Select Committee on International Development Minutes of Evidence


Examination of Witnesses (Questions 327 - 339)

TUESDAY 20 APRIL 2004

RT HON HILARY BENN MP AND MS SHARON WHITE

  Q327  Chairman: Secretary of State, thank you very much for coming in. This has been for us at times a slightly perplexing inquiry in that there are always dangers that we get drawn to issues such as gangmasters in the UK, asylum issues, the EU accession states, a whole number of contemporary issues so far as the UK domestic agenda is concerned. I think, as the International Development Select Committee, one of the things we always have to recall is that the vast majority of migration across the world is either south-south or internally or from very poor countries to very poor countries. As you know, the Committee was in Somaliland the other day and after the bombing of Hargeisa practically every resident of Somaliland was a migrant at one time or another. How do we ensure that UK Government policy and DFID policy towards migration does not just become confused with and overwhelmed by concerns of UK migration or asylum policy and indeed, put another way, other than encouraging developing countries to consider whether migration along with an ever-growing list of issues should be a part of their poverty reduction strategies what can DFID do to try and make south-south and internal migration more development-friendly and, as I say, how can we ensure that DFID's approach to migration is not shaped too much by domestic concerns about asylum and immigration?

  Hilary Benn: Thank you very much, Chairman. Can I reintroduce Sharon White who heads our policy division. Sharon was part of the team of officials who gave evidence to you at the beginning of the inquiry. Can I say first of all how much I welcome this particular inquiry not least because I think in truth, speaking for myself, and having looked at the evidence you have received as a Select Committee, I would say we are all on a journey in trying to understand this issue better, and that certainly is the case for DFID. I must confess I do not worry about our approach to migration being excessively shaped by domestic considerations. As you yourself said in opening Chairman, the vast bulk of migration takes place south-south or within countries and I think one of the contributions which this inquiry and the evidence sessions can make is to engender a better understanding of exactly what it is that is going on around the world. Secondly, and perhaps most important of all, to acknowledge that there are pluses and minuses to this process. To some people this is a very welcome activity. It enables them to improve their lives, to use their skills, to take on new opportunities, to improve their earning power, particularly when people are moving for reasons that are genuinely voluntary. For other people migration is enforced, not a choice but a way of life because there may have been conflict in their part of the country and they have to seek shelter elsewhere. People who have to move due to circumstances that are not connected with their own personal choice are more likely to be vulnerable in terms of the conditions in which they find themselves living and those susceptible to being exploited. I am thinking in particular of women who can be at risk of trafficking. I think we also have to recognise that internal migration is a way in which poor people try and improve their lives. This is an approach which human beings throughout human history have taken if there is not sufficient work or the chance of earning a decent livelihood where they happen to live, to move elsewhere where circumstances might be better. All of these motivations and all of these circumstances are bound down in the process and I think what we can do as a development department is to try to work with developing country governments to raise awareness of the benefits, where there are benefits, of the process and also to help developing country governments to manage this process, particularly where it is the result of force majeur or conflict in other countries. So, at a very practical level, giving humanitarian and other support when there are large numbers of refugees is a way in which we can assist countries to deal with the consequences of very large-scale movements of people that, frankly, dwarf the number that come here to the UK.

  Q328  Chairman: Genuinely without wishing to be mischievous, how do we get both in terms of the story and in terms of policy? Although the NHS says they are not recruiting nurses directly from Malawi or Ghana or wherever, on your perfectly reasonable argument, people with skills want to move where they can maximise those skills for a while and so we have nurses who come to the UK, and I imagine like a lot of colleagues during the Easter recess I spent some time visiting nursing homes in my constituency all of whom are desperately short of trained nurses. Who has the lead in trying to ensure that some of these are win/win policies, that people can come and acquire greater skills here, and do they then return to Malawi or Ghana or Syria or wherever? Who also has the responsibility of ensuring there is an understanding that there are pluses and positives to migration here both for the UK and in the developing countries? I think I am right in saying at the moment for every elderly person in the UK for our parents there are 16 in the workforce. By the time we retire there are going to be four. What bits of those issues are DFID's responsibility do you think?

