Select Committee on Economic Affairs Minutes of Evidence


Examination of Witnesses (Questions 420 - 438)

TUESDAY 11 DECEMBER 2007

Dr Heaven Crawley, Professor Allan Findlay and Dr Neil Jarman

  Q420  Lord Griffiths of Fforestfach: Do you think that immigration should be a matter for a devolved government? There were hints, I felt, in what you were saying that you almost wanted to go there and I would love to hear what your answer is.

  Dr Jarman: I would argue that there needs to be some role for the devolved administrations in setting migration policy, and I think Northern Ireland has a case for a distinctive policy, different again from the Scottish and the Welsh situation. We have not got a policy as such at the moment; we have got a reaction to a process which has been set in place by private business, partly because we have not had a devolved administration over recent years and so we are playing some sense of catch-up and reacting to the changes resulting from migration. Northern Ireland has a couple of specific factors which will make it distinctive: one is the fact that it is coming out of conflict and the economy is beginning to boom, and that is having potential scope for development which was not there a few years ago. The second one is that we are the only part of the UK that has a land border, and if the policy in the Republic is different from the UK policy that will have an impact on Northern Ireland. Already people at times are coming to Ireland and are not necessarily coming to Northern Ireland or the Republic; they are coming to Ireland, and they are not completely sure until they arrive. We have issues of people crossing backwards and forwards across the border, we have emerging issues of businesses responding to the economic boom in Dublin, relocating to the North to meet the economic boom, particularly in construction in the North, but perhaps still employing people out of the Republic but employing them in Northern Ireland. So there are distinctive matters emerging in Northern Ireland, but it is a rapidly changing situation and we are struggling to keep up and get on top of it. At the moment we are following it, we are not getting in front of it and setting the ground out; we are beginning to try and do that and the Department of Employment in Northern Ireland has recently developed a working group and started to develop an action plan and a strategic plan, but it is still very much in the process of catch-up.

  Lord Lawson of Blaby: Can I just follow that up? Lord Griffiths is right, this was very much what seemed to emerge from Professor Findlay's answers as well as yours, but of course the consequence is that he would have to have border controls, quite strict border controls, say between Scotland and England.

  Lord Griffiths of Fforestfach: And England and Wales.

  Chairman: Hang on a minute, we are not having a debate between ourselves, we are here to ask the witnesses questions. We are getting a long way behind the clock if we are not careful; Lord Vallance, did you want to ask a question?

  Q421  Lord Vallance of Tummel: Just a quick one for clarification to Professor Findlay. In setting its demographic targets in its economic plan, which you mentioned, does the Scottish Government classify movement of people into Scotland from the rest of the UK as immigration and, if not, what?

  Professor Findlay: The statement I read simply reflects what has been published in the Government's economic strategy and it does not say there distinctly whether that policy relates to movement from the rest of Europe, the rest of Britain or the rest of the world; that is the short answer to your question. I cannot answer on behalf of the Scottish Government but I can explain to the Committee what has been stated publicly.

  Q422  Lord Macdonald of Tradeston: Further to that, does not the English immigration in the end constitute about 10% of the Scottish population? That seems so significant it would have to be addressed, would it not?

  Professor Findlay: It is not quite as high as 10%. The last time I looked at the figure it was 8%, but it is a significant proportion of the Scottish population. I am not sure about the inference of your comment, but what is more significant for Scotland—

  Q423  Lord Macdonald of Tradeston: If I could clarify, the inference would be that Dr Crawley said there was mainly a retirement population that went to Wales. Would you not have a lot of young English people moving into Scotland to help rebuild the economy there?

  Professor Findlay: We have a lot of young English people moving to Scotland at present and retirement is a minority part of the flow from south of the border, but I would emphasise there is also a significant net inflow of Scots-born people who have been living in England to Scotland during the last five years, and the interesting evidence is that those people are largely less than 35 years of age, so they are mostly young people who are returning from the rest of the United Kingdom to Scotland.

