Immigration Caps Risk Stifling UK Economic Recovery

THE HAGUE, The Netherlands, September 17, 2010 - The introduction of caps on employment of highly skilled
foreign workers and intra-company transfers would stifle the UK's economic
recovery and damage its competitive position longer term. That's the message
Permits Foundation has given to the Migration Advisory Committee and the UK
Border Agency in consultations drawing to a close this month.

"There's a serious risk that an adverse immigration climate
will damage the UK's reputation as a global business hub and spill over to
other countries where British staff are assigned. This could cause a double
rebound for the UK economy, reducing interest in inward investment from
overseas companies and reducing prospects for British staff to work abroad,"
said Gill Gordon, Chair of the Permits Foundation and HR director with
Schlumberger.

Instead of targeting business transfers, which make a major
contribution to the UK's economic growth and represent only a small
proportion of total migration, Permits Foundation takes the view that the
government should focus on the estimated half a million illegal immigrants
and other categories where there is a risk of misuse of visa conditions. Any
unauthorised employment or undercutting UK salaries should be tackled by
stricter enforcement and sanctions for non-compliance. A combination of these
measures will bring down net migration without harming the economy.

Intra-company transferees are a well educated talent pool that
transfers knowledge, skills and technology, refreshes and upgrades the UK
employment market, boosts the economy and provides additional tax revenues.

"Employers are in the best position to judge whom they should
employ and when to transfer overseas staff. They must have the flexibility to
react to changing market conditions and business opportunities" said Caroline
Waters, Director People and Policy at BT. "We know that self-regulation works
from the statistics on the UK's points based migration system. Last year, the
economic slowdown led to a reduction of 12,000 skilled migrants, without a
need for caps."

Nevertheless, the government introduced temporary caps, which
have proven disruptive to graduate and professional recruitment. "The
government announced a 5% cut, but in practice many employers have faced cuts
of 15% to 20% below last year's levels, which were already reduced because of
the economic downturn," said Gill Gordon. "New hires are being refused as
the Border Agency is over subscribed and is concentrating on extensions for
current employees. These problems show just how unsatisfactory a cap system
is."

Should the government insist on caps, Permits Foundation
proposed an exemption for companies that meet agreed standards of investment,
fiscal contribution and training of British workers. The foundation also
warned against any pullback on the right of family members to accompany and
to work in the UK. Permits Foundation research indicates that this would have
an adverse impact on the UK's attractiveness as an international business
hub.

Notes for the press:

Permits Foundation is a corporate initiative that supports
international mobility by promoting open work authorisation for expatriate
partners worldwide. This is a concern to international employers which, in
view of the increasing number of dual careers, experience work permit
restrictions for partners as a hurdle to employee mobility, diversity and
equal opportunity. More than 40 major international companies support Permits
Foundation, which is independent and not-for-profit. The Foundation has been
successful in contributing to change in the USA, France, The Netherlands,
Hong Kong and Malaysia. It is currently promoting improvements throughout the
European Union and several countries in Asia and is working to raise
awareness worldwide.

View Permits Foundation full submissions to the Migration Advisory
Committee and the UK Border Agency at: www.permitsfoundation.com

Contact: Kathleen van der Wilk-Carlton tel:+31-703191930