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Mr. Woolas: The points that have been made on the danger of unintended consequences are important and serious. I have always believed that there should be a clause in every Bill and a schedule in every statutory instrument that says, “There shall not be unintended consequences”, but that is why we have these Committees, so I will try to give some reassurance to right hon. and hon. Members.
I will start by addressing the big, principal questions before going into the details. On the overall policy, I congratulate the hon. Member for Ashford on pointing out the difference between £100 million and 30 per cent. The £100 million is the amount that we are allowed under law to raise above the costs of providing services. That is the total. We could charge a lot more, but for reasons that my right hon. Friend the Member for Oxford, East and others gave, and for other reasons of which hon. Members are aware, we do not. Current policy is to recover around 30 per cent. of the cost—I may have given the impression that we had changed the policy in my opening remarks.
The hon. Member for Ashford asked, essentially, for the estimate of the elasticity of demand. It is not our policy or our intention to use the level of fees as a deterrent against applications for services either in the narrow areas that we are looking at today or more generally. Doing that would be the tail wagging the dog.
Emily Thornberry (Islington, South and Finsbury) (Lab): I have a large number of immigration cases coming into my surgery and a number of constituents are finding it very difficult to gain British citizenship. One woman who would be entitled to claim British citizenship and is currently on benefits cannot afford to pay the amount. She wants to be able to work and that is definitely a barrier to her. Another constituent has British citizenship but her husband does not. They have three children. Two of the children are twins who are about to turn 18. They have applied for British citizenship. They are not entitled to it automatically. It has been refused and they will need to apply again later. It will be very difficult for that family to establish British citizenship, which the whole family wants. They want to stay here and they want to play their part in Islington.
As I am on my feet, perhaps I can raise another issue. Another constituent came to see me to ask me to write a letter interpreting the letter that had come establishing his status. It was written in such gobbledegook that potential employers did not believe that he was entitled to work. I had to write a letter in English so that he could then get a job. If people have to pay for this, I certainly hope that it is in clear English.
Mr. Woolas: I am grateful to my hon. Friend. She makes some important points. The elasticity of demand is different in different services and areas that we provide. Just to give some reassurance, in the second-half debate, we will probably go into that. In some areas we are trying to make processes administratively simpler. For example, she may recall that people were encouraged to get a five-year visa if they were regular visitors to our country, rather than five one-year visas. That provided a net cost reduction for the migrant, and a significant administrative benefit to the immigration and nationality directorate.
We try to look at each fee in and of itself, as well as comparing fees with those in other countries to ensure that they are—I do not like to use the word competitive in this context, but I have yet to find a better word.
Mr. Burns: Cost-effective?
Mr. Woolas: Cost-effective. What is the level of the fee for the United States, Germany or France? The comparison is there.
The point about gobbledegook is important. My experience is the same. My constituents sometimes come and ask for a letter to explain officialdom. That can be difficult. We need to be eagle-eyed about that. On the point about the cost of citizenship, if the situation is as I understand it, then lack of citizenship is not a barrier to work. It depends on the previous status. If it is indefinite leave to remain, then that would be covered. While there may be exceptions and unintended consequences, it is not the policy to use the fee level to control levels of migration or the use of services. As I said, that would be the tail wagging the dog.
On the elasticity to which the hon. Member for Ashford rightly pointed, an excessive fee increase might simply serve to encourage illegal migration. If the fee for a letter of authenticity was too expensive, it could encourage fraudulent letters. I am sure that hon. Members have had experiences where people have tried to pull the wool over their eyes. That is an important point.
I come now to the important point made by the hon. Member for West Chelmsford. There are examples, which we have debated in the House, of unscrupulous lawyers or advisers charging money, adding a margin on top of the fee and getting the MP to do the work for them. My right hon. Friend the Member for Manchester, Gorton (Sir Gerald Kaufman) refuses to help constituents who have been to an immigration adviser. He filters them in that way.
Mr. Burns: He has a large majority.
Mr. Woolas: Let me reassure the hon. Gentleman—like me, he has a smaller majority—that we are working with the Office of the Immigration Services Commissioner, which was established not long ago to regulate these areas. We are reviewing that service to make it more professional and efficient in monitoring advisory services, so that we have a big stick to wield in that area. That subject will come forward in the not too distant future.
