11 Sector-specific issues
169. In addition to comments on the principle,
design and administration of the new system, we took evidence
from a range of industries employing migrants under different
tiers of the Points Based System. In this section we report on
problems specific to different industries.
Catering and hospitality
170. In addition to hearing from the Bangladeshi
Caterers' Association at our launch seminar in June 2008, we took
oral evidence from Jabez Lam of the Chinese Immigration Concern
Committee, Ranjit Mathrani of Masala World, and met a wide range
of representatives from the Bangladeshi catering sector during
our visit to Bangladesh in October 2008. We also received written
evidence from London Assembly Member Murad Qureshi, the Chinese
Immigration Concern Committee, the British Hospitality Association,
Kaman Tsang, Christine Lee & Co Solicitors, and Mei Wong.
171. Representatives of the international catering
and restaurant industriesin particular Bangladeshi, Indian
and Chinese cuisinesargued that they were already suffering
from a labour shortage, which would be unduly exacerbated by the
Points Based System. This was in part due to the long hours and
low pay of certain roles, traditionally filled by migrant workers,
the recruitment of whom the suspension of Tier 3 (low-skilled)
of the PBS would prevent. On the other hand, they argued, skilled
roles such as that of specialist chef would struggle to meet the
points requirement under Tier 2 of the Points Based System, particularly
in respect of formal qualifications and of the English language
requirement. The industry had made representations to the Migration
Advisory Committee for inclusion of these jobs on the shortage
occupation list.
LABOUR SHORTAGE
172. The catering industries are a key employer
for minority ethnic communities in the UK. The Chinese Immigration
Concern Committee (CICC) stated that:
[There are] 17,500 Chinese catering outlets in the
UK, with an annual turnover of nearly £5 billion employing
100,000 workers directly; together with the related businesses
are employing over 50 per cent of the UK Chinese working population.
British Chinese catering is the economic backbone of Chinese community
in the UK.[202]
According to the Bangladeshi Caterers Association
(BCA) the 12,000 Bangladeshi restaurants and takeaways that make
up its membership turn over £3.5bn per year. In a written
submission, London Assembly member, Murad Qureshi, told us that:
There are over 2,100 ethnic restaurants in London,
and most of them (over 1,200) are Indian or Chinese. The ethnic
restaurant market is worth in excess of £3bn nationally and
contributed over £1.2bn to London's economy in 2002.
[203]
173. The Chinese Immigration Concern Committee
(CICC) pointed out that certain international cuisines have historically
relied heavily on migrant labour:
Since the 1980s UK Chinese catering has experienced
a continuous labour shortage as children left their family in
pursuit of their own careers. The Chinese catering industry has
relied on migrant workers to fill the vacancies and support its
growth
Each new wave of Chinese migrant provided new workforce
to the industry and brought with them knowledge and skilled of
new cuisines.[204]
174. Witnesses reported that the sector was already
suffering labour shortages. Jabez Lam of the CICC told us that
research conducted in 2008 which asked Jobcentre Plus to refer
suitable candidates for 101 vacancies for Chinese chefs found
that "over the six-week period we only had one suitable referral
and the wages we offered were between £17,000 and £18,000
initially and in the mid point we increased all the jobs by £1,000".[205]
Banglor Rashid of the Bangladeshi Caterers' Association told us
that the Bangladeshi curry industry in the UK employs 90,000 people
but estimates that it has 27,500 vacancies.[206]
175. An article in The Guardian newspaper
of 6 May 2008 suggested that shortages were caused in part by
an intergenerational problem, with the children of those in the
sector declining to follow their parents into the business:
Dr Shyam Patiar, who runs a hotel business
and is director of skills development at Llandrillo College in
Colwyn Bay, north Wales, says jokingly: "I am guilty. I put
all my children through private schools to give them a chance".
His elder daughter is an ear, nose and throat surgeon, her sister
is an employment lawyer, and his son is a trader in the city.
They did not want to work in a kitchen seven days a week for a
fraction of what they can earn with their education.[207]
Bangloor Rashid, President, and other members of
the Bangledeshi Caterers' Association referred to this reluctance
of second generation migrants to follow their parents into the
catering industry as a key cause of staffing shortages, during
the Committee's seminar in North Kensington. Jabez Lam of the
Chinese Immigration Concern Committee agreed:
We are at a juncture whereby the first-generation
Chinese have worked very hard to establish themselves in Chinese
catering and their children, who are the highest education achievers
across all ethnic groups, have their own aspirations and move
on to other careers.[208]
IMPACT ON COMMUNITIES
176. Representatives of the Bangladeshi, Indian
and Chinese catering and restaurant industries declared that an
inability to recruit migrant labour, both low-skilled and skilled,
into the sector would have a devastating effect on their communities
in the UK. Ranjit Mathrani of Masala World said that, under the
Points Based System, top end restaurants would "eventually
close over time with attrition because they cannot replace [the
chefs]
you are not going to produce high-quality Indian or
Chinese chefs out of British soil".[209]
Jabez Lam of the Chinese Immigration Concern Committee agreed,
saying that one restaurant had "stated to us that the directors
of the Board have made the decision not to invest in any further
expansion in this country because of the problem of the labour
shortage".[210]
The CICC warned of
A real danger of a meltdown in the Chinese catering
industrya collapse in British Chinese catering industry
will have negative impacts on the mainstream catering and tourist
industry, and have serious knock on effects on the wellbeing of
the Chinese community. Businesses and families who have lost their
livelihood will have to rely on state benefits instead of making
a positive contribution to the economy.[211]
LOW-SKILLED WORKERS
177. Under the previous system, caterers and
restaurants were able to recruit low-skilled staff from overseas
through the Sectors Based Scheme, which allowed people to enter
the UK to take short-term or casual jobs on a quota basis. The
Sectors Based Scheme has been phased out with the introduction
of the Points Based System. Since the Government anticipates that
all low-skilled labour shortages can be filled by EEA nationals,
Tier 3 (low skilled workers for temporary labour shortages) of
the Points Based System has been suspended indefinitely.
178. The sector was concerned that the low-skilled
workers on which restaurants relied would not be eligible to enter
the UK under the Points Based System, and that EEA nationals would
not be willing to fill these vacancies. Bangloor Rashid of the
Bangladeshi Caterers' Association told us that Bangladeshi workers
were keen to work in the industry and were willing to work under
poorer conditions and lower wages than their European counterparts.
He argued that a significant improvement in wages and working
conditions would be needed in order to attract Europeans to these
roles.[212] London
Assembly Member Murad Qureshi agreed that wages in the catering
industry were typically low:
The average national hourly wage in restaurants is
40 per cent less than the national average wage. Although staff
in London earn more than their counterparts outside the capital,
and skilled groups like chefs and cooks attract better wages than
porters or waiters, they still only earn about £8 per hour
to work unsociable hours and often late into the night to satisfy
demanding and frequently difficult customers.[213]
179. However, in oral evidence our witnesses
were insistent that caterers and restaurants offered fair wages.