  Dr Jarman: In Northern Ireland, figures published last week showed that there had been 30,000 new migrants into Northern Ireland last year and something like 12,500 of those had come from England, Scotland and Wales. What you have seen in the Republic is that as the economy grows you have not only an inflow from foreign nations but also aflow of returnees or second generation Irish, and I think you might see some of that in Northern Ireland. There appear to be people who have come in moving from England, that are actually the people who have moved out from previous years and are moving back or they are siblings or are descendants, given that Northern Ireland has been a net exporter of population for a long time and they have been a net export of population for a long time.

  Dr Crawley: Just as a point of clarity, I did not want to imply that the migration across the border into Wales had been exclusively retirement migration, but it is often of people at a different stage in their career so it is the older cohort rather than the under-25 cohort.

  Q424  Lord MacGregor of Pulham Market: My question does not relate to English migrants to Scotland or to Northern Ireland, nor indeed to returning nationals to those countries. I really want to relate to the A2 and A8 countries. Professor Findlay already described the different employment and demographic needs of Scotland and we have heard a little bit from Wales and Northern Ireland. Do you think that because of the different nature of the employment patterns compared to England, the recruitment practices or employment practices of employers differ in relation to encouraging people from A8 and A2 countries and does it also lead to a difference in educational offerings? We are going to hear evidence in the next session of how a lot of the migrants from A2 and A8 countries coming to England have actually not stayed very long and many of them are over-qualified for the jobs that they do.

  Professor Findlay: That is a very interesting question . I am sure that every region of the United Kingdom, because of the distinctive nature of the regional economies, employ people with distinctive characteristics. Therefore, it is natural that Scotland, with a significant proportion of its economy linked to rural activities, particularly agriculture, fisheries and food processing, has a distinctive type of labour demand, and that labour demand has always been met in a distinctive fashion. In recent times, referring to the A8 countries, that has meant that in Scotland gangmasters—or labour recruiters, as they actually prefer to be called—have been very significant. There are 260 suppliers on the gangmasters register supplying labour to Scotland at this point in time.

  Q425  Lord MacGregor of Pulham Market: That is also true in England.

  Professor Findlay: Yes, but my point was that proportionately that is a more important channelling mechanism, and the significance is that initially when the EU-A8 countries joined, quite a number of the wave of migrants came through those channels. The interviews that I have undertaken recently with gangmasters show that over time that pattern has been changing, with more people now arriving independently in the United Kingdom and then coming to those labour recruiters in the regions to find work through their services, so it is a slight change in that pattern over time, which I think is very interesting and important. That is significant because it suggests that perhaps regions which are further away from the South East are now receiving migrants directly from the A8 rather than through the channelling device of the recruitment agents.

  Dr Jarman: In respect of Northern Ireland that is probably even more the case. Certainly in the early days we were talking primarily of recruitment agencies acting as middle men, or of employers going out to trade fairs and the like and recruiting in the countries. Increasingly it appears that that process is now self-sustaining and that there are enough informal networks in place in Northern Ireland to pass the information back across, and people come and then they get a job once they are here. The fact that in the last year you can fly from Belfast to four cities in Poland is one of those factors. I travelled from a provincial city in Poland a few weeks ago and I was what I took to be the only non-Pole on that flight and it was like families saying goodbye to each other at the airport. On the other point you make about language issues, our research suggests that for a significant proportion of the people that we have spoken to, economic matters were not their primary reason for coming to Northern Ireland. Learning English and improving their English language skills was a significant factor. Therefore they were prepared to take low quality jobs or jobs that they were over-skilled to do because they only expected to do it for a short period of time; and then they would move on, either to the UK or to the States or to somewhere else with their improved language, so that for them the money was not the big issue and they were prepared to put up with the hardships for a short space of time if it meant improving their English.

  Q426  Chairman: Can I just say to everybody, including the people on this side, that we are getting very severely behind the clock. Can we keep our questions short and our answers short otherwise we will not manage to get through all the questions?