  Hilary Benn: Well, making sure that there are sufficient people in the UK with the right skills to do the work that needs to be done is clearly the responsibility of other government departments and not of DFID. But we do have an interest in the consequences of the movement of migrants to the UK to work from a number of the developing countries with which we work. Now, if I could take the instance of Ghana, because I was there about a month and a half ago and had a long discussion on this very subject with the head of the Ghanaian health service. I will tell you very frankly I expected to be given quite a hard time about what we were doing in the UK in providing employment for Ghanaian nurses and doctors but, interestingly, what he spent almost all of his time talking about was the push factors within Ghana that led people to leave. I thought that was very interesting firstly because we have the Code of Practice which the Department of Health has drawn up and that says very clearly that the NHS will not seek to recruit directly. Clearly there are issues to do with the activities of private recruitment agencies and we are working with the Department of Health to assess the effectiveness of the Code. There are then genuinely difficult questions about the extent to which it would be right and proper, assuming that someone were to argue that it was the right course of action to take, to say that someone who has acquired skills in one country and wants to come and exercise them in another country because they happen to come from a country which is short of doctors and nurses would in some way be prevented from doing so. This is a very difficult balance to strike, frankly. How would you administer such a policy, even if you thought it was the right thing to do? As I reflected on the discussion that I had in Ghana—because I was particularly anxious to do so both because of this inquiry and because it raises some really quite fundamental questions—it became clearer to me that from the Ghanaian point of view they were interested in what more they could do to try and reduce some of those push factors. Clearly this has to do with questions of pay, working conditions, opportunities for professional development and to what extent, even if people choose to go abroad for a time to use their skills, it might be possible to encourage people to return at a later point in their professional careers. I must say I learned from that that this is an extremely complex business and it is not a simple question of us just saying we will close all of the loopholes and shut all of the doors so nobody from those countries can come and work because I am not sure, frankly, that addresses the fundamental question which is the aspirations that people have to use their skills and improve their lives. There are other countries—and the Philippines is a very good example when talking about the social care sector—where it is the conscious policy of the government to train for export in terms of capacity and that is why people with those skills from the Philippines are to be found working all over the world including in the UK.

  Q329  John Barrett: I would like to follow up on exploring this link between domestic policy and the development impact that domestic policies might have because although, as you have said and the chair has said, the vast majority of migration is south-south the issue which concerns the general public (and a lot of us as Members will hear about it directly) is the domestic impact of this. Do you think domestic policy should be factored into the impact it will have on overseas development? For instance, when the Prime Minister called his summit on Tuesday 6 April about immigration did DFID have an input into that because, as has been said already, when we are looking at the overall flow of people the amount of immigration to this country may be relatively small but it does have an impact and is part of the larger migration issue. Should DFID be influencing domestic policy and does it? Is there a link, is there joined-up thinking between the Home Office?

  Hilary Benn: The departments do talk to each other about this, there is no question of that whatsoever. If one accepts that the policy of managed migration which the Government is pursuing, and it is undoubtedly the right policy, to fill the gaps in skills that there are is the right approach to ensuring that we have the people to do the jobs that need to be done within the UK, if one recognises that there are benefits to the individuals that flow from being able to come and work here in the UK—and we may come on to the question of remittances later on in some of the questions—then I do not think it is so much a question of trying to then control the flow of particular individuals from particular countries in the implementation of that policy because in the end who chooses to uproot themselves or make the decision to go and seek to work in another country is going to be down very much to individual choice. In all honesty I cannot quite see how one would operate such a policy even if one thought that there were certain countries where one would say a country like the UK should not take anybody from that country because I think it raises some quite difficult and uncomfortable questions which I alluded to in my answer to the Chairman's opening question. Undoubtedly we do have a responsibility to work with those developing countries with which we have a development partnership to help them to manage that process, and as the example of my conversation with the head of the Ghanaian health service has indicated, this is something that those countries are very alive to and their circumstances differ enormously. In the case of India, for instance, the benefit that has flowed to India from people returning with IT skills in the form of the development of the IT industry in that country has been enormous and so it seems to me in that respect the process of migration for the purposes of education and working has been entirely positive. I think we need to have a conversation about the impacts but I do not think that one could adopt a crude policy of saying we will take nobody from these countries, if that was the suggestion made.

