Lord Bates
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Lord Green of Deddington
I am a father and a grandfather and of course I would do nothing of the kind, but then I am not in the situation of families in Syria. It is almost unimaginable to do that, but the question is whether there is a serious risk that it could happen. There is some evidence that that is exactly what has happened in relation to Sweden and Albania—Albania is different because that is a peaceful country. I raise the question. We need to be careful. If it was done through the UNHCR, we would be saving the same number of children, but we would not run the risk of encouraging further children to get into serious difficulty.
The Minister of State, Home Office (Lord Bates) (Con)
Before I address the remarks relating to this amendment, I welcome the noble Baroness, Lady Henig, to the chair. I understand it is her first Committee outing as a Deputy Chairman. As an alumnus of that role, I know the fear and intimidation of being faced with the Marshalled List in a very difficult Committee. I am sure all members of the Committee will be very sympathetic to her on her first day.
No one can be unmoved by the quality of the contributions to this debate—I declare myself a father and a grandfather. We identify absolutely with the pain and suffering which people are feeling at this time. I agree with the UN Secretary-General that this particular migration crisis is one of the greatest since the formation of the United Nations. He was right in talking about the scale of the problem.
It might help the Committee if I set out the rationale behind the Government’s current approach and set that in context of the fact that we are dealing with a very fast-moving situation. There is quite a lot of pressure which, rightly, comes from people who are trying to nail the Government down and ask, “Where are you with this particular Statement?” It is very fast moving. A significant number of discussions took place on the margins of the Supporting Syria conference a week last Thursday. Some 35 countries were there discussing these issues. On Thursday, James Brokenshire will be hosting a round table with Save the Children, UNHCR and UNICEF to discuss the specific statements on unaccompanied asylum-seeking children made by the Government on 28 January. This issue was raised by Save the Children and underscored by the DfID Select Committee. There is also the ongoing International Syria Support Group meeting in Munich on Thursday which will be attended by the Foreign Secretary and Defence Secretary. I am trying to set this in context: it is very fast moving.
If I was standing here in this capacity last year, I would have been facing questions—I was standing here last year and I did face questions—from noble Lords who asked me repeatedly to tell them how many people had currently arrived. Officials would tell me to avoid putting a number on it, because it was not very impressive. It was fewer than 100, then 120 and 130: complaints came that it was derisory. Then came the Prime Minister’s announcement in September that it would be 20,000 over the period of this Parliament. So far, 50% of those have now arrived. He said it would be 1,000 before Christmas and I then got repeated questions asking whether they would all be here by Christmas. More than 1,000 arrived by Christmas. That process is continuing. Last year we might have talked about £500 million of aid committed to the region, particularly to help Syrian refugees. That figure went up to £1.1 billion and last week it was doubled to £2.3 billion.
It is right that we are moved by the terrible situation which people are facing but, outside this Committee, it would be unfair to present a picture to the many organisations who are doing incredible work in this area that the Government, and particularly the Prime Minister, are unmoved by this. He is deeply moved by it and the Government are trying to work their way through.
As to the approach we are taking, the crisis we identified was that people were undertaking a perilous journey. I understand the arguments made about “we are where we are” or “they are where they are”, but that was the context in which we began this policy. The European Union’s policy at that point was relocation: in other words, people arrive and then you simply move them around different countries. We felt that simply having the same policy was not the right approach. The total number it aspired to move around was 160,000; currently some 340 have actually been moved. I do not want to start from the premise that we have somehow just plucked this approach from the air and that it has been proved to be fundamentally wrong.
We said that we needed to stop them undertaking that journey, because we knew that they would then immediately fall prey to the criminal gangs—we know the figure of 90%. These gangs are making vast fortunes from trafficking individuals. In fact there was one particular gang which was broken up by the National Crime Agency, working with Europol on 2 December, when 23 people were arrested. This one gang was responsible for 100 Syrian migrants a day coming into Greece and was making estimated earnings of €10 million in the process. This is a very lucrative business. Our first principle is to say that everything we need to do is to stop people making that journey. You then say, “How do you stop them making that journey if you are just giving them humanitarian aid?” They need some hope that they can potentially get out of that area through a safe route—and therefore the Syria Vulnerable Persons Relocation Scheme was expanded. We worked with the International Organization for Migration and the UNHCR to identify the most deserving people, based on established international UNHCR criteria—namely, those who had been victims of torture or persecution; women and girls at risk of violence; and those in acute medical need. Those were the priorities. When they were identified, they could be brought out not as unaccompanied asylum-seeking children but in family units. They are put on a plane with papers; they come to Glasgow, London or wherever it is, and they have a house. They have social workers around them; the children have a place in a school prepared for them when they arrive, they are able to work immediately when they arrive, and they get language support.