  Dr Crawley: The situation in Wales is slightly different again. There is very little evidence about what the recruitment patterns in Wales are. I think it is true to say that we are really quite behind in terms of the evidence base although a lot of research is currently being commissioned to try and find that out. It is true to say that most accession nationals who come to Wales are employed in sectors that are not those that are perceived to be the most important sectors. So, construction, administration, hospitality, catering—those are the sectors in which they are working. It is also true that, unlike the rest of the UK, in Wales migrant workers seem to have an equal footing in the public sector and in larger companies. So there is also something slightly different going on there, and again in terms of language there is something different again, which is of course that we are moving towards a bilingual situation in Wales, where there is a move towards Welsh as well as English as being the language of choice. That has made a difference both to people's propensity to come to Wales potentially, but also to the kinds of services that can be offered by way of language training, because the priority for the Welsh Assembly Government at the moment is to teach and to have things in Welsh, and that has made a difference.

  Q427  Lord Best: Mine is a question about community cohesion and it is about the impact of the new wave of migrants and their reception on the part of existing recent migrants, ethnic minority communities and the native-born residents. I suppose there is a potential special ingredient here for Northern Ireland?

  Dr Jarman: There are a number of strands to that and I will take them in reverse order. There has been a rise in recorded racist incidents over the last five years, a significant rise, which has included numbers of attacks on Poles, Lithuanians, Slovaks and the like, so the general growth of the minority ethnic and national communities has brought with it, or been accompanied by, an increase in evident racism. There is no real evidence of any particular problems within the minority ethnic sector in terms of relationships and certainly in terms of the existing support agencies working with minority ethnic groups in Northern Ireland; they have expanded their remit to include Poles and other A8 nationals. In terms of the populations themselves, we have seen the emergence of a distinctive Polish community in Northern Ireland with its own networks and structures around the church and around the support agencies. We are not yet seeing the same sort of sense of cohesion of individual communities amongst any of the other minority communities, the new communities of Lithuanians and Slovaks. People have tried to find out and approach them, but they are very amorphous and very disparate, and that may well become an issue at some stage. We do not know how these communities are going to develop and establish themselves, and that is an issue more generally, that we do not actually know what dynamics are going on amongst those, whether they will actually adhere into distinctive communities, whether they will be seen as general Eastern Europeans. We know that there are tensions within some of those areas. We know from some workplaces that there have been tensions between Poles and Lithuanians or Czechs and Slovaks, and we know from some of the interviews that there are animosities amongst them. So to talk of the A8 as a singular body is problematic for them. They do not all like each other.

  Q428  Lord Macdonald of Tradeston: There has obviously been a Protestant sensitivity in some sections of the community through the demographic balance. Most of the immigrant countries you mentioned there are Catholic countries. Is there hostility in sections of the Protestant community to that influx for that reason?

  Dr Jarman: There has been to the extent that the more readily available housing has been in Protestant working class communities. That is where the housing has been more readily available and therefore that is where some of the people have moved in. There does not seem to be that much of an issue about whether they are perceived Catholic or not. If you are not a Northern Ireland Catholic, it is not so important—you can be an English Catholic, a Polish Catholic. There were in some areas stories where the Poles were being classified ethnically as Catholic and the Lithuanians were being classified ethnically as Protestant by physical types, to map within the local stereotyping. But it is more a matter that they are not local, so it would not really matter whether they are a Catholic or Protestant, black or white. That is where the problem comes, that they are not indigenous Protestants.

  Q429  Chairman: A quick comment for Wales or Scotland.

  Professor Findlay: I do not want to add anything to the evidence provided in the written comment from Valerie Dickson.

  Dr Crawley: There is contradictory evidence about what is happening in the Welsh setting. Certainly some of the cities like Cardiff that have had a longer history of migration seem to have dealt with the issue slightly differently because they simply have experience of different communities from different backgrounds working with one another. Some of the more rural areas which have not had experience of different communities in the past are having different issues arise. But the contradiction comes in the fact that when you talk to people on the ground there are some hostilities and tensions potentially, yet when you hear about what the local authorities and the police consider to be happening, they consider generally for people to be getting along pretty well actually. There are very few tensions and there are very few hot points and actually, pretty much, people are getting along.

  Q430  Lord Kingsdown: Have the economic impacts of immigration differed in rural areas from urban areas?

