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Interim Population Policy - Ministerial Response - 16 December 2014

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STATES OF JERSEY

REVIEW OF THE INTERIM POPULATION POLICY (S.R.2/2014): RESPONSE OF THE COUNCIL OF MINISTERS

Presented to the States on 16th December 2014 by the Council of Ministers

STATES GREFFE

2014   Price code: B  S.R.2 Res.

TITLE AS PER FRONT COVER


Ministerial Response to: Ministerial Response required by: Review title:

Scrutiny Panel:


S.R.2/2014

Circulated to States Members – April 2014 Review of the Interim Population Policy Corporate Services Scrutiny Panel


INTRODUCTION

The Council of Minister believes that it is necessary and important to provide clear direction on migration and population policy in the short term, while a longer term policy is developed.

In having a debate, we will provide the Housing and Work Advisory Group with clear direction as to how it should apply the new Control of Housing and Work (Jersey) Law 2012. It follows that in the absence of a direction from the Assembly, the Housing and Work Advisory Group will itself need to recommend guidance for the Chief Minister to publish on how the Law will be applied and applications determined. It would be preferable that the Assembly does this by having this debate.

It is appreciated that the Assembly will need more information, there will need to be more engagement with the public, and more insight into how the Law is operating, when it is asked to debate our long term policies. We have proposed an Interim Population Policy for this very reason – to provide opportunity for these things to be

put in place, while recognising that a direction in the meantime is necessary to uphold our responsibilities to the public and to strengthen guidance on the application of the new Law. This is not only important for the decision makers, but also the public and businesses who need more clarity, not more uncertainty.

The Interim Population Policy is a balanced and stable policy that maintains the planning assumption that supports the delivery strategies of most Departments, and is consistent with the 2009 and 2012 Strategic Plans. It supports the continued success of the "Back to Work" programme in promoting employment for established Islanders across all sectors, and encourages higher economic and social value activities in line with our economic strategies. It also provides a clear direction in focusing the Law on businesses that employ more migrant workers than their competitors, while also being clear that each individual application needs to be considered on its own merits with

great care, and that businesses need support to prosper. It is a sensible interim policy balancing  the  competing  priorities  of  our  community,  our  economy  and  our environment.

The  Council  of  Ministers  has  been  pleased  with  the  level  of  political  consensus emerging - that migration should be limited and focused on value, so as to protect what is unique about our Island while also providing our economy with workers to support our ageing society. We now need to debate this, and to continue to engage as we develop a longer term policy.

The net migration figure of +325 in the Interim Population Policy is not an absolute cap,  it  is  a  planning  assumption  that  is  aligned  to  our  other  policies,  including economic policies.

We cannot precisely control every decision to move to Jersey, for example, if an entitled  person  wishes  to  return  to  the  Island  having  married  and  had  children elsewhere. Nor can we control who leaves. Equally, we cannot be blind to business opportunities, for example, if a new bank or internet company wishes to move to Jersey, or a business which needs immediate support for a migrant worker while it invests in training and developing the skills of established Islanders. Furthermore, as a compassionate society, we cannot be blind to the hardships many people face – and many  States  Members  have  approached  us  seeking  permissions  in  these circumstances.

Significantly improved migration controls: We can effectively limit the ability of migrants to work by controlling and policing the overall number of permissions in the economy  to  achieve  migration  control.  The  new  Law  has  introduced  new  more detailed  manpower  returns  listing  over  53,000  workers  which  are  now  being thoroughly analysed to support a population register; over 13,000 registration cards were issued in the first 6 months of the Law; and we are undertaking more compliance activities than ever before. This is a step change in effectiveness.

While also supporting economic growth: We need to send a message that we are firmly and clearly open to economic growth new businesses coming to Jersey, established businesses investing, new businesses starting. This includes supporting training, improving skills, incentives to work, productivity improvements as part of a pragmatic approach that assists all sectors. This forms a complementary package of policies,  not  just  a  population  number.  In  this  way,  we  can  firmly  support  our economic  recovery  through  the  Interim  Population  Policy,  which  any  more  rigid migration policy, or uncertainty, would undermine.

FINDINGS

 

 

Findings

Comments

1

Although  a  Population  Policy  has been agreed as part of the Strategic Plan  2009-2014,  an  Interim Population  Policy  is  now  being proposed by the Council of Ministers in  advance  of  public  consultation taking place on a long-term plan for the Island.

Each Council of Ministers is required to produce a new set of Strategic Priorities, which this Council did in the 2012 Strategic Plan.

An  Interim  Population  Policy  has  been  lodged, reflecting that we now have a new Law on which guidance  is  required  and  that  this  is  a  priority issue.