So while noble Lords say that we are not doing enough, it is perhaps wrong to say that there is no logic underpinning our approach. In fact, all the way through this process, we have worked very closely with the UNHCR, which believes that it is best to keep families together, particularly for children. That is why we have been following that approach. Of course, there are many more things that need to be done. In terms of how the amendment is worded, to come to the point made by the noble Lord, Lord Dubs, it talks about unaccompanied asylum-seeking children without designating a specific country. That is one of the things that we have discovered is a real issue. Under humanitarian law, to designate the specific country is very difficult, because you are then differentiating between people on the basis of geography rather than need. So the wording of the amendment is correct.
In the year to September 2015, 1,570 unaccompanied asylum-seeking children arrived in the UK, and 61% of those children were 16 or over. Only 7% were 14 and under. I have to say that those figures surprised me when I read them, because when I thought of unaccompanied asylum-seeking children I thought of my grandson, who is five or six. As we have discussed in Questions before, a large number of that particular group come from certain areas such as Eritrea, which is not to say that Eritrea is not a country that people would want to leave because of their conscription and national service in an open-ended way. They also come from Albania and other countries. At the moment, Albania forms 632 while Eritrea forms 460 of the total unaccompanied asylum-seeking children, while Afghanistan forms 179 and Syria 118. I present that as simply an expansion on the designation and the general term of unaccompanied asylum-seeking children. In other words, are we actually helping those whom we want to help the most?
Lord Green of Deddington
On that very point, is the Minister aware that something like 40% of these unaccompanied asylum-seeking children are involved in an age dispute? Quite often, those who claim to be 16 are found to be 18. The point is that many of them are older than one might think.
Lord Bates
That is possibly the case. The Prime Minister announced on 28 January that we are going to continue the discussions. He also said that it is absolutely critical for people’s safety that, when a child or anyone sets foot on a Greek island, in Italy or in any of the reception areas, they are properly recorded via biometrics at that point. That is supposed to happen under the Dublin regulations. However, it was not happening and Europol was deeply concerned about the risk of a lot of people going missing and not being able to be tracked. We have given the European Asylum Support Office additional support, which is then directed to—it is an awful name—hotspot centres, which are reception centres. We have established a £10 million fund to help, particularly with unaccompanied asylum-seeking children. The Home Secretary has asked the Independent Anti-slavery Commissioner, Kevin Hyland, to go to each of those centres and, as a former police officer and someone who is leading the modern-day slavery initiative and the implementation of the legislation, to evaluate the situation and see what more can be done in that area, and then to report back to Ministers. We have established similar funding for people to search out the most vulnerable in the camps at Calais and Dunkirk.
A number of noble Lords mentioned the situation of unaccompanied asylum-seeking children, particularly in Kent. I totally accept that many people are willing to foster children. The generosity of the British people is as alive and well now as it ever was in 1938, but often they are not sure how to help. Following the exchanges that we had yesterday, I was inspired this morning to get a letter from the right reverend Prelate the Bishop of Rochester. I have not asked his permission to mention this but I shall take the risk and ask his forgiveness if I have it wrong. I had mentioned that, sadly, despite widespread support among people who are saying, “We are prepared to help and to be foster parents”, only a very small number of local authorities—about six or seven—had come forward to offer support. The right reverend Prelate said that he would be prepared to write to diocesan bishops across the country saying that this might be something that they could raise with their local authorities to see whether they could do a little more to help during this acute crisis. There is much more that can be done, but I wanted to take the opportunity to set out the Government’s approach for noble Lords.
Perhaps I may answer a couple of specific questions that were asked of me. In terms of the Dublin regulations and reuniting families, there is no limit on the number. If someone qualifies under the Dublin regulations and claims asylum, they will be admitted to the UK. Of course, the point of difference between us that the noble Baroness, Lady Lister, mentioned is that the Dublin regulations are—again, this is an awful word—triggered at the point that a person claims asylum. If people in camps in Calais and Dunkirk do not claim asylum there—of course, they do not want to claim asylum there, because they want to get to the UK and claim asylum here—they do not get the protections afforded by the Dublin regulations. That is a problem and we need to work through it, but that is how it arises.