  Professor Findlay: I think they have in the Scottish context. The first thing I want to emphasise is that perhaps rural areas get discussed more, but there are actually more EU migrants in Glasgow and Edinburgh than in rural areas. Secondly, in rural areas the economic impacts have been paradoxical because in the rural economy there have been fewer opportunities for highly skilled migrants to earn higher wages and yet it is in the rural areas that the economic benefits, and in fact the net benefits, have been perhaps the greatest to local businesses, because it is there that the shortages of skills of particular labour groups have threatened the future of some of those businesses, but now with the supply of EU labour that is no longer an issue. It is in the urban areas, by contrast, that the universities have provided a flow of students through the Fresh Talent initiative who may stay on and use those skills in the future, and there is therefore a possibility of greater benefits and higher wages to the migrants themselves.

  Q431  Chairman: Northern Ireland and Wales, do you have anything to add after that?

  Dr Crawley: The evidence is less clear in relation to the urban/rural difference but one of the points about the Welsh economy that is worth making in this context is that Wales is a low pay economy generally and that makes quite a significant difference, so much so that not only do migrant workers but also the rest of the workforce in Wales earn less than anywhere else in the UK. Migrant workers can earn around £185 per week on average in Wales and it is about £336 a week average for everybody else. So there is an issue here about whether there is potential for development of a two-tier work force essentially and whether or not some of the issues that are starting to emerge about, for example, zero hour contracts that migrant labourers are being offered, will potentially lead to the polarisation of the more highly skilled earning relatively well in Wales, which is a relatively low-skilled economy, but the poorer end losing out in terms of the low-pay end of the economy.

  Dr Jarman: The situation in Northern Ireland has been that the migration was very diffuse and occurred in all kinds of areas, so even very small villages from a very early stage had immigration and a very positive impact in some of the local economies as was said for Scotland. One of the negatives has been in terms of perceived rises in house prices or limited availability of houses in some of the smaller towns in rural areas, whereas one of the positives has been that it has brought children in and therefore some of the schools that were threatened in rural areas are now seeing an influx of pupils from Polish and Lithuanian backgrounds and therefore they are being less threatened. There is therefore a seesaw effect in terms of positives and negatives.

  Q432  Lord Kingsdown: It is not very easy to see the picture in rural areas in terms of casual workers picking fruit and doing things on a short term basis. What sort of proportion of immigrants into rural areas are confined to that activity and what sort of proportion are much more long term occupied?

  Dr Jarman: Seasonal agricultural work is not perceived in Northern Ireland to be one of the significant drivers, it is lower down the scale. In rural areas it is more working in the food processing, the agri-industry, meat-processing factories, that is really where the impetus has been, more in the small urban centres rather than agricultural food picking. There has been some around mushroom-picking, that has been one of the sectors that has been perceived as problematic in terms of exploitation particularly and it is difficult to access the details of the information, but generally it has been perceived to be working more in terms of the urban centres and the smaller industries in rural areas.

  Q433  Lord Skidelsky: The Government has recently announced that it intends to stop low-skilled labour immigration from outside the EU. How do you think that will affect agriculture and the food processing sector in the three regions we are discussing?

  Professor Findlay: That is a very difficult question to answer because we are talking about the future and I can only answer in terms of, again, the evidence that I have gathered personally from gangmasters who supply labour to rural economies, and they are certainly concerned that over the next two to three years the number of Eastern European workers who currently come will diminish as they find higher paid jobs and, in the absence of an alternative supply of labour, that there may then be a return to labour shortages and damage to businesses. Now, of course you might imagine that that might be a good thing or a negative thing, depending on your perspective. I would like to divert slightly from your question by also mentioning the urban economy because in the Scottish context again there is the issue of whether, in the long run, it is better to have EU labour than labour from outside the EU, and the evidence there shows that, for example, Filipino nurses have been more eager to integrate and to settle and have been trained in English, whereas often Polish nurses have wanted to travel on and not stay. So the effect could be rather complex in the Scottish context of passing that legislation.

