House of Commons - Business and Enterprise

Select Committee on Business and Enterprise Written Evidence

Supplementary memorandum submitted by UKIBC

Response to further queries from the Committee:

UKIBC REPRESENTATION IN INDIA

UKIBC has appointed its first representative in India. The representative is based in Mumbai on a consultancy contract until September, when UKIBC hopes to move into offices, when we shall recruit a full-time post. We are working with the High Commission to finalise the job description for a Delhi post and hope to have a staff member in place by September when we move into our new offices there.

VISAS

With regards to Visas, it is UKIBC's view that there are some pitfalls in the system that if rectified could be of gross benefit to cross border investment.

Student Visas

It is vital that foreign students have the same opportunities to stay on in the UK and seek employment, regardless of where they studied. At present under the Fresh Talent scheme, non-EEA nationals who have successfully completed an HND, degree course, Masters or PhD at a Scottish university or college and have lived in Scotland during their studies, can apply to stay in Scotland for up to two years after completing their studies to seek and take work, in comparison to just one year in England and Wales. Whilst few employees are unlikely to knowingly take on staff that will only be in the country for 12 months, there are also other implications for certain industries. For example, for the accountancy industry—a thriving sector for Indian graduates—these stipulations precludes such individuals from obtaining employment, either in the corporate sector or in an accountancy firm in public practice, as to study and obtain relevant work experience in order to qualify as a professional accountant in the UK with a UK accountancy institute, takes between three years and five years to obtain such a qualification.

HSMP

A change that would help trade and investment with India and indeed other countries would be the relaxation of the mandatory requirement under the HSMP for the applicant to have a degree (many talented skilled nationals indeed many entrepreneurs do not have degree).

Overall the UK system does make it easy for overseas nationals including Indians to enter the UK for employment and business. The disadvantages are however:

— Requiring a visa for even business trips. Perhaps the British High Commission and Consulates could make this easier—it can be difficult for some Indians to obtain visas as often the entry clearance officer assumes that the applicant intends to remain in the UK.

— The HSMP requires a degree and although the Indian work force is well educated many talented nationals do not have degrees. Perhaps there could be recognition of qualifications that are not degrees and a greater encouragement for Indians with certain skills to come to the UK.

— Promotion of the working holidaymaker scheme in India.

In addition, favourable tax schemes, exchanges schemes between Indian and the UK, more favourable deals offered by Development Regions and greater recognition of Indian qualifications which are not of UK degree level may also help.

Also, with the introduction of the Points Based System, applications will primarily be made at British posts abroad. It must be ensured that there is uniformity in assessing applications as currently posts vary widely with those in the US, for example, enjoying low refusal rates compared to those in India which have very high refusal rates.

A lack of mutual recognition of qualifications remains a large issue when professionals are trying to enter the UK to seek employment.

EU Visas

This is another area of contention. Indians living in the UK on Indian passports but who have a right to stay require visas to enter the Schengen countries—because UK stayed out of the treaty. The procedures to get a Schengen visa are very difficult and restrictive for those requiring business travel within Europe. In order to promote the UK to Indian investors as the "gateway to Europe" it is vital that the restrictions on Indians who have permanent residence in the UK, are lifted to enable them easier access to the EU. At present they do need a visa and they are only ever given single entry or limited three to six months. This is a major disincentive, when compared to the USA and Canada who often give 10 years multiple entry visas.

INVESTMENT SUMMIT

With regards to the Investment Summit, just to clarify, I believe you are referring to the Summit that was initially proposed for November 2007 (to coincide with the PM's visit), however when the visit was postponed to January, the Summit was cancelled. UKIBC believes that in order to establish sustainable relationships that are driving forward the business agenda, delivering practical outcomes and enabling deals to be done, it is imperative to have structured and regular discussions. With that in mind, it is disappointing that the Investment Summit did not happen as planned, however it is more than evident that there remains a great deal of opportunity for engagement, and UKIBC seeks to actively encourage and support future dialogue.

MEMBERSHIP FEES MODEL

As it stands, membership tiers are structured as follows:

Associate member—£1,000 per annum

Small corporate (turnover up to £3 million)—£600 per annum

Medium corporate (turnover £3-10 million)—£1,500 per annum

Large corporate (turnover £10 million plus)—£3,000 per annum

Corporate Plus—£10,000 per annum

Strategic Partner—£30,000 per annum

Corporate plus

Key benefits

— Opportunity to serve on UKIBC board, subject to first year's membership and nominations committee.

— Co-Chair of sector or issue based fora providing thought leadership.

— Opportunity to provide speakers for key events and seminars.

— Market entry advice and support.

— Consultation with JETCO policy sector groups.

— Contact with UKIBC Executive Board.

— Next Generation India*: 3 Complimentary Memberships.

Additional benefits

— Sector overviews and networking events.

— Discounts on UKIBC partner events.

— Access to UKIBC events, with exception of invitation only events.

— B2B matchmaking service.

— Opportunity to use UKIBC facilities on a limited basis.

— Access to official tender notifications.

— Discounted rates for Business Advisors in UK.

— Discounts on bespoke research services.

— Access to latest research, trade statistics and economic forecasting.

— Input into policy and research initiatives.

— Access to UKIBC sector fora.

— Agreed package of support from UKIBC each year.

— Support for sector and regional activities.

— Access to case studies.

— Invites to visiting Indian business leaders and government roundtables.

— Invitation to member briefings on key issues by guest expert speakers.

— Access to members directory (code of conduct applies).

— Access to members section of UKIBC website.

— Information and Insight via newsletter and magazine.

Support in India

— Short term use of UKIBC Business Centre in India with preferential rates for longer term use.

— Bespoke events in India.

— Key introductions.

— Meeting and trip planning.

Strategic Partnership (Minimum 3 year commitment)

Key benefits

— Attendance at senior level events and invited Indian Government events in UK and India.

— Access to UKIBC Ministerial business delegations and events.