Select Committee on Economic Affairs Minutes of Evidence


Memorandum by Boston Borough Council

BACKGROUND TO MIGRATION IN BOSTON

  During the last five years the population dynamics of our local community have rapidly transformed and the Borough of Boston is home to many different communities. Many have found a good life here—the relaxed pace of life, the quality of the local environment and cheaper house prices. New communities have been created.

The migration of workers into South Lincolnshire has been part of the economic cycle of the area for many centuries but more recently with the increased need for manpower available 24 hours a day seven days a week and the low unemployment in the area (1.6% against a national average of 5%) we have become an attractive area for Eastern European migrants.

  Boston Borough Council recognised the impact of such a rapid inward flow of visitors early in 2004 and responded positively in developing a community cohesion strategy, a vision of a community where people felt respected and valued. This strategy was reviewed in 2006 and is currently being revised to take account of the recent report from the Commission on Integration and Cohesion. The revised strategy will be considered for approval by the Borough Council at its Cabinet Meeting in December 2007 and by Boston Area Partnership (LSP) in January 2008.

A LOCAL APPROACH

  The Council recognises that to resolve the inevitable conflicts and tensions within the community brought about by a rapid change in population demography we need to tackle the issues at a local level. This is echoed in the Commission's report which encourages authorities to look at individual neighbourhoods and communities where a more tailor made solution at a local level will be more effective.

  The local authority is taking a leading role within the Community and is working in partnership with the voluntary sector, police, health, education and private housing associations to tackle some of the issues and promote a cohesive community.

  This has involved taking an innovative approach at a local level where the activities of all agencies working within the community are co-ordinated together to achieve results at a grass root level. Some of the projects we are working on involve getting people more involved in their communities, tackling community tensions and exclusion, improving access to services and information and helping our community to feel a sense of pride in Boston.

  Community Cohesion is one of the corporate priorities for the Council and as such responsibility for the strategic direction is owned at the highest possible level. We have restructured within our organisation and established a role at Corporate Management level, a Head of Community Development post that for the first time pulls together Community Cohesion, Community Development, Customer Services and Community Safety. Community Cohesion is also one of the main priorities for the Corporate Management Board as a whole led by the Chief Executive and is reflected within the Community Strategy, Local Area Masterplan and the Council's Corporate Plan.

  The current Community Cohesion Strategy was approved in 2005 and despite a further Best Value Review which highlights a number of actions in 2006 the Strategy has not been revised and updated. The situation has changed drastically over the last few years with a large influx of economic migrants from the accession A8 and A2 Countries, and increasing demands on all service providers.

  We have also taken a "step back" and reviewed the way in which we have traditionally dealt with Community Cohesion both within Boston Borough Council, and also with our partners. A review of the Equality and Diversity Theme group has also identified that despite some examples of good work, the group lacked the capacity to implement significant change. This has resulted in a new approach which involves closer working with our key partners:

    —  Equality and Diversity Theme Group—to become an advisory group to the Boston Area Partnership.

    —  Community Cohesion Delivery Group implemented.

    —  Closer links with the County Community Cohesion Group.

    —  Close working with Institute of Community Cohesion specifically looking at Communications.

    —  Work with the IDeA on communication and myth busting.

    —  LGA Advisory group attendance.

    —  Neighbourhood Renewal Advisor work in conjunction with South Holland District Council.

What successes have we had?

  We are a small local council but despite a lack of resources, by working in partnership we are starting to see some real successes, even though we recognise we still have much to do. We have been leading the way in some areas and have been talking to both central and local government about the response at a local level and informing government of the challenges we are facing.

    —  We worked with South Holland District Council which conducted a study on migrant workers within our area which has given us a better insight into the problems faced by employers, new migrants to our community and our indigenous population. The results of this work also involved the development of the first web site for migrant workers. www.migrantworkers.co.uk

    —  We have taken an active role in welcoming new arrivals to our town and have developed a "welcome to Boston" CD which was published in 2006 working in partnership with a number of agencies. This information is also on our website—www.boston.gov.uk/welcome

    —  We have taken the lead in tackling the many myths that abound and originally produced a myth busting leaflet in 2004. This has subsequently been revised and is the basis for the Lincolnshire County Myth Busting leaflet which all agencies now use to educate and promote the benefits of inward migration to our economy and dispel the myths.

    —  We have in partnership with the Police adopted the True Vision scheme which encourages people to report racially motivated abuse or assaults. It is vital that we are aware of any tensions so we can deal with them before they escalate.

