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Jon Cruddas

Labour party deputy leadership candidate Jon Cruddas has called for the government to do more to help immigrants living in Britain to send money to their families in developing countries.

Writing on the new political website, TMP, set up for Black, Asian and minority ethnic people, Jon Cruddas MP for Dagenham in east London, said of immigrants from developing countries:

“They often work long hours, are poorly paid and hold down several jobs at a time.”

“Despite these hardships, migrant workers here from developing countries manage to send money — referred to as ‘remittances’ — to their families in their countries of origin, which it is estimated totaled more than £2.3 billion last year.”

Commenting on remittances, Cruddas said: “The government has done a lot of work to increase competition and transparency in the money transfer market for remitters for which it deserves credit. But we must go further. We must look at other ways of ensuring remitters can make the most of the money they send to relatives in the least developed countries in the world.”

Cruddas called for the government to act before the next G8 summit and help remittances go further.

He said: “The government should explore setting up a not for profit, money transfer agency through which remitters could send funds home. This would ensure individual remittances can be sent for minimal (or no) fees.”

“More and more remitters from the same local communities in developing countries are collectively pooling together remittances through home town associations. The government could set up a register of such associations and should consider giving registered associations tax relief on the funds they remit.”

Published: 04 May 2007
Issue: 1267

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