‘Restrictions on overseas staff would damage Welsh economy’
PLANS to restrict businesses from employing overseas staff earning less than £30,000 would have a damaging impact on the Welsh economy, claims employers’ body CBI.
Post-Brexit immigration system proposals, currently under consultation from the UK government, could prevent firms from employing workers on salaries of less than £30,000 for more than a year under a new visa system.
Currently there is a £30,000 threshold for non-EU workers coming to the UK. But under the new proposals the threshold would apply to the remaining 27 countries in the EU, which currently have freedom of movement to work in the UK, post-Brexit.
However, a CBI study has outlined the severe difficulties businesses would face if the salary threshold recommended by the Migration Advisory Committee is introduced, including:
In Wales, 71% of workers earn less than £30,000 per year, with the average wage of £21,630, being below the UK average of £24,006 (median).
The manufacturing sector in Wales – where 58% of workers earn under £30,000 – would be particularly impacted. For example, in food and drink manufacturing, more than a quarter (26%) of workers are EEA nationals.
Ian Price, CBI Wales director, said: “We know that Welsh businesses are creating jobs, but many are already struggling to fill vacancies and suffering from skills shortages.
“Continued access to overseas workers after Brexit is vital to drive growth, innovation and prosperity in Wales. The UK government’s current proposals risk causing significant harm at a time of uncertainty for business.
“A one-year limit on workers earning less than £30,000 would encourage firms to hire a different person each year, needlessly increasing costs and discouraging migrants from integrating into communities.
“Leaving the EU should be an opportunity to develop an independent immigration policy that works for business by being both open to allow our economy to grow and controlled to restore public confidence.”
Mr Price said that the Migration Advisory Committee has confirmed there is little or no evidence to show immigration has any impact on jobs or wages for local workers.
He added: “Hospitals, housebuilders and retailers are just a few examples of major employers already struggling to find the people they need at salaries well below £30,000.
“Installing further barriers via these proposals will make Wales poorer and the UK government must use this 12-month engagement period to listen to our businesses and go back to the drawing board.”
The CBI Wales boss was asked if he supported the devolution of immigration to the Welsh Government, which could then set its own levels of overseas workers based on the requirements of business and the public sector in the delivery of public services.
Mr Price said: “The preference for firms is a UK-wide system that works for Wales rather than multiple immigration systems that would make it more difficult to work across the UK.”
On a range of salary thresholds to take account of variances in average salaries in different parts of the UK, he said: “Regional shortage occupation lists could obviously play an important role, but if a £30,000 threshold is imposed then calls for regional flexibility will surely grow louder. What is key right now is creating an immigration system that is open to support the economy and with new controls to ensure it’s a system the public can trust.”
However, Plaid Cymru has renewed its call for immigration to be devolved.
Plaid Cymru shadow cabinet minister for economy and finance Rhun ap Iorwerth said: “Under the Westminster Government’s immigration proposals, Wales will be left with a skills crisis impossible to remedy overnight. Regional visas that allow Wales to create an approach which suits our country’s needs is a simple and clear solution that the Prime Minister should now implement.
“There are a number of examples from around the world where regions and nations have flexibility in issuing work permits. In Canada, for example, provinces are empowered to issue work permits to meet their individual needs. Such a straightforward system could be implemented in the UK.
“Wales already has a shortage of doctors and nurses, and we are already reliant on skilled migrants from the EU and elsewhere to sustain the service. Thanks to continued neglect from the Labour Welsh Government we have not trained enough of our own people for the long term so we must, in the short term at least, attract skilled medical staff from other countries.
“Unless these changes are made, skills we need will be lost because of the Westminster Conservative government’s obsession with anti-immigration policies.”