Immigration and Nationality (Fees) (No. 2) Regulations 2010

My Lords, a number of points have been raised in the debate, which I will try to answer. One of the first points was on the question of a sensitivity analysis of the elasticity of demand for visas and whether price affects take-up. Partly because the impact of the fee in relation to the benefits gained is relatively marginal, there is little or no convincing evidence that the increase will have such an effect. Indeed, we have had cases—this may be regarded as perverse—in which an increase in the fee actually led to an increase in demand. The reverse is also true, as a reduction in the fee has coincided with—I do not know whether it led to—a reduction in demand. We do not have convincing evidence of a direct elasticity relationship. However, it is clearly important that we monitor what goes on, and we intend to do that. It is fair to say that there is a continuous monitoring process. In the wake of price increases, it is right and sensible that we should be particularly careful about the monitoring of their effect, and we will certainly do that. On the competitiveness of the UK visas system with other regimes, comparisons are fairly difficult because, as Members on the Benches opposite will know, no two national systems are exactly the same. However, I will try to give some comparisons. Two comparisons that are perhaps relevant include comparator countries in the European Union, which the noble Baroness will be interested in, and some of our Anglophone competitors. France and Germany operate simplified immigration systems. In Germany, applications include a Schengen visa—comparable to a UK short-term visa—for which the fee is €60, which this month is roughly £51. France offers a Schengen visa for the same fee or a long-term visa to remain for more than 90 days, for which the fee is €99 or roughly £85. The comparable figure in the UK is £70. Overall, therefore, we mostly reside in the middle range, although we are possibly nearer the upper end for the charges for some long-term visas. I am happy to give the noble Baroness more detail in a table if she would like. To give another example, Australia charges a total fee of £1,074 for a tier 2 visa, which is a longer term visa, whereas the equivalent figure for the UK is £1,750. Ireland is much more expensive. From looking at these figures, you would not immediately say, even with the increases, that the UK is out of line with comparator migrant countries. On the question of fees inside and outside the country, this is where one enters the Hampton Court maze of the fees structure, as the permissions for raising fees inside and outside the country are different. However, I can say to the noble Lord that equalisation is not the objective. We are raising the fees in those contexts in which we are allowed to do so and where we are able to do so without regard to whether we are going over the limits of the cost. We do not intend, or indeed have as an objective, that the fee increases or the fee structure should contribute to, or be part of, immigration policy. The issues are separate. Therefore, if noble Lords have any thought that the fee increases might somehow be a covert immigration control, I can assure them that that is not the case. I am quite certain that we will not be charging MPs or Members of your Lordships’ House for inquiries. Finally, on the question of the migrant impacts fund, it is indeed the case that a contribution from the visa fee previously went to feed that fund, which has now been abolished. The money will now contribute to the cost of the visa and will mitigate increases that we would otherwise have had to make. I am grateful to noble Lords for their support for—if I understand the mood of the House correctly—the price structure that is being put in place. Motion agreed.