    —  We have been working closely with local businesses and national companies and in September 2006 we worked closely with the business community on a HRH Prince of Wales "seeing is believing tour" which was organised by our business community. This looked at the food processing chain from the land to the shop. A follow up meeting took place in September 2007 where it was agreed that private and public sector would work together to ensure national supermarket chains take their corporate social responsibilities seriously and ensure all links in the chain of food supply are operating on a legal basis and also give support to public sector agencies in addressing issues and problems as well as benefits and opportunities of the rapid increase in the growth of economic migrants in areas like Boston. A report is being prepared to meet with relevant Ministers in the New Year to discuss.

    —  We are involved with our partners in ensuring sufficient English language courses are available at the college to ensure more people can speak English and integrate within the community.

    —  Working with the Neighbourhood Policing teams we have a better understanding of the issues felt within the community and are helping them through a multi agency group to identify the key priorities that need tackling within their local area.

    —  Supporting Voluntary Sector initiative of staging a Community Roadshow in the town's park (Sept 06 and Sept 07) providing welfare and advice services, food and music in a "safe" environment. 2,500 attendance in 06 rose to 7,500 in 07.

GANGMASTERS LICENSING LEGISLATION

  We have quickly recognised the links between employment and accommodation for many economic migrants and have been working closely with the GLA to establish early notification of large scale closures of disreputable gangmasters. This will ensure that all agencies have the correct support mechanisms in place to deal with the potential social and economic issues associated with a large scale closure.

  Earlier this year we co-ordinated a multi agency table top exercise with several key partners with the aim of establishing a guidance document to assist agencies at a National level through the GLA. This document is nearing completion, and in addition a new Communication protocol has now been established to ensure early notification of key agencies is achieved.

TENSION MONITORING

  We work closely with the police as part of a multi agency approach to monitoring tensions and help communities deal with conflict locally. Much good work has already been done, in our preparations for the World Cup football tournament in 2006 we learnt many lessons from the disturbances which took place in Boston in 2004 at the European Football Championships and established an effective responsive team. This work has been recognised by the Institute of Community Cohesion as an example of best practice. We are now extending this group to include tension monitoring within schools.

What are we doing at a regional and national level?

  Even though we recognise much of the work in achieving a cohesive community needs to be done at a local level, we feel that it is important that as a Council we feed into the development of National policy.

  We are a member of the Local Government Association steering group on migration which gives us the opportunity to inform policy and decision makers about the issues within a small rural area such as Boston.

  We have also been campaigning for a fairer deal for better funding for public services in the area. To date there has been little recognition of the scale of ethnic minority communities and the impact on service providers.

  The Chief Executive attended a Roundtable Meeting to discuss the recommendations of the Commission for Integration and Cohesion Report, chaired by Hazel Blears, Minister for Local Government and Communities on 21 November 2007, along with 14 other Chief Executives across the country.

  The Chief Executive has been contacted by the Improvement and Development Agency to agree an article for its online magazine around his (Chief Executive's) view that this current wave of economic migration in the UK has placed local authorities in a process of "New Learning". Aspects of this economically driven migration are different to those which took place in the 1940's, 50's and 60's as that was driven by individuals from different countries searching for a better life.

  The present wave is largely controlled by gangmasters, often operating illegally. This means it is very hard to reach out to these groups because they are usually living in multiple occupancy houses, sharing rooms/beds and have their movements (job/accommodation) controlled by the gangmasters.

  This "control" in conjunction with the inability to obtain an accurate picture of demographic and population changes and the mapping of population clusters in different localities in the area has serious implications for cohesion and is a barrier to integration.

  Also communities like Boston do not have the infrastructure in place to deal with rapid surges of migration introducing new cultures/communities to the area, as many large cities/London Boroughs have, who have experienced migration at different times over the last 50 years or so. And while much can be learned from these more mature communities, because many aspects of this new wave are different to anything previously experienced, Boston (and other similarly affected communities) are having to develop New Learning, in real time, with limited capacity and resources, where we cannot always rely on the old solutions to work and must therefore create new systems and networks to determine new solutions.

DEMOGRAPHIC AND POPULATION STATISTICS

  Our current official population statistics are 58,300 (mid term census figures). However through our research with the PCT the GP registrations reveal 79,000 patients registered and the National Insurance number applications reveal 10,000 registrations for 2005-06 alone.

  The recent ONS/Worker Registration Scheme population trends 8 EU (A8 Countries) indicated that Boston has the 2nd highest number of A8 migrants per 1,000 of total population in the UK (2nd only to City of London).

  Some local schools have up to 50% of children with English as a second language (average in many schools is 35%) but do not have the resources available to deal with this.

