December 13, 2016

Cheap migrant labour is drain on taxpayer

Cheap migrant labour is drain on taxpayer

John Redwood argues the problem with cheap labour carrying out tasks with insufficient training and investment is they put extra costs on the taxpayer. 

Some businesses claim they cannot operate unless they can invite in a large number of people from abroad to do jobs for low pay. This can be a dear option for the country as a whole. It also can get in the way of our general aims, to get real pay up, and to get more people into work who are already legally settled here.

When I have been involved with businesses I have usually found it best to pay people well and to give them any training and assistance they need to work smarter. Good executives and directors work to help the company strive for higher quality, better productivity and higher levels of customer satisfaction. That way the company can grow its revenues and afford to pay employees decent pay. A good company values its brand as a good employer as well as its brand as a good supplier. Letting people work smarter means you can achieve what you need to do with without having to recruit so many extra people as you grow. It means you can employ on better pay levels, with all sharing the benefits of higher productivity. Working smarter means putting the right machine and computer power behind the team of people working in the business, seeking to make their jobs both easier and more satisfying whilst increasing output and raising quality. Getting things right first time, proofing systems against error and accident wherever possible, and striving for continuous improvement are well known in modern industry and can be adapted to modern services.

Some say areas like fruit picking will always need plenty of cheap labour to ensure sensibly priced fruit in our shops. Technology is now well advanced with vacuum pickers and other methods to allow machines to pick fruit. There are also better techniques for growing and shaping trees, fruit bushes and strawberry plants to make picking much easier or to allow machine picking. Agriculture has mechanised corn and wheat production and will not set about mechanising fruit and market gardening activity more.

The problem with more cheap labour carrying out tasks with insufficient training and investment to back up the staff is it also places many extra costs on taxpayers. Every time we invite in additional people to take low paid jobs we place an aggregate larger burden on the taxpayers. The studies which show new low paid migrants adding to national income ignore the need to provide GP surgeries, hospital capacity, school places for children, extra social housing or rent subsidy, more road space and train capacity. We want those we welcome here to live to decent standards, so we need to make substantial investments in extra public service provision. If we invite in a reasonable number each year some can be absorbed without building whole new schools, hospitals surgeries and roads. If we carry on inviting in 335,000 additional people every year the investment we need to make in public capital is great. Each new arrival who needs a school place for a child will need around £5000 a year for the running costs of the school place anyway, but if you need to build a new school then the extra capital cost is on top and substantial, at around £20,000.

5.00 avg. rating (99% score) - 18 votes
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John Redwood MP
John Redwood is the Member of Parliament for Wokingham in Berkshire. He was formerly Secretary of State for Wales in Prime Minister John Major's Cabinet. He is currently Co-Chairman of the Conservative Party's Policy Review Group on Economic Competitiveness.
  • Shadow Warrior

    Hammond is continuity Brown. He is a hand-wringing lefty looking for clever wheezes to raise more tax in ways that people don’t immediately notice.

  • captainslugwash

    I predict the Budget will attempt to show the Left how caring the Tories are, and it will be funded by screwing over the working man.
    If Corp Tax comes down, I bet Divi tax will be going up.
    I would love to be wrong.

  • skynine

    We really need to look at tax credits, in particular in work tax credits that encourage people to work part time to preserve the benefits. 45% of women work part time and I would hazard a guess that tax credits are the main cause. This leads to low pay, low skill work in supermarkets and the retail sector including coffee shops. The government needs to get back to the employer paying people to do a job for economic reasons rather than to get onto the tax credit ladder. Like all government benefits it distorts the market and diverts government expenditure into non productive areas.
    The refrain that the government has cut expenditure is not true, it increases every year as more and more goes into welfare.

  • MrVeryAngry

    fat chance

  • MrSauce

    So, when wouldn’t we want a ‘budget for growth’?

  • Rob

    I note that the UK Government has just slapped on a 25% tax charge for anyone moving abroad and wishing to move out their private pension from the UK.

