Migration: Control of Housing and Work (S.R.9/2011) - Ministerial Response - 22 August 2011

Findings

Comments

1

The Control of Housing and Work Law will improve rights relating to obtaining and retaining residential status  for  non  Jersey-born Islanders.

Noted and agreed.

2

There  is  potential  conflict  of interest  in  transferring responsibility  for  the determination  of  Licensed'  post applications to the Chief Minister, given the Chief Minister's central role  in  the  development  of population  policy  and  the relatively  high  number  of  such posts (currently J-Category) within that Department.

Of the 568 1(1)(j)s employed by the States as at March,  2011,  only  8  were  employed  within  the Chief Minister's Department.

Furthermore, and by design, the Advisory Group will  provide  advice,  and  naturally  a  level  of scrutiny, for decisions.  The  Minister  can  also  be held to account by the Assembly, and indeed, by the relevant Panel.

3

The  Sub-Panel  welcomes  the formation  of  a  formal  advisory group on the Control of Housing and  Work  Law  and  associated licence  applications,  which  will contain the Minister for Economic Development,  the  Minister  for Housing  and  other  ad-hoc Ministers.  It  is  important  in helping  to  maintain  a  balanced approach  to  the  determination of licence applications and associated matters.

Noted and agreed.

4

The  Social  Security  Department would be in a unique position to correlate  the  numbers  of  people arriving  with  the  number  and

The  operational  synergies  between  the  Social Security  Department  and  Population  Office  are considerable and will be exploited. However, the control of work and housing and of immigration and

nature of jobs available that cannot be  filled  by  locally  qualified persons.

population,  are  not  matters  best  directed  by  the Minister for Social Security. It is preferable then that the Population Office remain responsive and flexible,  co-ordinating  its  work  with  various Departments,  including  Social  Security,  Housing, Economic  Development,  Planning,  etc.,  and directed by the Chief Minister as the Minister best placed to take an over arching view of these central policy areas.

5

The  criteria  of  the  J-Category licence  will  effectively  remain under  the  new  guise  of  the Licensed' status.

Both 1(1)(j) category permissions under the existing Law and Licenced status under the new Law give access  to  housing  by  virtue  of  essential employment, to enable the controlled migration of skilled workers. However, the new administrative mechanisms will be far more efficient and cheaper for  both  business  and  government,  while  still containing a high degree of control, for example, specifying the job roles to which Licenced status may  be  attached,  and  enabling  the  Minister  to specify Licenced employees by name, direct where they can live, and apply time limits.

6

The  concept  of  the  J-Category licence  as  a  short-term appointment  to  train  a  locally qualified person to undertake that job  has  not  been  adequately applied  in  the  determination  of licence applications.

The sub-Panel is incorrect in its understanding of 1(1)(j) policies. The Minister for Housing presented to the States a new "Contract Policy" in 2006 which clearly outlined that the presumption when granting 1(1)(j) consents was that they should be permanent and without time limit.

This was considered in the best interests of having a stable workforce and continuity for employers, with less administration for all.

In addition, the Island has historically had difficulty generating  sufficient  numbers  of  accountants, lawyers, compliance professionals, etc, to support Jersey  as  an  international  finance  centre.  Indeed, local people want a range of career options, hence the need to import some skills and to diversify the economy.

At the same time, it is very clear that employing and training  locally  qualified  persons  is  a  foremost consideration in granting 1(1)(j) permissions, and the  thrust  of  the  policies  is  to  promote  local recruitment  and  training  across  an  organisation rather  than  narrowly  focused  on  specific replacements. Notwithstanding this, approximately 40% of permissions remain time limited.

7

Whilst  J-Category  licences  have recently  been  more  tightly controlled by the current Minister for  Housing,  the  pressures  from net inward migration have arisen predominantly  from  the  numbers of  unskilled  and  semi  skilled workers.  This  may  compound

Every application for staff with less than 5 years residence  is  subject  to  scrutiny,  including  close working  with  Social  Security  to  support  local people into roles in preference to migrant labour. At the  same  time,  where  an  employer  demonstrates they have made all possible efforts to find locally qualified  staff,  and  cannot,  and  granting  the permission  appears  in  the  best  interests  of  the

future problems in the Island as it is this cadre of workers who may be  most  likely  eventually  to require income support and social rented housing.

