Select Committee on European Union Second Report


13th REPORT, SESSION 2000-2001: A COMMUNITY IMMIGRATION POLICY

Response

INTRODUCTION

  The Government welcomes this report which further develops a mature public debate on the issues surrounding immigration, and specifically those which arise from the Commission's Communication on a Community Immigration Policy.

  This memorandum responds to each of the Committee's conclusions individually responding to paragraphs 132 to 173 of the report.

THE CASE FOR FACILITATING LEGAL ECONOMIC MIGRATION

International migration and globalisation

  132.  In a free society immigration is inevitable. It has continued on a large scale despite the so-called "zero immigration policies" of the last 30 years. But immigration into the United Kingdom, or into other EU Member States, is just part of the story. Large-scale movements into and out of the United Kingdom and the EU as a whole have in recent years tended to result in relatively small net immigration. In the United Kingdom, immigration from outside the EU has tended to include large numbers from the "Old Commonwealth", from North America and from the Far East, as well as from the "New Commonwealth". Thus the notion that there is a given flow of migratory pressure in one direction, and that the United Kingdom or the EU can simply open or shut the "tap" to regulate this pressure, is false. Given that immigration is such a politically sensitive issue, it is vital that the real scale and nature of migratory movements should be more widely known. We therefore welcome the opening up of public debate on immigration policy in the last year, to which the Commission's Communication has made a significant contribution. (paragraph 39)

  The UK Government also welcomes the Commission's paper. It has come at a time when, here in the UK we are considering how best to maximise the important social and economic contribution that managed migration can make. The recently published Home Office research has made a valuable contribution to this debate and has drawn attention in particular to the scale and nature of migratory movements.

  133.  Globalisation has had an enormous economic and cultural impact on all developed societies. The constantly increasing movement of people around the world is just one aspect of this, facilitated by the growth in international air traffic, increasing wealth and the affordability of transport, and the proliferation of sources of information concerning other countries. The advent of global communications and increased mobility through cheaper international travel make long-distance migration a more realistic option and a more widespread aspiration. In welcoming the potential benefits of globalisation we recognise that there will be an inevitable impact on migratory pressures. (paragraph 43)

  The Government agrees that migration, in all its forms, is an increasingly important international phenomenon linked to globalisation. The world has become smaller. People move, work and trade across international boundaries in ways that were unthinkable even a few years ago. Governments, including EU Member States, must try to make sense of these developments and that is why the migration debate is so important.

  134.  It is doubtless the case that many migrants are seeking better economic opportunities in a wealthier host country. But economic factors are not necessarily the only, or even the primary, motivation for some migrants. For example, in 1997 almost two thirds of non-UK national immigrants into the United Kingdom were from developed countries. On the other hand, the EU's experience in successive enlargements has been that citizens of poorer Member States have not taken advantage of their unquestioned right to move to more prosperous Member States in anything like the numbers that might have been expected. It therefore appears that potential migrants do not necessarily conform to "rational choice" theory. There are plausible grounds for arguing, along with the Joint Council for the Welfare of Immigrants, that economic development tends to promote rather than reduce migration pressures. This is clearly an area for further research. In the mean time we strongly urge the Government to resist any attempt to tie EU development aid to the reduction of "push factors". (paragraph 44)

  We agree with the Committee that the factors that lead to migration are complex and cannot be explained by economic motives alone.

  We also concur with the Committee in its diagnosis that pursuing action to secure poverty reduction may in fact encourage rather than discourage migratory flows in the short to medium term. Successful development may create a class of would-be emigrants seeking better education and opportunities and higher incomes, and who are able to afford that choice. We therefore acknowledge the Committee's conclusion that the EU should not seek to tie its development aid to addressing "push factors". As it has stated in its two White Papers on International Development, the Government believes that development assistance, including that of the European Commission and Member States, should be unambiguously focused on defeating abject poverty.

  However, one consequence of the increased migratory flows mentioned in the Report is that more people are seeking to use the asylum route as a means of entry into a desired destination country, despite having no protection needs. This problem needs to be tackled in a variety of ways, but an important element is for the UK and its EU partners to engage constructively with the countries in the regions from which these people are coming in order to reduce the incentives they have for seeking to misuse the asylum system. In this context we would not wish to rule out the targeted use of money in some cases.

THE ECONOMIC EFFECTS OF MIGRATION

  135.  The Commission advances "the concept of migration as a pattern of mobility". In so doing it in fact simply describes what is and always has been the reality of migration. Flows run not in one direction, or even in two, but in countless different directions at once. Many immigrants from third countries ultimately become emigrants in turn, either returning to their country of origin or going elsewhere. Even this secondary migration may not be the end of the story. As Dr Coleman told us, "no immigration is necessarily permanent". (paragraph 48)

  The Government acknowledges the complexity of migration patterns. Indeed paragraph 3.7 of the Home Office report on Migration highlighted that historically migration flows involving the UK have been both temporary and permanent.

  136.  In this context it is particularly difficult to quantify the economic effects of immigration, and still more difficult to relate these to the formulation of a new policy. All migrants have some economic effect on both their country of origin and their host country. Yet the present debate is focused on "economic migrants", narrowly defined as those migrating primarily for work purposes. We note the recent research commissioned by the Home Office, which shows that immigrants in the United Kingdom make a net contribution to national wealth. However, it is by no means clear whether and how the contribution made by "economic migrants", as presently defined, differs from that made by other groups, including those entering for family reunion. It seems that certain groups, notably refugees, have particular difficulties in accessing the job market. We therefore welcome the Government's commitment to further research in this area, which should help to clarify the ways in which Government policy can enable all immigrants to prosper and make the fullest possible contribution to the economy. (paragraph 49)

  We agree that migration does have a whole range of economic and social impacts, whether or not people are coming to the UK primarily to work. People coming here principally for non-economic reasons (such as family reunion, or to study as students) also have rights to work, and can have a number of impacts on the local economies in which they live. Moreover, as the Committee notes, different people stay for different time periods, some settling in the UK, some having children here, and some moving on, all with different short term and long term impacts on the economy and society.

