visa applications and post-study work entitlements are having on the recruitment of international students, and about the implications of that for the economic success of our city.

Higher education is one of the UK’s most important export industries. There are currently around 11,000 international students in Nottingham across our two universities, and there is monetary value to their being there. Nottingham Trent university estimates that the total spend of their international students—fees plus accommodation and living costs—is around £60 million. The corresponding figure for the university of Nottingham is £160 million. Those universities estimate that when we take into account the multipliers—the extra value of that expenditure for the local economy—the combined value of international students to the Nottingham economy is somewhere in the order of £374 million per year, supporting hundreds of jobs in our city and the wider east midlands region.

The concern for our universities, which are operating in an increasingly competitive global marketplace, is that the Government’s rhetoric and policies are putting students off coming to the UK to study. Higher Education Statistics Agency data show that the total number of international students studying at higher educational institutions in the UK has declined for the first time since records began in 1994. The biggest drop off in visas is for students from the Indian subcontinent, with India, Pakistan and Bangladesh seeing reductions in the year to March 2013 of 38%, 62% and 30% respectively. That is particularly alarming as those are among the countries forecast by the British Council to have the biggest increase in outbound student mobility up to the year 2020.

The ability to work in a country after study is one of the most significant factors that students consider when deciding where to study. A recent survey by Universities UK found that 56% of respondents cited the possibility of obtaining post-study work experience as a factor they considered when applying to the UK. According to a 2011 survey by the UK Council for International Student Affairs, the abolition of the post-study work route has had the greatest negative impact of all recent visa changes on students’ decisions to study in the UK, especially at postgraduate level. If the Government do not think again—I hope the Minister will respond to these issues in his closing remarks—Nottingham and other UK cities could face an immediate impact on their local economies, risk missing out on some of the brightest overseas students, and lose the wider cultural benefits of hosting students from across the world.

There is also a longer-term impact because we know that young people who study here are the Government, business and cultural leaders of the future, and therefore we are also losing out on the opportunities for international influence and inward investment that educational opportunities in the UK can foster and encourage.

Let me turn to the issues that the Government are simply failing to address and which concern many of my constituents. The Government have said that a key priority is to

“continue to build an economy that rewards those who work hard.”

Unfortunately, for many people in Nottingham that does not reflect their experience of the last few years. As my right hon. Friend the Member for Doncaster North (Edward Miliband) noted last week, 5 million people in Britain—one in five workers—are low paid, and for the first time ever most of the people in poverty are in work. Yesterday, the Nottingham Post reported that 16,000 people a year rely on food banks in our county, and charities tell us that low wages and insecure contracts are contributing to the huge increase in that number. That is why I raised the need for financial security in employment with the Prime Minister last week. Unfortunately, he failed to address the concern I was expressing on behalf of my constituents about the quality and security of the new jobs being created and about their ability to earn a decent living wage.

As we are a trading nation, a “close all the doors” approach to immigration cannot work, but neither can a laissez-faire right-wing approach to free movement that allows employers to exploit cheap labour. It is bad for the migrant workers being exploited, it is bad for local workers whose wages are undercut and it is bad for responsible employers who want to offer fair rewards. Labour is the only party offering practical solutions to stop this exploitation in the workplace. Instead of remaining silent, the Government should have included an immigration Bill to stop workers being undercut.

In a Labour Queen’s Speech there would be measures to strengthen minimum wage enforcement by giving councils a new role and increasing the maximum fine to £50,000.

[Nicola Blackwood]

In the light of the hon. Lady’s comments, does she welcome the fact that the Government have raised the minimum wage, and will legislate in the small business Bill to help enforcement of the minimum wage and remove exclusivity from zero-hours contracts?

[Lilian Greenwood]

Of course I welcome the measures that the hon. Lady mentions, but they are not enough. Banning exclusivity from zero-hours contracts does nothing to help people who are working regular hours week in, week out but never have the security of a proper contract. That is why we are asking the Government to go further.

A Labour Government would ban employment agencies that only recruit workers from abroad and would make serious exploitation a crime, to prevent dodgy gangmasters exploiting migrants to undercut jobs and wages. We would also strengthen border controls to tackle illegal immigration and stop abuse, but welcome overseas students coming to the UK and immediately remove them from the net migration target. We would act where the Government have not and strengthen checks on short-term student visitor visas which are open to abuse.

We would also introduce a “make work pay” Bill to reward hard work, raising the national minimum wage to a higher proportion of average earnings and guaranteeing a regular contract to those on zero-hours contracts who work regular hours month after month but have no security for themselves or their families.

Fifteen years ago I worked as a trade union officer in Derbyshire. Many of the low-paid home care workers had a small number of contracted hours but regularly worked many more hours. We reached a deal under which those hours were gradually incorporated into their contracts. I recognise that employers and employees sometimes need flexibility, but people also need financial security, and we are proposing a workable option that would provide that.

Labour would encourage businesses to pay the living wage with “make work pay” contracts. I would like to take this opportunity to pay tribute to the Labour local authorities that are leading the way on this, ending poverty pay among their own staff and only contracting with those employers who pay a living wage. I also pay tribute to organisations such as Nottingham Citizens, which is working in our city to demonstrate the value of a living wage to employers and holding us politicians to account.

The message that we heard loud and clear in the recent elections is that people want politicians who listen to their concerns, talk to them and are not afraid of debate. People are worried but we should not stoke those fears. Hostility and division are not the way forward. Britain needs fair and practical solutions. That is what a Government should offer. The coalition is not offering what people need, but a Labour Government will.