Island, then permissions may be granted within the immigration,  housing  and  economic  objectives established by the Assembly and in accordance with prevailing circumstances. These migrants also come to Jersey to work, without having access to benefits, and therefore, tend to be economically active, and no evidence exists that on completing 5 or 10 years they  constitute  any  sizeable  drain  on  Income Support or social rented housing, for example, only 3% of new qualifiers access social housing of any kind. At the same time, this is an important issue, and will receive further analysis.

8

Policy  documents  relating  to  the issue  of  migration  should  come forward  together  in  a  cohesive manner.  Such  documents  would include  Economic  Growth Strategy,  Strategic  Plan, Population and Housing policy.

Policies which have implications for population and migration are co-ordinated, and further efforts will be made to ensure they are available to the public and members as a package, for example, by using the Population Office web pages, the Strategic Plan, etc.

9

The  Sub-Panel  welcomes  the provision  of  the  Control  of Housing and Work Law enabling a licence for unqualified staff to be varied at any point.

Noted and agreed.

10

The  new  legislation  will  provide the States with a much improved depth  and  range  of  information, which  in  turn  should  lead  to decisions related to migration and population policy being made on a much more informed basis.

Noted and agreed.

11

Benefits of the new legislation to businesses will include decreased bureaucracy as manpower, I.T.I.S. (Income Tax Instalment Scheme) and Social Security will be done as one rather than 3 different returns.

Noted and agreed.

12

The  introduction  of  the  new Control of Housing and Work Law will  lead  to  noticeably  improved rights for unqualified (Registered) residents who will be able to lease in  future  and  therefore  have security of tenure, which they do not  currently  enjoy.  This  may, however,  lead  to  additional pressure on housing stock.

It  will  be  the  responsibility  of  the  Minister  to manage permissions for new workers in accordance with the availability of accommodation and within population and immigration targets; and the Island Plan is geared towards ensuring a sufficient supply of accommodation commensurate with population and  immigration  targets.  Accordingly,  it  is  not envisaged that the new rights will lead to excessive or notable additional pressures in terms of demand for housing. To clarify, Registered individuals will only be able to lease Registered property.

13

Work is underway on the Citizens' Online Services Programme aimed at  trying  to  provide  easier electronic  access  across  States services,  including  electronic payments, for Islanders.

Noted and agreed.

14

Closer  working  between  relevant

Noted and agreed.

parts of Departments in the area of compliance,  most  notably  the Population  Office  with  Social Security,  Customs  and Immigration and Income Tax will make  best  use  of  available resources.  Combined  with improved  sharing  of  information this will lead to a more efficient and  effective  compliance operation.

15

Despite  an  improved  system  of compliance it is inevitable that a black market' of some size will continue to exist.

The new system will substantially reduce the scope for  non  compliance  and  therefore  the  black market'.

16

Many States Departments already successfully  handle  a  lot  of sensitive  information,  and  no reason was found to lead the Sub- Panel to believe that this situation will  not  continue  with  the introduction  of  the  Name  and Address  Register.  It  is  of additional  reassurance  that  the Data  Protection  Commissioner will  undertake  an  independent oversight role of the management of the data on the Register.

Noted and agreed.

17

There  is  an  overall  projected saving  of  £33,000  to  the  annual cost  of  administering  the  new legislation,  compared  to  the current system.

Noted and agreed.

18

A  process  of  public  engagement will take place on fees, including outline  proposals  to  achieve  full cost  recovery  for  the administration of the Law.

Noted and agreed.

19

The  Sub-Panel  has  not  been convinced that sufficient work has been carried out in examination of all  of  the  alternatives  to  the proposed  system  of  migration controls.

The alternatives have been explored, and that the proposed Law is considered the optimal solution for Jersey. The new tools are also very flexible, able to adapt  to  changing  circumstances  and  a  range  of scenarios,  for  example,  a  quota  of  staffing permissions  can  be  granted,  or  workers  can  be permitted on an individual basis, and licences can be varied.