  The Home Office research attempted to describe the different economic and social impacts. It is difficult to quantify these effects, but it is not impossible. As pointed out, the Home Office study found that, overall, migrants had a net positive impact on the UK in 1999 of around £2.5 billion. This figure reflects the contribution of all migrants, including those who came through family reunion routes and as refugees, as well as those who came through "economic" routes. Further work is underway to better understand the economic impacts of migration both on source and host countries, for different types of migrant, for different groups of the population, and in different areas. Further work is also needed to develop our existing data sources in order to better understand these impacts in the longer term—data on the economic impacts of migrants broken down by route of entry is not currently available. It is essential that our migration policies—both on entry controls and integration mechanisms—are underpinned by a good understanding of the economic and social impacts they create.

  137.  It is unclear what impact external factors, not readily quantifiable in fiscal terms, may have on these calculations. In particular, the effect of increased immigration on host communities, and especially on scarce social resources, deserves closer examination. Unless steps are taken to ensure that that the social infrastructure is adequate for all, there is a risk that opposition to immigration may develop among the indigenous population. (paragraph 50)

  We agree that the impact of migration at the local level—on public services, housing, regeneration of local economies—deserves closer examination. We are working closely with DTLR to develop a programme of work to better understand these impacts to better plan for local service provision. Work is also planned to examine the impact of dispersal of asylum seekers on local host communities and ways of facilitating integration both from the asylum seeker and local community viewpoint.

  The Government acknowledges that we need more research to inform the debate on migration including how we can balance legal migration to promote economic growth with social stability. Work is already under way but there is clearly more to be done.

LABOUR SHORTAGES

  138.  It is clear that there are labour shortages in Europe. Media attention has tended to focus on shortages in information technology and other high skill sectors. Immigrant labour can play an important part in overcoming these shortages. However, many low skill sectors are even more reliant on immigrant labour. It is disappointing that the Communication pays so little attention to this area, particularly as most Member States are experiencing the expansion of the "black economy", which employs many thousands of irregular workers and illegal, unregistered immigrants. The effects of the "black economy" on workers, in terms of low wages, loss of benefits or dangerous working conditions, are unacceptable. Any immigration policy, whether organised at Community or national level, must address this problem. (paragraph 57)

  The Government acknowledges that one of the challenges is to tackle the number of migrants who are employed illegally. Barbara Roche's speech in September 2000 was about the need to look at both the benefits and the challenges of managing migration; and about beginning a wider debate on what a modern immigration might look like.

  The Government is concerned about the role of those who engage illegal workers and the impact such illegal working has on communities. There is a need to address the specific problem identified and the government will be looking further at the legal entry routes for people seeking to work in the United Kingdom.

  139.  However, there are also unresolved problems within the labour markets of Western Europe—high unemployment and low participation rates in the resident population, lack of mobility, and a high drop-out rate in some sectors. These too must be addressed, through initiatives aimed at improving mobility, developing life-long education and re-training programmes, encouraging workforce participation and tackling exclusion. We welcome the emphasis on such programmes in the Lisbon Presidency Conclusions and the Employment Strategy, and in particular the Commission's recent Communication on New European Labour Markets. (paragraph 58)

  The Government agrees with the Committee that the problems it has identified do need to be addressed in order to achieve full employment through reform of the EU's labour markets. The Government would stress that the UK is engaged with the relevant EU initiatives such as those on improving mobility, promoting lifelong learning and achieving social inclusion.

  In particular, the Government took a full part in helping to develop the agenda for the Lisbon Special Summit and we welcome the progress that has been made in taking forward the Presidency Conclusions. One of the commitments was to develop a Europe-wide database on jobs and learning opportunities, which was originally proposed by the UK and will address many of the problems the Committee has identified.

  This year the Employment Guidelines were significantly changed to help co-ordinate strategic action in member states in some key areas and we look forward to the Joint Employment Report being published in the Autumn as it will evaluate the progress made through national Employment Action Plans.

  UK welcomes the Communication on new, open labour markets as a positive contribution to the debate about the steps needed to meet the Lisbon goal and targets. The Communication presents a useful analysis of how and why the EU labour market is changing, the barriers that currently exist and possible solutions. The Communication's proposals should help to increase the transparency of, and improve access to, European labour markets.

  The UK particularly supports those proposals which also seek to increase skill levels. The UK favours the suggestion for a High-Level Skills and Mobility Task Force, which was subsequently agreed at the Stockholm Council. It is hoped that the Task Force will identify the barriers which prevent the development of a mobility culture and suggest practical

  140.  Managed immigration, though not the whole solution to labour shortages, can play an important part in alleviating shortages in specific sectors, both high and low skill. But any immigration policy aimed at meeting labour shortages must be formulated in the wider context of employment policy. At the moment the relationship between the proposed Community immigration policy and the existing policies at EU and Member State level to increase employment is far from clear. In such a sensitive area it is vital that this relationship should be made transparent. (paragraph 59)

  The Government completely agrees with the view that labour migration must fit with wider employment policy. One of the messages in the Commission's recent communication on Community immigration policy is that there must be coherence between policies on immigration and those directed at labour markets. The Government hopes that this will be an outcome of the debate launched by the Communication.

  However, while the Government believes that Employment Strategy, particularly post-Lisbon, and economic migration are complementary strategies for ensuring the proper functioning of the labour market, we also believe that there must be a distinction between them. At the EU level, the UK—like many member states—does not feel that any potential competition between theses two strategies requires special mechanisms.

