Free Movement of Persons Balance of Competences Report Evidence (Part 2) Submission 43 - Liberal Democrats Home Affairs Justice and Equalities Parliamentary Party Committee Submission 44 – Trades Union Congress Submission 45 – David Broucher Submission 46 – New Europeans Submission 47 - David Petrie, Chair, ALLISI, Association of Foreign Lecturers in Italy Submission 48 - Professor Michael Dougan, Dr Nuno Ferreira, Ms Stephanie Reynolds and Dr Samantha Currie, University of Liverpool Submission 49 – UK Chamber of Shipping Submission 50 – Convention of Scottish Local Authorities (COSLA) Submission 51 – Russell Group Submission 52 – Research Councils UK Submission 53 – The Freedom Association Submission 54 – SSAFA France Submission 55 – SSAFA France Submission 56 – NASSCOM Submission 57 – The Law Society of England and Wales Submission 58 – Business for New Europe Submission 59 – The City UK Submission 60 – Romanian Business Association Submission 61 – John Wastnage, British Chambers of Commerce Submission 62 – National Farmers Union (NFU) Submission 63 - UK Higher Education International Unit and Universities UK Submission 64 – European Commission Submission 65 – Port of Dover Submission 66 – HS1 Limited Submission 67 – IET France Network Submission 68 – Migrants’ Rights Network Submission 69 – British Influence Submission 70 - Jeff Cuthbert, Minister for Communities and Tackling Poverty, Welsh Government Submission 71 – Confederation of British Industry Submission 72 – Centre for European Reform Submission 73 – Council of British Chambers of Commerce in Europe (COBCOE) Submission 74 – David Ford, Justice Minister, Department of Justice for Northern Ireland Submission 75 – Fenland District Council Submission 76 – Suffolk County Council Submission 77 – Robin Sissons, Operations Inspector, Cambridgeshire Constabulary Submission 78 – Robin Sissons, Operations Inspector, Cambridgeshire Constabulary Submission 79 – Scottish Government Submission 80 - Sarah Melton Submission 81 – Stakeholder Event Note – 24 June 2013 Submission 82 – Stakeholder Event Note – 26 June 2013 Submission 83 – Stakeholder Event Note – 3 July 2013 Submission 84 – Stakeholder Event Note – 8 July 2013 Submission 43 Home Affairs, Justice and Equalities Name Parliamentary Party Committee Organisation/Company (if applicable) Job Title (if applicable) Department (if applicable) Julian Huppert MP, Address House of Commons, Westminster, SW1A 0AA <redacted> Email Organisation Type (if applicable) Please mark / give details as appropriate NGO/Civil Society Public Sector Retail Sector European bodies/institutions Business/Industry/Trade Bodies Parliamentary Party Committee Other (please give details) Note: on the form below, please leave the response box blank for any questions that you do not wish to respond to. All boxes may be expanded as required. Internal Market: Free Movement of Persons Introduction 1. The Liberal Democrats Home Affairs, Justice and Equalities Backbench Committee is the primary forum for MPs, Peers and Liberal Democrat stakeholders involved in Home Affairs, Justice and Equalities issues to exchange information and ideas. The views expressed here are those of individual members and the committee as a collective, but are not necessarily formal Liberal Democrat policy. We have decided to respond to the general principles and questions raised in the call for evidence rather than each question individually. Any oversight reflects only our decision to structure our response under main headlines, rather than responding to each question separately. 2. In a world where interconnectedness is growing by the day, links with other states is a must – particularly those geographically close to us. The Liberal Democrat Home Affairs, Justice and Equalities Parliamentary Party Committee strongly believes that the creation and development of the internal market is one of the most progressive steps Europe has taken to ease the way we connect with others. 3. The Four Freedoms of goods, capital, services and people has been much more than that. It has been the foundation on which to build further freedoms of ideas, exchange and mutual understanding. The measures in place work both ways. The Free Movement Directive has allowed Britons to venture onto the mainland to work, study or settle, as well as allowing citizens from other Member States to add value to the UK’s economy, society and culture. Britons on the Mainland 4. The advantages of closely cooperating with our European partners in this area are immeasurable. Recent figures show that 1.4m UK nationals have settled in other EU countries. This does not take into account the significant numbers of British citizens who have taken part in the European Union’s Erasmus program. Over its 25 year history it has seen over 100,000 British nationals study abroad. In 2011/12 alone 13,662 Brits took part in Erasmus learning new skills, developing language competences and broadening their horizons – thereby making them more employable in what is now an undeniably global job market. 