"Preparing  for  Our  Future"  will  be  a comprehensive framework for the development of long policy, within which population policy will serve, and align to, the balance we set between economic, social and environmental goals. In this

way, we achieve better outcomes for our Island, for example, in relation to the quality of our town

 

 

Findings

Comments

 

 

environment, the productivity of our economy.

This work will accelerate over the coming months, but will continue into 2015 before it is complete, including  public  engagement  and  detailed statistical and economic analysis. In the meantime, we  should  support  the  planning  assumption  of +325, rather than a lower figure or avoiding the debate altogether.

2

The  decision  to  propose  an  Interim Population  Policy  differed  to  what was agreed in the 2012 Strategic Plan

to hold a States debate on what our immigration  and  population objectives  should  be  following  a public consultation.

See Comment 1 above.

3

With  this  Proposition,  the  Housing and  Work  Advisory  Group  are seeking guidance from the States as to how the Control of Housing and Work (Jersey)  Law 2012  should  be administered.

Agreed.

4

Two  main  reasons  have  been  given for  proposing  an  annual  planning assumption for net migration of +325 people per year: (i) it would provide a direction of stability; (ii) it is in line with States approved polices.

Agreed.  Net  migration  of  +325  is  a  policy  of stability, and is consistent with a range of long term policies agreed by the Assembly.

5

The planning assumption of +325 has not been applied uniformly across all Departments.  The  Transport  and Technical  Services  Department  and the  Education,  Sport  and  Culture Department have been operating to a planning assumption of +500.

See Comment 1 above.

The  Interim  Population  Policy  will  assist  in providing a consistent approach, although within this, it should be recognized that Departments face specific challenges and issues, for example, when it comes to the nature of infrastructure, including its need to accommodate seasonal fluctuations.

For  example,  the  Waste  Water  Strategy  was developed  with  the  starting  point  of  +325  net migration,  but  combining  this  with  the  total number of people likely to be served, including tourists, seasonal workers and visiting friends and relatives, produces a population of 118,000, being closed to the Statistics Unit forecast of net +500.

 

 

Findings

Comments

6

According to the Chief Minister, the 2009  Population  Policy  became invalid when the 2012 Strategic Plan was approved by the States.

See Comment 1 above.

7

Despite  the  2009  Population  Policy setting a maximum net migration limit of  +325  people  per  year,  Jersey experienced  an  average  level  of  net migration  of  +575  over  the  period 2009–2012.

Agreed.

It  will  be  challenging  to  support  a  planning assumption  for  net  migration  of  +325,  but  the Interim Population Policy outlines measures to do this,  and  thereby  achieve  a  reasonable  balance between net migration, economic growth, and our other objectives around housing, our environment, supporting services, etc.

8

The  success  of  population  and migration  control  will  ultimately depend  on  how  the  Control  of Housing and Work (Jersey) Law 2012 is  managed  in  line  with  States decisions  and  whether  those responsible  ensure  the  Law  is enforced.

Agreed.

With the endorsement of States Members of the Interim Population Policy the decision makers will have a clear mandate to carry out the wishes of the Assembly.

9

Particular  focus  will  be  given  to reviewing the licences of businesses that employ more migrant staff than

their average competitors. As of June 2013,  the  Population  Office  had identified  725  businesses  in  Jersey which fall into this category.

Agreed.

10

Delivery of the proposed Policy will depend upon the effectiveness of the new  control  mechanism  and  its application.

Agreed.

As to the effectiveness of the Law, this will take time  to  prove  and  evidence.  However,  in  the meantime, that is not a reason to not have a debate on  our  objectives  and  how  the  Law  should  be applied.

Furthermore,  the  Law  was  carefully  designed through wide consultation, and over many years, and  already  we  are  seeing  its  capabilities,  for example –

  • in refusing licences to traders visiting Jersey;
  • in  identifying  issues  with  the  residential status of individuals;
  • in closing activities which are damaging to Jersey;

 

 

Findings

Comments

 

 

  • in  having  issued  over  13,000  registration cards in the first 6 months so that employers, property agents and landlords are clear as to a person's residential status;
  • through the manpower process to date having collected  the  details  on  over  53,000 individual  workers  from  over  7,000 businesses.

If the Interim Population Policy is approved, the application  of  the  Law  can  proceed  further, for example,  varying  existing  licences  where necessary  in  support  of  the  Interim  Population Policy.

A Post Implementation Review will also report in July on possible enhancements to the Law.

These are all reasons to have confidence in the Law, while recognizing that it will take time to fully mature.

