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Meacher, Michael

Michael, Alun

Michie, Bill (Sheffield Heeley)

Michie, Mrs Ray (Arg'l & Bute)

Mitchell, Austin (G't Grimsby)

Moonie, Dr Lewis

Morgan, Rhodri

Morley, Elliot

Morris, Rt Hon J. (Aberavon)

Mudd, David

Murphy, Paul

Nellist, Dave

Oakes, Rt Hon Gordon

O'Brien, William

O'Hara, Edward

O'Neill, Martin

Orme, Rt Hon Stanley

Parry, Robert

Patchett, Terry

Pendry, Tom

Pike, Peter L.

Powell, Ray (Ogmore)

Prescott, John

Primarolo, Dawn

Quin, Ms Joyce

Radice, Giles

Randall, Stuart

Rees, Rt Hon Merlyn

Richardson, Jo

Robertson, George

Robinson, Geoffrey

Rogers, Allan

Rooker, Jeff

Ross, Ernie (Dundee W)

Ross, William (Londonderry E)

Rowlands, Ted

Ruddock, Joan

Salmond, Alex

Sedgemore, Brian

Sheerman, Barry

Sheldon, Rt Hon Robert

Shepherd, Richard (Aldridge)

Shore, Rt Hon Peter

Short, Clare

Sillars, Jim

Skinner, Dennis

Smith, Andrew (Oxford E)

Smith, C. (Isl'ton & F'bury)

Smith, Rt Hon J. (Monk'ds E)

Smith, J. P. (Vale of Glam)

Smyth, Rev Martin (Belfast S)

Snape, Peter

Soley, Clive

Spearing, Nigel

Steinberg, Gerry

Stott, Roger

Strang, Gavin

Straw, Jack

Taylor, Mrs Ann (Dewsbury)

Taylor, Matthew (Truro)

Taylor, Teddy (S'end E)

Thompson, Jack (Wansbeck)

Trimble, David

Turner, Dennis

Vaz, Keith

Walker, A. Cecil (Belfast N)

Wallace, James

Walley, Joan

Wardell, Gareth (Gower)

Wareing, Robert N.

Watson, Mike (Glasgow, C)

Welsh, Andrew (Angus E)

Welsh, Michael (Doncaster N)

Wigley, Dafydd

Williams, Rt Hon Alan

Williams, Alan W. (Carm'then)

Wilson, Brian

Winnick, David

Winterton, Nicholas

Wise, Mrs Audrey

Worthington, Tony

Wray, Jimmy

Young, David (Bolton SE)

Tellers for the Noes :

Mrs. Llin Golding and

Mr. Allen McKay.

Question accordingly agreed to.

Resolved,

That this House congratulates the Government on joining the Exchange Rate Mechanism of the European Monetary System ; notes the clear evidence that the Government's tight monetary and fiscal policies are reducing inflationary pressures in the economy ; and believes Exchange Rate Mechanism membership will reinforce the Government's counter-inflationary strategy and help to strengthen the framework for a sustained improvement in economic performance.

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Hong Kong

10.28 pm

The Parliamentary Under-Secretary of State for the Home Department (Mr. Peter Lloyd) : I beg to move

That the draft British Nationality (Hong Kong) (Selection Scheme) Order 1990, which was laid before this House on 15th October, be approved.

Subject to approval in this House and in another place, the order will come into force on 1 December.

The order sets out the scheme that the Governor of Hong Kong proposes to use to select up to 50,000 key people whom he will recommend to the Secretary of State for registration as British citizens under the British Nationality (Hong Kong) Act 1990. The selection scheme that the Governor has presented to the Home Secretary, which is before the House tonight, is a complex one. Comments and suggestions have been received from a wide range of bodies with interests in Hong Kong's continued prosperity and stability, and both Houses examined outline proposals for the scheme during the passage of the British Nationality (Hong Kong) Act. During those discussions, the Government made it clear that they intended to listen with an open mind to suggestions for ways in which the scheme might be improved. That is precisely what we have done. I believe that the detailed proposals now before the House represent a thorough, fair and objective means of selecting those Hong Kong residents whom it would be most damaging for the territory to lose and to whom we hope to give confidence to remain.