  Boston College (FE) are oversubscribed on ESOL courses, they presently have learners from 51 different countries and the Citizens Advice Bureau record over 30 nationalities, living and working in Boston.

  Our current estimates stand at around 15,000 to 20,000 economic migrants living and working in the Boston area, which is not recognised by Government and not reflected in the RSG which provides local councils with the funds to deliver services.

  However clearly there is a need to have more accurate statistics which will enable authorities to better plan for the future and shape our services to support all of our community. We are utilising the toolkit with the Institute of Community Cohesion and working in partnership with the County Council and the Lincs Primary Care Trust to establish a more accurate picture of our changing communities.

IMPACT ON SERVICES

TRANSLATION SERVICES

  It is difficult to quantify the impact on services across the Council in monetary terms with the exception of the additional spend on translation services. This totals £2,000 for 2006-07 but is increasing monthly. The need to translate key documentation is essential in terms of achieving future efficiencies, for example the difficulties with ensuring customers fully understand the documentation which is required for a variety of services where English is not their first language, can cause delays in assessing applications or dealing with requests.

  This can lead to inequality on service provision, impact on customer satisfaction and targets where application process time is critical.

  Translation is necessary at the front end when people first arrive but we need more resources for ESOL provision as learning the language is a faster track process towards integration.

SERVICE PROVISION

  Some of the additional strain on key service areas within the Council is due to the increase in population rather than the specific nationality issues and this is agreed across the public and voluntary sector providers in Boston. But for other service areas there are specific issues which have put an additional strain on service providers:

    —  Complaints regarding refuse.

    —  Lack of understanding of many new arrivals of refuse and recycling service.

    —  Anti social behaviour complaints have risen as have the incidents of Hate Crime, even though many are believed to remain unreported.

    —  Housing and HMO's (see attachment).

    —  Proactive Communications and the need to dispel myths.

    —  Monetary value for publications and methods to support myth busting.

    —  Schools/College require more resources for ESOL and addressing the needs of the increased capacity of pupils/students.

    —  Resource Contribution to tackle community cohesion through multi agency delivery group.

    —  Resource contribution as Community Leaders.

HOUSING AND ECONOMIC MIGRANTS

  In housing terms, the impact of economic migration from countries like Portugal initially and then from A8 states (from 2004) began to have a significant impact within the community and local housing market from 2002-03.

  Until 2002-03, the local housing market was relatively stable; whilst property prices had increased since 1999, affordability problems could not be described as acute (entry level two properties could be accessed for £60,000 compared to £97,000 today).

  From 2002-03, it was the private rented sector that took the strain of in migration. The result was a rapid increase in the number of properties let in multiple occupancy, and, as demand grew within this segment of the market, room rents in housing occupied by economic migrants were driven up to levels which supported vocabulary like "exploitation".

  Given that the drivers of migration in our local context are largely economic, the demand for labour strengthened the relationship between housing and employment with "gangmasters" quickly becoming large landlords and exacerbating the challenges faced by the proliferation of houses in multiple occupation.

  The change in the housing market was most stark in 2004 following EU enlargement which fuelled a "nimby" mentality locally with complaints about houses in multiple occupation dominating the complaint base of the Local Housing Authority. Unfortunately the concept of "new plus different" resulted in most houses occupied by economic migrants being brought to the attention of the Local Housing Authority as being "illegal" houses in multiple occupation.

  The table below evidences how the private rented sector was affected and shows how the resources of the local authority have been stretched.


Year
All Enforcement Requests
Of which requests in
relation to HMOs

2002-03
72
21
2003-04
107
71
2004-05
215
148
2005-06
144
105
2006-07
186
116


Enforcement Action
2000-01
5
by 2006-07
95
Enforcement Notices
2000-01
27
by 2006-07
201


  Whilst the Council has taken a very significant number of enforcement actions against houses in multiple occupation since 2004 especially, the private rented sector remains buoyant and houses the vast majority of economic migrants who live in the area.

  Although Housing Enforcement resources remain stretched, the partnership working between agencies locally enable the local housing authority to target its resources in order to concentrate on properties which pose greatest risk to the health and wellbeing of their occupants and greatest challenges to the community at large.

RESPONSE TO THE 15 QUESTIONS

  1.  The majority of economic migrants within Lincolnshire are from the Accession A8 and A2 Countries. Evidence from the local Citizens Advice Bureau confirms a change in trend in relation to the source country—initially the Portuguese community but later followed by a wide selection of European Countries most notably, Latvia, Poland, Lithuania, Slovakia and Slovenia. We currently have around 33 Nationalities recorded with a corresponding number of languages spoken.

