GSD Welcomes Residency Changes And Calls For Further Reform

The GSD has welcomed the Government’s decision to create a new residency route for financially self-sufficient applicants over 55, but says further changes are needed.

A statement from the GSD follows below:

The GSD welcomes the Government’s decision to amend the Residency Regulations and create a new route for  financially self-sufficient applicants over 55. Requiring private medical insurance, an appropriate contribution to the  health system and at least six months’ annual residence represents a more balanced approach than the arbitrary and  discriminatory restriction originally introduced.

This is a welcome,sensible and inevitable U-turn given that the original policy was bad for Gibraltar. Ms Arias-Vasquez’s  initial policy in this respect was badly thought through and highly criticised. It reflected poor consultation and it is no  surprise that there has had to be rapid backtracking. 

The U-turn recognises the concerns consistently raised by the GSD and Gibraltar’s business community that the original  policy risked excluding experienced professionals, entrepreneurs and investors who could contribute significantly to  our economy. 

However there remain aspects of Ms Arias-Vasquez’s policy that are still poorly considered and directionless in its  approach as well as being detrimental to our economy.  

The Government should now also show the same flexibility at the younger end of the scale and reverse some of those  policies and rules. Salary thresholds should reflect age, experience and career stage, as is common in many  international systems. Young graduates and early-career professionals will naturally earn less than established  workers, but that does not make their contribution less valuable, in fact, they form a critical part of our economic  growth. Younger entrants are generally working, economically active and less likely to place significant demands on  health and care services. They pay tax and social insurance, spend in our economy, support local businesses and  provide the essential skills our key sectors need to grow. Their contributions help finance the very public services and  infrastructure that the residency policy is intended to protect. 

Additionally, the salary threshold should be reviewed downwards. All that it is doing is pushing labour to Spain,  increasing reliance on Spain and detracting from inward investment. In certain key economic areas this will prove  negative for Gibraltar on all these fronts.  

The GSD therefore calls for: 

• a more realistic and graduated earnings threshold for younger applicants; 

• a clear and accessible route for graduates, trainees and early-career professionals recruited into sectors important  to Gibraltar; 

• objective and published criteria, avoiding excessive reliance on individual ministerial discretion;

• proper consultation with employers, the Chamber, GFSB, GFCC and other representative bodies before further  amendments are finalised; and 

• a formal monitoring mechanism assessing applications, the effect of the sub £37,500 surcharge on businesses and  recruitment, refusals and their impact, tax and social-insurance contributions and demand on public services;

• a review downwards of the salary threshold.

Craig Sacarello, MP with shadow responsibility for Business and Inward Investment commented, “No economic-impact  assessment was published before the original policy was introduced. In its absence, the Government should commit  to publishing regular data so that Parliament, businesses and the public can judge whether the framework is meeting  its objectives or damaging recruitment and growth. 

We welcome this change because it moves the policy towards contribution rather than arbitrary age barriers. The  Government should now complete that correction by recognising that young workers are not a burden on Gibraltar;  they are the skilled employees, taxpayers and future business leaders on whom our economic growth and public  services depend. Additionally, further measures should be reversed in line with the criticism levelled at the  Government by those on the front-line of attracting business, investment and jobs to Gibraltar.”