  The Government also agrees that migration can help the labour market by being used to meet recruitment gaps in the short term and increasing, or adding to, human capital by bringing new skills or attitudes. However, we also need to be aware that it may also reduce training and education incentives, and, by increasing competition for jobs, undermine existing employability programs.

  Migration policy, however it operates, can be a useful policy tool but it is not a substitute for a well functioning labour market and effective policies on skills and training. In the Government's view, the primary focus for the EU should be on making labour markets efficient so that jobs come up all of the time and that all people are able to access and take up those jobs.

  141.  Governments have generally failed to keep pace with current labour market developments; still less can they predict future trends. In the context of globalisation, and if competitiveness is to be maintained, intervention in determining the needs of labour markets, whether at government or EU level, should be limited. Immigration policy should be framed so as to allow businesses to meet their legitimate recruitment needs quickly and efficiently. (paragraph 63)

  The Government agrees that any immigration policy, here in the UK or in the EU, will need to maximise the benefits of being part of an open globalised economy and the potential it offers for the free exchange of ideas and cultures. We agree that policy should enable businesses to meet their legitimate recruitment needs quickly and efficiently. To this end we have streamlined the work permits system to make it more responsive to the needs of employers. Indeed, we are expecting to issue 150,000 work permits this year. We are also looking at provisions to enable foreign students completing degrees in the UK to transfer into the work permit category without first having to leave. In addition we have recently transferred responsibility for the work permit system to the Home Office. However there are threats as well as opportunities in migration which require government action. We need to continue our efforts in tackling the inhuman trafficking and smuggling of people which undermines many of our social policies.

DEMOGRAPHIC CHANGE

  142.  The population of Europe will age considerably in the coming century. It is worth emphasising that insofar as this reflects improved health and life expectancy it is a welcome and inevitable development. However, there are legitimate concerns about the long-term implications of falling fertility rates, which in 1999 ranged between 1.89 children per woman in Ireland to only 1.19 in Spain. (paragraph 66)

  The Government Actuary Department Projections produced by Eurostat [3] the Statistical Office of the European Community, show every European Union (EU) country experiencing population ageing, to a greater or lesser extent, over the first half of this century. The number of young people will continue to fall, while the number of older people will increase. Low fertility is one factor in population ageing. Postponement of births by women is likely to mean that long-term fertility levels are higher than the current very low fertility rates found in some EU countries. However, even under the high fertility scenario in their projections, Eurostat assume that the completed family size in the EU will be under 2.0 children per women.

  143.  The economic consequences of population ageing are also hard to predict, and will vary considerably from country to country. Dr Coleman estimated that for the United Kingdom, with its relatively high fertility rate, the cost of sustaining the ageing population might equate to about 0.5 per cent off economic growth rates per year (compared with what would otherwise have been the case had the population not been ageing). Many complex factors affect such calculations, and we have not received sufficient evidence to form a view on what level of "potential support ratio" will prove to be economically sustainable. However, it is clear that all EU Member States will have to find ways of adapting to demographic changes, though for some, such as Italy and Spain, the problems are likely to be more severe and will require more rapid solutions. (paragraph 67)

  It is correct that fertility rates in the UK are currently higher than many EU countries. In 1999, nine of the 15 EU countries had a lower total fertility rate than the United Kingdom. This is one of the factors in the ageing of the population being less marked for the UK compared to the EU as a whole. We share the Committee's view that the demographic pressures facing us are different to others in the European Union. However any quantifying of the cost to an economy is very difficult to predict.

  144.  The Tampere European Council called for measures on the admission and residence of third country nationals to be based on "a shared assessment of the economic and demographic developments within the Union". However, the wide variations between Member States suggest that such an assessment will be difficult. It may not be possible to devise an effective EU-wide policy in this area. (paragraph 68)

  The Committee's view is shared by the Government. Wide variations in economic and demographic situations within member states will make any common assessment difficult. This is not to say that an effective EU wide policy framework cannot be devised. The Commission acknowledges differences in Member States in its communications and presents options of regional and national variations of practice within a common legal framework where appropriate. Within that they do see scope for third country nationals throughout the European Union to share some rights and obligations. These rights and obligations will form the core of any effective EU-wide policy and the Government will take an active role in developing policy.

  145.  "Replacement migration" cannot by itself solve the demographic problems facing the EU Member States. This is the conclusion of the UN Population Division, the European Commission, and of all the witnesses who gave evidence in this inquiry. To sustain the existing age profile of the population would require impossibly high levels of immigration into not only the EU but all developed countries. However, the Commission believes that immigration could help to offset short-term difficulties, while other long-term responses to demographic change are implemented. We are unconvinced by this particular argument, and at the very least the Commission's suggestion requires considerable refinement and explanation. Demographic change is a long-term problem, and requires long-term solutions. We have already argued that managed immigration may play an important part in overcoming labour shortages. While demographic change may contribute in certain circumstances to such shortages, its specific consequences are the ageing of the population and the fall in the "potential support ratio"—the ratio of those of working age to those aged 65 and over. These problems do not in themselves justify increased immigration in the short term. Member States are already acting individually and collectively to tackle unemployment and low workforce participation rates and may need also to examine the retirement age and pension arrangements. (paragraph 69)

  The conclusions from the Stockholm Council in Spring 2001 commit the Council and Commission to producing a joint report on increasing participation and promoting active ageing for the Spring Council in 2002—in Barcelona. The Government sees this as an opportunity to focus on labour market reform and creating more and better jobs. We have made the point to the Commission and to the current Presidency that we must take a long-term view on this. This is particularly true when considering the development of a sustainable pensions regime.

  The Government's own view is that our national action should be to make progress on tackling age discrimination in employment and implementing a range of measures to increase the proportion of people aged over 50 in employment. Importantly, these measures are part of a wider strategy to help older people remain active longer through work, learning, volunteering and family care.