Jabez Lam told us that "all workers in Chinese catering,
whether restaurants or takeaway, earn above the minimum wage".[214]
Ranjit Mathrani concurred: "to our knowledge, we have no
evidence whatsoever that people are actually getting less than
the minimum wage".[215]
In terms of specialised chef positions, Mr Mathrani reported that
"the average salary of a chef from India is £20,000
a year
apart from our head chefs and manager chefs who get
between £30,000 and £45,000 a year. We pay our staff
exactly the same as Gordon Ramsey pays his, if not more".[216]
180. The Chinese Immigration Concern Committee
argued that jobs in the international catering and restaurant
sector should be placed on the Shortage Occupation Lists to ensure
that restaurants could continue to recruit from overseas:
CICC recommends that Chinese catering occupations
[be included] on the Shortage Occupation List to enable Chinese
catering to recruit from overseas. This will be the medium solution
to find suitable skill workers to replace illegal workers eventually
removed.[217]
However, Professor Metcalf, Chair of the Migration
Committee, considered that:
Many in the restaurant sector would wish for a de
facto Tier 3 scheme for less skilled workers to be able to
come in. The skilled components of chefs, as it were, are on the
shortage list subject to a certain earnings threshold and the
profession is able to bring them in.[218]
SKILLED CHEFS
181. Ranjit Mathrani of Masala World drew a distinction
between the British Asian catering industry, and high level Indian
restaurants: "the catering industry is totally different
from Indian cuisines".[219]
He argued that skilled chefs specialising in international cuisineswho
would be considered skilled workers under Tier 2 as opposed to
other workers in the catering and restaurant industry who would
be considered low-skilled labourwould struggle to meet
points for certain attributes. He identified two barriers in particular:
One is the language, the requirement that people
should have a certain level of English before they come to this
country
The other is the fact that they set the level of
salary where someone does not have qualifications, which most
of them do not have, at £24,000 a year which actually is
equal to a sous-chef in a French restaurant, and which would make
things quite difficult in economic terms.[220]
Mr Mathrani reported that his restaurant chain currently
employed 42 Indian chefs on work permits. He asserted that, had
the English language requirement introduced under the Points Based
System been in existence previously, only five of those 42 chefs
would have gained a visa.[221]
182. It was also argued that skilled chefs would
struggle to meet the qualifications requirement, set at a minimum
of NVQ level 3 training. The Chinese Immigration Concern Committee
concluded that "Chinese catering will not be able to meet
the NVQ3 qualification".[222]
This was reflected also in discussions during the Committee's
visit to Bangladesh, in which participants in our community roundtable
said that most Bangladeshi chefs had on-the-job training rather
than formal training or qualifications.[223]
183. Both the Migration Advisory Committee and
the Government drew a distinction between lower-skilled labour
in the international catering industries and the case of highly-skilled
chefs. The Minister for Borders and Immigration, Phil Woolas MP,
broadly agreed with this analysis, and told the Committee that
the Government had included the specific role of 'skilled chef'
on the latest Shortage Occupation List:
The Shortage Occupation List contains skilled occupations
in ethnic hospitality and catering, and the MAC took evidence
from a number of organisationsthe Academy of Oriental Cuisine,
the Chinese Takeaway Association, Itihaas, which is the Bangladeshi
and Indian restaurant, and a number of other organisationsand
we did put that on the skill shortage list as a result of the
advice from MAC, and indeed from this committee.[224]
'Skilled chef' is subject to the requirement that
the individual is earning at least £8.45 per hour after deductions
for accommodation, meals etc.[225]
TRAINING
184. We asked whether a shortage in low-skilled
labour could be filled by recruitment within British communities.
Given the high levels of unemployment within, for instance, the
British Bangladeshi community, it seemed logical to turn to those
communities before migrant labour. London Assembly Member Murad
Qureshi stated that "these groups [Bangladeshi and Chinese
communities in the UK] already suffer from higher levels of unemployment
than the London average (a worrying 20.5 per cent in the Bangladeshi
community against a London average of 6.7 per cent)".[226]
185. Our witnesses considered that better training
provision could be made for British residents, although were wary
about whether high-level skills required for skilled chefs could
be incubated in this country. Ranjit Mathrani of Masala World
told us:
We would be quite happy to participate in the establishment
of training schools to enable the instruction of an intermediate-based
level of skills. The trouble with Indian cuisine is that actually,
even in India, craft schools do not exist which are teaching cooking
to chefs in restaurants, but it is learnt with people mastering
an apprentice skills-type of approach to life.[227]
Jabez Lam agreed that there was a distinction to
be drawn between low and highly skilled workers, saying he believed
that training the local labour force would "help in alleviating
the lower-level skill requirement, but the higher-level, specialist
level, we believe is still filled by more expert migrant workers".[228]
186. In Sylhet, Bangladesgh, we heard of proposals
to establish a catering college there, which would assist Bangladeshi
chefs to gain the requisite level of skills qualifications. During
a visit by the Committee to the Chief Adviserthe head of
the Bangladeshi caretaker governmentthe Chief Advisor expressed
his support for the establishment of such a catering trades training
institute in Sylhet, and emphasised that his Government attached
priority to raising the skills levels of Bangladeshis seeking
employment abroad.[229]
187. The evidence we received suggests that
a qualitative distinction should be drawn between low-skilled
labourof which the international catering industry appears
to be experiencing a shortage, attributable at least in part to
unattractive wages and working conditionsand skilled roles,
such as that of specialist chef.
188. Although witnesses argued persuasively
that loss of migrant labour to fill low-skilled roles in international
catering may well have a negative impact on communities overall,
and in some cases lead to restaurant closures, these social aspects
alone cannot make the case for including what are essentially
low-skilled jobs on the shortage occupation lists. More attention
needs therefore to be paid to alternative ways to fill these shortages,
including through the active recruitment of UK and EEA nationals.
In this endeavour two aspects will be important: first, the provision
of specific training in international cuisine skills within training
courses in the UK; and second, an undertaking by the industry
to improve the basic rate of pay and conditions attracted by the
low-skilled jobs.
189. During the course of our inquiry skilled
chefs were included on the UK shortage occupation list, subject
to a minimum wage requirement of £8.45 per hour. This should
go a good way towards meeting the concerns of our witnesses, including
those over difficulties in meeting salary requirements and formal
qualifications under Tier 2. The shortage occupation lists are
due to be revised in September 2009: we recommend that skilled
chefs are kept on the list, since it is clear that the arguments
made in favour of their inclusion were not linked to temporary
fluctuations in the British economy so much as the need to replenish
specialist skills from particular countries.
190. We note the establishment by the Bangladeshi
Government of a catering trades training college in Sylhet, Bangladesh,
which we consider would help formalise much of the experience
currently gained on-the-job, and give those migrants the qualifications
needed formally to recognise skill under the points system.
191. However, we have concerns, arising from
our seminar in North Kensington, that there may be businessmen
within the Bangladeshi community who prefer to employ Bangladeshi
citizens from Bangladesh over Bangladeshis who have already received
leave to remain in the UK, because the former are willing to work
for lower wages.
192. Although we accept that English is often
not the 'language of the kitchen', we reiterate our view, expressed
earlier (paragraph 115) that it is not unreasonable to require
those living in this country to possess a basic level of English.
Health and social care
193. We took oral evidence from Alastair Henderson
of NHS Employers and Mandy Thorn of the National Care Association.
In addition we received written evidence from Together Creating
Communities, Welsh Assembly Member Janet Ryder, Welsh Assembly
Member Mark Isherwood, Chris Ruane MP, the English Community Care
Association, the British Medical Association, the Royal College
of Nursing, and Nia Higginbotham.
CARE WORKERS
194. Many of the representations we received
concerning the care sector expressed anxiety that Senior Care
Workers from overseas would become ineligible under the Points
Based System, causing a staffing crisis in care homes and associations.