20

The  use  of  photographs  on registration  cards  as  a  means  to help  prevent  fraud  has  not  been given adequate consideration.

The issue of photographs on the cards was given extensive consideration, including being subject to consultation  and  questions  in  the  Jersey  Annual Social Survey. A photograph is not strictly needed on the card for the purposes of the Law, and indeed, presents  its  own  identify  fraud  risks  and  costs. However, an option has been included in the Law for the States to make a decision on including a photograph on the card at a later date by Regulation

if so desired and necessary.

21

The  relevant  authorities  are confident that the provisions of the new  legislation  give  them  the ability  to  prevent  untoward increases  in  inward  migration levels  outside  States  approved policy, but the Sub-Panel does not necessarily  fully  share  this confidence.  There  is  an  implicit assumption  that  unqualified immigrants who cannot find jobs will  leave  the  Island,  but  it remains the case that they might merely  sink  into  the  black economy.

It is correct that the new controls do not restrict British and EU nationals from residing in Jersey, by dint  of  the  present  constitutional  and  legal arrangements.  However,  the  controls  are constructed  and  can  be  applied  to  achieve population objectives. In particular, the new system will  substantially  reduce  the  scope  for  non compliance and the existence of a black market, and people without jobs, or benefits, or the ability to own  or  obtain  affordable  housing,  are  a  lot  less likely  to  come  to  Jersey  or  to  remain  here. Instructively, it is strongly believed that should a prosperous  and  pleasant  place  such  as  Jersey  be open to all without restriction to live and work then many more people would come to the Island.

Recommendations

To

Accept/ Reject

Comments

Target date of action/

completion

1

The  Sub-Panel  agrees with the improvement of rights  relating  to obtaining  and  retaining residential status for new Islanders,  but recommends  that  due attention  is  given  to ensuring  that  the legitimate  expectations and  rights  of  existing Islanders  are  not overlooked.

CM

Accept

The new Law continues to  hold  a  fundamental presumption  that  those with  strong  connections or  associations  with Jersey  will  have preferential  treatment when  it  comes  to  work and  housing,  as  is appropriate  in  a  small jurisdictions with limited resources.  At  the  same time,  increased  tenancy rights  for  new  migrants and  fairer  qualifications rules  are  also  long overdue.

July 2012, when Regulations are presented.

2

The Control of Housing and Work Law should be amended  to  give responsibility  for  the determination  of Licensed'  post applications  to  the Minister for Housing, in line  with  the  current system  for  J-Category licence applications.

CM

Reject

The position of the Chief Minister was outlined in Comments  presented  to the States in response to amendments  lodged  to the Laws. In brief, it is felt  that  the  Chief Minister is best placed to take an overview of the competing  issues  and demands  involved  with managing  immigration and population.

3

The  Sub  Panel recommends  that  the Population Office should

CM/ States

Reject

See all comments above, including  in  the

be  located  within  the Social  Security Department.

"findings" section.

4

There needs to be a more concerted  and transparent  approach  to ensuring that J-Category equivalent  licences  are issued,  wherever possible, for the purpose of  training  up  locally qualified  people  to permanently  undertake the  temporarily  licensed role.

CM

Accept

Local  talent  should  be supported  wherever possible and in so far as practical.

Although, 1(1)(j) figures are publicly available, a review  as  to  how  and what is published will be undertaken  to  enhance transparency.

Immediate

5

There  must  be  an inherently  cautious approach  applied  to  the allocation of unqualified licences.

CM

Accept

This approach is already adopted  to  support population  objectives and  in  response  to prevailing economic and employment conditions.

Immediate

6

Consideration should be given  to  addressing  the following points:

• wording in the Policy Statement  for  giving unqualified  people work  is  ambiguous and  should  be  made absolutely clear;

• headcount  should  not be applied or count to young and old people thus giving incentives to  firms  to  train  the young and employ the older generation. They should  however  be residentially qualified.

• evidence of jobs being widely  advertised locally  should  be demonstrated  before any  unqualified licences are given.

• temporary  contracts should not be renewed in  a  continuous manner.  The  time worked  on  temporary contract  should  not count  towards  the  5 year licence.