  We also refer to our response to paragraph 140.

ILLEGAL MIGRATION

  146.  Illegal migration is an enormous world-wide business. For smugglers it can be highly profitable, while for migrants it is expensive and dangerous, as the tragic deaths of Chinese migrants, discovered in Dover, demonstrated. The wider costs are all but incalculable. We welcome collective attempts by the Member States of the EU to combat this trade. (paragraph 74)

  Member States of the European Union concluded at the Special European Summit at Tampere in 1999 that they must work together to combat illegal immigration:

        "The European Council is determined to tackle at its source illegal immigration, especially by combating those who engage in trafficking in human beings and economic exploitation of migrants."

  The UK is committed to tackling illegal immigration with its EU partners. Much has already been achieved in this field and work is ongoing. Examples of work in this area include:

    —  The Prime Minister's initiative to combat illegal immigration through the Balkans.

    —  The UK's involvement in the PHARE JHA horizontal programme, the Budapest process and the Stability Pact's migration and asylum initiative.

    —  The UK's support of the French Presidency's proposals to combat illegal immigration.

    —  The UK's concrete offer to support the Belgian Presidency's initiative for a High Impact Operation at the future external borders of the EU.

  147.  However, it is clear that control measures and policing will not in themselves solve the problem of illegal migration. They address the symptoms rather than the cause. While we are not aware of any clear evidence that the opening of legal avenues for immigration will reduce the pressure of illegal migration, this is clearly a widely held view. Prime facie, it seems reasonable to assume that potential migrants, given the option of applying for a legal right of entry into the EU, will choose this rather than paying heavily for the services of smugglers. This is an area that at the very least deserves thorough research, which would include analysis of the experience of the United States, Canada and other countries of immigration. (paragraph 75)

  We welcome this conclusion. We accept that increasing the legal routes to work will not on their own solve the problem. Further research is underway to try to investigate the characteristics of the illegal population, and their motivations. However, this is a very difficult area in which to undertake research and we are, of course, exploring whether there are lessons to be learned from experience in other countries.

  148.  In our Report on Enlargement and EU External Frontier Controls we highlighted the danger that by focusing largely on control measures the EU might "push would-be immigrants . . . into the hands of organised crime". We argued that the EU would at some point have to "formulate a coherent immigration policy" in order to "reduce the demand for the services of organised criminals". This would involve the EU in "having to look at ways to manage the admission and settlement of immigrants as well as ways to prevent their entry". We see no reason to change our views now. (paragraph 76)

  The Government recognises that reducing the demand for the services of organised criminals is an important dimension to a new immigration policy. The Government is committed to having a coherent immigration policy that achieves this whilst meeting real expectations and emerging needs.

  149.  Since the Amsterdam Treaty came into force the balance of Council activity has been heavily on the side of control measures. The present Communication, and the debate it is intended to instigate, offer an opportunity to redress the balance somewhat. This is a very welcome development, and we look to the Government to play a constructive role in the debate. (paragraph 77)

  The Government has taken the opportunity to participate proactively in the debate on what a future migration policy might look like beginning with Barbara Roche's speech last year. We will continue to participate constructively and we welcome the contributions from the Community Communication and the House of Lords report to this debate.

THE CASE FOR A COMMUNITY IMMIGRATION POLICY

  150.  The Heads of State and Government at Tampere committed themselves to a common approach to several areas of immigration policy. There is a strong political will across the Community to develop a common approach. While there will be dissenting voices, we express our support for this development. (paragraph 80)

  The Government has welcomed the Commission Communication as a first response to the call for a common EU immigration policy and we support the proposition that immigration policies must be transparent, rational and flexible.

  The UK retains its right, under the Protocol on the Position of the United Kingdom and Ireland which is annexed to the EC and EU Treaties, not to participate in measures in this area. The UK also retains the right to maintain its frontier controls, under the Protocol on the Application of certain aspects of Article 14. Government policy is to retain control of UK immigration policy, having regard in particular to the UK's position on frontiers. However, this does not mean that the UK's immigration policies need be seriously at odds with those of participating Member States.

  The UK intends to be an active participant in the forthcoming European debate.

  151.  The Community is already moving towards the harmonisation of policies on asylum and temporary protection. This strengthens the case for a Community dimension to immigration policy. In particular, a managed immigration policy may help to diffuse the controversy currently surrounding the right to asylum. (paragraph 83)

  152.  However, there is also a potential for confusion. We support measures enabling and encouraging those granted humanitarian protection to participate fully in the labour market. Many refugees are highly skilled, and could contribute substantially to the economy of their host country. But the grounds for admitting economic migrants and refugees must not be confused. The humanitarian foundation for refugee status must not be compromised. (paragraph 84)

  The Government agrees that the issues of migration and asylum are by definition international and cannot be dealt with in isolation. We aim to ensure, where appropriate, that the UK's migration policies are broadly in line with those of other Member States. At the same time we do have a distinctive view on border controls and therefore, control on who can enter the UK legally. That is why we have a reserved right to decide whether to opt in. But it is also important to keep asylum separate from migration.

  We are committed to having a fair and credible asylum system which honours our international obligations. The Government fully endorses the view that there should be a clear distinction between those granted leave in the UK as refugees or as being otherwise in need of protection, and those granted leave on other grounds.