I can already see the headlines that there would be if we charged MPs for status letters. In the past, some public representatives at council level have tried to charge for fees. Such exploitation has rightly been the subject of media exposure. It is important that proper processes are in place.
Mr. Burns: I wanted an assurance that MPs will not be charged for responses to letters that they send to Ministers asking for the immigration status of people on indefinite leave.
Mr. Woolas: I did not answer the question directly because I wanted to tease the hon. Gentleman. I cannot speak for my successors, but there is no intention to charge a fee. If we tried to claim for that under the incidental expenses provision, we would rightly be hammered in the press.
Mr. Smith: That takes us back to my original question. If an MP can get a confirmation of status from the Minister or the agency, will that not induce people to come to us to get them? They will take that letter to the employer, rather than pay several hundred pounds.
Mr. Woolas: Such a letter would not carry the legal status of the issued certificate.
To respond to the hon. Member for Carshalton and Wallington, our estimate is about 3,500 status letters a year. I cannot give details of what proportion of those are requested because we have the documents, but I will take that point up. It is an important point that I confess I had not thought of. If I understand him correctly, he is arguing that it is not fair that a statement letter must be requested if it is needed because documents are being held by the UKBA or a tribunal. I will provide an answer on that before we debate the fee levels.
I apologise because I think I have opened up a hornets’ nest.
Mr. Burns: May I question the Minister’s figures? If I heard him correctly, he said that he anticipates about 3,500 letters a year seeking status. If statistics are to be believed, about 1.8 per cent. of the population of my constituency is non-white. Last year I wrote to the Minister or the UKBA at least 40 times on behalf of constituents asking for their status, particularly on the issue of indefinite leave to remain. Given that 641 MPs have taken their seats and that more than 50 per cent. of the population of some constituencies is non-white—for example, in Leicester—I cannot believe that the number of requests is so low.
Mr. Woolas: That is an important point. The hon. Gentleman’s experience will chime with that of other Members. Those are the figures that we have. We get requests for about that number and have built that into our budgets. The figures are for the 2009-10 financial year; this is where a specific letter is asked for on status. In the vast majority of cases, the status is implicit in other documents, such as the decisions issued by tribunals. That is the figure that I have; perhaps there is something in the water in West Chelmsford.
Tom Brake: The Minister has helpfully confirmed that Members of Parliament will not receive a bill for £200 or £300 if we approach his Department. However, if a constituent comes via us will they receive a bill for £200? In that case, as Members of Parliament we will all be the bearers of bad news.
Mr. Woolas: In many areas, Members of Parliament write to Ministers asking for clarification on behalf of constituents. Under no circumstances do the Government charge Members of Parliament for that service; that would not be right.
Tom Brake: They will all come to us then.
Mr. Woolas: In other areas where fees are charged, that has not proved to be an incentive to go to an MP, but unscrupulous people in the advisory service may do that. There was a consensus in the House to introduce the regulations on the Office of the Immigration Services Commissioner, and they have been successful.
To be comprehensive, I will clarify what the figure of 3,500 is. It is our best guess of the number of immigration status letters. It does not include requests for updates on the status of individual applications. This is probably outside the remit of the debate but if you will allow me, Dr. McCrea, I will explain that the Under-Secretary of State for the Home Department, my hon. Friend the Member for Hackney, South and Shoreditch (Meg Hillier), will introduce proposals to the House for the management of such requests. The Committee may wish to know that there has been a pilot project involving five Members from across the House, some of whom—such as my hon. Friend the Member for Islington, South and Finsbury—have significant case loads and some of whom have much smaller case loads. We have learned from that cross-party study and will introduce proposals, including on new technology. Thank you, Dr. McCrea, for allowing me to give that information.
