Staff-shortage fears for firms

● Companies tell of threat to future if deprived of sufficient overseas labour

Businesses across the north and north-east have been left aghast by the UK Government’s new immigration policies, which some say could threaten their existence.

A number see no alternative to overseas labour, with too little interest from people already in the UK.

Whether in hospitality, farming, food and drink, or other sectors, they rely on a hard-working group of foreign workers thousands strong.

At busy times Aberlour’s Walkers Shortbread employs up to 1,700 people across its six factories, with the EU nationals among them peaking at about 500.

Managing director Jim Walker has warned of the impact of the Home Office halting visas for low-skilled workers.

He said the firm was hard at work helping existing staff fulfil requirements to remain in the country.

Mr Walker said: “We believe this new ruling will be bad for food manufacturing and farming industries across Scotland as a whole, but will particularly impact those who rely on seasonal labour such as ourselves.”

German-born Dietrich Pannwitz is the owner of Inverness-based forestry company Sylvestrus Ltd.

“We recruit from abroad because we have to. There is not enough interest from people in the UK, and without foreign workers we could not operate,” he said.

“We need an immigration system that lets us carry on in business, hiring the staff we need without being subject to costly and complex bureaucracy.”

French-born Emmanuel Moine, manager of Inverness’ Glen Mhor Hotel & Apartments and chairman of the Inverness Hotels Association, said: “With all the new hotels opening in Inverness and throughout Scotland competition for staff is increasing and we are really struggling to find the people we need.

“The EU has become ever more important to us as a source of staff as a result and, as with hotels in general, around 50% of the Glen Mhor’s workforce currently comes from there.

“We pay well, but 95% earn under £25,600 a year.

“These new UK Government plans will make it almost impossible for us to recruit staff from abroad in future and they are a major threat to our industry.”

Aberdeen and Grampian Chamber of Commerce research and policy manager Shane Taylor is looking at the issue.

“The UK Government’s announcement of the detail of the points-based immigration sector is a real change to the status quo,” he said.

“For employers, especially in critical northeast sectors such as food and drink, tourism and hospitality, this represents a major shift that is likely to exacerbate existing recruitment difficulties.

“The proposals do contain some positive elements, including reduced salary thresholds for skilled labour and the suspension of the cap on workers who can enter via this route.

“Firms continue to invest in technology and home-grown talent but, in today’s tight labour market, workers from overseas of all skill levels make a vital contribution to our prosperity in the north east.”