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Mr. Woolas: That is a wise point. All labour migration policies have to take into account the real economic impacts, which are often unintended and unregulated. That is why, for example, the seasonal agricultural workers scheme absolutely backs up the point that my right hon. Friend is making. This year, the seasonal agricultural workers scheme involved around 22,000 people from Romania and Bulgaria. The history of that scheme shows that the number of absconders from it is a handful—I think that the figure is less than five in the past year—and, in any event, they are EU nationals. That is because it is a regulated scheme. An unregulated scheme for low-paid or relatively low-paid agricultural workers, such as those introduced in the past in relation to non-EU countries, led not just to an undermining of employment regulations and legislation but to clandestine immigration. I have concerns in relation to the latter policy, as well as in relation to my right hon. Friend’s point.
The other consideration that Professor Metcalf has brought to the fore, on which I have, of course, commented before, is the need to take decisions in the light of decisions of other member states. There is a relationship between our labour market and that of the French, Germans, Dutch and so on, and, of course, that of the Republic of Ireland. That is a long way of saying, “Yes.”
Tom Brake (Carshalton and Wallington) (LD): If the Minister were to consider reimposing restrictions on the A8 countries and if he were also looking at abandoning the restrictions on the A2 countries, what sort of test would he be using to judge whether he wanted to reimpose or, indeed, cancel conditions?
Mr. Woolas: That is a very important point; I am grateful to the hon. Gentleman for making it. I would be influenced by the Migration Advisory Committee, particularly by Professor Metcalf’s letters on the labour market impact of relaxing restrictions on employment of those from the A2 in the UK. Those letters, of 17 November 2008 and 20 March 2009, were on the review of the UK’s transitional measures for nationals of member states that acceded in 2004—in other words, the A8. I think that those letters are in the Library with the reports, and if Members want them, I am, of course, more than happy to make sure that they can get them. I would advise them not to spend too much time reading them because they are very technical, but the crux of what they say is that the restriction should not be lifted. However, it is acknowledged in the letters that it is a finely balanced argument in terms of the impact on our labour market and economy.
Professor Metcalf points out two important factors. First he says,
“we do not know the labour market policies which other EU countries will adopt towards the A2 in their own reviews.”
That is the important point. He then talks about that in the context of the A8 and goes on to state that we should look at the specific sectors within the context of the skills shortages that we have in other areas of the economy, such as the care sector. The other side of this policy are our strategies for upskilling in those skill shortage areas. So we would look at those two criteria, on Professor Metcalf’s advice.
Tom Brake: Are there any circumstances in which the Minister would consider reviewing these matters sooner than 12 months, as he indicated—if the situation in other countries changes dramatically, for instance?
Mr. Woolas: There is a third factor, in the case of the A8 countries and the A2, which is the currency exchange rate. The relative value of the zloty and the pound came down from 7:1 a few years ago to 4:1 and has now settled at around 5:1, and the impact on the wage economy—the supply and demand in Poland—is affected by that exchange rate. That is difficult to factor in. We are not running a Soviet tractor factory here—goodness me, no—but it is important.
I suppose my answer is that if there was dislocation in the economy, either because of the currency exchange rate or other major factors, despite what I said before one would look at that, remembering the types of people that we are talking about in eastern European migration: they tend to be young and have a strong work ethic and, frankly, they move on if there is no job available.
Mr. David Heathcoat-Amory (Wells) (Con): When Lord Mandelson and the Minister separately gave evidence to the European Scrutiny Committee on this subject in March, it is fair to say that the Committee got into a considerable muddle over the numbers of workers who have arrived here from the 10 countries that have joined the EU since 2004. The Minister suggested a figure of 665,000, but that excluded those in communal accommodation, those here for less than a year and the self-employed. Does the Minister have a reliable single estimate? Under questioning, although he may not have shifted his opinion he started to give estimates from other sources and the Committee was thoroughly confused. So can he now give us reliable estimates of the numbers concerned?