  Dr Jarman: In terms of Northern Ireland, it may have an impact in terms of the unregulated, unrecorded, undocumented labour. We know that there are substratas around, particularly Russian, Ukrainian and further east labourers coming in and working in the grey economy around there, and that might be an area where we see a re-examination. In Northern Ireland it has been almost largely ignored over the last four or five years. But it has not gone away, it is there, and I think the other issue that might affect it is the border, that people can live in one country and work in the other. You can work 20 miles across the border, you can be shunted across the border, so it might depend very much on how the policy in the Republic of Ireland develops in line with the UK policy.

  Q434  Chairman: It happens in Wales too if I may say so.

  Dr Jarman: Yes.

  Dr Crawley: Again, agriculture is a relatively insignificant aspect of labour migration into Wales; it is much more in relation to the food processing sectors and the hospitality and catering sectors that it might have an impact. Again, like Allan, it is very difficult to predict into the future, and it is also again important to contextualise what is happening with migration in the context of what is happening with the Welsh economy more generally and attempts by the Welsh Assembly Government to improve skills more generally in the country. Obviously, at the moment, we have a relatively low skills economy in Wales—that is the reality—and whilst there are improvements in higher educational attainment and vocational skills, there are still improvements that need to be made. If those improvements are made then, arguably, there will be fewer low-skilled people available to do those types of jobs. So it is very difficult to know, not only what is going to happen with labour migration, but also what is going to happen with other aspects of the system that might influence the extent to which people might have skilled labour or unskilled labour available. That will make a difference that we cannot really predict at this stage.

  Q435  Lord Griffiths of Fforestfach: My question has been touched on in a way by Dr Jarman in relation to the rural areas. But the question is: in the separate countries of Scotland, Wales and Northern Ireland, how has immigration affected the demand for public services, for education and for housing, and how have the devolved governments in these areas responded differently than England has?

  Dr Jarman: It has had a significant impact on public services and that has really been where the focus of some of the policy responses and government responses has been so far. There have been problems in education. Whilst there have been some benefits in terms of children coming into schools, there has been a real strain on teaching English as an additional language or English language teaching at all levels of the education sector. So the third level, college level, further and high education sector, is extremely stretched, to bursting point, in terms of not being able to supply enough English language classes and schools are all very heavily stretched. There are a small number of migrants coming into the public housing sector, but most of them are still in the private rented sector, so that is not a particular problem, and we have been coming to grips with different perceptions of the health service and, in particular, use of accident and emergency services as opposed to general practitioners or being able to get access to general practitioners. Part of it has been bringing the expectations and norms from your own country to a new country and expecting to proceed as is; there has been a lot of educational work linking around that, but certainly access to GPs is a problem.

  Professor Findlay: I believe that the situation in Scotland has not been particularly different from in England in terms of response to public services, but in other respects I think the Scottish context has been covered very well by the answer from Northern Ireland.

  Dr Crawley: Again, there are very many similarities and parallels. I suppose the first point to make is that 95% of accession migrants to Wales have no dependents, and so the issues around schools, whilst they are significant and growing, are not of a scale that might possibly be reflected because of that. The issues around housing appear to be, perhaps, the most significant ones; again, not in terms of social housing but in terms of the demand for private rented accommodation. Essentially, that is where the demand is going. There are discussions and concerns at the local level that rental house prices have risen by between 50 and 70% in some areas, particularly in areas like Pembrokeshire and South West Wales where there are already demands for housing associated with tourism and with second home ownership. Along with that there are also concerns about the quality of the housing that has been provided to migrant workers, because there is evidence of overcrowding and concerns about fatalities arising from the lack of fire safety and those sorts of issues, and some demand for homelessness services has arisen in areas like Pembrokeshire. The concern I suppose is that if the rental market goes up, then actually landlords will start to buy up private properties in order to be able to rent them out to a growing rental sector, and that will have impacts on the market more generally. The other concern is again in relation to health, that there is simply a lack of knowledge amongst migrant workers about being able to access health, so the concerns in this case are less about the provision and more about the ability of migrants to access the services which they need, and that is something that often drops away in these sorts of discussions.