The English Community Care Association warned that "if non
EEA staff are prevented from working in care homes there could
be a crisis in terms of care home closures and reduced capacity
in some areas of the country".[230]
195. The independent care sector is large and
diverse. English Community Care Association estimated that it
employed over a million workers, and that there were 27,000 organisations
providing over 420,000 care beds and 800,000 recipients of community
based services.[231]
Independent care homes provide care for over 400,000 people[232]
and 70 per cent of care in those care homes is funded through
local authorities and the NHS, therefore provided by the state.[233]
196. More than 100,000 care assistant and home
care workerssome 16 per cent of the registered workforcewere
born overseas. Data from the 2006 Office for National Statistics
annual population survey suggests that 68 per cent of care workers
in London were born overseas. The same survey shows that Zimbabwe
provides the highest percentage of the non-UK born social care
workforce (12 per cent), followed by the Philippines (10 per cent),
Ghana (7 per cent), Poland (7 per cent), Germany (6 per cent),
Nigeria (6 per cent), India (5 per cent), Jamaica (3 per cent)
and the Irish Republic (3 per cent).[234]
Mandy Thorn of the National Care Association told us that "Skills
for Care estimate that 12 per cent of the social care English
workforceso we are talking about non professionals, not
nursesis from outside of the EEA countries". She added
that the Commission for Social Care Inspection estimated that
"we are going to see the workforce increasing by 50-80 per
cent between now and 2025".[235]
197. Representatives told us that they experienced
great difficulty recruiting from the resident population. Mandy
Thorn of the National Care Association reported that the three
month moving average of notified vacancies for care assistants
almost doubled between December 2006 and December 2008.[236]
The English Community Care Association told us that:
Some providers have reported that during repeated
adverts through Job Centre Plus, they have had no response whatsoever
from EEA sources. Others report that whilst some jobs have been
able to be supported by EEA immigrants there is not sufficient
supply of EEA workers that are suitably qualified to undertake
carer roles.[237]
The sector has instituted many recruitment and retention
initiatives which include widespread advertising including in
Europe, the care ambassadors scheme, close working with local
authorities, and supporting people back into the care workforce.[238]
Labour market data analysed by the Migration Advisory
Committee in April 2009 found that, for senior care workers:
JobCentre Plus data show that the vacancy-to-unemployment
ratio for the period February 2008 to January 2009 is much higher
than the ratio for all occupations (1.88 compared with 0.38).[239]
198. Our witnesses insisted that the roles of
care worker and senior care worker were skilled jobs, as well
as in shortage, though they did not meet the points requirements
for qualifications, or earnings, for Tier 2. Many of our submissions
judged that the requirement for a minimum qualification at NVQ
level 3 was prohibitive and unfair to care workers, citing other
skills and on-the-job experience as more relevant. The English
Community Care Association told us:
Carers and senior carers have many other skills over
and above NVQ2. They must adapt and learn to provide care meeting
new and changing policy requirements for example around dignity,
nutrition, infection control and Mental Capacity Act requirements
the
MAC [Migration Advisory Committee] should be required to consider
carer skills in the round rather than simply rule out access to
Tier 2 because of a national minimum standards framework set out
by government.[240]
199. Together Creating Communities (TCC), Janet
Ryder AM, Mark Isherwood AM and Chris Ruane MP pointed to the
Filipino community as being particularly hard hit. TCC stated:
Care homes have relied on this quiet, compliant and
dedicated work force for years and vulnerable older people know,
love and are used to them. Anecdotal evidence given to us is that
when these Senior Care Workers are replaced by others from eg.
the EU there is a huge turnover in staff as the new workers do
not remain in post for long.[241]
200. In terms of the salary requirement, the
English Community Care Association pointed to long and unsociable
hours and low wages as a deterrent to UK residents taking up care
posts, but argued that these conditions were simply unavoidable
since the sector as a whole was under-funded:
Independent evidence around the country shows that
care homes are seriously under-funded by council and NHS commissioners.
The majority of care home costs relate to staff and the shortfall
in funding forces the sector to pay low wages. The result is that
UK and to a lesser extent EEA staff are sometimes reluctant to
take jobs in care homes
the trade associations accept that
higher wages could possibly ensure more UK and EEA recruits, but
while state funding remains inadequate then this solution is simply
not feasible .[242]
The Migration Advisory Committee, in its April 2009
report, concurred that it was difficult to recruit locally to
this occupation:
COMPAS told us that they had surveyed employers and
found that nearly half consider it difficult to recruit UK-born
care workers, despite 9 in 10 home care organisations undertaking
at least some actions to recruit from the local labour market.[243]
201. During the course of our inquiry the Government
included Skilled Senior Care Workers on its November 2008 UK shortage
occupation list. Inclusion is, however, subject to a minimum wage
earning of £8.80 per hour after deductions for accommodation
and meals etc. The current statutory minimum wage for UK residents
is £5.73 an hour.[244]
Together Creating Communities and Janet Ryder AM pointed out that
the £8.80 minimum wage requirement created the danger of
a two-tier pay scale within the sector which would make it less
likely for homes to pay it:
While supporting the principle of a living wage for
all workers, it seems anomalous of the UK Government to introduce
this piecemeal for foreign workers. This is considerably higher
than the minimum wage for workers from the UK and EU, and it places
care homes in a very difficult position. They cannot give one
rate of pay to some workers and not others.[245]
202. The Migration Advisory Committee reviewed
the occupations of care assistants and home carers for its April
2009 UK shortage occupation list, on the request of the Government.
It concluded:
We believe that more could be done to attract workers
from within the UK and the wider EEA. We accept, however, that
much of the problem is down to low pay, and employers are often
unable to pay more because of constraints imposed by local authority
funding
In the short term we accept that it would be sensible
to fill some of this shortage using non-EEA immigrant labour.[246]
The MAC therefore retained the occupation of Senior
Care Worker on its April 2009 UK shortage occupation list, but
reduced the salary requirement to £7.80 per hour, and the
qualification requirement to 'a relevant NQF [National Qualification
Framework] level 2+ or equivalent qualification', plus at least
two years' relevant experience, plus supervisory responsibility
in the role to which they are being recruited.[247]
With respect to these new criteria, it noted that:
One-fifth of workers in the occupation [senior care
worker] in the Labour Force Survey earn £7.80 per hour, have
an NQF level 2+ qualification and have two years' or more experience.[248]
NURSES
203. In order to practice in the UK, nurses must
register with, and be approved by, the Nursing and Midwifery Council
(NMC). NHS Employers told us that "the current number of
effective practitioners from overseas (non EEA) is 73,900. This
is 11 per cent of the total Nursing and Midwifery Council registrants
(663,078)".[249]
The figure covers nursing homes and the residential sector as
well as the NHS. Alastair Henderson of NHS Employers noted that:
There has been a fairly significant decline in the
number of nurses outside the EEA that the NMC has registered.