Mr. Woolas: I am sure that the Committee was thoroughly confused, because I suggest that it was not listening to what was being said to it with due attention on that point, which I was quizzed on for some time. Again, that is an example of how, when one tries to help too much, one can cause unintended confusion. I am in some difficulty on the figures because I am subject to Office for National Statistics and statistical restrictions and since information is coming out tomorrow I would not want to breach those codes of conduct in any way—and you would not expect me to do so, Sir Nicholas. So I will quote the previous figures. I mention that because there will be new figures in the public domain soon and I do not want the right hon. Gentleman to confuse the figures that I am providing with those fresh figures.
The figures show that, between May 2004 and December 2008, 965,000 A8s made initial applications to register and 926,000 were issued with a worker registration card and certificate. I should like to clarify, as the right hon. Gentleman did, that this figure is a measure of the number of people who have arrived for the purpose of work but not necessarily the number of those who have stayed. There are, of course, other sources of data that we can use to obtain a picture of the stocks of workers here. The labour force survey indicates that the stock of A8 workers in employment in the UK in the last quarter of 2008 was 469,000, although as the right hon. Gentleman says, this number excludes temporary workers here for less than 12 months and those in communal accommodation.
The labour force survey for the first quarter of 2009 indicates 499,000 A8s in employment in the United Kingdom.
Mr. Heathcoat-Amory: The Minister’s answer illustrates why we got into this muddle. Incidentally, it was not me but the Chairman of the Committee who got muddled at that time. The Minister at that time was reduced to saying, “It may help if I give you a note on this.” That is always a sign that a Minister is in some difficulty.
My supplementary question is about the public concern over unrestricted numbers of people from the new accession states arriving here, living here and working here, especially during a recession. Surely, for there to be public confidence, there must be real figures about real people. Is the Minister happy that the estimate he has given excludes large categories of people? He has mentioned those in communal accommodation and the self-employed. Does he not think that the Government owe the debate better estimates of how many people are coming, so that we can decide how many we need and how many the public want?
Mr. Woolas: If only life was that simple. The labour force statistics in any sector over any period present information as well as possible. Some definitions are important, such as the definition of temporary. The definition of applicant as opposed to person is important. The number of applications is not the same as the number of people.
You might pull me up on this point because it is slightly beyond our remit, Sir Nicholas. The migration and population ministerial working group, which has worked to improve the statistics through evolution for many years, has been a great success. Finally, tracking the movement of people in and out of the country provides another source of statistics alongside the labour force survey. The border control measures that we have reintroduced, which include the EU, are a great help in getting more accurate statistics.
If the question is whether I am confident, the answer is that I am. Our measures have controlled not the exact numbers, but the overall trends in a satisfactory way. If the right hon. Gentleman takes on board my point about dovetailing this with non-EU migration, I think that we have got it about right.
Mr. Heathcoat-Amory: I accept that the Minister is doing his best with the estimates, but does he accept that there is public concern? There are elections coming up and it has been put to me on the doorstep that to many people, immigration seems to be out of control. Nobody knows the numbers, still less controls them. The Minister referred to controls, but we have no controls. We have no legal right to limit the number of people coming in from the so-called A8—the eight states who acceded in 2004. Will he concede that there is a problem for politicians in communicating with the electorate because we do not know the numbers and have an imprecise registration system, under which people can register several times and leave the country or return to it? Even if we knew the numbers, there would frankly be nothing we could do about them. Is he happy with that situation?
Mr. Woolas: In general, I do not accept that view. Of course we do not know exact numbers. It is not and never will be possible to know the exact number of people at any one time unless we all have some sort of Big Brother tag. However, we now have more accurate figures from a number of data sources, which the ONS publishes on a regular basis. There was a high-profile public debate over the last quarterly figures, which the hon. Members for Ashford and for Eastleigh and I engaged in.
I do not accept the right hon. Gentleman’s point on the figures. I understand that he is driving towards a policy for the EU. The Government of the day cannot and should not want to control the number of UK workers who work elsewhere in the EU. Within those confines, the reassurances that the public want are there. On a wider point about migration, our new control and management systems are increasingly gaining people’s confidence.
Damian Green: I am glad that the Minister is confident that he can now make reasonable estimates. I appreciate that they are not exact. Can he give us his best current estimate of the number of A8 workers who have returned to their country of origin in the past 12 months? I appreciate that the figures may be one quarter out of date, and that we will get new figures tomorrow. Secondly, what estimate do the Government have of the number who came from the A8 and have now decided to settle in this country permanently?