  Q436  Lord Macdonald of Tradeston: A question to Professor Findlay, if I may. Scotland has had a remarkably stable population post-war; if it had grown at the same rate as England, there might have been a million more Scots. Could it not be argued that that kind of population stability, for reasons of conservation and resources and climate change and so on, is a very desirable equilibrium? Apart from the internal rebalancing of the demographics for economic efficiencies, do you think that the growth of population in Scotland is a goal to be striven for in itself?

  Professor Findlay: The Scottish Government's economic plan said that it is not a goal in and of itself, so I would answer in that respect and I would return the question, "why should it be a goal in and of itself?" The concern in the Scottish context is not that the population has been stable, but that the population is potentially ageing, with implications for the labour market, with implications in terms of talent and education and skills to drive forward towards achieving economic growth, which I believe is the target that the current government wants to seek. It is in relationship to that that there is a valid case for trying to argue for having levers to encourage appropriate kinds of people to come to Scotland, adding fresh talent, which would invigorate the regional economy in a way so as to achieve their goals.

  Q437  Lord Vallance of Tummel: Do you have any comments on the Government's submission to this inquiry, and do you think it reflects what is going on in Scotland, Northern Ireland and Wales?

  Professor Findlay: I felt that the Government's submission provided a very substantial body of evidence that was very welcome. I think in the Scottish context there does remain a concern that perhaps the perspective at national level does not necessarily reflect the needs of either the Scottish economy or the aspirations of the Scottish Government as it stands at present, and there would be concerns perhaps that the points system, which was referred to earlier, is one which achieves "certain" goals. We would welcome some aspects of the points system in as far as it makes quite clear that immigration policy is not based on racist grounds or selectivity which is questionable. But one has to ask what aspects of selecting migrants does one want to emphasise in any system, and one would ask, if one is looking for people who wish to settle, to what extent does the points system achieve that as opposed to simply looking for certain labour market characteristics. That, therefore, becomes a concern.

  Q438  Lord Vallance of Tummel: Are there any additional thoughts from Northern Ireland or Wales?

  Dr Jarman: In Northern Ireland, as I said before, the immigration has been very much driven by the private sector, the needs of the private sector. My reading generally of British Government policy is that it is English policy and does not reflect necessarily or take into account fully the distinctive needs of some of the more regional areas, and the fact that Northern Ireland does have a border with the Republic will create other issues for it. Its economic context as a region coming out of conflict, with potential for a different form of economic growth, make it a special distinct case in this situation.

  Dr Crawley: I would say, again, that the Government's submission is a very fair and very well-balanced synopsis of the available research evidence. It has been a very useful contribution to that evidence base. But again, I guess, from a Welsh perspective, it does not necessarily differentiate between different regions, despite the fact that if you are looking at the economic impacts, almost by definition the fact that the economics of the regions and the devolved regions are different, the wage structure of the economy is different, the skills levels are different, there must be some differential impacts. Also, it is almost presented as if economics have a momentum all of their own and that they are not in any way influenced by the policies, and of course it is that relationship between the policies and the economics that leads to certain outcomes. That is one point. The second point is that it also reflects the questions that were raised earlier about the tensions between devolved and non-devolved issues, because the reality is, in a context such as Wales, that there are tensions. There are certainly tensions around issues such as children because of course children are a devolved issue insofar as the things that affect them, like education and health, are the responsibility of the Welsh Assembly Government, and yet the things that control immigration status are effectively non-devolved. So there are tensions that arise and they occur in particular instances around particular cases. But I think maybe they are reflective of a broader, underlying problem that may increase in the future as the nature of the devolved governments and the way in which they start to operate in their particular spheres of control start to come into more tension with the wider UK aspirations. We are beginning, therefore, to see something that might increase in the future as these devolved powers become stronger.

  Chairman: Thank you very much for coming and helping us with our inquiry and, if I may say so, you have managed to tell us what is happening and also give us some very wise insights as to what you think might be happening in the future, which will of course be very valuable to us as we come to write our report. Thank you very much indeed.





 
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