In 2004 they registered 14,000 which was roughly the same number
as UK registrants. Last year they registered 4,800 which was only
a third of the number of UK people they were registering.[250]
He suggested that this decline in international recruitment
was due to increased training and recruitment initiatives by the
NHS whereby it had "increased the number of qualified nurses
that it has very significantly".[251]
204. The Migration Advisory Committee came to
a similar conclusion in its April 2009 UK shortage occupation
list, stating that "overall, recruitment to the nursing profession
remains buoyant and vacancy rates have decreased significantly
since 2003. There is not strong evidence to support nurses going
on the shortage list for the UK".[252]
It therefore included only two nursing specialtiestheatre
nurse and critical care nurseon the list.[253]
205. Alastair Henderson did not consider that
the minimum salary requirement under Tier 2set at £17,000would
prove a problem for nurses, noting that "the basic pay for
a qualified nurse now begins at £20,225. If you are in London
you will get an additional £4,000".[254]
206. The Royal College of Nursing had a specific
concern, that nursing qualifications were not adequately recognised
under the Points Based Systemincluding nursing diplomas
taken in the UK, and both nursing degrees and nursing diplomas
taken overseas:
The Diploma in Nursing is not recognised under the
points-based system and appears to achieve no points.[255]
Under Tier 2 of the Points Based System neither nursing
degrees nor nursing diplomas awarded overseas attract any points
according to the UK Border Agency's points-based calculator.[256]
207. The Royal College of Nursing pointed out
that access to professional nursing posts in the UK was only available
following acceptance onto the Nursing and Midwifery Council (NMC)
Register of Nurses, and that this tested the professional skill
of a nurse, not whether they held a degree as opposed to a diploma.[257]
It reported that, although the points calculator on the UK Border
Agency website "appears to award NMC registration ten points
the
UKBA has confirmed to the Royal College of Nursing via the Department
of Health that they do not award points for registration with
the NMC".[258]
208. We put these points to the Minister of State
for Borders and Immigration, who told us that:
Points are awarded for any qualification at NVQ3
and above and this includes nursing diplomas and degrees. However
nursing salaries differ around the UK and in some regions the
points attributed for those salaries combined with the points
attributed to a diploma (rather than a degree) do not suffice
to meet the points requirements of Tier 2. This is clearly an
issue that bears closer scrutiny and my officials are working
with the Department of Health to assess the impact it has regionally
and what, if anything, should be done to address it.[259]
DOCTORS: AGE REQUIREMENT
209. The British Medical Association wrote to
us that doctors would lose out on the age criteria under Tier
1, which only awards points on a sliding scale for a narrow age
range between 28 and 32:
The fact that points are not awarded to anyone over
the age of 31 does not take into account the lengthy training
doctors go through. Those starting medical school at the earliest
opportunity (age 18) will not complete the Foundation Programme
until age 25. Those who have undertaken another degree before
applying to medical school will not complete the Foundation Programme
until at least the age of 28 at which point their points allocation
for age decreases.[260]
However, when we put this to Alastair Henderson of
NHS Employers in oral evidence, he did not feel that the age requirement
presented a significant barrier:
It strikes me that certainly for doctors coming in
there are likely to be other factors in terms of earnings that
may well give them compensatory points, and certainly there are
other doctors who can come in on Tier 2 for specific posts where
they will get the required number of points.[261]
210. The evidence we received suggests to
us that there is a sustained and chronic shortage of care workers
within the UK and EEA. This conclusion is supported by JobCentre
Plus data showing that the vacancy-to-unemployment ratio for the
period February 2008 to January 2009 stands at 1.88, compared
with 0.38 for all occupations, and the conclusions of the Migration
Advisory Committee. It is also clear that much of the sector has
long depended on certain immigrant communitiessuch as the
Filipino communityto fill many of these posts.
211. We were pleased to hear that the nursing
sector does not appear to be suffering from a shortage, due in
no small part to improved training initiatives for the resident
population. However, we note the concerns of the Royal College
of Nursing that the nursing diploma in the UK and certain nursing
qualifications overseas do not seem to be recognised adequately
under the Points Based System. It is clear from the Minister's
response that lower points awarded to a diploma rather than a
degree, combined with lower salaries in some parts of the country,
are proving prohibitive to some nurses. We note that the Government
is already reviewing this situation, but recommend that it specifically
recalibrates the awarding of points for nurses to ensure that
all nurses who possess a diploma and are registered with the Nursing
and Midwifery Council attract the same points as those holding
a degree and registration.
212. We do not consider the loss of points
for doctors under the Tier 1 age category to present an insurmountable
obstacle and believe that qualified doctors should have no difficulty
gaining compensatory points in other categories.
Information and communications
technology
213. We received written evidence from the Indian
National Association of Services and Software Companies (NASSCOM).
In addition we held roundtable discussions whilst in India with
representatives of global IT and telecommunications businesses,
including: Tata Consultancy Services, NASSCOM, Perot Systems,
Genpact, Expertus, and HCL Technologies.
214. Investment by, and trade with, the Indian
IT sector is clearly very profitable to the UK. The British High
Commission in Delhi estimated that the Indian IT sector in the
UK was worth approximately £3-4 billion annually. Last year
18 per cent of the business of NASSCOM members was conducted in
the UK, representing £7.2 billion annually. In 2007, 29,000
UK work permits were issued in India, predominantly for the IT
sector. Tata Consultancy Services and others told us that the
impact on their business of a reduction in the number of UK work
permits issued annually would be severe. Som Mittal of NASSCOM
said that Indian business in the UK would be seriously reduced
and that most probably companies would seek to move instead into
Eastern European countries or to carry out work remotely from
India. He considered that there would be a particularly significant
impact on medium-sized companies who could not afford to set up
offshore centres.[262]
SHORTAGE AREAS
215. Sector representatives told us that, although
they sought employees within the local labour market first, their
companies frequently required specialist ICT skills which they
could not find within the UK workforce. Thomas Simon of Tata Consultancy
Services gave the example of specialists such as experts in actuary
insurance, or in Bluetooth technology.[263]
However, Professor Metcalf of the Migration Advisory Committee
presented a slightly different picture of skills shortages. He
reported that the Sector Skills Council for IT had argued not
to be included on the Shortage Occupation List because "they
thought that many of the jobs could indeed be filled from the
UK. So the IT occupations are not on the shortage list".[264]
216. We asked witnesses what initiatives existed
to increase the skills of the resident population. Mr Simon told
us that Tata Consultancy Services had developed bilateral initiatives
with several British universities to develop skills currently
lacking amongst British engineering and ICT graduates, but noted
that there was no wider framework for engaging British higher
education on skills development.[265]
INTRA-COMPANY TRANSFERS
217. International firms can bring company workers
into the UK for temporary periods under the Intra Company Transfer
scheme under Tier 2 of the Points Based System. The Professional
Contractors Group described the purpose of the scheme:
ICT work permits were intended to allow a company
to bring into the UK an employee based outside the European Economic
Area, without having to go through the time consuming hoops of
advertising, when that employee has company-specific skills not
available in the UK.[266]
218. The number of approved applications for
intra-company transfers increased by 47 per cent between 2004
and 2008. Of the total number applied for over those five years,
97 per cent were granted, as set out in the following table:
| 2004
| 2005
| 2006
| 2007
| 2008
| Total
|
Applications made
| 32,770 | 33,745
| 43,050 | 48,735
| 48,010 | 206,305
|
Applications approved
| 33,645 | 34,680
| 43,950 | 50,230
| 49,710 | 212,215
|
Figure 9: Number of individual work permit intra-company transfer
applications made and approved for the period 1 January 2004 to
31 December 2008.[267]
219. Six industry sectors have consistently had
the highest number of companies who obtained an approval for an
intra-company transfer over the last five years. These are administrative,
business and management services; computer services; financial
services; manufacturing; retail and related services; and telecommunications.[268]
International IT firms account for a large proportion of intra-company
transfers. Professor Metcalf of the Migration Advisory Committee
told us that, for instance, Tata Consultancy Services brought
in about 3,000 workers under ICT in 2008.[269]
220. We heard some evidence that the intra-company
transfer route might be subject to abuse. Professor Metcalf told
us that:
People coming in to do IT jobs are disproportionately
coming in under the intra company transfer route
I am sure
it is legitimate for people to be brought in to do the IT projects
under the intra company transfer but it is possible that the original
intention for that was more like Honda bringing people in from
Japan to work at Swindon for a bit, and so we will have a proper
look at that route. Clearly, to the extent if there were some
real elements for example of displacement or levels of undercutting,
then we will report on this.[270]
This view was echoed in written evidence from the
Professional Contractors Group (PCG), who argued:
The intra-company transfer work permits are being
used to facilitate the offshoring of work from the UK
the
provision of ICT work permits must therefore be kept under careful
control, and ICTs should only be available in sectors where there
are actual shortages in the UK's workforce.
As entry-level jobs in sectors such as IT are offshored,
the bottom rung of the career ladder is removed from the reach
of the UK's IT graduates.[271]
221. The latest report from the Migration Advisory
Committee (April 2009) noted that in the second quarter of 2008,
over half of non-EEA migrants reported having a job offer before
coming to the UK, and for around half of these, the job was with
their current employer: an intra-corporate transfer.[272]
That means that about one quarter of all non-EEA migrants interviewed
in that period entered the UK on an intra-company transfer.