CM

See comments

• Accept:  The  policy statement  remains under  continual review  and  a  revised statement  will  be issued  shortly,  likely before  end  2011, having  reference  to the  recommendation. However, applications from  businesses  are by nature varied, and the  policy  statement needs  to  be sufficiently flexible to apply  to  all  types  of circumstances.

• Reject: The new Law enables  all  Entitled people, whatever their age,  to  be  engaged without  restriction.  It follows  that  the recommendation  is not applicable.

• Accept: Evidence that suitable  locally qualified  people  are not  available  is already  required, including  proper advertising.  It  is agreed that this should continue  to  be  the case.

End 2011

Immediate

Reject:  The  rules around  Entitlement will  be  linked  to length of residence in Jersey, not the type of contract  under  which an  individual  is engaged.

7

The  annual  Jersey  In Figures  should  include publication  of  an industry  sector breakdown  of  the numbers  of  unqualified and  J-Category  (and equivalent) licences.

CM

Accept

These figures are already readily obtained from the Statistics  Unit  website. However,  it  has  been agreed with the Statistics Unit  that  these  figures will also be included in the  "Jersey  in  Figures" booklet  in  future (indeed,  that  the  all population,  workforce and  immigration disclosures in "Jersey in Figures"  will  be reviewed and enhanced).

Immediate

8

The  Business Assessment  and Licensing  Section General  Policy Statement  2009  should be re-drafted with greater clarity  and  precision  on the  criteria  it  contains regarding  licence applications.

CM

Accept

The  policy  statement remains under continual review  and  a  revised statement will be issued shortly, likely before end 2011,  having  reference to  the  recommendation. However,  applications from  businesses  are  by nature  varied,  and  the policy statement needs to be sufficiently flexible to apply  to  all  types  of circumstances.

End 2011

9

All  efforts  should  be made  to  achieve  the savings  being  examined by  Information  Services regarding  the  new  IT system  for  the Population Office.

CM

Accept

August 2012

10

Further  research  should be  carried  out  on  the areas  of  work  permits, border  controls  and Protocol 3, and reported accordingly.  Decisions should then be made at a political level as to their worth.

CM

Accept

Ongoing  review  of legislation  and  related arrangements  are appropriate and will take place,  for  example,  the Migration  Advisory Group  will  review  the new Housing and Work legislation  following  its implementation to assess its  effectiveness,  and

Ongoing

related  constitutional matters  will  be considered  by  the Constitutional  Review Group. Furthermore, the Isle  of  Man  and Guernsey  are  reviewing their own arrangements, and  close  contacts  will be  maintained.  Some points  should  be  noted, however:

• Border  controls designed  to  prevent persons  residing  in Jersey  who  are currently  able  to  do so,  may  have unwelcome consequences  for  the ability  of  Island residents  to  reside elsewhere.  It  follows that  great  care  is needed.

• Work  Permits  have costs  associated  for businesses  and government, when the proposed  new  Law already  has  all  the necessary  powers  to restrict  the  ability  to work in the Island.

• Individual  work permit/licence systems as operated in the  Isle  of  Man  and Guernsey have not led to  any  noticeable difference  in  their population  and immigration  trends compared to Jersey.

11

More  work  should  be undertaken  on  the benefits of the inclusion of  photographs  on registration cards.

CM

Accept

This is accepted in so far as  these  matters  remain under  continual  review, and in particular, a post implementation  review of the new system as to its  effectiveness,  etc, including  in  relation  to the photograph issue, is appropriate.

Ongoing

12

There  should  be  an

CM

Accept

Ongoing

examination  of  the levying  of  a  charge  for the  registration  card  to help cover costs and act as  an  incentive  to  hand the card back, which in turn will lead to a more efficient way of knowing who has left the Island.

13

Further work needs to be undertaken to ensure that there can be certainty in the  ability  of  the authorities  to  align  the number  of  net  inward migrants  with  those levels  established  by States decisions.

CM

Reject

The  system  has  the ability to achieve States objectives over time, and will be operated as such. Having  said  this,  as noted  above,  these matters  are  not  closed, and  a  post implementation  review is appropriate.

Ongoing