  • SonofBoudica

    The Remoaners will do their utmost to sabotage the Government’s negotiating position. They do not want a successful outcome; they want a failure. They want to be able to scream “Told you so!” from the rooftops.

  • EnglandLaments

    Thank goodness for Andrew Neil, the one media hack who scares the pants off the established politicians. He was spot on with Heidi Allen!

  • joshuafalken

    I had a very long, hard, studied and considered look at the hope, care and aspirations of all Europeans, before I voted to get the UK out of the toxic grasp of Brussels.

    The European Union and it’s charge of “ever closer union” has borrowed and spent its way to oblivion, whilst enslaving the working and middle classes in debt.

    The central control mantra of the unaccountable Brussels ruling elite, delivered through a mixture of socialism, globalism and corporatism is entirely responsible for the populist revolt by the millions of “Just About Managings” across Europe.

    We must remember the ultimate goal of socialists, globalists and corporatists is control, not prosperity. see https://mises.org/blog/goal-socialists-socialism-—-not-prosperity.

    Social equality and economic growth always fail under central control and fighting against the Brussels doctrine on behalf of all Europeans is why I voted for Brexit.

    Britain has a long history of helping Europeans depose tyrants and Brussels is just the latest incarnation.

    Britain is the most racially advanced and accepting society on the planet. We welcome those in need and those that can help us with open arms and a smile; that will not change.

    We are also one of the most innovative, talented and open societies in the world, which why everyone wants to live here. However, we cannot fit everyone in, so we have to have clear, balanced and fair immigration policy which is where the arguments start between the monetarists and humanists will never be reconciled.

    I thought long and hard before coming to the conclusion that leaving the EU was in the best interest of all Europeans, as Brussels is toxic and cannot be reformed from within.

    Also, I find it insulting that people who voted Remain have insufficient faith in British ingenuity, compassion and skill to get a good deal for us and see the Europe that we love get a better deal from Brussels and the reform that European people deserve. https://mishtalk.com/2017/03/29/bad-brexit-deal-better-than-no-deal-mathematical-idiocy-odds-of-no-deal/ and https://www.worldheadlines.info/2017/03/after-brexit-9-reasons-to-be-bullish-on-great-britain/

    The politics of left verses right are dead because neither have delivered the promised economic growth and social mobility for anyone, but themselves. The populists are not selfish per-se, they just want to take back control of their own destiny that left/right politicians have freely given away and/or exploited for their own ends. In my constituency, the local residents group are taking over the councils as politicians ignore voters, so Westminster should beware of the well-organised, local resident independents at the next election. This is a peoples revolution which should be shouted from the rooftops, but liberals remained deafened by the socialist, globalist and corporatist “vested interests” that have spectacularly failed us and are obediently crying foul and fake.

    There will be an initial unpalatable inflationary cost to fighting globalism and rolling back central control that few appear to have factored in, but dismantling failed left/right vested interests should eventually free libertarian socially-conservative capitalism from the shackles of TBTF corporatism to feed economic growth and social mobility.

  • agdpa

    The EU usually makes the wrong decision – on immigration, on freedom of movement, on the euro, on the Ukraine, etc. etc. Little hope it will get Brexit right.

  • brownowl

    Eh? Reference please!

  • Neil2

    Sod caring. Screw the spongers and breeders. Kill HS2. Stop all “green” subsidies. Slash “foreign aid” and walk away from the EUSSR with immediate effect.

  • Rob
  • John C

    What a confused article. It conflates surveillance by the security services with poor defences against fraud.

  • John C

    Err, it’s the UK that’s leaving the EU, not vice versa.

  • John C

    Me, now. ‘Growth’ is a manic obsession.

  • La Face Nord

    Mr Redwood – are you aware of the Biased BBC website? It’s been exposing their agenda for a long time, but I imagine you’ve been well aware of the BBC’s agenda for quite some time…

  • Contact Rvtech

    The post is great

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