PCG Newsletter - 27 Feb 2002 - 10/02 - Fast Track Visas

In this issue:

• Fast Track Visas Update
  
• Calling all Micro-processing Engineers
  
• PCG Members Survey
  
• Real Life Meetings

1. Fast Track Visas Update

The PCG has been campaigning for some time over the issue of Fast Track Visas. This is the government's work permit scheme which should be used by firms to plug skills gaps but is actually being used to replace UK contractors and workers. One contractor has said “IR35 was about percentages, FTV is about whether you have a job or not".

Members have been reporting to us for some time that the work permits scheme was not being used to fill skills gaps but was being used for skills replacement. We have set up a form on the website for members and contractors to report instances of abuse.
https://www.pcgroup.org.uk/ftv/index.html

The cases poured in and earlier this month we handed over the first tranche of cases to Work Permits UK, the government agency responsible for administering the scheme, to investigate. The Work Permits UK website is at
http://www.workpermits.gov.uk/default.asp?pageid=1558.

We have been working closely with Work Permits UK and we are now members of the Information Skills Sector Panel which decides which skills are to be classified as in short supply - Tier 1 shortages (more info at
http://www.workpermits.gov.uk/default.asp?pageid=2595).
Anyone with skills classified in the Tier One list is eligible for an immediate work permit, as there is no need for anyone to advertise the post or justify the permit.

At the October meeting of the panel, the PCG, together with ATSCO, successfully argued to have this skills list substantially reduced. Then at the January meeting we pushed for further reductions. Specifically the PCG wants C/C++ and Oracle DBAs to be removed from the list. A final answer is expected on this next week from Work Permits UK.

On February 14th the PCG handed over their dossier of alleged abuse of the scheme to Work Permits UK, this was covered by the Today Programme on Radio 4. Philip Ross explained to listeners that 'UK workers were losing their jobs on the Friday only to have their desks filled by foreign workers with permits on the Monday morning'. Lord Rooker, the government Minister for the scheme asked for evidence that the scheme is being abused and Philip Ross said the dossier was being sent in that day. Philip warned any companies abusing the scheme that the PCG was working closely with 'Work Permits UK' to stamp out any abuse. You can listen to a realaudio recording of this on the BBC's web site at
http://www.bbc.co.uk/cgi-bin/radio4/today/listen/audiosearch.pl?ProgID=1013688560.

An article also appeared on the Radio 4 web site and in the business section of BBC on-line,
http://www.bbc.co.uk/radio4/today/reports/politics/visas.shtml
and
http://news.bbc.co.uk/hi/english/business/newsid_1820000/1820005.stm.
It is believed that one reason that FTV permit workers are cheaper is that they are not paying adequate taxes in the UK. The Inland Revenue's rules state that if workers stay in the UK for 6 months or less they are not eligible to pay UK taxes.
http://www.inlandrevenue.gov.uk/cnr/faqs_general.htm#11
This is because workers will tend to pay taxes on this income in their home country. However firms bringing workers in from India will find that they do NOT have to pay taxes back home. New tax rules there state :-

“Profits derived from export of software (including some of IT Enabled services) are exempt from Income Tax under Section 80HHE of the Income Tax Act.”
(http://www.siliconindia.com/itindia/article_detail.asp?article_id=186&category_id=100).

Since the broadcast of the piece on Radio 4, the issue has been covered by much of the IT trade press. As a consequence, the PCG have received evidence for over 75 more cases which in due course we will be submitting for investigation. We will continue to work closely with Work Permits UK.

If anyone would like to submit details of how the scheme is being abused then email us at [email protected] or fill in our form at
https://www.pcgroup.org.uk/ftv/index.html

There is growing evidence too that many of the workers coming in are not being paid proper rates. Some firms are putting UK workers out of jobs, profiteering from the scheme and exploiting the workers that they do bring in. We would also like to hear from permit workers themselves if they feel they are being exploited. Contact us as above.

2. Calling all Micro-processing Engineers

The PCG has been invited to submit evidence to the House of Lords Science and Technology Committee for their new enquiry into innovations in micro processing.
http://www.parliament.the-stationery-office.co.uk/pa/ld199697/ldinfo/ld16sctk/ld16sctk.htm

We would like to ask members if they would like to co-operate with this. Anyone with expertise in this field who would be interested helping the PCG to prepare a submission please email us on [email protected]

The questions being asked by the committee are as follows:

"Matters on which evidence is invited
Incremental refinements to existing microprocessor technology (coupled with improvements in architecture and software) continue to yield remarkable increases in computing speed. However, better approaches may be available and, if the demand for ever greater speed continues, will be needed, as the physical limits of present technologies are reached.
The Sub-Committee would welcome comments on the matters outlined in the preceding paragraph and, in particular, on the following questions.

a. What are the main drivers for increasing computer speed? Is there any reason to expect that the demand for increasing speed will abate?

b. What are the physical limits to the speed of processing based on present techniques? When are these limits likely to be reached?

c. What are the most promising alternative techniques and technologies for achieving ever greater processing speeds over the next 15 to 20 years? What expertise does the United Kingdom have relevant to these?

d. Are there significant rôles for the United Kingdom in future developments? What international collaborations would be beneficial? What actions should be taken by the Government (through innovation policies and otherwise), publicly-funded research bodies and the private sector?"

3. PCG Members Survey

So far there has been an excellent response to the members survey, but we´d like more! We are especially interested in hearing from newer members, and those members who are less active in the PCG. The survey will only take a few minutes to complete online.
http://www.zoomerang.com/recipient/survey-intro.zgi?ID=Q86E3YGCTGV6&PIN=KYLLM9QL5XW4.

REGIONAL NEWS
- - - - - - - - - - - - - -
Real Life Meetings

For the latest information and to start a local group see
https://www.pcgroup.org.uk/threads/wwwthreads.pl?a=l&f=meet

To promote your local meet through the newsletter – email [email protected] with REGIONS in the subject matter, details of the event and a name and email contact point/or phone number for further information.

Wokingham
***********
Thursday 28th February
The Ship
Time: from 7:30
Contact: [email protected]
or check: www.adb-enterprises.com/pcg_tv.html

Welwyn
**********
Date: Thursday 28th February 2002
Time: 7:30 pm onwards
Venue: The White Horse, Mill Lane, Welwyn

West Midlands
**********
Date: Thursday 7th March 2002
Time: 7.00 pm
Venue: Rose & Crown, Junction 3 of M42
[email protected]

New Groups
**********
Anyone interested in a meeting in Rugby, Den Haag or Brighton should follow the link below
https://www.pcgroup.org.uk/threads/wwwthreads.pl?a=l&f=meet

Alison Edwards
(PCG Executive Team)

* * * * * * * * * * * * * *
This newsletter is published by the Professional Contractors Group.
Please feel free to circulate the newsletter to other independent contractors who may be interested in joining the PCG. Members are also encouraged to share the latest news and analysis with interested agents, clients and accountants.

Some links in the newsletter will take you into the password-protected members' area of the PCG website. If you have forgotten your password, contact https://www.pcgroup.org.uk/scripts/public/access/form.pl
To view the Forum links in this newsletter, you must be first logged into the Forum. Further details available at
https://www.pcgroup.org.uk/members/discussion_forum.html