222. Professor Metcalf told us that the Migration
Advisory Committee had been asked by the Home Secretary to review
the case for the continuing existence of the intra-corporate transfer
route, on which he expected to report by July 2009. He told us
that, if the Migration Advisory Committee were to recommend closure
of the route the impact would be substantial:
If the committee were to decide, for example, that
there was less of a case for intra-company transfers, and by definition
those using them presently are people in information technologywe
have referred to Tata, for examplethen it would be very
much more difficult for Tata to bring people in.[273]
223. The Professional Contractors' Group recommended
that "the Government [should] alter its current policy, to
ensure that ICT workers coming to the UK do indeed have relevant
company-specific knowledge. Above all, the number of points needed
to obtain an ICT permit under the Points Based System should be
revised if it becomes apparent that the current level of provision
of ICTs is not in the best interests of the UK economy".[274]
224. We were presented with conflicting evidence
on the requirements of the information and communications sector
in the UK and internationally. On the one hand, the global businesses
we met in India argued persuasively for the need to allow skilled
workers to transfer between their different international offices,
and that they could not always locate certain specialist skills
from within the UK graduate workforce. On the other hand, evidence
to the Migration Advisory Committee from the Sector Skills Council
for IT denied the existence of any serious shortage, and the Professional
Contractors' Group suggested to us that the use of intra-company
transfers was removing jobs from the UK workforce.
225. The figure cited by the Migration Advisory
Committee, that around a quarter of non-EEA migrants surveyed
in the second quarter of 2008 were found to be in the UK on a
form of intra-company transfer, certainly raises a suspicion that
this route is being used disproportionately. We also note that
the number of intra-company transfers granted went up by 47
per cent between 2004 and 2008, whilst the economy has moved
into recession, which we consider to be a striking increase. We
note that intra-company transfers give a significant amount of
discretion to individual companies to determine who may enter
the UK to work and possibly to settle and become citizens. We
therefore conclude that urgent and rigorous investigation is needed
into the intra-company transfer and possible abuses of this route,
and agree that, at the very least, more stringent tests of company-specific
knowledge may be required. In this context we welcome the review
currently being undertaken by the Migration Advisory Committee,
and keenly await the results in July.
226. We underline however, that investment
in the UK by major international companies is of huge benefit
to the UK economy. We caution that it is very much in the UK's
interests to ensure that good relations with global businesses
continue. The imposition of unnecessarily prohibitive restrictions
or administrative burdens should therefore be avoided.
Legal services
227. We took oral evidence from Des Hudson of
The Law Society and Sarah Lee of Slaughter and May, Solicitors.
In addition we received written evidence from The Law Society.
Witnesses reported difficulties with two specific aspects of the
new scheme: the ability to take on short-term secondees from international
law firms, and the way in which international graduate exchanges
would operate under Tier 5.
GOVERNMENT AUTHORISED EXCHANGE SCHEMES
228. Des Hudson of the Law Society described
the way in which the legal and financial sectors frequently required
specialist lawyers to move between international firms:
The transaction of international law means that law
firms in England and Wales must have a wide range of connections
if they are to operate in a highly competitive global market and
deliver cross-border international transactions. They will do
that either because they have employees in their office in another
city and jurisdiction orit is very important and so I stress
itbecause they have a relationship with, say, a firm of
lawyers in Shanghai and want to bring people from that office
to spend some time in London because the interchange and flow
of ideas is critical to their ability to provide a seamless service
across all of those markets.[275]
Sarah Lee of Slaughter and May agreed:
We operate the "best friends" model whereby
we have close relationships with law firms in different jurisdictions
where we need to develop very close relationships with them because
the kind of advice we give is often concerned with cross-border
deals where legal advice is required from many different jurisdictions.
We are English lawyers and we cannot provide that advice on our
own and therefore we need relationships with other law firms so
we have access to their legal services.[276]
229. The Law Society noted the value of the legal
sector to the UK and the impact that reducing the competitiveness
of law firms could have on its economy:
The legal services sector contributes £18 billion
(nearly 2 per cent) of UK GDP, with annual international earnings
of £4 billion. Much of these earnings are generated by large
City firms that operate in a global marketplace. London has 20
per cent of the global legal market and is home to four of the
world's top six law firms.[277]
230. Tier 5 of the Points Based System contains
the Temporary Worker category which allows people to travel to
the UK to satisfy primarily non-economic objectives. One of the
five subcategories of the Tier is Government Authorised Exchange
Schemes, which are intended for migrants coming through approved
schemes aimed at sharing knowledge, experience and best practice.
Migrants entering under this category are granted a maximum of
24 months' leave. Individual employers are not allowed to act
as a sponsor under this scheme. Instead, there must be an overarching
body that runs and administers the exchange scheme. This overarching
body acts as the sponsor. The scheme and the overarching body
must have the support of a UK Government department.
231. Des Hudson described the benefit of graduate
lawyer exchange programmes:
We run something called International Lawyers for
Africa. Every year about 30 or so lawyers from Africa come over
here and spend about three months with firms in England and Wales.
That interchange has two benefits. First, it is a jolly good thing
that we help lawyers in those countries to gain experience of
international law in leading global firms, but, second, we are
also socialising them to choose to use English law and firms in
international activity..[278]
232. The Law Society reported problems with designating
and getting approval to be an overarching sponsor body for such
exchange schemes. In written evidence it stated:
Tier 5 offers a mechanism for firms which move secondees
between firms in a network of partnerships. This model has not
been well understood by UKBA which had focused on intra-company
transferees between offices of a PLC operating in several countries
Previously,
UKBA policy required a "direct link by common ownership or
control", which does not apply to such networks. Following
representations, UKBA has indicated that international networks
of partner organisations operated by law firms will be recognised
as linked companies for the purposes of intra-company transfers.[279]
233. Des Hudson expanded on this in oral evidence,
saying that the process for registering as an overarching sponsor
was "very problematic". He knew of only one other organisation
which had been able to achieve overarching body status: the British
Council, and expressed "doubts about whether professional
bodies in [other] areas would want to go through the hassle we
have experienced".[280]
234. However, giving oral evidence, the Minister
for Borders and Immigration, Phil Woolas MP, later told us that
the UK Border Agency was in discussion with the legal sector to
solve the problems it was encountering with registering as a Tier
5 sponsor. He told us "we are listening carefully to those
concerns, have potentially got a way forward and are waiting for
them to make further representations about how they would want
to".[281] The
Law Society subsequently confirmed to us that the difficulties
with registration had been mitigated through negotiation with
the UK Border Agency.
235. We welcome the changes made by the UK
Border Agency to the registration process for Tier 5 overarching
sponsor bodies, to enable international legal and financial firms
to continue to run exchange schemes and maintain partnerships
with international law firms in other jurisdictions.
Higher education and students
236. We took oral evidence from Professor Wellings
of Universities UK and Simeon Underwood of the London School for
Economics and Political Science (LSE). In addition we received
written evidence from the University of Oxford, Universities UK,
the LSE, the National Union of Students, and the University and
College Union. The Higher Education sector had concerns about
the system of sponsoring short-term academic researchers, and
several other areas on which they agreed concessions with the
UK Border Agency during the course of our inquiry.
237. Phased implementation of Tier 4 (students)
of the Points Based System began in March 2009, and is due to
be completed by February 2010. Non-EU students wishing to study
at a UK higher education institution will have to be enrolled
on a course at Level 3 or above on the National Qualifications
Framework (NQF) or its equivalent. Under the sponsorship arrangements,
international students will only be able to apply for a visa if
they are sponsored by an accredited further or higher education
institution, and issued by them with a Certificate of Sponsorship.
