June 27 2008 – Employers to press UK Ministers on migrant rules
Copyright The Financial Times Limited 2008
Leading members of London's financial services industry are to meet government ministers next week amid fears that new immigration rules could undermine the competitiveness of Europe's premier financial centre and even lead to tycoons such as Bill Gates being turned away.
Employers in the City of London say they still do not know what they will be required to do under a new point-based system for migrant workers, and are worried that talented recruits from abroad who narrowly fail to accumulate sufficient points will be barred by an inflexible approach.
Kitty Ussher, City minister, yesterday admitted the new system was arousing concerns in the financial centre - especially among international banks - but said she believed it would not cause any problems.
However, Ms Ussher said she and Liam Byrne, immigration minister, would hold talks with City employers next Wednesday to discuss how the points-based system "will work in practice" and to take on board any concerns.
"People have said to me that under the new system Bill Gates would be refused entry because he does not have a degree," she said. "If he did want to come here, I suspect he may get in on the skills, experience and earnings categories."
City businesses have broadly welcomed the new system, which replaces a plethora of work permit schemes with just five categories that give preference to entrepreneurs, financial high-fliers and skilled professionals.
However, the system is being phased in throughout this year and many details of how it will operate have yet to be decided.
There are also fears that the requirement for applicants to speak English could discriminate particularly against Japanese staff, who may not have a good grasp of the language.
The operation of the new system was raised by David Lewis, Lord Mayor of the City of London, in a keynote speech last week, when he said that "London is an international city or it is nothing".
"There is some concern that, despite its laudable objective, the new points system will not in practice permit entry to some of the fresh foreign talent we need," Mr Lewis said. "We must ensure those concerns are groundless."
Ms Ussher said the system, based on the Australian model, would allow London to continue to attract the brightest people from around the world. "For intra-company transfers - which is often the situation with our international banks - the migrant has three years to learn basic English."
Highly skilled migrants can already apply to work in the UK under Tier 1 of the system if they have enough points awarded on the basis of skills, experience, age and past earnings. Under Tier 2, which will come into effect in the autumn, employers will be able to sponsor skilled migrants if there is a shortage of local skills.
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