5. Retirement migration in the European Union has also been steadily rising with British pensioners escaping to warmer climes either for some winter sun or on a more permanent basis. The coordinated social security system and the practicable principle of freedom of movement have made this possible. Leaving the co-ordinated social security system would mean that British nationals who had spent time living and working abroad could have their pension rights significantly reduced. 6. Nevertheless, the number of EU citizens who live elsewhere than their home state remains relatively low, reaching only 3.1% in 2011. However, the number of UK nationals who holiday in other Member States is significantly higher. The internal market allows us to travel across borders with ease, ensuring we remain protected. The European Health Insurance Card, which approximately half of the British population have for example, means that if an individual falls unexpectedly sick during a temporary stay abroad they will have the same right to statutory health care as people insured in the country they are in. Measures such as this have made travel easier, safer and less expensive. Schengen 7. Those who have taken the decision to abolish their borders (by participating fully in Schengen) have boosted their prospects for trade and tourism. Britain has remained isolated. Tourists from outside the EU – particularly from Asian countries such as China are choosing to apply for Schengen visas – allowing them to holiday, spend money and invest in all 26 European countries. Only a small minority also reach Britain which requires a separate application. With restrictive measures such as a ten-page visa application form, compared to Schengen’s four-page form we are effectively driving away tourism that could strengthen the UK economy. This year, saw business and industry leaders lobby for entrance into the Schengen. Estimates indicate that the UK is missing out on £1.2bn of potential income and as many as 20,000 jobs after evidence pointed to the fact that only 7% of travellers to Europe from China were prepared to apply for more than one visa. 8. Liberal Democrats believe that the UK Government, without compromising a high standard of pre-entry checks, should create a streamlined, fast-track process for those applicants who have already been issued a Schengen visa. 9. Successive Governments have already acknowledged the importance of cooperation as evidenced by the UK’s opt-ins to elements of the Schengen agreement. In March 1999, the United Kingdom asked to cooperate in some areas, namely police and judicial cooperation in criminal matters, the fight against drugs and the SIS. The Council Decision 2000/365/EC approving the request by the United Kingdom was adopted on 29 May 2000. 10. The UK’s cooperation and participation in the Schengen Information System (SIS) demonstrates how Schengen works for Britain. It enables European countries to maintain and distribute information on individuals and pieces of property of interest. The intended uses of this system are for national security, border control and law enforcement purposes. The single market, the benefits of which will have been explored in other review submissions, prerequisites the need for both freedom of movement and cross-border cooperation. EU Immigration to the UK 11. The European Union’s commitment to freedom of movement, and the UK’s participation in it, does mean that EU immigration to Britain can still add value and build the UK’s economy. While the Daily Mail lambasts EU workers for stealing ‘British jobs’ evidence-based research concluded that EU migration has no such effect. In fact studies into the question of EU migration to the UK often conclude that those who come to the UK from other EU Member States, who have resided in the country long enough to become eligible for benefits are net contributors to the public purse and low users of public services. 12. Only, 91,310 EU-nationals claimed benefits in 2012 – that is a miniscule 1.6% of all working age benefit claimants. In fact, in the boom years new EU citizens were seen as giving the UK a competitive edge. This was due to their willingness to do jobs that UK citizens would not and to work anti-social hours. A 2012 Institute for Fiscal Studies Report concluded that "While A8 migrants work mostly in lower wage occupations; they have high labour force participation rates and employment rates, a fact which offsets the impact of their lower wages." 13. Moreover, many of