  153.  Free travel areas can exist without the harmonisation of immigration policies. Examples include the British-Irish free travel area and the Nordic passport union. However, the number of countries involved has been relatively small and the migratory pressures have, arguably, not been as great or as diverse as those affecting the Schengen area. Moreover, the incorporation of the Schengen acquis within the framework of the EU has strengthened the link between the Schengen area and the establishment of an internal market where goods, persons, services and capital can move freely. The evolution of the internal market is not yet complete as far as third country nationals are concerned. Nevertheless, the existence of the Schengen area provides a compelling argument for the development of a Community immigration policy. (paragraph 86)

  The Government welcomes the incorporation of the Schengen acquis into the framework of the EU. The UK has sought to participate in those provisions of the Schengen acquis which do not concern border controls. The Government considers that common travel arrangements are entirely sensible for those countries with land borders but that our island geography means that checks at ports and airports, where traffic to the UK is naturally channelled, are the most effective way to control immigration to the UK. The right of the UK to retain checks at its internal frontiers is reflected in the UK's Frontiers Protocol to the Amsterdam Treaty, which was agreed by our EU partners who understand the UK's reasons for wishing to maintain frontier controls.

  Some of the thinking behind the Commission communication on a Community immigration policy, which is designed to launch a wide debate on what a common EU policy should look like, echoes the debate already being held in Member States, including the UK, on the need for a more positive approach to migration. The Government has already launched an internal debate to look both at the benefits and the challenges of managing modern migration and believes that further discussion at European level will be helpful. It is not necessary for the UK to be a full member of the Schengen acquis to take an active role in the development of a Community immigration policy. What is anticipated is the development of an overall framework for migration at EU level, with common standards and procedures and a mechanism for setting objectives and targets, which can be implemented by Member States at a national level. This could then form part of an overall migration framework in the Union.

THE SCOPE OF A COMMUNITY IMMIGRATION POLICY

The limits of Community competence

  154.  The Commission, in responding to the request of the European Council made at Tampere, has attempted to define the scope of a Community immigration policy. This is a welcome development. However, we agree with Graham Watson, MEP, that both the EC Treaty and the Tampere conclusions are limited in scope. The specific request of the Tampere European Council was for "approximation of national legislations on the conditions for admission and residence of third country nationals". "Approximation" appears to be less far-reaching than "harmonisation"—though the difference is not immediately clear. Furthermore, the phrase "conditions for admission and residence" may embrace minimum standards for determining admission or the rights and obligations of legally resident third country nationals, but does not go so far as to authorise a common admission policy. Mr Fortescue himself accepted that admission policy was outside the scope of the Communication, and we welcome the assurance that what is envisaged is a framework within which Member States will be able to develop their own admission policies. However, we remain uncertain where "admission policy" either differs from or overlaps with "immigration policy". It is disappointing that the Communication has made no effort to identify more precisely the limits of Community competence. In such a politically sensitive area we look to all Member States to examine closely the proposed immigration policy, and to resist any drift towards Community involvement in areas beyond the scope of the EC Treaty. (paragraph 88)

  The Government agrees that there is a lack of clarity about the limits to and ultimate objective of Community activity in this area. Although it seems that there is no legal distinction between the "approximation" and "harmonisation" of national legal provisions, the extent to which laws are to be approximated in any particular case will be a matter of a policy judgment, which must be made in accordance with the principles of subsidiarity and proportionality. The scope for continuing national discretion will inevitably be a key area for discussion as this work is taken forward. Since the UK decides on a case-by-case basis whether to opt in to the adoption of legislative proposals, there is an additional level of protection for our national position.

MEETING THE NEEDS OF BUSINESS

  155.  We share the concerns expressed by the Immigration Law Practitioners' Association concerning the approach outlined by the Commission. The preparation of regular national reports, which will then be synthesised into further reports, is too cumbersome to keep pace with the speed of developments within the labour market. Member States are called upon to propose "indicative targets" for immigration—we doubt their ability to do so accurately, and fear that these targets will in reality harden into quotas, which will become a handicap rather than a help to businesses. We are also concerned about the relationship between the proposed immigration policy and the existing Employment Strategy. A co-ordinated approach to government is clearly desirable, though it may be hard to achieve. The evidence of the Immigration Advisory Service shows that even within the United Kingdom it has not always been easy to reconcile the objectives of the Department for Education and Employment with those of the Immigration and Nationality Directorate. It is now being suggested that immigration policy and employment policy should mesh together at European level. It is far from clear how this will work in practice, and it could simply be a recipe for confusion. (paragraph 91)

  The UK is monitoring the approach proposed by the Commission. In the meantime the UK work permit arrangements are not quota based. They are responsive to the needs of UK business and as a result there has been significant growth in the number of permits issued in the last few years. Recently a fundamental review of the arrangements has been carried out to ensure the scheme was well placed to take account of recent and forecast changes in domestic and international labour markets. Changes have been made to the work permit skills criteria that recognise the ongoing needs of British business to quickly fill key posts where shortages exist. In June 2001 we transferred responsibility for the work permit system to the Home Office which will assist in co-ordinating migration and employment policy more closely.

  156.  What businesses need is a framework within which they can rapidly respond to labour shortages, and if necessary recruit from outside the EU. Community immigration policy should be designed with this objective in view. (paragraph 92)

  The work permit arrangements allow employers in Great Britain to recruit or transfer key non European Economic Area (EEA) nationals to work in this country, whilst safeguarding the interests of the resident labour force. This aids British employers in their development and helps them overcome short-term labour shortages that it would not be feasible to meet by training resident workers.

  Following a fundamental review, the work permit scheme has already been modernised to better meet business needs. Work Permits (UK) currently reach decisions on more than half of all fully completed applications received within one day and around 95 per cent within five days. Customers have also recently been given the facility to submit applications electronically via the Internet. This serves to improve the speed, cost and quality of the process.

  Certain occupations are included on a skills shortage list where it is acknowledged that suitably qualified/skilled people are in very short supply. Occupations included on this list change over time as a result of labour market developments. UK employers are able to submit work permit applications under a simplified procedure for shortage cases. A key feature of this procedure is that the normal requirement to advertise a vacant post and provide evidence of a recruitment search is waived. Work Permits (UK) will continue to work closely with employers and industry bodies in order to respond rapidly to skills shortage developments.

