Work Permits (Hansard, 16 December 1977)

§ Mr. John Grant

I do not propose to change the current general arrangements under which permits are made available only for highly skilled vacancies which cannot be filled from the resident work force. However, in view of the prevailing high level of unemployment, I have decided to make the following changes to the special quota arrangements for certain categories of overseas worker which I announced to the House on 10th January 1977.—[Official Report, Vol. 923, c. 368–71.]

Hotels and Catering

The industry has responded to this year's ceiling of 2,000 by making considerably 432W fewer applications for permits. The Employment Service Agency has improved its rate of placings in the industry and there has been a progressive expansion in the Training Services Agency's relevant TOPS training; and my Department, in operating the work permit scheme, has used an allocation system to apply the reduced quota fairly and equitably over the year to meet the needs of the industry as a whole. The number of issues by the end of November was under 1,600. Only 100 of these were for unskilled work.

I have this year again consulted representatives of the employers and of the workers in the industry, and the Manpower Services Commission, about the arrangements for 1978. Persistent problems mainly concern needs for some workers with specialist skills to work in ethnic restaurants and for skilled workers for establishments operating on a seasonal basis and especially those in more remote areas; but there are also continuing demands in some urban areas, especially London, for semi-skilled as well as skilled workers.

I have decided to impose a ceiling of 1,500 on the number of permits available for the hotel and catering industry in 1978. The level of unemployment generally is still unacceptably high and I remain determined that every possible opportunity should be afforded to workers without jobs to find suitable employment, given the training opportunities and facilities in the industry.

I intend to continue to work towards a situation where there are no special arrangements for the hotel and catering industry. As a step towards this objective in 1978, under the revised arrangements no permits will be issued for unskilled workers. For individual establishments the arrangements are that, provided the usual conditions for issue are satisfied, permits for skilled workers will be available up to the 1977 level, but for semiskilled workers, including resident domestic workers, where more than one permit was issued in 1977, permits will be limited to 50 per cent. of the 1977 issues. It is expected that these arrangements will allow for some flexibility within the quota to meet special needs, for example, new establishments. Permits will continue 433W to be available outside the quota for the exceptionally highly skilled and qualified.

In August this year the issue of work permits to resident domestic workers for private households, hospitals, schools and similar establishments was restricted to nationals of non-EEC European countries. As a further restriction on permits for semi-skilled workers compared with skilled, this limitation will now be extended to resident domestic workers for the hotel and catering industry.

I have been assured by the Manpower Services Commission that the Employment Service and Training Services Agencies are committed to helping the industry to meet its needs from the resident labour force. The Commission has, however, also explained to me that, while there is, particularly in London, a mismatch between vacancies and suitable workers, this is exacerbated by high labour turnover, lack of accommodation, travel-to-work difficulties and workers' perceptions of the industry and these factors limit the ability of the employment and training services to give that help. It seems to me that employers themselves can do much to remedy this situation. The Commission commented that where employers in shortage areas were able to offer accommodation recruitment drives undertaken with the ESA in other parts of the country have proved successful.

When this year the ESA encouraged employers, applying for permits for workers below skilled level, to consider engaging and training unqualified people, especially young people, the response was too frequently the offer of jobs with little or no training content. I trust that in 1978 employers will respond more positively and make the industry more attractive to young people.

The TUC Hotel and Catering Industry Committee suggested to me that arrangements should be made to convene a joint consultative committee, representative of organisations which are concerned with recruitment, training and employment in the hotel and catering industry, to consider the problems arising in these areas. This proposal, which has attractions, is being carefully examined.

434W

Resident Domestic Workers and Nursing Auxiliaries

For 1977, a ceiling of 1,500 was set on work permits for resident domestic workers in private households, hospitals, schools and similar institutions, and for employment as nursing auxiliaries. I have decided that the ceiling should remain at 1,500 for 1978. In August this year I announced that applications for such employment would be accepted only for nationals of countries in Europe, and this restriction will continue. The minimum age limit for employment as a resident domestic worker in a hospital. school, or other institution or as a nursing auxiliary will be raised from 18 to 20 years as already applies for employment in a private household.

Special Commonwealth Quotas

For 1978 the overall total of work permits available for workers from Malta and the dependent territories and for non-patrial United Kingdom passport holders under the special Commonwealth quota schemes will be reduced from 1,500 to 1,100. Within this figure the annual quotas will be 500 for Malta, 350 for the dependent territories—with a limit of 200 for any one territory—and 250 for United Kingdom passport holders.

These quotas are for permits below skilled level and workers who qualify under the general occupational criteria of the work permit scheme, or the occupational criteria required under the hotel and catering industry quota, and who satisfy the other conditions of the scheme. will obtain permits outside these special quotas.