The French have set up 96 welcome centres across France and 2,500 individuals have chosen to go to one of them since October. Some 80% of them then decided to claim asylum or take voluntary return.
I say to the noble Lord and to all noble Lords who have spoken in this debate that I totally get where they are coming from and I empathise very much with the position. There is a huge amount going on, perhaps not seen, and I have tried to lift the veil on a little bit of what is going on at present. Suffice it to say, I have no doubt that we will come back with further announcements on progress, particularly on the issue of unaccompanied asylum-seeking children, over the next weeks and months, as we should and as the Prime Minister has stated. I hope that, in that spirit, the noble Lord may feel able to withdraw his amendment.
Baroness Lister of Burtersett
I asked the Minister a very specific question about the Independent on Sunday report. If he cannot reply now, will he undertake to write to me? He has been very good at following up our sessions with full letters.
Baroness Hamwee
My Lords, the Minister talked about the situation within Syria and potential relocation within Syria. Is he able to say a word about what seems to be quite a fast-changing situation, where the places to which the Syrian population might go are being bombed, starved or both almost out of existence? The situation changes fast. It would be useful to have on record whether the Government’s thinking is moving equally fast.
Lord Bates
It is a fast-changing situation and needs to be balanced with what we are talking about, which is wanting to ensure that we do the greatest good for the greatest number of people in need. We should also bear in mind when we talk about 3,000 children that there are currently 2.1 million children who are refugees from Syria, so 3,000 in addition is a relatively small number. You can help more in the region. I do not want to sound heartless: we talk about 3,000 people in this amendment, but our aid is providing 15 million food rations already, supporting 600,000 families, educating or supporting in education 227,000 children and providing 2 million medical interventions. I am not expecting people to say, “That’s fine, then”. The pressure needs to be maintained. It is a great humanitarian crisis and this place should be putting pressure on the Executive to take further action. I hope from what I have set out that I can go as far as to say that the Government are taking this seriously. We are not unmoved by it and Britain is doing a substantial amount of which we can be proud.
Baroness Sheehan
Can the Minister say a few words on his statement about most asylum seekers being 16 year-olds, at the upper age of the limit? Surely that is not surprising, because a five or a six year-old, unless he had an older sibling to help him, could not make that perilous journey. Also, NGOs on the ground have told me that 17 and 18 year-olds tend to claim to be younger than they are because they do not wish to get caught up in the dysfunctional immigration asylum system in France. I think that that argument works both ways.
Lord Bates
I hear what the noble Baroness says. The age verification of children is a key challenge facing all the agencies. That is why trying to establish documentation is so important. One can understand why, when someone is received into the country, they self-declare as being a child, because they may then get a different level of treatment and protection. That may be one reason why the age profile is what it is. It is difficult to know how to get around that, other than to work with the individual to identify their documents and age and to make sure that they are in the system and can get age-appropriate support.
Lord Dubs
I am enormously grateful to all Members of the Committee who have spoken. With two exceptions, the Minister and the noble Lord, Lord Green, they have all been in support of the amendment, and I am grateful for that. Even the noble Lord, Lord Green, and the Minister qualified their opposition by making sympathetic and reasonably supportive comments.
Briefly, I will say one or two things in reply to the debate. First of all, of course we all welcome the government money that is going into the refugee camps in the region and of course we welcome the vulnerable persons relocation scheme—it has a lot of merit. I think some of us think that the numbers are very small in relation to the number of people in the camps in the region, but we all think that it is a good scheme. We also think that the principle of keeping families together is desirable. The difficulty is that, if there were only people in the camps, and not a million or so more in various European countries, the principle would be easier to apply and we could persuade other EU countries to do the same as we are and take in the vulnerable families. The trouble is that that is not the situation as it is.
We are dealing with a very large number of people who have fled the region—and victims of people trafficking certainly—and are now scattered across many EU countries. It is from among those people that we have identified that there are 24,000 or so unaccompanied children, who are in a particularly desperate situation. In the camps, at least there is support from the various agencies and the United Nations to enable them to live in not wonderful conditions but at least to get food, water and some shelter. But for some of those in Europe, heaven knows whether they have any safety at all. That is the point of the amendment.