  Q330  John Barrett: When immigration and asylum policy is being developed are DFID part of that process and what should they be trying to influence? Is it something we ought to be saying this is a domestic issue, it is a case of hands off, or should we be saying, as we were talking about earlier on, if we are looking at migration of skilled population this does have a development impact? It may be on the one hand that DFID are trying to fund the training of nurses abroad and at the same time there is active recruitment of these same nurses across to the UK. It clearly has an impact and I am just wondering whether DFID are in there having discussions when policy is being developed?

  Hilary Benn: Sharon White may want to say something from her perspective but undoubtedly what we bring as DFID to those discussions within government is an understanding of patterns of migration in developing countries and the phenomenon of south-south migration and internal migration, because all of us need to be better informed about what is this process that is going on and to draw on that knowledge and information in taking decisions about how UK policy should be developed.

  Ms White: That is absolutely right. The only point I would add is that we are significantly more involved even than we were a year or 18 months ago. That is partly because as a department we have recognised that migration is a key issue alongside trade to very quickly improve the lives of poor people. In terms of the discussions which the Home Office or the Treasury or the Policy and Strategy Unit have on migration, DFID has got a regular seat and much more to contribute than we had, as I say, even nine or 12 months ago.

  Q331  John Barrett: Would DFID like to have been invited? Were they at this meeting on the 6th or would they like to have been invited along?

  Hilary Benn: I think I was overseas at the time is the answer to that particular question. My experience goes back six months so the state of involvement of discussion is the one that I have experienced since I became Secretary of State and before that Minister of State. I think the involvement that Sharon has just described recognises that we all have an interest in this and we have a particular knowledge and perspective to contribute, but I would just emphasise again that these are very, very complex issues and the conclusions that one could draw from our involvement, I hope, will result in good policy being pursued because we all have something to learn from this process of understanding what is this that is going on which is in the end the result of decisions that individuals are choosing to take or being forced to take by their personal circumstances. That is what migration is.

  Q332  Mr Battle: I sometimes get the impression, Secretary of State, that you are describing a process and we are trying to analyse a process. I am tempted to be personal about it and emphasise it is not just decisions of individuals but the process itself which is being shaped and is being changed. I will put it to you in these terms because you mentioned India and I thought it was quite interesting in a way. It is not just that these things are happening and we watch them, and they are complex, and we then try and do a summary of how it is working because there are movements and government decisions being made that influence the process massively. I will put it in these terms. I remember some years ago learning that trade was much more significant than aid. There was a cartoon of a Mexican peasant 30 years ago receiving a teaspoon and on the teaspoon was written the word "aid" but there was another hand round the throat of the peasant and on the arm was emblazoned "trade". What is the point of giving a teaspoon of aid if the windpipe is choked off by trade policies? I think we have got that. However, if we push the trade polices and the Government is going to stress the opening up of trade, then some interesting contradictions come in. In our own city of Leeds the concept of offshoring for IT jobs—and there are 20,000 call centres, some have already moved to India and will the ones that are left there now be retained in Britain and what is the relationship—is a complex and difficult question. I would just ask you is there any discussion in government because you could have a government arguing for opening up trade in terms of goods and services but being mortally opposed to mobility of labour in practice. I want to know really if in fact we know that developing countries can actually increase their benefits as developing countries just as they can with trade so they can with the mobility of labour and if they can have more temporary labour working elsewhere in the world sending back remittances it can add massively to the budgets of those countries, so what are we doing to not just accept it when we are forced to but to positively encourage it? I would just like to ask a very particular question: does the Government's stance on migration differ from its stance on the liberalisation of trade in goods and services and if there is a difference is it because the economics of migration differ or is it because of the politics and distributional consequences of migration—put loosely that we do not like people coming here for a varying number of reasons—rather than battening down the hard economics?

