Select Committee on Economic Affairs Written Evidence


Memorandum by Dungannon and South Tyrone Council

1.  What are the numbers and characteristics of recent immigration? How do the characteristics of EU migrants differ from other migrant groups?

  Stemming long term trends of outward migration there has been new steady inward migration to the Borough from around the year 2000. This is mostly from elsewhere in the European Union—at first Portuguese citizens but subsequently from the A8 countries, particularly Lithuania and Poland following their accession in 2004. There are also smaller numbers of non-EU migrant workers. As detailed below EU migrants tend to be concentrated in labour shortage occupations where as non EU migrant workers in high skills professions.

  Dungannon South Tyrone, a largely rural area with a population of just over 50,000, is the Northern Irish local government district that has most benefited from inward migration. Official statistics come from the Northern Ireland Statistics and Research Agency (NISRA) Mid Year Population Estimates. These indicate that international migration here in both real terms and percentage terms migration higher than any other area, including the cities of Belfast and Derry. The migrant population has increased from under 1% to constitute an estimated 7-8% of the population in just over five years.

2.  In what sectors and occupations are migrants employed in how does it differ from local workers?

  Migrant workers are concentrated in areas of the economy where there are labour and skills shortages. In this area many EU migrants work within the food processing industry and manufacturing along with smaller numbers in other areas. In relation to non EU migrants the main sector has been the nursing and medical sectors. Other areas such as engineering are also significant. Local persons also work in these sectors along with other sectors, where often there are few migrant workers. There is next to full employment in the Borough with the claimant rate below 2%. Inequalities however are still a sore point including for many migrants. One key pattern from research it is that migrants tend to be working in occupations well below their actual level of skills and experience.

3.  What impact has immigration had on the labour market, including wages, unemployment and working conditions of UK workforce? Does the impact differ between skilled and unskilled workers?

  We commissioned independent economic impact research which looks at the above in detail. (McVeigh and Fisher, 2006, appendaged) This research notes that:

    —  In Northern Ireland there is a broad consensus (across business and labour perspectives) that migration has had a positive impact.

    —  There have been a number of positive impacts locally including: prevention of staff shortages within the health sector; the injection of additional spending power into the local economy and crucially retention of industries (particularly food processing) that otherwise would have closed causing major direct loss of employment and a knock on effect with job losses on farmers, suppliers, the service sector etc.

    —  As regards impact on employment they note that as migration has increased, unemployment has fallen and economic activity risen. It is more complex to establish a direct causal relationship for the same.

    —  Notably the negative impacts they indicate have fallen most heavily on the shoulders of migrant workers. This is in relation to exploitation, underpayment and discrimination, which will have a knock on effect on local workers.

    In directly addressing the question of what "impact immigration has on the labour market" it is important to be explicit and clear about what is an impact of immigration and what is an impact of other factors. This is relevant to the issue of wage deflation:

    —  Clearly where there are cases of discriminatory or underpayments of migrant workers this can lead to downward pressure on wages. This is not an impact of immigration but an impact of exploitation and should be tackled as such through an employment rights approach that reduces the vulnerability of migrant workers to abuse.

    —  There can also be sectors where downward pressure is being exerted on wages by other factors eg increased global competition. Migrants may work in such sectors where locals used to. Migrants are in this case the symptom rather than the cause of economic change, but this is often confused.

  The authors also indicate the need to separate perception and fact in relation to economic discourse on migration.

4.  How does immigration affect public finances? Do immigrants contribute more in taxes than they use in public services?

5.  How has immigration affected public services such as health care, education and social housing? How does this differ across the country?

  We feel both these questions are interrelated:

    —  We are aware of comprehensive research to this regard conducted by the Institute of Public Policy Research regarding fiscal impact of immigration. This indicates migrants are effectively currently subsidising the broader population. At the same time migrants, as people, should be entitled to public services and social protection, where costs are determined by individual needs.

    —  We are aware of considerable discourse arguing "migration constitutes a strain on public services" and are unclear of the logic of this. More migrant workers means a corresponding additional tax take and hence more revenue for the same services. What in this context causes strain on public services is poor or inadequate planning. Just as important is the need to adapt public services to ensure their accessibility to migrants.

  This is an important distinction as any practices scapegoating migrants for real or perceived failures in public provision are highly dangerous. They can feed racist propaganda of migrants being parasitic and a burden on society. We have had considerable problems of racist violence within the Borough. In 2005-06 a total of 102 racist incidents were recorded by the police. Research has identified that there are a number of key factors informing anti-migrant racism and this includes perceptions on impact on public finances and provision. In one incident, prompting the visit of the Lithuanian Ambassador, migrants appear to have been scapegoated for the lack of affordable housing in the Borough and their homes attacked. We and others have engaged in a number of initiatives to challenge racism including discourse scapegoating migrant workers for health and housing capacity. Subsequently we have seen a significant fall reported incidents down to 58 in 2006-07.

  We do have acute issues in the Borough in relation to the lack of affordable housing, there are a broad range of real causes for this. This impacts severely on all persons with low incomes, including many migrant workers.

6.  How can data on immigration be improved? How far have "inadequate data" affected public policy?

  This is directly related to the above issue of planning and Council did raise concerns with NISRA regarding the reliability of indicators used to inform Mid Year Population Estimates. At this time there was reliance on the electoral register and GP registrations. NISRA have since added other indicators including National Insurance Numbers and Worker Registration Scheme data. Whilst we feel figures prior to this may constitute an undercount we recognise that this has subsequently significantly improved. Whilst there is always room for enhancement there are adequate indicators to allow planning of local services to take place. However this is not always harnessed. The Dungannon South Tyrone Area Plan published in 2005 by the Department of Environments' Planning Service did not mention the words "migration" "immigration" or "migrant workers" at all. Population increase was mentioned just once, in a different context.

  A four way process led by the Department of Employment and Learning involving central and local government, NGOs, Unions and Business led to the drawing up of an overarching migrant worker strategy for Northern Ireland. A research subgroup of this has looked at improvements in data gathering. Suggestions have been made at this regarding better information from Revenue and models such as the Republic of Irelands' Quarterly Household Survey. We have also urged the inclusion of short term migration into statistics; public services need to be provided from day one.

19 September 2007



 
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