11

Due to a delay in the compilation of the  data  from  the  latest  Manpower Survey,  the  publication  of  the  2013 Jersey Resident Population Report has been  postponed.  Until  the  data  is available the Population Office cannot assess  the  efficacy  of  the  new  Law and the Statistics Department cannot provide an analysis.

More  than  90%  of  businesses  (over  7,000) representing over 96% of employees (over 53,000) have made their returns for the December 2013.

The process is taking longer than expected, but is nearing  completion.  The  Chief  Statistician  will then  announce  when  accurate  statistics  will  be available. In any event, it is already 4 months after the year end – and the longer we wait for a debate,

the less up-to-date and useful those statistics will be for a debate that is looking forward for the next 18 months, not backwards.

We  must  also  be  clear  that  the  new  manpower process is about improving effectiveness. For the first time we are collecting information on each individual  employee.  This  will  significantly improve our  migration controls, and already we are  identifying  compliance  issues  that  will  be pursued  as  part  of  a  thorough  analysis  of  the returns.  This  will  form  the  foundation  for  the validation  of  the  Population  Register  so  that ongoing records of the resident population can be maintained. In short, the new manpower process is  enhancing,  not  detracting  from  the effectiveness of our controls.

In the meantime, a sizeable number of statistics are available  in  the  Interim  Population  Policy  to support a decision, and a much more sizeable body will be produced for consideration as part of the

 

 

Findings

Comments

 

 

Long Term Plan.

12

In the 2012 Strategic Plan, the Chief Minister  committed  to  undertake  a post  implementation  review  of  the new Law within the first 12 months of its operation. It is proposed that the results  of  that  review  will  be  made available by July 2014.

Agreed.

See Comment 10 above.

13

No  consideration  has  been  given  to the  short-term  implications  on Jersey's resources of planning to a net migration  target  of  +325  in comparison with a lower level of net migration.

Disagree.  No  Department  is  planning  for  net migration of lower than +325.

See Comment 5 above also.

14

Over  half  of  the  respondents  in  a recent  survey  carried  out  by  the Chamber  of  Commerce  did  not believe  that  the  Policy  was achievable.

Agreed.

In the same survey, over 70% of employers also did  not  believe  the  policy  will  cause  them recruitment difficulties, implying for that for them individually  the  policy  would  not  present  a particular  challenge.  This  is  part  reflects  the emphasis of the policy, which is on supporting businesses, for example, through the "Back to Work" scheme, and permissions if necessary.

15

There is a risk that the decisions made by the Population Office as to which businesses are of high economic value

will  have  a  detrimental  effect  on particular sectors of the economy.

Noted.  It  is  essential  that  care  is  applied  and support is provided in the application of the policy, which  is  consistently  reflected  throughout  the Report  accompanying  the  Interim  Population Policy. See Comment 19 also.

16

Each application for Registered' and Licenced'  permissions  should  be considered  by  the Population  Office and the Housing and Work Advisory Group on its individual merits.

Agreed.

The Interim Population Policy is clear that each application must be considered on its own merits, listening and responding to business, and offering support. The Housing and Work Advisory Group meet  every  2 weeks  to  consider  applications, including  hearing  from  applicants  in  person,  to ensure  that  each  applicant  has  a  full  ability  to present the unique aspects of their request.

 

 

Findings

Comments

17

Although  businesses  in  the  same sector  may  appear  comparable,  in reality  they  could  face  different

revenue  streams,  skill  requirements and ownership structures.

Agreed.

See Comment 16 above.

18

The  business  community  is  yet  to receive clarity from the Housing and Work Advisory Group as to how the proposed Policy would be applied in practice.

Noted. The Interim Population Policy provides a clear outline of how the Control of Housing and Work Law would be applied to support the net migration  planning  assumption  of  +325.  Should the States approve the Interim Population Policy, it will  then  be  reflected  in  detailed  guidance statement to provide the guidance that businesses need.  This  will  be  produced  in  any  event,  and communications will be extended.

Nevertheless,  it  will  remain  the  case  that  each application  will  be  considered  on  its  particular merits  reflecting  on  the  unique  nature  and challenges of each business.

19

Despite  the  high  levels  of unemployment,  industry  sectors  are struggling to  fulfil  certain  vacancies as a result of a significant skills gap within our local community.

Agreed. The Council of Ministers have placed a particular emphasis on getting unemployed people into  work  through  the  "Back  to  Work" programme, and on improving the skills available in the Island and the incentives for Islanders to work. Nevertheless,  it will take time for many

businesses  that  have  traditionally  relied  on migrant labour to significantly change this. This is why the Interim Population Policy is a balanced policy that permits a level of net migration, and recognises that support is needed.