  Hilary Benn: There were a number of questions there. I think the first thing I would say is that the free movement of goods and the free movement of people raise different kinds of issues. I think the Government recognises that and it is right that the Government should recognise that. Secondly, I do not think it is a question of just observing the process. I think we do have to understand that it is largely driven by choices that individuals make and also by policies that governments pursue. I was just trying to make the point that these flows of migration are the sum total of lots of decisions that individuals make and therefore the ability to control and influence is limited in some respects, although if a country decides as far as its immigration and migration policy is concerned, clearly it has an ability to control it from the receiving point of view. Since you mentioned the example of Leeds and call centre jobs, which is dear to both of our hearts, from the development point of view the fact that jobs are being created in India and providing employment and increased opportunities is undoubtedly a good thing. From the city of Leeds' point of view it depends whether those jobs that then transfer overseas are replaced by other forms of employment or not. One of Leeds' successes over the last 30 years has been its ability to create new jobs and new industries and new services which have replaced the other forms of employment that used to exist. From a domestic point of view the fact that we have got a record number of people in employment shows that it is a process which the country has been able to manage so far reasonably successfully. But I think there is a difference between the free flow of goods and the free movement of people. We are not in favour as a government of mass migration but we are in favour of trying to manage the process in the interests of the economic circumstances of the country and in the process to offer opportunities for people to undertake that journey you describe which leads to them earning more money and sending it back in the form of remittances to their own countries. What we have learnt increasingly in recent years is just how important remittances are as a source of finance for developing countries, and that is a good thing.

  Q333  Mr Battle: Just to link it with the Chairman's question, just to push it a little bit further, I can remember the argument in the 1960s and 1970s around the textile industry and there was a great row in Leeds that import penetration from overseas developing countries would destroy the textile industry. I remember doing the research and seeing the headline "Leeds market full of cloth from Mauritius". I researched the import penetration of cloth from Mauritius in Leeds. It was 0.2% of the whole of the textile industry. It was not undermining it but laws were passed banning textiles from Mauritius coming into Leeds. What happened was Mauritius then cancelled an order for a textile processing machine so 300 jobs were lost in the factory that made the textile machines next door to the very people who had been campaigning to keep textiles out. I think we learnt from that that trade has to flow two ways. We could put the economic arguments very strongly for expanding the economy, finding new jobs and services in our city, as we have done, but can you see us arguing more positively and winning the argument to say that we need more temporary—I use that word quite deliberately—migrant workers who are trained to, for example, care for the sick and the elderly in our city in the next 20 to years because we have not enough young people trained in those skills to actually do it and seeing that argument being won in the same way as it was won on trade? Is there a difference?

  Hilary Benn: If one thinks of the two hospitals in our city and the number of foreign nurses who are working there, Leeds citizens experience every day of their lives the benefits of people coming to the UK to work to provide them with care. I suppose if they stopped and thought about it they would realise if they were not doing their job and there were not the people to take up those forms of employment what the impact would be on the health care that they received. As I said at the beginning, to the extent that we as a country need to manage migration and need to manage the flow of workers it is right and proper that we should do so in the interests of meeting the needs that our economy has got, meeting the needs for our public services, while recognising at the same time that that does bring benefits. It is a very moot question as to whether that argument is won or not with the public because I think if you asked the public, "What was the nurse like who looked after you when you were in hospital?" then most people would say that they were very kind and provided them with help and so on. If you were to ask, "What do you think about the issue in general?" some people might take a rather different view. I think as politicians part of our responsibility is to say, "Look, without those types of workers filling those types of jobs what would that mean for the provision of public services?" but I think we also recognise that the movement of people creates other issues as far as societies are concerned. Britain's whole history has been about accommodating different waves of migrants and refugees and immigrants and it is a process that societies have had to manage, and that process will undoubtedly continue. I think it is an obligation on us as politicians to point out what the consequences would be if we did not have people to fill those jobs.

  Q334  Mr Battle: Exactly, I completely agree with you but a final point on this if I may Chairman. In terms of the language I am glad that we have moved away from "control" as the key word. We have controlled migration and we used to have controlled trade, and that was exactly the same parallel. The Home Office submission refers to managed migration. We do not talk about managed trade though. I just wonder why the language is tightened up in that kind of way. We have got managed migration but free trade. I am wondering whether that contradiction or that language is not helpful and maybe we need to search for some new concepts to get across the notion that migration is a good thing two ways.

  Hilary Benn: Personally I would not interpret the phrase "managed migration" as having the negative connotations that some people might ascribe to it.

