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Car industry challenge government over immigration limits

23/09/2010

The car industry has called for government officials to re-consider plans to restrict the number of intra-company transfers. The Society of Motor Manufacturers and Traders (SMMT) say that putting a limit on the number of highly skilled migrants will harm the UK's competitiveness and impact negatively on the sector. An interim cap on non-EU immigrants was introduced in July, which has limited workers since the start of June this year to 24,100, and this will run until April next year. However, the Government are planning to make this permanent, in a move which has set alarm bells ringing for motor industry bosses who rely on their ability to transfer highly skilled workers from their plants in other countries. Paul Everitt, chief executive of the SMMT has put his complaint in writing to the immigration minister Damian Green. New figures from his organisation indicate a strong recovery in the sector, with car output up 37% in August, to just under 78,000. Mr Everitt told Sky News: "Whilst we understand the drivers behind UK Government's proposed migration limits, we call for the removal of intra-company transfers from these limits. "Through knowledge sharing and skills transfer, such individuals make a significant contribution to the competitiveness of our sector and the national economy more generally." His concern mirrors that of Business Secretary Vince Cable, who pointed out earlier this week that a cap on immigration was harming British Industry. This 'significant' recovery is also due in part to a reduced production in 2009, when many car makers were forced to make big cutbacks as the worldwide demand for cars collapsed. Speaking to the BBC, Everitt says this is exactly the reason we need to keep the UK's comeback on track: "There are still significant challenges ahead and the Government must do all it can to encourage continued international investment in UK-based [research and development], skills, plant and machinery".

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