Indeed, we should recognise the success of the "Back  to  Work"  programme  -  over  1,800 people were helped into work in 2013 – and the February  unemployment  figures  of  1,860 actively  seeking  work  showed  a  downward trend  in unemployment on the prior year, The team are also responding to the specific challenges we face, as illustrated by the recent launch of a construction scheme recognizing the likely labour requirements of the industry going forward.

20

Increased  productivity  as  well  as having  the  right  skills  in  Jersey  is essential for aiding economic growth.

Agreed.

 

 

Findings

Comments

21

There  is  a  concern  among  local businesses  that  the  proposed  Policy would  convey  the  perception  that Jersey is closed for business'.

Noted. It is essential that the policy is fully and widely  communicated   so  that  it  properly appreciated as complementary to our strategies on economic growth.

Indeed, we must be ever vigilant we need to make sure our message is one of "being open to value"  and  "investing  in  skills  and  promoting work",  which  is  consistent  with  the  Interim Population Policy.

We should also be clear that economic success is built  upon  a  clear  and  balanced  vision.  See Comment 1 above.

22

Unlike  the  2009  Population  Policy which  set  a  maximum  inward migration  level,  the  Interim Population Policy makes no mention of a "maximum", "limit" or a "cap".

Agreed.

The Interim Population Policy is very deliberately worded in that the Control of Housing and Work Law  will  be  applied  to  "support"  a  "planning assumption" for net migration of +325 per year. We are clear that an exact specified target cannot be  precisely  achieved.  Simply,  that  is  not  the nature  of  any  control.  Instead,  the  Law  can  be effectively applied to limit the overall number of permissions for migrant workers in the economy to support a planning assumption for net migration.

23

A  planning  assumption  cannot  be enforced.

Disagree.

See Comment 10 and 22 above.

24

The  Council  of  Ministers  consider that  under  the  right  circumstances there  will  be  justification  for exceeding the number set out in the proposed Policy.

Agreed.

If a business is going to create significant jobs for established islanders and economic or social value then the circumstances may justify some licences.

25

It is still unclear whether asking for the  States  to  agree  a  planning assumption for net migration of +325 people  per  year  will  adequately address the concerns of Islanders and the business community.

Noted. It is difficult to satisfy all viewpoints in this debate.  However,  the  response  to  the  Interim Population Policy has been pleasing in recognizing the challenges we face – in terms of our ageing society, the need to support our economy, and to preserve what is unique about our small Island. All this points to limited and focused migration as the correct approach.

26

The  Chief  Statistician  is  not  yet confident  that  the  recent  Manpower Survey data is sufficiently complete,

See Comment 11 above.

 

 

Findings

Comments

 

reliable or accurate and, as a result, has  delayed  the  publication  of Jersey's  Resident  Population  2013 Report.

 

27

In  the  absence  of  real-time information,  the  Population  Office cannot  accurately  monitor  migration or  effectively  measure  the performance of a Population Policy.

See Comment 11 above.

28

The Council of Ministers is proposing that  issues  surrounding  population growth  and  migration  will  be examined  in  depth  in  the  long-term plan  framework  "Preparing  for  our Future".

Agreed.

See Comment 1 above.

29

The Interim Population Policy would have no substantial impact on how the States  currently  manage  population and migration.

Disagree. See other Comments.

30

The  Panel  was  advised  that  in bringing the Proposition to the States for approval, the Council of Ministers was simply asking for a "nod to say continue to aim for that number and we will do that".

The  Interim  Population  Policy  provides opportunity for Members to debate what planning assumption we should set for net migration and how  we  are  to  achieve  it,  and  opportunity  has existed to propose Amendments. In this way, the Council of Minister has sought to ensure that the Assembly  is  able  to  provide  direction  on  this important  issue,  which  is  why  the  policy  was lodged for debate. This ability to set the direction and  participate  will  continue  through  the development of the Long Term Plan.

RECOMMENDATIONS

 

 

Recommendations

To

Accept/ Reject

Comments

Target date of action/

completion

1

The Council of Ministers should not bring  P.10/2014  to  the  States Assembly for debate.

 

Reject

 

 

2

A Population Policy should not be brought to the States Assembly for debate until –

  • all  relevant  statistics  are available from Jersey's Labour Market  2013  Report  and Jersey's  Resident  Population 2013 Report;
  • the Post implementation review of the law has been undertaken; and
  • public  consultation  on  a  long- term  plan  and  vision  for  the Island  has  taken  place,  as agreed  in  the  2012  Strategic Plan.

 

Reject