  157.  Several measures are open to the Community in developing a flexible framework for managing economic migration. Amongst them are the creation of a single European information point for potential migrants, which should contain full and independent information on employment opportunities and conditions of entry and residence. However, we are concerned that the credibility and efficacy of such an information point might be diminished, were it to be used to attempt to dissuade migrants from coming to the EU. We also support the proposal to make use of the EURES network to help businesses recruit from outside the EU. Other measures, such as allowing a rapid recruitment from third countries where there are clear shortages in specific sectors, or allowing qualified third country nationals to enter the EU with a job-seeker's visa, are worthy of consideration. Improving the recognition of qualifications could also help migrants to make the most of their skills. Finally, more consistent and comparable EU-wide statistics will greatly assist the development of future immigration policy, and we commend the Commission's proposal to improve data collection and analysis in this area. (paragraph 97)

  The Government agrees with the Committee that all the measures it has identified could be helpful. However, they need to both fit together and they need to fit with the need to improve the employability of the resident population, especially those distanced from the labour market through various causes of disadvantage, and to deliver employment opportunity for all.

  Linked to this is the need, in the Government's view, for care to be taken when addressing the issue of EU wide data collection and analysis. While measurement is important and creates the need for some commonality, this need should not be used by the Commission to try and drive member states towards collecting data for the sake of it and overriding national need. Primarily, we need to measure what can be measured and what will add value, as well as focus on what we want to deliver. We should not use data collection and analysis to create targets which are inappropriate to national contexts.

THE RIGHTS OF THIRD COUNTRY NATIONALS

  158.  The European Commission has demonstrated its commitment to improving the legal status of legally resident third country nationals. The European Council at Tampere also made a commitment to granting third country nationals rights "as near as possible to those enjoyed by EU citizens". We welcome the Commission's proposed Directive on the legal status of third country nationals, and trust that the Council will work rapidly towards agreeing a text. (paragraph 102)

  The Commission's proposal was formally presented to the Council on 26 April and the first discussion at working group level took place on 2 and 3 July. This is provisionally listed by the Belgian Presidency for a decision at the December Council.

  159.  The inconsistencies between the rights enjoyed by third country nationals in different Member States, and the difficulties they face in exercising nominal rights, may seriously undermine any attempt by the EU to encourage managed economic immigration. We have argued for an immigration policy that responds quickly and flexibly to the needs of business. However, a vital corollary of this is that legally resident third country nationals should have a range of rights guaranteed at Community level. One of these rights should be a limited security of residence for third country nationals who lose their job for whatever reason. This would considerably enhance the attractiveness of the EU as a destination for migrants. (paragraph 103)

  We support measures to ensure that the rights of long-term, legally resident third country nationals are broadly comparable to those of Member States' own nationals. This helps to encourage integration into the host community. But the Tampere Council qualified the rights of third country nationals as rights within the Member State of residence. The Government would have difficulty with any proposals, which granted rights of residence for such persons in other Member States, because they would impede our ability to operate an effective immigration control on third country nationals.

  160.  The principle that increased rights are acquired by third country nationals by virtue of length of residence is well-established. It is generally recognised by a change of status, from temporary to permanent settlement, what in the United Kingdom is described as "indefinite leave to remain". A further change of status, to full citizenship of the host country, may ultimately assure the migrant of rights exactly equivalent to those of native EU nationals. However, the time it takes for third country nationals to acquire secure residence status varies from two years in Finland to 15 years in Greece. There is also considerable variation in the connected rights granted to third country nationals, such as rights to employment or social security. We do not believe such inconsistencies can be justified within the "area of freedom, security and justice", and we therefore fully support the Commission's proposal to grant a "hard-core of rights" to migrants upon their arrival. (paragraph 107)

  The draft Directive concerning the status of third country nationals who are long-term residents appears to meet the call from the Tampere European Council in that it seeks to establish an avenue to a set of rights that are as near as possible to those enjoyed by EU citizens. It would provide for a common long-term resident status which all third country nationals residing legally could acquire in any Member State. Having achieved this status, long-term residents would benefit from many of the same rights as EU citizens. Third-country nationals would qualify for the status after five years' legal and continuous residence in most categories. The draft Directive would also give long-term residents the right to (short-term) residence in a second Member State. Those that did would have broadly similar rights as nationals, except that they would not have the same access to social benefits.

  161.  However, we have reservations concerning the proposition that rights should then be differentiated according to length of stay. There will inevitably be an interval before a right of permanent settlement is granted, but we believe that any Community legislation should set this interval at no more than five years, while allowing Member States with more generous arrangements to preserve them. We do not believe that the rights afforded to migrants before this period should be substantially restricted other than in respect of length of residence. In other words, the "hard-core of rights" should be construed generously. (paragraph 108)

  The Government agrees that it is important that those third country nationals who are long-term resident in the UK should enjoy clearly-defined rights and that these should approximate to those enjoyed by British citizens. The Government notes that, under the proposed Directive on the status of third-country nationals who are long-term residents, the relevant period of residence would be five years, whereas these rights are generally acquired after four years in the UK. The Government considers that there are no difficulties in principle with the Commission's proposals insofar as they concern rights acquired within a Member State. But it is not yet persuaded that the proposal that a long-term resident should have similar rights when moving to another Member State is consistent with its policy of maintaining control over policy on admission to the UK.

  162.  Member States grant rights to migrants from within the EU, to EEA or Swiss citizens, and in some respects to Turkish or Moroccan citizens (by virtue of EU association agreements) without imposing conditions as to length of residence. The Commission and Council should reflect on these arrangements when discussing the proposals for third country nationals. (paragraph 109)

  The EU Working Group on Migration and Expulsions recently commenced discussions on the draft proposal. The scope of the draft Directive will be discussed in detail during the course of the working party meetings. The draft proposal is without prejudice to more favourable provisions of bilateral and multilateral agreements between the Community or the Community and its Member States, on the one hand, and third countries, on the other.