238. In order to sponsor students, institutions
must register with the UK Border Agency, and be approved as a
legitimate institution. In addition they must prove that they
hold valid accreditation from one of the UK Border Agency approved
accreditation bodies. As with the system of sponsorship under
the other tiers, educational institutions are asked to take on
greater responsibility for the students they sponsor, including
reporting failure of students to enrol or attend courses, and
keeping personal details updated. Institutions will issue prospective
students with a Confirmation of Acceptance for Studies certificate,
via the Sponsorship Management System. This is a database run
by the UK Border Agency. Students are awarded 30 points for a
visa letter/Confirmation of Acceptance for Studies, and must score
10 points for maintenance (fees and living expenses) to pass the
points-based assessment and be able to apply for a visa.
239. As of 27 April 2009 just under 1,600 educational
establishments had been accepted onto the Tier 4 register of sponsors.
Around 30 applications from educational establishments to become
sponsors had been unsuccessful.[282]
INTERNATIONAL STUDENTS IN THE UK
240. There are 240,000 international students
registered at UK universities.[283]
At the LSE, 30 per cent of students are from the UK, 20 per cent
from other EU countries, and 50 per cent from non-EU countries.
The LSE gets graduate applications from 177 countries; 67 per
cent of which are from non-EU countries.[284]
241. International students provide a major income
source for British universities. Simeon Underwood told us that,
for the LSE:
In the financial year 2007-08 we have £60 million
in tuition fees from international students, compared for example
to £29 million from the Funding Council in our block grant.
The tuition fees that we receive from international students amounts
to about one-third of our income.[285]
He explained that:
Universities only have a limited number of sources,
other than direct government funding, to look at. At a time of
recession those sources become even more difficult to access
industry
is a willing partner but not in a position to give us much help
at the moment.. So, in this context, the income we get from international
students is critical to us, but I do not think it would be true
to say that we have prioritised this over our responsibilities
to home students.[286]
TIER 5 SPONSORED RESEARCHERS
242. Under the Points Based System, researchers
visiting UK universities to take part in formal research projects
but who are not contracted employees of the host organisation
have to enter under the Government Authorised Exchange scheme
of Tier 5. This requires them to be sponsored by an overarching
body which is not the individual educational institution. Several
universities criticised the illogicality of this position. The
University of Oxford pointed out that sponsored researchers made
up a large proportion of their work permit holders: in 2007 76
of 216 initial work permits obtained were for sponsored researchers.[287]
The University wrote that:
We are very concerned about the requirement that
individuals entering the UK under the Tier 5 "Government
Authorised Exchange" category must have a single UK-wide
sponsor
Giving responsibility for these researchers to a
third party rather than their host institution seems to work against
Home Office policy to make institutions responsible for migrants
in other categories.[288]
Universities UK added that "there are no existing
national third party organisations that would be able to act as
sponsors for this group of migrants".[289]
243. The University of Oxford recommended that
higher education institutions themselves, rather than an overarching
body, should be able to act as sponsors for sponsored researchers
under Tier 5.[290]
Universities UK agreed,[291]
as did the LSE.[292]
244. We conclude that it is illogical for
sponsored academic researchers to fall under Tier 5. Academic
researchers, perhaps unlike other temporary workers under Tier
5, typically come to a specific institution for a specific project
and specific time period. Given that the institutions to which
they will be attached will already hold a licence to sponsor students,
requiring researchers to obtain sponsorship from an entirely unconnected
third party simply seems to be reinventing the wheel. In addition
there currently exists no such suitable overarching body. We therefore
recommend that the Government revise the sponsorship provisions
of Tier 5 to allow higher education institutions to sponsor their
own academic researchers.
VISA LENGTH; CERTIFICATES OF ACCEPTANCE
FOR STUDY; VISITING ACADEMICS
245. We had representations from the sector that
the maximum visa length under Tier 4, four years, was less than
the length of some courses, such as those in medicine or veterinary
science. However, Professor Wellings and Simeon Underwood were
able to confirm in oral evidence that they were "very pleased
to receive notice last week from the Minister for Immigration
who has now accepted our representations on issues to do with
students who are studying on courses for periods of time longer
than four years".[293]
The Minister for Borders and Immigration, Phil Woolas MP, confirmed
to us that "we have been able to give that decision to them
precisely because the points based system gives us better assurances
about genuine student attendance, about genuine colleges etc".[294]
246. Similarly, the sector was initially critical
that only one institution could issue the Certificate of Acceptance
for Studiesneeded to apply for a visato each student.
The LSE remarked that this was at odds with the practice of student
recruitment, whereby students applied to several different institutions
and very often considered several offers before deciding which
one to accept. The LSE stated that:
The first Learning Provider to issue a CAS [Certificate
of Acceptance for Studies] blocks all other Learning Providers
from issuing a CAS for the same or any overlapping period
the
student visa is Learning Provider specific so students can only
enrol at the Learning Provider that has issued them with a CAS.[295]
However, in oral evidence Simeon Underwood reported
that the UK Border Agency had responded to universities by allowing
multiple certifiates to be issued to one student. He considered
that this was "certainly better than the original proposal"
and they could "certainly live with the compromise we have".[296]
The LSE also wrote to us to say that:
UKBA have, in response to concerns raised by us and
others in the HE sector, amended several elements
in particular
we welcome the move to a phased implementation, development of
functionality to upload student data into the Sponsor Management
System, the system of attendance monitoring based around points
of contact and acceptance of the principle of multiple CASs.[297]
247. The University
of Oxford reported that some academics visiting for short periods
had experienced difficulties in obtaining visas, for example:
One group of senior academics, invited to a 2-day
workshop in Oxford, were asked by the visa post to provide, as
well as their letters of invitation, their marriage certificates,
certificates of employment and salary, plus bank statements and
payslips for the previous 3 months, all translated into English,
and to supply both the original documents and photocopies. This
level of bureaucracy is wholly disproportionate for a 2-day visit
to attend a well-documented meeting.[298]
In oral evidence, Professor Wellings noted that he
had heard of isolated incidents where academic visitors had been
refused, but said that the sector would have difficulties if such
refusals proved to be more widespread.[299]
248. We welcome the flexibility shown by the
UK Border Agency in meeting the concerns of the higher education
sector over visa length, and the issue of multiple certificates
of acceptance for study to the same student. We heard of incidents
where visiting academics had been prevented from attending events
at UK universities by overly-bureaucratic requirements for paperwork.
Although there does not appear to be widespread concern in the
sector over this issue, we recommend that the UK Border Agency
investigate the extent to which such cases are occurring.
Arts and entertainment
249. We took oral evidence from Ruth Jarrett
of the Royal Opera House, Louise De Winter of the National Campaign
for the Arts and Malcolm Clay of the Association of Circus Proprietors
of Great Britain. In addition we received written evidence from
the Royal Opera House, the Arts Council England, the Association
of British Orchestras, the First Contact Agency, the National
Campaign for the Arts, the Association of Circus Proprietors of
Great Britain, and Asgard. We also visited the Royal Opera House
in Covent Garden to discuss their experience of the Points Based
System in relation to international ballet dancers, singers, and
other artists.
250. International performers and artists are
a vital part of the success of the internationally recognised
UK arts scene. In a recent survey of its 550 members, the National
Campaign for the Arts found that 76 per cent of respondents had
hosted artists from outside the EEA in the past two years: 55
per cent considered it vital to their business; and that only
2 per cent of respondents stated that they would work with fewer
non-EEA artists in the future.[300]
The Association of Circus Proprietors (ACP) stated that:
Certain countries have traditionally been the source
of particular circus acts e.g. flying trapeze acts are often from
Mexico or occasionally from the USA, acrobatic troupes are often
from Russia or other former Soviet countries because there has
been a long tradition of circus training schools, high wire walkers
are often from Colombia, Kenya produces a very distinctive acrobatic
tumbling act which incorporates traditional dance and China has
its own culture of acrobatics.
These performers are usually on an international
circuit in that they will work within Europe for several years
taking contracts with different circuses for summer and winter
seasons which may involve moving countries.