Three thousand is a very small number. The Minister talked about the Dublin convention and I wonder whether he is seeking refuge behind that when other EU countries are not necessarily adhering to it either. That may be for another day.
We have an urgent problem. I understand that there is a concern that some of this might provide pull factors for the families. However, as far as we know, these children are, at the moment, on their own. Honestly, if a handful of them had been pushed out of the region in order to attract family members, it would not be a large number and I am pretty convinced that the majority of these unaccompanied children have not been pushed out as a way of enabling their families to follow them. These are children who are vulnerable in their own right.
Lord Bates
(a) a member of the Police Service of Northern Ireland,(b) a member of the Police Service of Northern Ireland Reserve, or(c) a person appointed as a special constable in Northern Ireland by virtue of provision incorporating section 79 of the Harbours, Docks, and Piers Clauses Act 1847;”
Lord Bates
“( ) in Northern Ireland, as an agency worker within the meaning of the Agency Workers Regulations (Northern Ireland) 2011 (SR 2011/350) in respect of whom the public authority is the hirer within the meaning of those regulations,”
Lord Bates
Lord Bates
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Lord Bates
““Wales” has the same meaning as in the Government of Wales Act 2006.”
Lord Rosser
The noble Lord, Lord Wallace, has made some very interesting points on this issue. I wait with interest to see what the Minister has to say in response. I would be grateful if he would respond on the point that the noble Lord, Lord Wallace, raised about consultation on the implications for the public sector.
He mentioned the health service and universities. It will obviously be no secret that representations have been received from universities and health service organisations about the implications of this proposal. Indeed, I understand that some universities have taken it up directly with government. Will the Minister set out the extent to which the consultation covered public sector organisations and say what responses were received? Clearly, their line is over the additional costs it is likely to cause the service in question. Indeed, universities will say that it is causing additional costs which might lead to them not necessarily being able to recruit the best people, and obviously part of the role of a university is to train people and increase their skills through higher education. It would seem a bit distorted if the purpose of the levy was to enable money to be provided for apprenticeships but, in so doing, it managed to weaken the ability of universities to provide the best people to provide the education which in itself is raising the skills of people who will be needed in the labour market in the future.
Lord Bates
My Lords, Clause 55 provides a power to raise the charge, but details about the rate and scope of the immigration skills charge will be set out in regulations to be laid before the introduction of the charge. At that point there will be an opportunity for an informed debate on the details within the regulations. There are likely to be legal implications of introducing exemptions which will require careful consideration.
The Migration Advisory Committee published its review of tier 2 migration on 19 January, and the Government need time fully to consider the evidence about the likely impact of different rates on different types of organisation. As well as the Migration Advisory Committee’s findings and recommendations, we wish to consider other evidence from stakeholders and any legal implications before recommending the rate at which the immigration skills charge could be set and whether any exemptions should be applied.
The Government believe in consulting those affected by the proposed changes. The independent Migration Advisory Committee carried out detailed stakeholder consultation as part of its review of tier 2 migration. In addition, this Government have welcomed discussions with, and received evidence from, a large number of businesses and representative organisations. The process will continue and will, of course, take into account the representations that have been made today by the noble Lord, Lord Wallace, and those received from academic institutions both by me directly and by other colleagues.
As for consulting on the changes, since the announcement in May, we have been consulting employers and business leaders across the private and public sectors to get their views on the immigration skills charge. This will continue. In addition, the Migration Advisory Committee conducted a review of tier 2 with the remit to advise government on restricting tier 2 to genuine skills shortages and highly specialised experts. As part of this review, the MAC considered evidence from employers on the immigration skills charge.
As to the impact on healthcare, which the noble Lords, Lord Rosser and Lord Wallace, asked about, no decision has yet been made. The details of the charge will be set out in regulations, which will be subject to the affirmative procedure. Therefore, there will be an opportunity for a full debate at that point.
The Government have not said that the immigration skills charge will fund the 3 million apprenticeships; rather, they have said that the immigration skills charge will contribute towards skills funding. The level of the charge has not yet been set. The Government are also proposing an apprenticeship levy, not linked to migration, which will go towards apprenticeship funding. The Migration Advisory Committee recommended a figure of £1,000 per year, which is large enough to raise a reasonable amount of revenue and have an impact on employer behaviour.