  Q335  Mr Robathan: During the course of the investigation of this subject we have discovered that there is very little hard evidence and data available, indeed the research is somewhat lacking which is one of the reasons we are pursuing the subject, and indeed there are many assertions made with which one might or might not agree without hard evidence to back it up. To pick up, for instance, on your historical assertion about Britain taking waves of immigrants. Of course the immigration that has taken place in the second half of the twentieth century is hugely greater than anything that has taken place, as you rightly say, throughout our history from the Angles and Saxons, but the point is there is no clear data. People make assertions but they do not know. By the way, may I apologise for arriving late. My question to you is do you think we need more comprehensive, detailed and rigorous information so that we can develop our policy on the basis of evidence? What significant gaps do you see   in your department in the knowledge and understanding that we have and what, if anything, is your department of government doing to improve the evidence base for those migration policies?

  Hilary Benn: If you are asking me, Mr Robathan, about information on migration flows into the UK, then that is not my—

  Q336  Mr Robathan: I think more generally.

  Hilary Benn:—That is obviously not my direct responsibility. The general point that you make—would it be good if we had more data about this process and the kind of flows that we are talking about—of course it would because I would like to think that good data helps to inform good policy.

  Q337  Mr Robathan: Could I give you an example, Secretary of State. For instance the issue of disbursements/remittances back to developing countries is very important both to individuals and to societies in developing countries but I remember being in Ghana where a minister said, "I wish you British would stop shipping jumbo jet loads of nurses from our country to the UK." This is where the lack of tangible data is important.

  Hilary Benn: I think before you came in, Mr Robathan, we had—

  Q338  Mr Robathan: Was that mentioned? I am sorry.

  Hilary Benn: We had been talking about nurses in Ghana and I had been describing the conversation I had with the head of the Ghanaian health service which was principally about the push factors that led nurses and doctors to leave Ghana rather than the pull factors from the UK or New York and New Jersey where it is said that there are more Ghanaian doctors working (in the states of New York and New Jersey) than in the whole of the public Ghanaian health service. I think the honest truth is we as DFID are trying ourselves to develop a better understanding of what these processes and movements of people entail in terms of the countries with which we are working. There are the UN estimates of the number of international migrants. They are estimates because it is, by definition, quite difficult to count particularly when you get to refugees. I also think the fact we have difficulty in pinning down the amount of money that goes back in remittances is an example of how difficult it is to draw up an accurate assessment of the total amount. But even the measures which we do have indicate that this is a very, very considerable amount of money. 20 years ago if you had talked about remittances and development—I do not know, I am surmising here—they perhaps would not have figured terribly prominently in the kind of discussions that we would have had, the inquiries the Committee would have undertaken, and the work that DFID's predecessor organisations would have undertaken. The fact we now recognise the importance of remittances is a good sign. All of us would like to understand better and more precisely what their amount is, where they flow from and where they flow to and how they are used. The evidence we have so far is they do have a developmental benefit and that is a good thing, that is a good effect of migration.

  Ms White: You also asked about what we are trying to do to fill some of the information gaps and there are a few specific things we have already got in train. We have set up something called a development research centre which is specifically looking at migration. One of the biggest gaps the Secretary of State has already mentioned is on remittances and the size of flows. Another is getting a better handle on what the poverty impact of migration is. Again we have got reasonable qualitative evidence of the positive and negative aspects but we do not have any concrete evidence of what X number of additional flows mean in terms of real poverty reduction. That is one of the things we are trying to get a better handle on. We also support some work which the World Bank is doing, which is quite a long-term research programme, that again is trying to get a better handle on remittances, who they go to, how poor the people are, what the money is then used for. So perhaps if you were coming back in 18 months' time with a follow-up to this inquiry we would have a much better information base than the one we have currently.

  Q339  Mr Robathan: That is extremely helpful, particularly on remittances. Because we are the Development Committee, we have discussed at length the impact that remittances have, of course, on the developing countries, and they must, of necessity, be benign, because it is money going into countries, often largely disproportionate amounts, from a country where costs are high, as here. Is there any research being done by your Department, or perhaps by the Home Office, on the counter-effect of remittances, which is, of course, that it is money coming out of the economy here to go to developing countries?

  Ms White: The work that has been done, mostly in terms of the impact in the UK, has been less in terms of remittances per se and much more in terms of the employment effects of skilled or unskilled workers coming into the UK, where the impacts are generally small but positive. What we have not really taken a look at is whether there are deleterious impacts on the sending country—the UK, for example—of remittance outflows. But if you take the impact of migration, what we tend to find is that it is generally positive overall for the UK, but again, the data is not fantastic.


 
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