Immigration and Nationality (Fees) Order 2011

My Lords, I thank all noble Lords for their considered response this afternoon. The order concerns itself with the ability to set the fees. The noble Lord, Lord Hunt, used somewhat flamboyant language to describe our current immigration policy. Clearly we shall have to look forward to our discussions in the coming months, when he can table suitable Motions and Questions to explore his concerns further. However, I understand them; I am listening to similar concerns being expressed right around the House, and I will discuss these issues with my honourable friend Mr Damian Green tomorrow. I will use a lot of the noble Lord’s speech, when I read it in Hansard tomorrow, as my starting point. We can also look forward to the Oral Question on immigration next week; I am sure that the noble Lord is. There will be plenty of time to discuss all the issues in the detail that we want. The level of fees will be set by further orders. Where the fees are above the level required for cost recovery, there has to be an affirmative procedure. Where the fees are lower than necessary for cost recovery, there will be the negative order procedure, but we intend to make sure that we can discuss all the fee levels together. Some 2.5 million people are looking for work, many of whom have key skills to offer employers. There is more reason now than ever to limit economic migration. We are fully aware that we will not meet our target of reducing net migration to the tens of thousands by looking at economic routes alone, so we are looking at all the main immigration routes. We will also consult on changes to the marriage route and entitlement to settle in the UK, to make settlement a less automatic prospect. I was asked how we decided the level of the limit. The MAC recommended a reduction of 6,300 visas in 2011-12, which we accepted. Applying that reduction to our 2009 baseline of 50,000 tier 1 and tier 2 visas results in an overall limit for 2011-12 of 43,700. However, the 2009 baseline includes 22,000 ICTs. As they have been exempted and need to be excluded from the baseline, that gives an overall limit of 21,700. The noble Lord, Lord Hunt, asked what additional consultation had taken place since 2009. The UK Border Agency published results of the last full consultation on fees in January 2010. That consultation established the principle that the agency should charge flexibly to take into account wider policy aims, and 90 per cent agreed. Since then, we have engaged with the task forces representing the Armed Forces, education, employment, arts and the entertainment sectors. The noble Lord also asked about the impact assessment and specific fee levels. We expect to raise £829 million from fee income in 2011-12, but that is only 36 per cent of the UK Border Agency costs. The noble Baroness, Lady Hamwee, touched on whether the fees covered all the UK Border Agency’s costs; clearly, they do not. We will publish a full impact assessment when we lay the subsequent fee regulations, which will be brought before the House through the affirmative resolution procedure. The noble Lord, Lord Hunt, mentioned much of our immigration policy. The Government believe that Britain can benefit from migration but not uncontrolled migration, which places unacceptable pressure on public services. We can reduce net migration without damaging our economy. We can increase the number of high-value migrants—the entrepreneurs, the investors, the research scientists—at the same time as we reduce the total number of people coming into Britain through economic routes. The noble Lord asked broadly what the UK Border Agency is doing to ensure that the effect of any increase is minimised. The agency has committed to cutting its budget by up to 20 per cent in real terms over the next four years. That is the economic situation that we are in; that is the reality. The UK Border Agency is cutting overheads by more than a third over the spending review period. The agency will save around £500 million in efficiencies by reducing support costs, boosting productivity and improving value for money from commercial suppliers. The agency is determined to ensure that applicants pay more of the costs of running the agency, with taxpayers paying less. That will ensure that we can continue to provide the excellent service that noble Lords would wish. The noble Lord, Lord Hunt, asked about the definition of front-line services. We will provide a written response to that as soon as possible. I apologise for the delay in providing that information, but I will personally look into this with the Home Office. The noble Baroness, Lady Hamwee, asked about the Armed Forces nationality fee. It is fair that, rather than the taxpayer, those seeking a benefit from the application should meet the costs of the consideration. A person or their parent makes a choice on whether they wish to register as a British citizen, so they accept that it involves the payment of a fee. Enabling a choice to be made also ensures that the person can make decisions regarding any other nationality that they may hold. The noble Baroness also asked about the possibility of pricing out students. We remain committed to maintaining the UK as an attractive destination for work, for study, to visit or for cultural visits. We recognise that migrants make a valuable contribution to the wider British economy and continually monitor our fees to ensure that they remain competitive with similar endorsement types offered in other countries. We believe that our fees remain competitive, particularly when one considers them alongside the entitlements which are offered to successful applicants. We also need to ensure that the charging system is fair to those who use the system and fair to the UK taxpayer, who will continue to support the immigration system that brings benefits and enrichments to this country. The fees that we charge are neither designed nor expected to deter migrants from choosing to come to the UK. We will return to Parliament in March with regulations under the affirmative procedure to ask for approval of the regulations that will detail the fee levels for the visa immigration and nationality services covered by this order. The Committee should be assured that the brightest and the best will continue to be welcome to the UK, as will those who seek to come here to visit or to invest. I beg to move.