Damian Green: I want to take the Minister back to something he said a few minutes ago, before he got into the numbers. He said that a letter sent to an MP would have no legal status. That seems to be the crucial point, because what will happen is that somebody will innocently turn up at one of our surgeries, saying that they want to check their status, and we will write to the UK Border Agency and get a letter back. We will then solemnly send that on with a House of Commons letter and they will present it to their employer and say, “Look, I am allowed to work in this country”. The employer will then say, “That does not mean anything”. I suggest very gently to the Minister that that will not be a satisfactory state of affairs and that he will find himself extremely unpopular with many of his colleagues, as well as with people around the country.
Mr. Woolas: That is the case already; it is not pertinent to the issue of fees. Thousands of letters are issued by Members of Parliament and in practice they most often do the job—[Interruption.] Will Committee members calm down and be reassured? Letters issued by MPs can already be used for an employer. Such letters are often used with our officials at airports, to confirm who the person in question is. Last night, a constituent who was interviewed at Heathrow was carrying a letter from her Member of Parliament. My simple point is that in practice, those letters are extremely helpful. This is dependent, of course, on the integrity of the hon. Members, and that is not questioned by the Home Office; indeed, such letters are extremely helpful to it. Nevertheless, they do not carry the legal status of the letters issued by the Home Office in response.
Mr. Richard Shepherd (Aldridge-Brownhills) (Con): I am puzzled. Surely a letter from a Minister of the Crown that gives the status of such a person has some value. Does the Minister seriously suggest that such a letter would not be upheld in a court? It is a letter from a Minister of the Crown.
Mr. Woolas: The hon. Gentleman asks a pertinent question, as did the hon. Member for Ashford. I am tempted to stop digging and clarify the status of such a letter. My view is that it would carry status in a court and could be given as evidence, but it is not the certificate itself. If I issue a letter as an MP saying that my constituent has a driving licence that I have seen, that would be accepted by most authorities. However, it is not the actual driving licence. The unintended consequences of status letters mean that the charge would be levied at the point of application. We do not waive those applicants’ fees simply because constituents have raised the question via their MP. [Interruption.] The hon. Member for Ashford wants to push me further on this point. I will take another intervention.
Damian Green: The Minister has slipped into referring to a letter from an MP. My hon. Friend the Member for Aldridge-Brownhills and I are talking about the letter that comes back from the Minister or UKBA. It has been asserted at least once that such a letter would have no status if it was later presented to an employer or anyone else. That seems extraordinary.
Mr. Woolas: I concede the point and I will seek clarification on it. I was trying—clearly inadequately—to say that that letter would not be akin to a certificate or issued letter. I am not a lawyer, but I suspect that the hon. Gentleman has a point and I will get clarification on the status of those letters.
I will try to answer some of the other points that have been raised. The hon. Member for Carshalton and Wallington asked whether there could be higher fees for larger employers. As he knows, larger employers already pay more to sponsor migrants under the points-based system. There is a £1,000 licence fee, as opposed to £300 for smaller companies and charities. I am straying into discussing the level of the fee, but the hon. Gentleman asked about the point in principle of whether we could have differential fees; we could.
I think that I have covered the points about elasticity. My right hon. Friend the Member for Oxford, East asked about the general cost of fees. He has vast experience in that area. We make an assessment of our fees against those of other countries. It is not based only on an assessment of elasticity within the country, but a comparison is made. On 23 March, I intend to provide more information about our assessment. I reassure the Committee that the proposals were subject to consultation with the various interest groups, and there was support for the measure. I believe that I have answered the point about citizenship asked by my hon. Friend the Member for Islington, South and Finsbury.
The hon. Member for Ashford asked whether the intention was for the fee to be a deterrent, with fewer people coming. I have answered that point. The hon. Member for Carshalton and Wallington asked what proportion of applicants asked about the document, and I have given an undertaking to check that.
When I saw the list of members, I knew that having a former Chief Secretary on the Committee would produce some probing questions that I might not be able to answer. Of course, there was one and that was about the freedom of information request. There is a fee in relation to a freedom of information request, too. Someone may be able to get the information that they are seeking through an FOI application, which would be cheaper than the fee in respect of an application for a letter. Again, that is a question about the level of the fee and I thank my right hon. Friend for a first-half question to be answered in the second half. There are other areas where that might apply. It is important to remember that the Data Protection Act 1998 applies to overseas as well as to domestic situations. I thank him for that question.
 
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