Mr. Woolas: I am grateful to the hon. Gentleman for including a caveat. He will understand what I am saying in the light of embargoed information. Let me give the general picture while I get inspirational figures—I hope. It is widely acknowledged that migration from the A8 countries is slowing down, but it is not clear yet whether that is down to a perception of fewer opportunities in the UK or a perception of more opportunities in the source countries.
For example, Poland is undergoing a significant programme of reconstruction, largely funded by the European Union, of its infrastructure including the national grid, sewerage, roads and so on. It is providing opportunities in the construction industry to such an extent that the Polish Government last year ran an advertising campaign on TV and in other media, encouraging people to bring their families home and to take part in the reconstruction. That, combined with the exchange rate, which I mentioned earlier, has been an important factor.
Let me again quote the respected think-tank the Institute for Public Policy Research. I quoted it in the European Scrutiny Committee, but that obviously did not help the right hon. Member for Wells. It published research last year that suggested that while economic reasons have driven A8 migration to the UK, migrants tended to return for family and cultural reasons. Those least likely to return were those who had set up businesses here rather than those in employment.
Damian Green rose—
Mr. Woolas: I am not allowed to take an intervention.
The Chairman: I think that the shadow Minister may wish to come back with a further question.
Mr. Woolas: I hope that I have answered the question. Could the hon. Gentleman ask it again?
The Chairman: We are happy to facilitate the—
Mr. Woolas: Thank you, Sir Nicholas. I apologise for that.
On settlement, we cannot at this time authoritatively say how many A8 nationals have settled. However, we know from the labour force survey that 499,000 A8 nationals are in employment in the United Kingdom, as I said earlier. That differs from the 469,000 figure that I gave earlier, which was for a period before the last quarter of 2008. We think that there is a gap of some 500,000 between those who have settled and those who have registered. The answer to the question is that we do not yet have precise figures, but we will of course get that information.
Damian Green: I appreciate what the Minister said about the construction programme in Poland. The last time I was there, about 18 months ago, I asked about Polish plumbers in Warsaw and was told that all the plumbers in Warsaw were Romanian. There simply were no Polish plumbers there at the time.
I have two more questions for which I hope the Minister can at least give estimates. First, how many people does he think have come from the A8 countries who are outside the worker registration scheme? He has just given a figure of about 500,000. Is that the Government’s best guess of how many have come from the A8 who are outside the scheme?
I appreciate that the answer to my second question may be an even vaguer estimate, but I am sure that the Committee would find it helpful. What is the Government’s estimate of the number of people who have come on false papers from countries further east than the A8 but purport to come from the A8? He will appreciate that there is public concern about people from outside the EU using that route to get here illegally.
Mr. Woolas: As ever, the hon. Gentleman is asking very difficult questions that this policy area inevitably raises. The one-off £90 fee to register with the WRS—this returns to the point that my right hon. Friend the Member for Sheffield, Brightside made—might deter some people. They might enter other types of employment. The total international migration figures, published by the ONS—these are not Home Office figures—suggest that, in 2007, the net inflow of A8 nationals to the UK was 87,000, compared with 210,800 approved WRS applications in the same year. That suggests that many of those registered subsequently left. The estimate, therefore, lies somewhere between the difference in those two figures. Until we have settlement figures, however, we will not have an accurate picture. As the hon. Gentleman reasonably points out, that is true in areas of EU labour market statistics.
On the hon. Gentleman’s second question, no, we do not know how many illegals there are—tautologically. We do know that the EU identity schemes have improved hugely. The requirement for registering and supplying passports, which allows us to check the validity of identity cards, gives us confidence within the EU. In this area of policy, the validity and sharing of data is the major test of countries’ accession rights. The EU is applying these tests to, for example, Croatia. There is no reason to believe that the A8 countries are subject to more abuse than the 15 countries. I shall not name them—peut-ĂȘtre—but it could reasonably be said that some EU countries have a higher level of abuse. However, I am confident in the quality of those documents.
 
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