That is at the core of what this is about. As the Prime Minister said at the outset, it has been far too easy for some businesses to bring in workers from overseas rather than take the long-term decision to train the resident workforce in the UK. We need to do more to change that, and that is the rationale that is driving this. We are proposing that a charge be enabled through this legislation, and we are continuing to consult because we are not unmoved by the noble Lord’s argument that the level at which this is set and those to whom it is applied will have significant implications. Therefore, we need to get that right.
The noble Lord slightly chastised us by saying that we used to have a policy of attracting the brightest and the best. Of course, there is only one thing better than that, and that is to actually grow the brightest and the best here. That is what this policy is designed to do. More details will follow and the House will have an opportunity to scrutinise those when they are presented.
Baroness Hamwee
My Lords, before my noble friend responds on our amendments, I wonder whether the Minister can advise the Committee how noble Lords should deal with this when further government thinking becomes clear. As he well knows, we can scrutinise to our heart’s content but we cannot actually do anything about what is in regulations.
I thought that the Minister said at the beginning of his response that there had not been a decision and that this was permissive of regulations, but at the end he confirmed that this is what is in the Government’s mind, which is obviously common sense. However, by bringing forward such a significant new policy proposal as this, having given the Commons five minutes to debate it, as my noble friend said, I do not know how we can really deal with this just through regulations.
Lord Rosser
Perhaps I will be a little more guarded in what I say on this one. Some very strong and forceful speeches have been made on the basis that it appears that certain individuals who may have a lot of money are being treated rather differently from those who do not. I will leave it in the context that I will wait to see whether the Minister will accept this amendment. I will wait and see what the Government’s justification is for the tier 1 visa and the conditions under which it is given before I come to any conclusions for the Opposition. I have listened with great interest to what has been said. There seem to have been some pretty powerful points made, and I also want to hear what the Minister has to say in reply.
Lord Bates
My speech begins with the line that I have listened carefully to the arguments. I think the arguments have been well made. I will try to set out for the benefit of the Committee the rationale behind this and then answer some of the specific questions. I underline the Government’s commitment to ensuring that the United Kingdom remains an attractive destination for legitimate international investors. The tier 1 investor visa route allows migrants to make a significant financial contribution to the UK, either through the purchase of share or loan capital in UK businesses, or through UK government bonds. The route does not recognise the purchase of property as a qualifying investment.
The proposed amendment would not only result in the immediate loss of millions of pounds of capital inflow, but deliver a powerful global message that foreign investors are no longer welcome in the UK. This is a message the Government have no desire to send. The Government are clear in their commitment to ensuring that the investor route delivers benefits to UK taxpayers and it remains an important component of the UK’s visa offer for high value migrants.
Acting on an independent Migration Advisory Committee review of the tier 1 investor category, the Government introduced a package of reforms in November 2014. These included taking additional powers to refuse applications where the funds have been obtained unlawfully, where the applicant is not in control of the funds and where the granting of the application would not be conducive to the public good. The Government also raised the investment threshold from £1 million to £2 million and removed a provision which allowed investments to be funded through a loan. Since April last year the immigration rules have also required that prospective tier 1 applicants must open a UK bank account before their application for a visa is allowed. This ensures they have undergone financial due diligence checks before they are granted an investor visa.
I thank the noble Lord, Lord Wallace of Saltaire, for raising his concerns that visas of this nature have no place in a sovereign nation and that this may be the preserve of tax havens. It would be correct to observe that some so-called tax havens operate citizenship-by-investment schemes, whereby wealthy individuals may be able to effectively purchase a second nationality in return for a sizeable donation, often paid directly to the host Government. I make it absolutely clear that the UK’s tier 1 investor visa is not such a scheme. The UK’s investor visa offers no guarantee of an extension, beyond the initial two or three-year term, let alone settlement, or citizenship. At each of these points, applicants must not only demonstrate that they have continued to hold the appropriate qualifying investments, but are also subjected to further robust checks.
Let me deal with some of the points that have been raised and provide a bit of additional information. The noble Lord, Lord Howarth, asked about precautions. I think my answer addressed some of the points he raised about due diligence, which is carried out in the process of securing the bank account. Also, the United Kingdom maintains some of the toughest anti-money laundering laws in the world and is respected as such. The general grounds for refusal in immigration rules enable the Government to refuse investor visas where the applicant’s presence in the UK is not conducive to the public good, which means that we carry out checks on their criminal background. Under a pilot scheme, investor visa applicants are required to provide criminal record checks from their country of residence as a condition of applying for the visa.