[301]
251. Under the Points Based System artists and
performers can enter either via Tier 2 (skilled migrants with
a job offer) or Tier 5 Creative and Sporting. Louise De Winter
of the National Campaign for the Arts considered that "the
vast majority of artists will come in under Tier 5. Those would
probably only be coming in for a tour or a gig or to attend a
festival or event".[302]
252. Our witnesses highlighted a number of problems
with the new system, including difficulty for certain groups of
artists in meeting the qualifications requirement, and the need
to get emergency visas for replacement performers at short notice.
BALLET DANCERS
253. The Royal Opera House and others argued
the case for a special exemption for international ballet dancers,
who, they argued, would fail to meet the points requirement for
Tier 2 since they did not possess formal qualifications. The Arts
Council England stated in written evidence that:
There are few dancers in the UK qualified to be engaged
by our flagship companies, such as The Royal Ballet and the Birmingham
Royal Ballet as Principal Dancers, and it is common practice for
dancers to be engaged from abroad. At present only one of The
Royal Ballet's 19 Principal Dancers comes from the UK. Across
the rest of Arts Council England's regularly funded touring companies,
23 per cent of dancers come from outside of Europe. Most have
trained professionally to conservatoire level, but do not always
hold degrees.[303]
254. We discuss the broader issue of measuring
skill by professional experience and training as opposed simply
to qualifications above, in Chapter 6. However, we note that the
Migration Advisory Committee included 'skilled ballet dancers'who
must be trained to the standard required by internationally recognised
UK ballet companieson the UK shortage occupation list for
November 2008, and in the April 2009 list added 'skilled contemporary
dancer'. This was welcomed by the sector. Ruth Jarratt told us
"we think it is the simplest, cleanest and most appropriate
solution. We are very pleased".[304]
255. Industry representatives remained concerned
that similar problems with gaining recognition for training or
professional skill where a performer did not possess formal qualifications
also applied to other artists.[305]
Louise De Winter of the NCA acknowledged that the UK Border Agency
had indicated it might take levels of training or a record of
performance into account, but remained anxious that "we do
not entirely know yet how many points they will allocate for those".[306]
The April 2009 UK shortage occupation list also included 'skilled
orchestral musician'.
256. As discussed earlier (paragraph 111-112),
we consider the use of formal qualifications as a proxy for professional
experience and training to be inadequate, and we reiterate our
position that the Government must recalibrate the allocation of
points to recognise professional experience and training. However,
we welcome the inclusion of 'skilled ballet dancers', 'skilled
contemporary dancers' and 'skilled orchestral musician' on the
latest UK shortage occupation list as an interim measure.
EMERGENCY VISAS
257. Arts organisations argued that they frequently
had to replace leading artists at short notice, such as when an
opera lead was taken ill and a replacement had to be found, sometimes
with under 24 hours' notice. The National Campaign for the Arts
(NCA) argued that the requirement to make a visa application in
person and in the applicant's normal country of residence was
prohibitive to finding replacement artists in such cases:
In February 2008 when Anna Netrebko feared she would
be unable to perform the lead role in Traviata the next
day the ROH were faced with having to find a replacement for one
of the greatest opera stars. Netrebko had received outstanding
reviews and the replacement needed to deliver a performance which
would not disappoint an audience who had in large part booked
specifically to hear her. The Albanian Ermonela Jaho had the right
artistic credentials and was reported by her agent to have an
Italian passport but it transpired that she merely had Italian
residency. Again, high level Home Office help made it possible
to resolve the issue, otherwise the performance would have had
to be cancelled and around £200,000 worth of tickets refunded.
This pragmatic action would not be possible under the new system.
[307]
258. The Royal Opera House agreed, explaining
that:
Singers of international standing are booked for
leading roles in each production (a run of around 4-10 performances).
Each opera singer has a collection of roles in their repertoire;
some roles are quite specialist due to technical difficulty or
rarity of performance. A significant proportion of the singers
we book are visa nationals. It is a risk with live opera performance
however that singers get sick, notably with sore throats, and
have to cancel at the last minute. This happens at The Royal Opera
on almost a weekly basis.
In the event that this occurs to one of the lead
singers, we have to scout the world for a top-calibre singer
who knows the role and is free to fly immediately to London. Sometimes
we find a European or non-visa national. Sometimes however the
only person or persons available are visa nationals. In this situation
in the past the singer has been able to enter the country as a
visitor and with Home Office help a work permit has been organised in
time for their entrance on stage. However under the new arrangements
a singer will not be able to board the plane until full clearance
has been arranged. The problem here is the quick turnaround that
The Royal Opera needs on these occasions - usually hours, certainly
less than 24 hours in most cases, and often at weekends. We have
to get the singer straight to the airport but the new system will
require a visa national to apply for a biometric visa before they
leave the country they are in and this could take days and may
require them to travel to a city some considerable distance from
where they are at the time.[308]
259. The Royal Opera House noted that "the
alternative would be to cancel performances with all the loss
of revenue (up to £225,000 in refunded tickets for a single
performance) and damage to our reputation which would go along
with that".[309]
The Association of British Orchestras (ABO) and the Barbican in
written evidence expressed very similar concerns regarding the
need to obtain visas for replacement of lead performers at short
notice.[310]
260. The Minister for Borders and Immigration,
Phil Woolas MP, felt that the number of cases in which this would
be a problem "would be, in my view, extremely limited".
He considered that "the concerns of the arts sector are exaggerated"
and argued that, in the event of a major international tournament
or performance being jeopardised, "the Minister would be
able to exercise discretion".[311]
261. We agree that the time delays associated
with obtaining biometric visas make it almost impossible for international
artists and performers to be recruited in an emergency situation,
in which they might require a visa to be issued within 24 hours.
Although the industry has in the past appealed in such situations
directly to Ministers, this seems an extremely cumbersome process
to be adopted as routine. We therefore recommend that a specific
exemption be made to enable fast-tracking of visas for exceptional
emergency cases such as international artistic replacements.
Agriculture and horticulture
262. We took oral evidence from Paul Temple of
the National Farmers' Union and James Davies of HOPS Labour Solutions.
In addition we received written evidence from the National Farmers'
Union and HOPS Labour Solutions. We took evidence from representatives
of the agriculture and horticulture industries about their ability
to recruit seasonal low-skilled labour, and on recruiting skilled
workers under other tiers.
LOW SKILLED LABOUR
263. At present, Tier 3 (low skilled labour)
is suspended indefinitely, since the Government believes it can
meet the UK's low skilled labour needs from within the EEA workforce.
Witnesses reported a shortfall in seasonal labour, despite an
increase in the quota for SAWS. James Davies of HOPS Labour Solutions
told us "we are currently looking at about a 5,000 shortfall.
We have had an increase in our SAWS quote for this year of 5,000
but that has only gone part of the way".[312]
He attributed this to the economic downturn, which was driving
workers to other EU countries or back to their home country.[313]
The National Farmers' Union noted that the Home Office had reported
"declining A2 applications to work in the UK from 10,420
in Q1 2007, to 8,205 in Q1 2008".[314]
264. Both the National Farmers' Union and HOPS
Labour Solutions argued for the implementation of a circular migration
scheme to replace the Seasonal Agricultural Workers' Scheme,
[315] which they
argued could fall under either Tier 3, or under Tier 5. HOPS Labour
Solutions recommended that:
The continuation of the SAWS or its replacement would
best fit in Tier 5 of the Points Based System. This returns SAWS,
or a replacement, to its origin of being a circular migration
cultural exchange scheme which in turn helped to meet the unmet
demand for seasonal labour.[316]
SKILLED LABOUR
265. The Youth Mobility Scheme under Tier 5 allows
young people to work in the UK for up to 24 months. Individual
countries must qualify and register for the scheme by demonstrating
that they meet a number of criteria including having acceptable
levels of immigration risk, having effective returns agreements
with the UK, and providing reciprocal youth mobility arrangements
for UK nationals. Migrants require 50 points to qualify under
the YMS, including 30 points for a certificate of sponsorship
(issued by their national government), 10 points for being between
the ages of 18 and 30, and 10 points for demonstrating that they
have £1,600 to maintain themselves for the first two months
following arrival in the UK.[317]
As of 19 June 2009, only Australia, Canada, Japan and New Zealand
had registered under the scheme.