  163.  The most important factor is that legally resident third country nationals should have consistent, enforceable, Community-level rights. If such rights are made available, then they will enjoy de facto what Mr Fortescue described as a "secure, stable situation". We are not convinced that these rights should be embodied in some form of "civic citizenship". While it might make the rights of third country nationals more visible, we find the choice of words unfortunate. The concept of "Union citizenship" has been widely discussed, especially in the European Parliament, but has not found favour among the Member States. The term "civic citizenship" is subject to some of the same objections—it seems to convey an implied challenge to the principle that EU citizenship derives from national citizenship. This is not in our view likely to be widely acceptable. (paragraph 110)

  The Government maintains that citizenship of the EU is derived from national citizenship. Article 17(1) TEC specifically provides for this point. The Tampere European Council endorsed the objective that long-term legally resident third country nationals should be offered the opportunity to obtain "the nationality of the Member States in which they are resident". The Government is committed to retaining control over nationality and the right to citizenship of the United Kingdom.

  On the concept of "civic citizenship" we would wish to know much more as it is very short on detail at the moment. The Government will of course take an active role in any discussions.

  164.  As long ago as 1992 the Select Committee recommended that long-term resident third country nationals should be given rights of free movement and employment throughout the Community. We still hold to that view. It is part of the logic of the Single Market that third country nationals, like citizens of Member States, should be able to work throughout the EU, and the failure to afford them this right may impose burdens on businesses. This is particularly the case in the service industries. Given the European Council's recognition, at the Lisbon summit, of the increasing importance of services to the EU economy, it is very disappointing that so little progress has been made either in agreeing the proposed Directives on the freedom to provide cross-border services, or in implementing the GATS. (paragraph 113)

  This Government does not share the view of the committee that a long term resident third country national should have automatic free movement rights throughout the European Union. We are taking an active role in ensuring that United Kingdom businesses are fully able to benefit from the single market. We also comply with our obligations under GATS.

  165.  We recognise that there are serious fears in some quarters about any proposal to extend free movement rights to third country nationals. We believe these fears are over-stated. The experience of successive enlargements has shown that EU citizens from poorer Member States have not by and large taken advantage of their right of free movement in order to "shop around" for more generous social provisions elsewhere. We see no reason to believe that long-term resident third country nationals will do so either. Cultural and family links, participation in local communities and knowledge of languages, will play just as large a part in their decisions whether or not to move to other Member States as they do in the decisions of EU citizens. Nor do we believe that the political consequences will be as damaging as is feared: free movement rights for third country nationals, as for EU citizens, will be driven by economic arguments, by the needs of the Single Market. They are not free-standing rights. We doubt that the arrival of limited numbers of third country nationals, taking advantage of specific new rights to take up employment throughout the Community, will have a major political impact in their countries of destination. (paragraph 114)

  We share the committee's view that previous enlargements did not cause any great social difficulties. Research undertaken to investigate potential inflows following future accessions to the European Union will provide more information on this issue. However, we continue to hold the view that individual Member States should decide when a third country national may take up residence in that Member State. We agree that economic factors are only one of many that makes an individual decide to migrate to a particular country. The research being commissioned at both national and EU level will help us understand better the potential impact expanded rights for third country nationals will bring and this will help guide the Government in its future development of policy.

INTEGRATION

  166.  Increased immigration will have an effect on the culture of every Member State. We whole-heartedly share the Minister's conviction that the United Kingdom is enormously enriched and strengthened by its social and cultural diversity. This is an area where the United Kingdom has much to be proud of. (paragraph 119)

  The Government shares the Committee's view that the United Kingdom is a more dynamic society enriched by our social and cultural diversity and will continue to work to ensure we can remain proud of our achievements in this area.

  167.  Nevertheless, views on these issues differ widely across the EU, and there is no agreement either on the meaning of "integration" or on the proper balance to be struck between national culture and cultural pluralism or multiculturalism. It is proper that these issues should be debated openly, but we are not convinced that the EU is the appropriate forum for instigating such a debate. There is general agreement that action at EU level against racism and xenophobia, or against discrimination on the grounds of racial or ethnic origin, is appropriate, and this consensus was reflected last year in the swift adoption of the proposals brought forward under Article 13 TEC. However, the Commission's description of the European Union as a "pluralistic society" glosses over the differences between Member States, and the effects that immigration will have on the many diverse societies that in fact make up the EU. An attempt at the European level to pre-empt still controversial debates within Member States, for example by urging political leaders or the media to promote cultural diversity, could turn out to be counter-productive. (paragraph 120)

  The Government believes it is essential that Member States work together to tackle the issues of racism and xenophobia. Such matters need to be discussed open and honestly. The United Kingdom played a key role in ensuring that the two Directives under Article 13 of the TEC were agreed as quickly as possible. The Race Directive is an important step forward in establishing a common standard of legal protection from racial discrimination across the EU.

  The Government agrees with the Committee's observation about differences between Member States in terms of effects that immigration may have on the many diverse societies within the EU.

  No two countries are exactly the same. Underpinning the Commission's thinking is the acknowledgement that the social impacts of migration have to be successfully managed. The challenge for any individual Member State and for its respective wider civil society in this area is to ensure that coherent policies are developed which take account of a wide range of factors which bear on questions of social inclusion.

  168.  We urge that rather than linking integration policies to immigration policy, the EU should adopt the approach recommended by ILPA, addressing the issues of security of residence and legal equality for migrants. In particular, we look forward to progress being made on the proposed Directive on family reunification, which would in itself be a major step towards promoting the successful integration of migrants. (paragraph 121)

  The Working Group on Migration and Expulsion and the Strategic Committee on Immigration, Frontiers and Asylum have met regularly in order to examine the proposed Directive on family reunification. Whilst some of the more difficult areas have been resolved, outstanding reservations on the text will need to be resolved in order to reach agreement. The key outstanding issue remains the scope of the directive, with little agreement on which family members should be covered and on how much flexibility Member States should have to admit them.

