16/03/2011

Other UK News In Brief

Minister Responds To Visa System Report

The National Audit Office has published a report into the points based system for immigration. It finds that the system is well designed, but recommends that the UK Border Agency should improve its IT systems, and introduce exit checks which make it clear when someone has left the country. Damian Green said that he is committed to making improvements. He said: “This report is exactly why we are making radical reforms to the system, including the introduction of an annual limit on economic migrants, sweeping changes to the student visa system, and a shake-up of the family and settlement route. We are also committed to reintroducing exit checks by 2015. Counting people in and out of the country will give us better control over those that overstay. We are determined to reduce net migration to the tens of thousands, and clampdown on immigration abuses.”

Lower Mobile Rates To Benefit Consumers

Telephone customers may benefit from cheaper calls and greater choice thanks to a cut in mobile termination rates. These are the wholesale charges that mobile operators make to other operators to connect calls to their networks. From 1 April, Ofcom, the UK’s communications watchdog, will place a cap on the rates charged by all four national mobile network operators - 3UK, O2, Everything Everywhere and Vodafone. This will lead to around an 80 per cent reduction in termination rates over the next four years. Lower termination rates will hopefully benefit landline and mobile customers in two ways. Firstly, cheaper landline services will lower termination rates reducing the cost to landline companies of passing calls to mobiles. Ofcom expects these savings to be passed on to landline customers. Some operators have already promised to lower their charges.

More choice will also be available. Lower termination rates will increase competition in the mobile market, providing customers with more choice. Operators will have more pricing flexibility and will be able to increase the range of packages available to consumers. The new rates will apply from 1 April 2011 and end on 31 March 2015.

New Business-Friendly Competition Proposals Announced

A single competition authority to boost growth and streamline processes for business will be set up under proposals to improve the UK’s competition regime, Business Minister Edward Davey has announced. ‘A Competition Regime for Growth: a consultation on options for reform’ sets out proposals to create a single Competition and Markets Authority by merging the competition functions of the Office of Fair Trading (OFT) with the Competition Commission (CC). The UK already has a globally regarded competition system but Ministers are determined to make sure that it supports growth while simplifying the existing system for business. The proposals to strengthen and streamline the competition regime will help boost existing arrangements. This includes reducing the duplication of costs for business, and increasing industry confidence in the system. The Government wants to stimulate growth by allowing the market to be dynamic and competitive. Ministers also want to empower small and medium businesses by giving them greater support in the system.

(BMcN)

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27 June 2003
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