266. The National Farmers' Union considered that
the Youth Mobility Scheme under Tier 5which replaces the
Working Holidaymaker Schemecould also facilitate skilled
and semi-skilled workers, such as skilled sheep shearers and experienced
arable harvest workers, in particular those from Australia, New
Zealand and South Africa.[318]
HOPS Labour Solutions agreed:
Historically our client employers have utilised the
Working Holidaymaker Scheme as a source for more senior supervisory/lower
management personnel and higher skilled positions such as machinery
operation
The removal of the Working Holidaymaker Scheme
and the introduction of the Youth Mobility Scheme
will assist
to meet the demand for more highly skilled positions.[319]
However, Paul Temple of the National Farmers' Union
argued that the £1,600 maintenance requirement for Tier 5
was proving a deterrent to international students taking up this
route.[320] He suggested
that a better figure would be £500, "as a figure higher
than this would be prohibitive to many young people".[321]
267. The National Farmers' Union reported that
it also expected to recruit skilled labour under Tier 2, stating
that the skill level and salary thresholds for Tier 2 were "set
at a level which allowed small numbers of skilled agricultural
and horticultural workers to be recruited".[322]
268. The Government needs to make explicit
to the agricultural and horticultural industries what provision
it intends to make for low-skilled labour to replace the Seasonal
Agricultural Workers Scheme, and must do so well in advance of
the anticipated closure of the Scheme in January 2010.
269. The economic downturn has already created
shortages in seasonal labour for these sectors. The Government
should consider how temporary seasonal labour needs could better
be met through Tier 5, in particular making the Youth Mobility
Scheme more user-friendly. This should begin with reducing the
maintenance requirement, currently set at £1,600, which is
an unrealistic sum to expect students entering the UK for temporary
periods to possess.
202 Ev 86 Back
203
Ev 86 Back
204
Ev 88 Back
205
Q 82 Back
206
Presentation given to the Home Affairs Committee seminar on the
Points Based System in North Kensington by Bangloor Rashid, President
of the Bangladeshi Caterers' Association, on 23 June 2008. Back
207
"Not too many cooks", The Guardian (Education), 6
May 2008 Back
208
Q 99 Back
209
Q 103 Back
210
Q103 Back
211
Ev 87 Back
212
Presentation given to the Home Affairs Committee seminar on the
Points Based System in North Kensington by Bangloor Rashid, President
of the Bangladeshi Caterers' Association, on 23 June 2008. Back
213
Ev 86 Back
214
Q 81 Back
215
Q 83 Back
216
Qq77-78 Back
217
Ev 91 Back
218
Q 391 Back
219
Q 87 Back
220
Q 95 Back
221
Q 75 Back
222
Ev 89 Back
223
Ref Back
224
Q 432 Back
225
Migration Advisory Committee, Skilled, Shortage, Sensible:
First review of the recommended shortage occupation lists for
the UK and Scotland: Spring 2009, April 2009, p.131 Back
226
Ev 86 [Citing Source: 2001 Census Standard Table ST108] Back
227
Q 94 Back
228
Q 90 Back
229
Annex A [India and Bangladesh visit notes] Back
230
Ev 142 Back
231
Ev 145 Back
232
Ev 142 Back
233
Ev 142 Back
234
"Portraits of Respect", The Guardian, 26 March
2009 (citing figures from the Office for National Statistics)
Back
235
Q 190 Back
236
Q 192 Back
237
Ev 145 Back
238
Ev 145 Back
239
Migration Advisory Committee, Skilled, Shortage, Sensible:
First review of the recommended shortage occupation lists for
the UK and Scotland: Spring 2009, April 2009, p.95 Back
240
Ev 142 Back
241
Ev 102 Back
242
Ev 142 and 144 Back
243
Migration Advisory Committee, Skilled, Shortage, Sensible:
First review of the recommended shortage occupation lists for
the UK and Scotland: Spring 2009, April 2009, p.96 Back
244
For people aged 22 years and over Back
245
Ev 91 [Janet Ryder AM] Back
246
Migration Advisory Committee, Skilled, Shortage, Sensible:
First review of the recommended shortage occupation lists for
the UK and Scotland: Spring 2009, April 2009, p.96 Back
247
Migration Advisory Committee, Skilled, Shortage, Sensible:
First review of the recommended shortage occupation lists for
the UK and Scotland: Spring 2009, April 2009, p.97 Back
248
Migration Advisory Committee, Skilled, Shortage, Sensible:
First review of the recommended shortage occupation lists for
the UK and Scotland: Spring 2009, April 2009, p.97
Back
249
Ev 250 Back
250
Q 180 Back
251
Q 181 Back
252
Migration Advisory Committee, Skilled, Shortage, Sensible:
First review of the recommended shortage occupation lists for
the UK and Scotland: Spring 2009, April 2009, p.73 Back
253
Migration Advisory Committee, Skilled, Shortage, Sensible:
First review of the recommended shortage occupation lists for
the UK and Scotland: Spring 2009, April 2009, p.72
Back
254
Q 183 Back
255
Ev 228 Back
256
Ev 227 Back
257
Ev 227-228 Back
258
Ev 228 Back
259
Ev 248 Back
260
Ev 183 Back
261
Q 179 Back
262
Annex A [India and Bangladesh visit notes] Back
263
Annex A [India and Bangladesh visit notes] Back
264
Q 376 Back
265
Annex A [India and Bangladesh visit notes] Back
266
Ev 82 Back
267
HC Deb, 11 February 2009, col 2057W Back
268
C Deb, 11 February 2009, col 2058W Back
269
Q 376 Back
270
Qq 368-370 Back
271
Ev 80 and 83 Back
272
Migration Advisory Committee, Skilled, Shortage, Sensible:
First review of the recommended shortage occupation lists for
the UK and Scotland: Spring 2009, April 2009, p.30 Back
273
Q 395 Back
274
Ev 83 Back
275
Q 254 Back
276
Q 269 Back
277
Ev 218 Back
278
Q 260 Back
279
Ev 220 Back
280
Q 285 Back
281
Q 445 Back
282
HC Dec, 18 June 2009, col 456W Back
283
Q 295 Back
284
Q 290 Back
285
Q 290 Back
286
Q 291 Back
287
Ev 104 Back
288
Ev 104 Back
289
Ev 118 Back
290
Ev 104 Back
291
Ev 118 Back
292
Ev 210 Back
293
Q 304 Back
294
Q 446 Back
295
Ev 136 Back
296
Q 308 Back
297
Ev 210 Back
298
Ev 104 Back
299
Q 302 Back
300
Ev 176-177 Back
301
Ev 204 Back
302
Q 319 Back
303
Ev 134 Back
304
Q 327 Back
305
Q 323 Back
306
Q 324 Back
307
Ev 171-172 Back
308
Ev 112 Back
309
Ev 112 Back
310
Ev 146-147 Back
311
Q 450 Back
312
Q 194 Back
313
Q 207 Back
314
Ev 161 Back
315
Ev 161 [NFU] Back
316
Ev 229 Back
317
UK Border Agency, Tier 5 (Youth Mobility Scheme) of the Points
Based System Policy Guidance, March 2009, pp.12-16 Back
318
Ev 159 Back
319
Ev 230 Back
320
Q 210-211 Back
321
Ev 232 Back
322
Ev 231 Back
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