  Estimated numbers of economic migrants in Boston : between 15,000 and 20,000

  The Dynamics of Migrant Labour in South Lincolnshire Report produced in 2006 carried out a survey based on employment of migrant workers by gangmasters. Of the 33 nationalities recorded the largest groups were identified as:

    —  Polish (30%)

    —  Portuguese (23.8%)

    —  Lithuanian (18.2%)

    —  Latvian (10.1%)

  The former USSR non EU countries contain (4.1%) mainly students working through the SAWS agricultural scheme.

  There were 49 different languages spoken in S Lincs at the time of the survey but many migrant workers are multi lingual. On average migrant workers speak four languages. The dominant languages are Polish and Portuguese, Russian and Latvian.

  Interestingly with Bulgaria / Romania entering the EU in January we have not seen the same level of take up as other Nationalities.

  Re Duration of stay and motivation:

  This is complex and difficult to specify. Research locally has shown that there are a variety of different reasons that people come to Britain:

    —  Short stay earn money to send back home.

    —  Holiday.

    —  Long stay to support families or lifestyles in country of origin.

    —  Visit with view to staying permanently—we now have some settled communities.

  Research has also shown motivations change so for example someone who has come over for a short stay initially may decide to settle and conversely as work availability changes people decide to leave. This uncertainty brings with it challenges as people who are motivated by earning as much money as possible to save and send home are less likely to integrate into the local community.

  Another complicating factor relating to motivation which can impact on the local economy is in the purchase of consumer goods. There is evidence to suggest that when people are living here with the intention of sending money home, they work consistently long hours and their spending within the local economy is on cheap necessity goods only, so they are able to save the majority of their wages. This triggers a debate about cost v benefit to the local economy.

LENGTH OF STAY14.9% of those surveyed—were here less than three months

33.8% of those surveyed—stayed three months and one year

36.7% of those surveyed—stayed between one and three years

  The Portuguese make up the majority of the 14% who have stayed longer than three years.

QUALIFICATIONS

  Many people have skills and qualifications well above the jobs they do within our area. There are barriers to securing skilled jobs both in terms of language and also the accreditation of qualifications from other countries. Hence there is often a trend of securing low pay low skill jobs on arrival into our community, and following improved language skills a progression to semi professional/professional employment.

  Of those surveyed:

    26.3% possess a degree qualification

    11.4% have vocational qualifications

    12.7% have undertaken special secondary education providing occupational skills. Some migrant workers have more than one job skill and many have trade skills such as building / mechanics.

  Re question relating to characterisation of migrants from EU compared to other countries: It is difficult to compare. But in general, whilst there is settlement, there is still a significant transient number whereas other migrant groups are more likely to be coming to the UK with the view to permanently work and reside in the country.

  2.  Re sectors of economy employed:

  In Boston/Lincolnshire the majority work is within the agricultural industry. However it would be unfair to say that's the whole picture as many work within the service industry, cafes, pubs, restaurants with some small businesses emerging. Also in Lincolnshire out of 7000 jobs within the NHS, 500 are taken by economic migrants doing a range of jobs from doctors to cleaning staff.

  The agricultural industry in Boston/Lincolnshire is now heavily dependant on migrant labour, in effect the local industry would collapse without economic migrants.

  Evidence from employers reveal in many cases 50-75% employees are economic migrants.

AREAS OF WORK

  At time of survey

  62% worked in packhouses / food industry

  14% in agriculture

  7% service industry

SOME POINTS TO CONSIDER

    —  Impact on wage levels. Many appear to be earning the minimum wage but we are aware of national research that suggests migration can have a negative effect on depressing local wages. This may be anecdotal.

  At the time of the survey 5.6% stated they were being paid below the minimum wage:

    5.9% didn't have pay slips and did not know what their rate of pay was.

    35.4% had additional deductions from their wages for transport, accommodation or food. 6% of deductions were for cleaning / internet use/ cashing cheques.

    —  Impact of unscrupulous landlords and accommodation/ work links, reduces the amount of money economic migrant's plough back into the local economy due to lack of disposable income and is also a barrier to integration, ie people are "hard to reach" in such employment/accommodation situations.

    —  Productivity. Research has revealed that the employers notice an increase in productivity per foreign national worker compared to an indigenous worker. Many are more willing to work long hours and less likely to complain.

  Re the question "what determines migrants performance and integration in the workplace". The language barrier is the biggest obstacle to integration and even though employers have been subject to a steep learning curve many of which have responded positively ensuring workers have health and safety information and translation, there are still many examples where employers are simply not playing their part. A new study researched by the Learning and Skills Council with the University of Nottingham reveals that 55% of migrant workers quit courses within the first five weeks citing reasons of changing shifts and personal circumstances. In SMEs this figure rises to 68%.

