UK owners braced for immigration rule change
David Osler - Thursday 13 November 2008
While immediate impact is likely to be minimal, some shipping sources fear that glitches inherent in the small print are storing up trouble for the future, and say the government has not yet given answers to questions the industry has been pressing for over a year.
If the worst comes to the worst, the extreme scenario could see rigs in the North Sea forced to shut down once the changes apply to one port voyages, which is likely to be some time in 2009.
Under the points-based immigration scheme, seafarers - like ministers of religion, nurses and journalists covering Britain for foreign media - are classified as tier two skilled workers in shortage occupations.
Parts of the system were introduced earlier this year, although tier two only ‘goes live’ - as the jargon has it - on November 27.
As things stand, UK-based companies will be able to hire non-EEA employees, provided that they have a licence from the UK Border Agency. In theory, the transition from the existing work permit system should be simple enough.
Tim Springett, head of labour affairs at the Chamber of Shipping, said that the replacement rules unlikely to make much difference to shipping companies in the first instance, because the number of trades to which the work permit rules applies is quite small and do not employ many non-EEA seafarers.
“However, when the points-based system is extended to cover one port voyages, which according to ministers is going to happen next April, the position is going to be rather different,” he warned.
It will then apply to quite a large number of operators, most of which employ seafarers through offshore agencies. That is a problem, because under the arrangements, the sponsoring employer must be a company operating in Great Britain.
“That could give rise to a queering of the pitch over National Insurance arrangements that many companies have, that are legitimate and have been recognised by HM Revenue and Customs.”
The Chamber of Shipping raised this matter with the government in August 2007 and is stil waiting for a satisfactory resolution, said Mr Springett.
“We have reminded them on a number of occasions and spoken to officials from the Border Agency and the Department for Transport. The last I heard was to expect an answer from DfT anytime soon. But at the moment I am still waiting.”
Headaches could arise because of the tight supply situation in the maritime labour market right now.
Owners cannot get all the officers they need from within the EEA, especially ones with the right endorsements and experience.
“If they are prevented by red tape from employing people from overseas, that could have health and safety implications. At an extreme, it could mean that rigs have to shut down if there is no stand-by cover available, because stand-by operators can’t supply a ship because they can’t man it.
“Then you will have oil production in the North Sea effected. That would be an extreme case, but if you take it to its logical conclusion, that is where you could end up.”
Andrew Dekany, a partner at Holman Fenwick Willan specialising in immigration, added that shipping companies needed to be aware that it takes between six and eight weeks to get a licence to sponsor tier two workers, and the rules are due to kick in in around a fortnight.
“There is a lack of clarity at the moment,” he said. “If you look at the statistics for the number of applications that have been made for sponsor licences, they are very low.
“There has been a government publicity campaign on television and in cinemas and I’m not sure why the number of applications is so low. It’s quite possible that people don’t realise that they need to be registered as sponsors.”
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