HC Deb 10 January 1977 vol 923 cc368-71W
Mr. George Rodgers

asked the Secretary of State for Employment if he will make a statement about the policy of his Department on the issue of work permits for overseas workers.

Mr. Atkinson

asked the Secretary of State for Employment on what date the current foreign worker quota period ends; what maximum quota he intends fixing for the following 12-month period; and how many of these will be allocated to the catering industry and the health service.

Mr. John Grant

I do not propose to change the current general arrangements under which work permits are made available only for skilled workers from overseas, where vacancies cannot be filled from the resident labour force. I have reviewed the special arrangements, announced to the House on 3rd February 1976 by my hon. Friend the Member for Norwood (Mr. Fraser), then Under-Secretary of State for Employment, which related to those fields where annual numerical quotas apply—[Vol. 904, c. 559–561].

Hotels and Catering

The arrangements for this industry provided for the issue of work permits up to a ceiling of 6,000 in 1976 but it was hoped that employers would be able to limit their requirements for overseas labour to a figure well below this and would take maximum advantage of the employment situation to recruit and train labour from the resident labour force. The Manpower Services Commission undertook to do everything possible through its agencies to help employers in this endeavour; and my hon. Friend announced that an application for a work permit was to be considered only if the Employment Service Agency had held for the preceding three weeks a vacancy notified by the employer for the job concerned.

It is encouraging to be able to say that the expectations for 1976 have been fulfilled. There has been a very considerably reduced demand for overseas labour from the industry. The Manpower Services Commission has told me that the Employment Service Agency—with the support of the Hotel and Catering Economic Development Committee, which has encouraged employers to co-operate closely with ESA local offices in recruiting their staff—placed 11,000 people in the industry in the spring quarter, the peak recruitment period, an increase of 41 per cent. over 1975; and that under the Training Services Agency's Training Opportunities Scheme the numbers completing courses on hotel and catering work have also increased substantially over 1975: here, the increase for the year is well over 50 per cent. The outcome is that some 3,400 work permits have been issued within the hotel and catering ceiling—only about 40 per cent. of the 1975 figure.

I have consulted representatives of the employers and workers in the industry, and the Manpower Services Commission, about the need for continued recruitment of overseas workers in 1977, and in the light of this I have decided to limit to 2,000 the number of work permits available for workers in the industry this year. I have noted in particular the advice conveyed by the Manpower Services Commission that there is no risk that the industry will find itself short of facilities and resources to provide the training necessary to sustain domestic recruitment of untrained labour. I lay emphasis on this point because I am convended that in the present situation every possible opportunity for work should be available to the resident labour force especially where those opportunities involve only a compartively short period of training which is well within the compass of the industry.

I shall therefore continue to rely on the efforts of the Manpower Services Commission and its agencies in finding suitable candidates for employment and for training, either with the employer or through the Training Services Agency. The three-week rule about the notification of vacancies will continue to apply.

While the figure of 2,000 should relate overwhelmingly to permits for workers who will bring scarce skills and experience to this country in circumstances in, which, exceptionally, the recruitment and training of someone here cannot be achieved, I am prepared to accept that there may be occasional situations in which less-skilled workers from abroad may be needed. The fact that in 1976 fewer than 600 work permits were issued for unskilled workers compared with some 2,500 in 1975 shows that there is a rapidly diminishing need for overseas workers at this level, and such permits will be issued in 1977 in the rarest of circumstances. Indeed, I shall expect that very few permits will be issued for any workers who are not fully skilled.

I hope to see continued progress towards a position where work permits are needed only for the most highly-skilled jobs, either because of a genuine shortage of skills here or because of the international nature of part of the industry. The success of all concerned in achieving a major step forward in that direction in 1976 is the best possible stimulus for continued efforts in 1977.

Resident Domestic Workers and Nursing Auxiliaries

For 1976, a ceiling of 2,500 was set on work permits for resident domestic workers in private households, hospitals, schools and similar institutions. In the case of hospitals, whether or not within the National Health Service, this ceiling applies to nursing auxiliaries as well as resident domestic workers. There is no quota for the Health Service as such. Fewer than 2,000 permits were issued for overseas workers for these occupations last year of which 364 were for work in hospitals. I have decided to limit to 1,500 the number of permits in 1977.

Other Quotas

The quotas for workers from Malta and the dependent territories, and for United Kingdom passport holders, will remain unchanged for 1977.