The UK’s delay in joining an EU immigration and crime system could damage attempts to fight cross-border law-breaking, according to a parliamentary report.

The Schengen agreement removes all border controls between signatory countries, but does not include the UK. It is underpinned by the Schengen Information System (SIS), which shares ‘alerts’ to assist law enforcement, and with which the UK was expected to participate.

The government is now being urged to put more resources into developing its £39m connection to the next-generation system – SIS II – which will include biometric data. The UK is now not expected to join until 2010.

House of Lords European committee chairman Lord Wright of Richmond says SIS II is an opportunity to deal with international crime and terrorism across Europe. ‘The government must do more to ensure the UK isn’t left out in the cold,’ he said.

So far the European Commission has spent ¤26m (£17.7m) on the system, and plans to spend a further ¤114m (£77.7m). SIS contains details of all those who have tried and failed to enter the EU illegally, suspected criminals from any member state, and details of those with European Arrest Warrants.

The UK should have been linked to phase one in 2004 but Home Office officials told the committee technical problems had delayed the programme.