Select Committee on Economic Affairs Minutes of Evidence


Examination of Witnesses (Questions 120 - 125)

TUESDAY 16 OCTOBER 2007

Ms Susan Anderson, Mr Neil Carberry and Mr William Simpson

  Q120  Lord Lawson of Blaby: No, they are quite different.

  Mr Simpson: It is a sign of a dynamic, vibrant economy that vacancies exist. As people have moved to more productive occupations, they create a vacancy. As a new position becomes available, that is a vacancy. It is quite healthy to have vacancies. Indeed, it used to be the case that the level of vacancies was correlated with GDP growth.

  Lord Sheldon: Thank you.

  Q121  Chairman: I think we had better bring this session to an end, and I am very grateful to you, but, before we do so, there is one question and one comment which might be a question. First of all, we should have asked you and did not on the question of teaching of English and whether you think it is employers who should pay for it or somebody else who should pay for it, whether it should be paid for by taxation or in some other way. That is the first question. The second is that, whilst you have been very helpful to us, there is sort of dilemma, certainly in my mind. There is a feeling that migration is good for employment and so on and yet the CBI wants to see indigenous British workers take their place. If it is as good as you say it is, why the devil do you want it phased out?

  Ms Anderson: Let us address the issue of language skills.

  Q122  Chairman: That is the easier one.

  Ms Anderson: That is the easier one, yes, while I am thinking of the answer to the other question. Clearly, the amount the Government has been spending on English for speakers of other languages has tripled. I think the figures are from around £100 million in 2000 to around £300 million in 2005. I think we would agree that part of that growth or a large part of that growth is due to migrant workers coming in from other European states and using the funding available that was probably designed to help members of the black and ethnic minority community who do not have adequate language skills. Our view is that, yes, employers who are benefiting and, indeed, employees who are benefiting probably should pay more, should accept that they have to pay more, if not all, of the cost of that language training. But I would make the point that if we look at groups of Polish and Lithuanians workers, for example, their standards of English when they arrive, with English as a second language, are much higher than somebody from the UK going to France, where they would have a very poor grasp of French because we do not do language training in the UK very well. In many states, whether Scandinavia or the A8, English is very much the language that everybody will learn and levels of skill are much higher than we would expect of the average UK worker. They start off with a higher skill level and in some of the stats, which I am happy to let you have, countries such as Slovenia, for example, do not just have English, they will have French or German as well. The UK, of course, is the tail-end Charlie when it comes to language skill, though we might have a smattering of very basic French or German if we are lucky. People arrive with a better skill level and, of course, there is nothing to replace immersion as a way of acquiring and brushing up on language skills. The fact that migrant workers are coming into relatively low-skilled jobs with some ability and they just move forward in leaps and bounds is not because necessarily they are having a lot of training courses but because they are immersed in the world of work and hopefully their communities too and therefore their language skills just move up. The fact that the Government is now devising much better fit-for-purpose language courses should help matters, because often employers and employees need conversation ability, so there are now more short courses available. I would applaud what the Government has done in terms of developing these courses. We accept that employers and employees, migrant workers themselves, should have to pay more for their courses, but we do think that many of the migrant workers coming to the UK, from the A8 countries in particular, start off with good language skills which can then be brushed up in the labour market.

  Q123  Chairman: I thought there was a slight dilemma in what you were saying right through the evidence. Your members welcomed migrant workers into this country because they produced things that employers needed and yet on the other hand you were also saying—which is perfectly understandable, but is there not a dilemma?—that this will be phased out because we will get our skill levels of our indigenous workers up and they will not really be so necessary. If it is as beneficial as it is to get migrant workers, why do employers want to get rid of them at all?

  Ms Anderson: I do not think they do want to get rid of them. Indeed, that will not be possible anyway, because they will have rights of entry from the new as well as the older Member States. It is not that we want to get rid of them but we are saying that for those groups who are outside the labour market at the moment—because they are claiming incapacity benefit, for example, or those young people who never enter the labour market—we cannot afford a situation where, because they do not have the right skills, they become dispossessed and remain unattached. That is not good for social cohesion. It is not good for employers; it is not good for them. We are saying that we need a twin-track approach: we want to continue to be able to use migrant workers in order to be able to grow the market, grow the economy, but we cannot afford to allow those millions who I talked about on incapacity benefit not to take advantage of economic growth also.

  Q124  Chairman: When you see the transcript of everything you said, if you want to add something to it we would be delighted, but you do say in your written evidence, "We do not believe that migration is a long-term answer to UK skills issues" and that is what I am really getting at.

  Ms Anderson: Okay.[31]

  Q125  Chairman: May I say, again, thank you very much for coming. You have been most helpful. I will call this session to an end and thank you very much.

  Ms Anderson: Thank you. We look forward to your report.





31   Note by Witness: Supplementary submission from CBI addresses this question. Back


 
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