  Boston College (FE) currently have learners from 51 different countries. The largest group of learners are Polish.

  The other main barrier to integration are the operations of illegal gangmasters tying people's jobs to accommodation and constantly moving people around work/home location.

  3 and 4.  To some extent covered in above responses.

    —  Increased productivity from foreign nationals compared to indigenous workers.

    —  Agriculture industry main employer but widening to include service sectors.

    —  Boston has always been a low unemployment area, but generally low skilled/low wage work available.

  5.  This is a difficult one as we have no accurate evidence available to effectively track the movement of people and we have very low incidences of illegal immigration.

  With regard however to economic migrants sourced by illegal gangmasters, it is perhaps possible to speculate the potential impact due to how the labour is procured.

    —  Willingness to work for less than minimum wage.

    —  Attractive to unscrupulous gangmasters.

    —  Lack of taxes back into economy.

    —  Increased exploitation.

  6.  8 and 9 difficult to fully respond to these questions.

  There is some research nationally which examines the linkages with migration as a growing solution to elderly people health care.

  Re question 8 the impact locally in health care and schools. Our GP registrations presently stand at 79,000 against an official population of 58,300 and increased numbers of people attend A and E at the local General Hospital (rather than GP) due to a lack of understanding about health care provision in the UK. Many local schools have up to 50% of children with English as a second language (average in many schools is 35%).

  Re Links between taxes and use of public services is a really difficult one to quantify. There is an increase in advice services which is a result of other service providers inability to deliver adequate information. A lot of evidence from police, health etc on increase in numbers and ability to deliver services to a wider population without adequate resources.

  Also note attachment enclosed headed Housing and Economic Migrants and increase on enforcement activity as a stark example of pressure on local resources, difficult for a small local authority tight on resource capacity.

  7.  In the main still having difficulty accurately quantifying GDP impact.

However, regarding housing, we have experienced large increases in buy to let across all house types (ie to be turned into Houses in Multiple Occupation: HMOs) but particularly terraced housing which would usually serve the first time buyer market. The Haven Village development also saw high spec town houses priced at 200k+ three years ago snapped up by investor landlords. This new housing development is now almost wholly occupied by economic migrants.

  An early draft of the Housing Market Assessment Executive Summary section reveals that increase in migrant worker numbers does not seem to correlate with an increase in housing demand per se. It also reveals that Boston and Lincoln are strongest areas in economic activity and employment growth although this itself is not necessarily linked to the growth in economic migrants, but clearly is a factor.

  I have separately posted a report on "The Dynamics of Migrant Labour in South Lincolnshire" produced by South Holland District Council, assisted by Boston Borough Council. This document is now two years old but contains the most up to date information on the economic impact of migrant labour in South Lincolnshire. It's useful as a guide but needs to be treated with a degree of caution, as the further rapid growth locally continues to significantly alter the dynamics.

  10 and 11.  Again are difficult questions to respond to as we do not have the evidence base to support any constructive comment.

  12.  Again little evidence to support but local (above) and national research on the skills level of economic migrants reveals some quite high percentages of very well qualified people. Presently the accreditation system is very slow, but undoubtedly this growth represents a major opportunity to fill skills gaps in the UK with a swifter accreditation system.

  13.  Methods of data collection are inadequate and significant improvements to data collection are required from ONS.

  NI numbers and GP registrations only provide a partial and temporary picture. Resource provision based on old Census information is flawed and perpetuates the strain on service providers who have witnessed rapid increases.

  14.  In principle it's difficult to argue against the theory of the Government's new points system. A tougher approach from British Embassies abroad to weed out false applications will place increased obligations on UK businesses and universities/colleges who in turn will be required to sponsor migrants and assist in ensuring visa terms are adhered to.

  In practice? Without effective data collection, tracking systems, geographic recording of number of people/skills qualifications/ industries employed, it will be very difficult still to ensure the right labour supply and skills is matched to the need in each area of the country.

  Furthermore, while there are still too many illegal operations in procuring labour, simply bypassing the points system, exploitation will still continue, integration will still prove difficult and pressures on local services will remain.

  15.  The simple answer is yes.

    —  Improving the qualification accreditation system will fast track highly skilled individuals into high demand employment areas/jobs.

    —  Increase resources to the GLA to address continued illegal gangmaster operations.

    —  Government must work with Consulates and Embassies in other countries to devise an agreed system for labour procurement that benefits the UK and the countries of origin.

5 December 2007



 
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