I have already written to more than 60 right hon. and hon. Members who were fortunate enough to catch Mr. Speaker's eye during the debates in this House, and to those who served on the Committee, to explain how the scheme now proposed by the Governor differs from the one envisaged in the explanatory notes that the Government made available during the passage of the Act.

For the benefit of others, I should like to say a few words about the scheme and the principal changes that have been made. The broad structure remains as envisaged in the explanatory notes. Subject to approval, the scheme would consist of four classes, each of which would be given a share of the 50,000 places. The general occupational class receives 36,200 places to be allocated among the 20 occupational groups specified in annex 1. Some 7,000 places go to the disciplined services class, covering the nine services set out in article 18 of the order. The sensitive service class-- those in the public or private sectors serving the interests of the Crown or involved in other activities of a sensitive nature--will receive 6,300 places, while 500 places are reserved for the entrepreneurs class, in which the Governor will recommend those whom he considers to have made a special contribution to the economy of Hong Kong. The criteria that the Governor will take into account are set out in article 24. With the exception of those in the entrepreneurs class, the available places will be distributed in tranches, the size of which will be set out in directions by the Home Secretary. About 87 per cent. of the places will be awarded in the first tranche. If the order is approved, applications for the first tranche will be invited from 1 December with a closing

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date of 28 February 1991 and will take some two years to process. The rest of the places--some 13 per cent.--will be awarded nearer 1997.

Applicants under the general occupational class and the disciplined services class will be selected on the basis of a points system. The broad criteria against which points will be awarded, and the maximum number of points available for each criterion, remain as set out in the explanatory notes.

Concern was expressed, especially in Committee, about the 150 points available for "special circumstances", in particular the amount of discretion available to the Governor in awarding up to 50 points for individual merit. Article 14 of the order now makes it clear that up to 30 of those points will be tied objectively to occupation-related merit or achievement--for example, local or international awards. A further maximum of 30 will be available for unpaid service with specified voluntary agencies or institutions in the social, medical or educational field and up to 20 points will be awarded for officially recognised and rewarded acts of bravery or gallantry.

Since the whole focus of the scheme is to discourage people who are prone to do so from emigrating, the Governor needs greater flexibility to recognise particularly high rates of emigration within occupational groups. The number of special circumstances points available for that purpose has therefore been increased from 50 to 75.

The final 50 points for modifying age, qualifications or experience to reflect the needs of a particular occupation or group remain unchanged. The total number of points that can be awarded to any individual under the special circumstances heading is still capped at 150.

On the question of age points, we considered very carefully with the Governor whether the criteria should be adjusted to give more points to those over 40, as some suggested during the passage of the Act. We have concluded that the proposed scale should not be changed. Maximum points are justified for those aged 30 to 40 because people in that age group would be moving into key positions in the years up to 1997 and immediately after, and a particularly large number of them are now emigrating. There is also, of course, as I said earlier, some extra flexibility available where age is concerned under the special circumstances heading.

Concern has been expressed in some quarters--particularly in the British business community in Hong Kong--about the number of points which can be awarded to those employed by British firms. We have been urged to increase them. But the award of those points is not designed to guarantee success for all applicants working in British companies. It would be wrong to rig the system in such a way that employees of British firms won places at the expense of others who were better qualified and therefore arguably more key to Hong Kong as a whole. We have looked at the issue with particular care and believe that it would be a mistake to increase the maximum of 35 points that is available under this heading. Competition for places in the general occupational class will be fierce and there are bound to be groups of applicants bunched around the qualifying mark. In those circumstances, even a handful of points for those serving British firms will ensure that they are placed higher up the list than their counterparts who are, in all other respects, equal.

We have, however, agreed a change in the way in which the points should be awarded. They will be given to current

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