As a result of all the changes that we have introduced, and which significantly toughen up the approach—this may speak to the point that the noble Lord, Lord Wallace, raised—in the last quarter for which figures are available we granted only 46 such visas compared to 274 in the corresponding period in the previous year. That is a reduction of 83%. Before the noble Lord, Lord Green, gets to his feet, let me say that some of that may have something to do with the general economic situation in some of the key countries from which people would normally apply for these visas. However, it might also reflect that the toughening of the rules is having the desired effect.
Lord Green of Deddington
Exactly so. The collapse in the numbers is very good news. It illustrates just how bad the scheme has been. Is it not the case that if you invest £10 million, you get indefinite leave to remain after two years?
Lord Green of Deddington
After that, it is only a matter of time before you get your passport. This is, in effect, selling passports, as the Minister has just acknowledged, and, sometimes, in cases where it may not have been entirely advantageous. But they can also take their money out of gilts. Are we really persuading people to invest in a serious and useful manner in Britain by a scheme like this? I rather doubt it.
Lord Bates
The noble Lord, Lord Green, makes some very good points. I was looking behind me for some inspiration that would enable me to provide a brilliant argument as to why that is not the case. In fact, there were just nods, as if to say, “Yes, that is about right”. This is something that we need to keep under very careful review, and we do. When we get advice from the Migration Advisory Committee that there are problems with the scheme, we have, in the past, shown that we will take action.
On some of the points that were raised about property, there is no suggestion from anyone that people would not be able to own property in any part of the world. The housing issues that were raised are not linked to the scheme. Under the coalition Government, we significantly raised the stamp duty to about 12% on larger homes at that level. In a similar vein, the Chancellor announced in the Autumn Statement that there would be a further levy of an additional 3% for people coming in and purchasing a home in the UK as a second home. That was on top of the increase to 12%. Significant things are happening, but it is about how we maintain an offering on the international stage which ensures that we can attract people with exceptional talent, people who want to come and invest here, and people who want to study, visit or work here so that they can contribute to the public good of this country. We need to keep that under review. That is something that the Government continue to do. I am sure that we will want to take note of the comments made in the course of the debate ahead of Report. I am sure we will revisit it then, but until that point I hope that the noble Lord will feel able to withdraw his amendment, temporarily.
Lord Rosser
I am not quite clear on what the Minister said in the last part of his comments. Is he saying that he intends to reflect on what has been said and write to us prior to Report? What does he envisage will happen between now and Report?
Lord Bates
Forgive me for trying to be reasonable. I was simply saying that this was an interesting argument that I listened to and followed. A number of points were raised from all parts of the Committee, expressing concerns about how this system operates. I want to go back and talk with colleagues about the system and how it operates, and then come back with answers to the points raised or suggestions as to how things could be improved.
Lord Howarth of Newport
If this does come back, will the Minister share with the House how the Government intend to make their position credible and defensible before this international conference, at which the Prime Minister will claim that Britain is leading in the security of its provisions to prevent money laundering?
Lord Bates
Her Majesty’s Government’s position is always credible and defensible. Most people would recognise that this is a sensitive area, but the UK has taken a very strong stand in the international community on tackling money laundering. It does that consistently through raising matters at the G20, which is a prime vehicle for operating on this, and through the OECD, which has its regulations as well. We will continue to do that. I would have thought that everybody would welcome the fact that the Prime Minister is taking this leadership and wanting to see how further things could be done. It is absolutely the role of this House to apply pressure to the Executive to make sure that they are living up to the arguments and principles that they seek that others observe.
Baroness Hamwee
Can I add a tiny bit of extra pressure on the Executive between now and Report and ask whether the Government have information about the effect on housing numbers and housing prices as a result of this policy? That might be quite difficult as a lot of it will be anecdotal, but it is a jolly big anecdote along the south bank of the Thames, with units that are sold off plan and will probably remain empty. There is a great deal of concern about the impact of the role played by those taking advantage of this route on the housing shortage and on housing prices.
