Lord Cameron of Lochiel (Con)

My Lords, I thank the Minister for introducing the order. The principle behind the changes that he has just outlined is well-established. Since 2003, under the then Labour Government, successive Administrations have accepted that immigration and nationality fees may be set above administrative costs in order to contribute to the wider operation of the system. We have consistently supported the view that those who use and benefit from the immigration system should make a fair contribution, reducing the burden on the taxpayer. As the Minister outlined, the instrument is a precursor to proposed increases in the maximum fees that may be charged across a range of products. The ETA will rise from £16 to £20, visit visa maxima will be uprated, the cap for limited leave and settlement will increase, and nationality-related maxima, including naturalisation as a British citizen, will rise. With the exception of the ETA, these increases are 6.5%. The impact assessment suggests that setting fees at these maxima could generate around £1.8 billion over five years. That is significant revenue in the context of a system whose annual costs run into many billions. The Government argue that demand for visas is relatively inelastic and that modest increases do not materially reduce volumes. If that assessment is robust, it provides a rational basis for the approach. In our view, two issues merit scrutiny. First, the ETA increase represents a 25% rise. Has any assessment been made of the impact on visitor numbers? Why was £20 judged the appropriate level? Given the acknowledged uncertainty in the modelling and potential implications for tourism, including in Northern Ireland, it would be helpful if the Minister could update the Committee on any evaluation that is under way and confirm when its findings will be published. Secondly, how will the additional income be used? The Government have committed to reducing migration and tackling illegal entry, yet the costs of irregular migration remain substantial. Will the revenue primarily fund those pressures, or will it deliver tangible improvements in efficiency and border security? Does the Minister anticipate further increases in the near future? In closing, we support the principle of the order and will not seek to divide the Committee. However, it is right that we seek assurance that higher fees will support a system that is not only self-sustaining but demonstrably more effective. I look forward to the Minister’s response.