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

Jack Brereton Excerpts

Committee Debate: 1st sitting: House of Commons
Tuesday 12th February 2019 Public Bill Committees

[Afzal Khan]

Q Professor Manning, in the White Paper the Government proposed a temporary 12-month work visa to help businesses to transition. What do you think are the possible problems with the proposed route?

Professor Manning: The first potential problem is that an employer-driven system can lead to workers being extremely vulnerable. They are here only for short periods and do not really understand the system, and so on. We would need quite extensive regulation to prevent potential abuse of those workers.

Secondly, if you are concerned about the social integration of migrants, it will not help with that. Inevitably, there is no point in people who are here only for a short period investing in building a life here, and links to the wider community.

Thirdly, historically it has been the case that, because it is quite artificial—at the end of 12 months a worker has to leave, perhaps to be replaced by another—it generally sets up some kind of pressure for employers to extend the 12 months. It may start off in that form, but there is a risk of drift into a more permanent migration route.

[Jack Brereton (Stoke-on-Trent South) (Con)]

Q How do you see the changes to free movement affecting the economy? Do you think they will have a positive or negative impact, or do you have more detailed concerns?

Professor Manning: The view in the report that we published in September is that EEA migration has not had very big costs. It has not had very big benefits either. The technical analysis in the White Paper indicated that. There would be impacts here and there. The general point is that after 2004 free movement, more by accident than design, was a system for primarily lower-skilled migration. Most countries have a preference for higher-skilled migrants. The proposals that we made, and that were taken forward in the White Paper, were essentially to alter the balance towards more higher-skilled migrants.

[Jack Brereton]

Q Do you think that lower-skilled labour has had any impact on wage levels?

Professor Manning: Not to any great extent—we are fairly confident about that. There is some evidence of a small effect but, because of the minimum wage, there has been quite a substantial protection against that at the bottom end of the labour market. It has certainly not had a positive effect on wages—the evidence there is neutral to negative. I would not say that any of that effect has been very big.

[Nick Thomas-Symonds (Torfaen) (Lab)]

Q Professor Manning, you may have seen the CBI Wales analysis showing that 58% of workers in the manufacturing sector in Wales, over one quarter of whom are EU nationals, earn below the £30,000 threshold. There is real concern about how this would impact on manufacturing, in Wales in particular and across the country. What analysis have you done about the potential adverse impact on the manufacturing sector?

Professor Manning: Our proposal was to maintain the existing system of salary thresholds, of which £30,000 is one but not the only one. A lot of commentary omits that important detail. If you take that number, we think that the argument for having migrants is normally that there is a shortage of workers in the domestic labour market to do that job. Our proposal is that you should be able to employ migrants, but you have to be paying above the going rate for wages; you must not be employing migrants to undercut the domestic labour market. The absolute minimum salary threshold that you would consider would be something like the average, which is about 50% of workers. When you say it is 58% of workers, I think it is entirely reasonable to think that there is some upward pressure on wages in the manufacturing sector. I understand that the CBI is not very keen on that, because to the CBI wages are a cost, but to other people it is their income.

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[The Chair]

Lord Green, the Clerk has taken careful note of your remarks about the balance of witnesses. I did not have any hand in it, and we will reflect on the issue.

Lord Green: It is not a criticism. This is life—we are the only body in the UK that makes these points.

[Jack Brereton]

Q Would you agree that delivering on free movement and on the control of free movement, which the Bill would achieve, would be a key part of delivering on the 2016 referendum result?

Lord Green: Yes, I certainly would, and I think the public would certainly take the same view. As we have mentioned before, the Bill is only a framework. I think the Scottish National party and the Lords have pointed out that it has enormous secondary powers, which I am sure you will consider. In effect, it opens the door to whatever the Government might later decide. Reading the White Paper, I think we will all be in difficulty.

[Jack Brereton]

Q What do you think would be the consequences of not delivering on the control of free movement?

Lord Green: That is a political question and your Members will know better than I do, but I think they will be serious.

[Nick Thomas-Symonds]

Q I think you have been very firm in your views on levels of migration being too high. What is the right level of migration?

Lord Green: Until 1998, the level of net migration had never been more than 50,000 a year, and on some occasions it had been negative. Times were different, but we did not really need large-scale migration until then. You probably remember—you may have been an MP at the time—that when the Labour Government eased the immigration system, the numbers trebled in a couple of years. You will also remember that when the points-based system was introduced in 2008, we found very soon that we had something like 40,000 bogus students arriving in one year, mainly from the Indian subcontinent. We also found that 1,000 bogus colleges had to be closed. I am not trying to criticise the Labour party in this matter. My point is more general: the pressures on our immigration system worldwide are very strong indeed. We have seen it twice and there is every risk that we are going to see it again.

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[The Chair]

Very brief questions and brief answers.

[Jack Brereton]

Q Following Brexit, do you think that there should be a preferential system for all EU citizens?

Chai Patel: I do not have any opinion on that, I am afraid. That is beyond our remit as a charity concerned with the human rights of immigrants going through the system.

[Afzal Khan]

Q You said the Bill is premature. Can you quickly give us your major concerns about the Bill?

Chai Patel: The Bill is premature because there is no plan for what follows. Our primary concern is the Henry VIII powers given to the Home Secretary to remove people’s rights, without the new system having been clearly set out. I know that there is the White Paper, but I also know that it is contested in Cabinet, and is still subject to intense debate.

The White Paper itself raises concerns about, for example, the one-year visas, which would cause exploitation and problems with integration. It also misses the opportunity to fix many of the problems that we saw with Windrush. There is nothing to address Home Office capacity, with so many new people coming through the system, or the problems with the hostile environment, which remain. We know that it causes discrimination, and we have not seen anything from the Government to roll back those provisions, or to thoroughly review them.