Lord Bates
Housing is outside the scope. I know that the effect on the housing market will be an interesting point of research, but we are focusing on the visa that is primarily targeted into government gilts, or loan stock or equity in UK-registered corporations. Those are the bounds of it. I mentioned that we have taken action before. This will probably excite even more attention, but due to EU law on free movement of capital, the Government believe that there would be legal difficulties in treating residents and non-residents differently by, for example, restricting purchases or charging a higher rate of tax.
I have said what I have said. I am quite genuine. A point has been made. I should just temper the Committee’s expectations because I spent the first two pages of my speech defending the scheme, saying that it was important to send out the message and that these investors were coming. I do not accept the generic term of “dodgy” with “investor”. A lot of investment into this country has been of immense value in providing jobs and wealth to the people who are here. However, I will go away and reflect on the points that have been raised about the specific working of the scheme and come back on Report where those arguments can be tested.
Lord Wallace of Saltaire
My Lords, I have some sympathy with the noble Lord in having to reply to this debate. I am fascinated by the caution expressed by the Labour Front Bench and I hope that the Labour Party will not find itself in a position of wanting to defend the super-rich against the criticism from the Liberal Democrats—of course, I speak for the Liberal Democrat Front Bench on this. Perhaps the Labour Party will reflect a little further on that between now and Report. I hope that I will not miss Report. I have to admit to everyone here that I am going on holiday for the first two weeks of March. I am going to Antigua, but I shall not ask whether I can buy citizenship while I am there.
Lord Bates
I will put a special plea to the business managers that we schedule Report then.
Lord Wallace of Saltaire
My Lords, I hope that the Minister will be able to write to all noble Lords on the Committee between now and then with a number of answers. Have the Government examined the Canadian experience and looked at why the Canadians abolished their category? Have we considered the same? Can the Government explain why they accepted all of the Migration Advisory Committee’s proposals on tier 2 for the immigration skills charge, but did not accept two rather important proposals from the Migration Advisory Committee that there should be a limited number of sealed bids and a substantial donation to a good causes fund as part of the conditions?
I admit that the origins of my interest in this are from when I went as a representative of Her Majesty’s Government to the capital of a former Soviet state and found myself talking with someone who was clearly very much part of the oligarchy running the country. He told me that he had just been appointed ambassador to Britain and this was rather difficult for him because at that moment he held British citizenship as well as citizenship of his state. He was going to have to come back to his own country for some weeks while this was sorted out, but he had recently bought his son the house next door to his in Chelsea and as his son was rather young he did not want to leave him on his own for so long, so he was not quite sure how he was going to manage it. I began to think it was a little odd. I decided in my two days in that country that it was not a particularly democratic one and the distribution of wealth was clearly in the hands of a very small number of people, although one or two of them offered me some extremely generous gifts, which I, of course, had to pass on. It opened my eyes to something not desirable, not in the interests of this country and not contributing to our economy.
I would have been much happier if the figures I had discovered on tier 1 had shown that the exceptional talent category had 2,000 to 3,000 people in it, the entrepreneur category 3,000 to 4,000 people and the investor category 50. That is the sort of thing we should have if we believe the Prime Minister in his commitment to attract the brightest and the best. We have got it the wrong way round at present. I wish the coalition Government had been able to push a little further in that respect, but we will make up for it. We will do our best to push the Minister and see how far we can go. For the moment, I beg leave to withdraw the amendment.
Baroness Hamwee
My Lords, I hope this will be quick. This is a probing amendment. Clause 56 is about fees, not really about immigration, although some of it might be. The issue I would like to probe is about passports, not immigration. Clause 56 (4) provides that there may be fees which exceed the cost of “exercising the function” in question. I would be grateful if the Minister would explain to the Committee what is proposed and what lies behind this. Is it about a premium service, rather along the lines of the premium visa service? From time to time, over the years, I have heard complaints about that among the business community—probably not voiced directly to the Government. They are having to pay premium fees for what should be the basic standard service. Is there anything that the Minister can say about customer satisfaction on this? It is worth spending a minute or two getting on record the Government’s explanation of payment over and above the cost of providing proof of citizenship. I beg to move.
