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Mr. Deputy Speaker: With this it will be convenient to discuss amendment No. 52, in page 5, line 21, at end insert--

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'(2A) Nothing in this section applies in relation to an employer who has fewer than 10 employees.'.

Mr. Henderson: The amendments relate to an important part of the Bill. The Government have made much play of their belief that there is considerable illegal immigration in this country and that significant numbers of illegal immigrants are working when they should not. The Government have not yet provided us at any stage in our consideration of the Bill with figures that would stick to the wall on the extent of illegal immigration. Some estimates have been made of the numbers of illegal workers and my view of the estimate of 10,000 is that it was made by throwing coins in the air and seeing which way they fell. I have seen no significant study that has suggested what the precise figures would be.

We can be sure, however, that the Bill will have many major implications for race and community relations. It seems clear to me that when employers are given the responsibility effectively to become immigration policemen, that must have an impact on the community in which those employers operate. People who live in that community will say, "Are there fair-minded employers in our community and is employer X fair-minded?" They will go on to ask whether some sections of their community are discriminated against by employers.

We must consider not only the damage that can be done to communities but the damage that will be done to individual groups.

I believe that black people, Asian people and other ethnic peoples in all parts of our country will not have the opportunity to get a job because employers will guard against their employment. Employers are well aware, however, that, in all probability, 99 per cent. of all potential employees are British citizens, who have every right to work here, and just 1 per cent. may not have leave to work in this country. In the same circumstances, however, employers will say, "We're not going to risk becoming criminalised by Government legislation." They will avoid that by not offering employment to certain people. They will not want to check passports and the 40 other documents required. If there is a possibility, even a remote one, that a person might not be entitled to work here, the employer will say, "He ain't working for my company." The consequences of such action will be extremely damaging to particular sections of the community. For example, 60 per cent. of young black men between the ages of 18 and 25 are unemployed. What will that unemployment level become should employers study the details of the Bill? Such is the likely impact of clause 8.

Hon. Members do not have to take my word for it because a load of evidence has been built up by organisations with all sorts of different backgrounds and representing all sorts of different industries.

We heard in an earlier debate about the importance that people attach to religious freedom in other countries. I have received a communication from the Churches Commission for Racial Justice--representing persons who are responsible for religious policy in this country--written by Rev. David Haslam, who is well known in the ecumenical movement. He writes about clause 8:


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That view is repeated by the Commission for Racial Equality, which said in a submission to every hon. Member:


The Food and Drink Federation is significant to the debate because of the employment of persons in small companies, especially in the catering and linked trades, in which many persons who are identified as belonging to ethnic community groups are employed or wish to seek employment. It states:


That federation also notes the damage that could be caused to ethnic communities. I know that federation well because one of the big companies in my constituency, Nestle, is affiliated to it.

The Association of British Chambers of Commerce, which represents many small organisations in this country, has stressed that if clause 8 is implemented, damage will be done to race relations in this country.

It is interesting to note that in Committee there were murmurings from Conservative Members that we could not listen to what the Federation of Small Businesses said because it was not truly representative of real small businesses in the United Kingdom. That seemed to be the mood of Conservative Back Benchers and I began to suspect that those on the Government Front Bench were prepared to go along with it. I must make it clear that the Federation of Small Businesses stressed in its submission to all hon. Members:


The Federation of Small Businesses says that there will be difficulties with race relations if clause 8 is introduced.

Amendment No. 51 seeks to limit the extent of clause 8. When the question of disability was before the House, the Minister responding on behalf of the Department for Education and Employment said, interestingly, in comparison with the views expressed in Committee by Home Office Ministers and their team:


I want to move away from the impact on race relations to the practicalities, because the same Minister said, in relation to the Disability Discrimination Act 1995:


He had obviously started to think about the 40 documents that might be before him in future. He continued:


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    should be exempted from the legislation. That is not because we want them to discriminate--we hope that they will not--but want to relieve them from the burden of complying".--[Official Report, Standing Committee E, 14 February 1995; c. 246-48.]

Other comments have been made, one of which was:


I wonder whether hon. Members would care to guess whose words those were. The Trades Union Congress? Small businesses? Ministers for Education and Employment? No, that was the Home Secretary, when addressing the Isle of Wight Conservative Association on 16 July 1993. We have heard much recently about saying one thing and doing another. That seems to me to be a classic case of just that.

My point is that, in relation to the Disability Discrimination Act, the Minister recognised that there were differences between the way in which small and large companies deal with regulations. We all know that a larger company that has a resource personnel department can cope with the minutiae of legislation. I do not argue in clause 8 that companies should have to police the documents, because the race relations aspects are damaging, and even if they were able to do so, I am not sure that it would identify anyone who should not be working there.

Let us suppose that we give the Government the benefit of the doubt and that there might be a case for larger companies to do that. On disability, the Government said that a different situation should apply for small businesses because they face other difficulties. I do not ask for a limit of 20. I think that it could be 10. If the Government wish to look at a different limit, I am certainly prepared to give it further consideration. The principle should be that small companies cannot deal with legislation in the same way as large companies. The Government cannot say that that is the case in relation to disability and then deny that it is the case in relation to employers' checks on the legality of employment.

If the Government insist that there is a case for retaining clause 8--I do not believe that there is--they should recognise the weight of evidence given to them by employers' organisations, especially those representing small businesses. They should have the decency to acknowledge that there is a case for exemption. If the wording of the amendment is defective, or if the Government would prefer a figure other than 10, I do not think that we would go to the wall on that. If the Minister has anything like an open mind, the evidence should convince him.


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