THE POSITION OF THE UNITED KINGDOM

  169.  In our Report on Schengen and the United Kingdom's Border Controls we reached the following conclusion: The Government failed to convince the Committee that systematic border controls as currently practised for all arrivals in the United Kingdom, whether from the European Union or elsewhere, is the most effective use of resources to control illegal immigration or is focused on the main sources of illegal immigration. We also doubted whether it would be "practical to maintain the principle that passengers arriving in the United Kingdom are controlled by nationality rather than by point of departure for the foreseeable future". We reaffirm those conclusions. (paragraph 127)

  The government continues to believe that frontier controls are the best arrangement for the UK. We wish to exploit the advantages of our island geography, and we consider that border checks at ports and airports, where traffic is naturally channelled, are the most effective way for us to control immigration. Frontier controls also contribute to the detection of serious crime. We have a tradition of personal liberty within the country, without internal checks or identity cards. Moving controls away from our borders would be a major departure from this, and we are not convinced that it would be beneficial in terms of effectiveness, or of community relations. At the same time we are seeking to take a more targeted approach to immigration control, through the flexibility provisions in the 1999 Act, which enable resources to be deployed in the most effective way possible.

  170.  It is inevitable that the United Kingdom's influence on the negotiation of those Title IV measures that it has decided not to opt into will be much reduced. The United Kingdom's influence on the forthcoming debate on a Community immigration policy will be similarly weakened. This is particularly unfortunate, as the debate within the United Kingdom on immigration, which the Government has been keen to promote, is so well advanced compared to most other Member States. (paragraph 128)

  The Government rejects the assumption that the UK's influence in this area will be weakened because of the reserved right to decide whether to opt into Title IV measures. The UK intends to and does play an active role in the debate on a Community Immigration Policy. Our reserved right to decide whether to opt in does not mean we want our immigration policies to be backward looking and seriously at odds with other Member States. We will be constructive in considering any emerging EU measures.

  171.  Historically the impulse behind the breaking down of internal borders in the EU has been economic—in particular the creation of the Single Market. Successive Governments have long accepted freedom of movement for EU nationals for economic purposes. The European Community is now far more than a common market. We believe that there would be social advantages, as well as economic benefits within the Single Market, in removing the distinction between such free movement rights for EU nationals and for third country nationals who have acquired legal rights of residence in a Member State. (paragraph 129)

  The Government does not support the extension of the right of free movement to legally resident third country nationals. The UK retains the right, under its protocol to the Treaty Establishing the European Community, not to participate in measures in this area. Government policy is to retain control of our immigration policy. We could not agree to measures that undermine the integrity of our frontier controls.

  172.  The Government's ability to maintain the United Kingdom's independent admission policy will depend on preserving the integrity of Title IV. We doubt whether this will be feasible in the long term. The EC Treaty, especially after Amsterdam, does not always make neat divisions between "immigration" measures (which the United Kingdom can choose not to opt into) and "Single Market" measures (by which the United Kingdom is bound). The current disagreement between the Commission and the United Kingdom over the proposal to extend the freedom to provide services to third country nationals demonstrates the differing interpretations of the EC Treaty. The European Court of Justice may ultimately be called upon to decide on the precise boundaries between these different areas of the EC Treaty. (paragraph 130)

  The Government maintains that Title IV TEC remains the only chapter of the Community Treaties which in accordance with the provisions of A63.3(a) TEC may be used as the legal base for measures dealing with the conditions for third country nationals' entry to and residence within Member States. Each measure is, however, examined on a case by case basis and the arguments for any particular legal base are considered on their individual merits. Whilst there are differing interpretations of the EC Treaty, and whilst on occasion the ECJ may be called to give its opinion on particular issues, the Government is confident that it will maintain control of UK frontiers, including policy on admissions and residence of third country nationals, in line with the UK's frontiers protocol.

  173.  The Government has stated its intention to opt into EU-wide measures on controlling illegal immigration, but not to opt into more "positive" measures, that might impact on the United Kingdom's frontier controls. We have already argued that the relationship between illegal migration and the opening up of avenues for legal migration needs to be explored and debated. We are therefore concerned that the Government's insistence on maintaining an artificial distinction between "control" measures and "positive" measures may hinder it from making a useful contribution to this debate. We are disappointed that the United Kingdom has set its face against a number of positive measures, including the proposed Directive on family reunification. We believe that the Community should grant legally resident third country nationals a core of clearly defined rights. The United Kingdom, which has a proud record of welcoming and integrating immigrant communities, should be playing a full part in shaping such European-wide rights. (paragraph 131)

  This government intends to take an active part in the European Debate on Migration and look forward to seeing how this develops further under the Belgian Presidency and at both the European Conference on Migration in October and the European Council in Laeken in December. However we at the same time intend to maintain our existing frontier controls in accordance with the protocols secured at Amsterdam. This means that our approach to the European debate will need to take account of our position on frontiers.

  We do not see this as a contradictory position. Our Island geography enables us to take a distinctive view on border controls, and therefore control over who is able to enter the United Kingdom on a legal basis. This is why we have a reserved right to decide whether to opt into commission proposals. This does not mean that our Immigration policies will be seriously at odds with other member states. We will be constructive in considering any emerging issues and will consider taking part when it is considered in line with our policies on migration.


3   Summary figures published in Demographic Statistics 1997. Eurostat (1997), see also the article Shaw, C, Cruijsen, H, de-Beer J, de Jong, A. Latest population projections for the European Union. Population Trends 90. The Stationery Office (1997). Back


 
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