Lord Bates
My Lords, the passport fee provisions in the Bill require that all Home Office passport-related costs are fully reflected in the fee structure. That means we can recover the costs associated with processing UK passengers at the border through the passport fee. This is reflected in our spending review settlement. They also allow for a surplus on optional, premium and fast-track services, which we intend to use to help protect the quality of, and fee for, the standard passport service and, over time, reduce the standard fee. We do not intend to generate surpluses to fund other unrelated Home Office activity. Premium or fast-track service delivery is currently, and will continue to be, based on insight into and awareness of customer expectations and needs. In future, we intend to set fees for premium services at a level which ensures that they are economically viable to the customer and ensure that Her Majesty’s Passport Office can recover the cost of the services delivered, while protecting and maintaining the standard passport service.
The services and fees will be set out in regulations. As set out in the existing Clause 56(1), fees are set to meet the cost of such functions associated with the issuing of a passport or other travel documents. They will require approval from Her Majesty’s Treasury and Parliament. Therefore, the regulations do not provide for fees to be set at a level deliberately aimed to achieve an excess or surplus on the overall service. The regulations would provide for the fee for specific premium elements of the service to be charged above cost, but any income derived from that would be required to be used to maintain or reduce the cost of other services provided within the overall passport function.
Although I recognise that this is a probing amendment, the proposal would not work, first, because the use of fast-track services is a matter of individual customer choice and therefore subject to fluctuating demand. Unplanned surpluses, or even deficits, may therefore materialise in-year. Secondly, and more importantly, the level of fees for individual services should be determined by the overall cost of delivering the whole passport function, not the other way around. Our ambition is for the standard passport fee to remain at the current level initially and to fall over time as the cost of passport functions is reduced. This will be achieved through transforming delivery through digital and online services, complemented by the customer’s ability to choose the access services with an appropriate level of fees to reflect the higher level and speed of service provided. I hope that, with that explanation, the noble Baroness will feel able to withdraw the amendment.
Baroness Hamwee
My Lords, having listened to that explanation, it seems that the amendment pretty accurately reflects what the Minister has been saying, but I will not spend time on that now. Since we are talking about passports, does the Minister have in his brief the target time for the issue of a passport on application at the moment—which I presume is the standard service—against which a premium service will be designed?
Lord Bates
It is five days for domestic and 14 days for overseas. There are, of course, some elements of variance, but those are the standard times.
Baroness Hamwee
That is helpful, because to issue a passport in less than five days strikes me as going some, though perhaps it may not be so difficult if it is a renewal. I shall be interested to see what the premium service purports to offer. I might be about to hear.
Baroness Hamwee
I might hand it over to the noble Lord, Lord Green, to interrogate. What checks are undertaken for that? I beg leave to withdraw.
Lord Wallace of Saltaire
My Lords, at this stage I shall be extremely brief although I am very happy to talk further, out of Committee. The purpose of the amendment is to probe. A Government who are deeply and publicly committed to the promotion of marriage appear to be imposing charges on it. Before I run off to the Daily Mail to tell it that the Conservatives are making marriage more difficult, perhaps we could explore the implication of some of these additional charges and discuss what the Government really intend with them. We are in favour of settled relationships, both civil partnerships and marriage. The Government have said many times before that they want to promote them. That is the purpose of this probing amendment. I beg to move.
Lord Bates
Currently, both the local registration service and the Registrar General provide a range of services in connection with the registration of births, marriages, civil partnerships and deaths for which, in some instances, there is currently no power to charge a fee. The existing fee-raising powers are restrictive and out-dated and do not cover the full range of services provided. For example, the Registrar General is involved with the verification of around 5,000 divorce documents each year which have been obtained overseas and also provides blank certificate stock to over 30,000 buildings for use in certificate issue. These are just two examples of services provided by the Registrar General for which there is currently no provision to charge a fee to the end-user and where the expense must be recovered from central funds.
Schedule 12 will modernise the process of setting fees for registration services and enable fees to be set for those services which have previously been provided without charge. The provisions also move existing fee-charging powers into regulations, providing more flexibility and making it easier to amend them in the future. This will allow the local registration service and the Registrar General to recover more of the costs of providing registration services. It will reduce the reliance on central funding and ensure that, where possible, any costs are borne by the users of the services on a cost-recovery basis in line with Treasury guidelines.
I hope that helps the noble Lord and he will feel able to withdraw his amendment.
Lord Wallace of Saltaire
That is extremely helpful. I am happy to withdraw the amendment.
Lord Bates
Lord Bates
Lord Bates