Payday Loans
Debate between Baroness Wilcox and Lord Newby(12 years, 11 months ago)
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Baroness Wilcox
I agree with the noble Lord that a well informed consumer is an empowered consumer. The information which is given out is often process driven by the people wishing to lend the money rather than those trying to borrow it. I have spent a long time looking at this, so I am with the noble Lord. I would welcome any ideas that he has which would enable us to work together on this.
Lord Newby
My Lords, does the Minister agree that one of the problems is that for many people of modest means there is a sparsity of easily accessible places in which to put their money and from which to borrow? What are the Government doing further to promote credit unions, which are the most obvious way for many of these people to manage their money?
Baroness Wilcox
My noble friend is absolutely right: credit unions are the way to go. Why they have never taken off in Great Britain, I will never know. For years and years consumer groups have tried to get people to save with credit unions. However, the Department for Work and Pensions will shortly report on its study on how we can best support these credit unions, which wish to extend their services to benefit many more customers.
Economy: Growth
Debate between Baroness Wilcox and Lord Newby
Lord Newby
Does the Minister agree that Whitehall has a very poor track record in getting major infrastructure projects moving forward expeditiously? Can she therefore tell us what steps BIS is taking to support the initiative of the Chief Secretary to kick start 40 major infrastructure projects?
Baroness Wilcox
He is doing everything he can. It is a good question and I am happy to respond to it. We are obviously committed to an export-led recovery, which is important to us. The Plan for Growth and the Trade and Investment White Paper have set out how we can better exploit opportunities in this area. I shall respond to the noble Lord’s specific point in more detail.
Financial Reporting Council: Annual Reports and Accounts
Debate between Baroness Wilcox and Lord Newby(13 years, 10 months ago)
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Baroness Wilcox
Yes, my Lords, I suppose that that might save a few trees but at the moment, under law, we have to provide printed copies. I am sure that if your Lordships' House decided that it wished to debate the matter again, we might hear a lot more new ideas. I thank the noble Lord for the advice.
Lord Newby
My Lords, it might be the law at the moment that people can request a hard copy but the Financial Reporting Council is consulting on a proposal that it should no longer be a right. Given that many of those who need hard copies—because they are not very familiar with the web—are older people who rely on their shareholdings for their income when retired, will the Minister give a commitment on behalf of the Government that they have no intention of legislating for the change that is being consulted on?
Baroness Wilcox
As I said in the original Answer, the Financial Reporting Council is independent and can bring out any suggestions it wishes. The proposal comes from the council and does not represent the view of the Government. As I said, the law states that reports and accounts must be printed and made available. Until it is decided that the law should be changed, that is how it will stand.
Employment Law
Debate between Baroness Wilcox and Lord Newby
Baroness Wilcox
My Lords, we really feel that this will be a better way of going forward for both sides. What we are looking for here is flexibility for businesses, especially small and medium-sized businesses, to give them confidence, and fairness for employees. We hope and we know that the so-called “day one rights” will stay in place. The proposals will not affect the existing “day one rights” of people when they start to bring a case for unfair dismissal; for example, when they believe that gender, race or some other form of discrimination has taken place, or where someone is dismissed for exercising their legal rights, such as asking for a written statement or to be paid the national minimum wage. The proposals relate to the areas where we do not wish people to rush first to a tribunal. If the qualifying period is only one year, it means that everything starts to happen too quickly. I know through my business experience people who have come to work with no experience. It takes them a while to get used to the job, and extending the time will make the employer and employees take a better look at each other and see whether they can keep themselves together, rather than rushing to tribunals and not going to ACAS first.
Lord Newby
My Lords, does the Minister agree that the proportion of employment tribunal claims involving employees who have been working for between one and two years is very small indeed—well under 5 per cent—whereas the impact of the Government’s changes will, at this particularly crucial point, encourage employers across the country, particularly in small and medium-sized enterprises, to take on additional staff?
Competition Commission and Office of Fair Trading
Debate between Baroness Wilcox and Lord Newby
Baroness Wilcox
The noble Lord, Lord Borrie, with whom I have worked many times over the years, has the OFT as his expertise, so anything that he has to say on the subject is certainly worth listening to. When it comes to the consultation period in January, I am sure that all the points that he has just made will be taken into consideration. As I said before, we have absolutely no intention to ruin a good thing; the idea is to try to improve it. Therefore, the better the consultation, the better, and I look forward to his contribution.
Lord Newby
My Lords, the Minister will be aware that at the moment, consumer credit regulation is split between the FSA and the OFT. What is the Government's latest thinking on whether that responsibility should devolve to the proposed Consumer Protection and Markets Authority?
Baroness Wilcox
Once again, that is a very good question that I cannot answer at this stage, because we are not in the consultation period. Such matters worry people. I come from a background of seven years as chairman of the National Consumer Council, which became Consumer Focus, which will now be merged with the CABx. There will be a whole new range of consumer representation. I think that it should be a very exciting and empowering time, and I look forward to it.
National Minimum Wage Regulations 1999 (Amendment) Regulations 2010
Debate between Baroness Wilcox and Lord Newby
Lord Young of Norwood Green
My Lords, I welcome the Minister’s support for the previous Government’s proposals and what appears to be a Damascene conversion to the cause of the minimum wage. However, I do not wish to be churlish. The relevant adult rate was also proposed by the previous Government, and so I welcome it. The challenge for the Government in announcing 50,000 new apprenticeships is to create apprenticeships for 16 to 18 year-olds, which we always regarded as a key target area. I would welcome confirmation that the Government will not embrace the view of Mr Christopher Chope in the other place who proposed a Private Member’s Bill which would allow people to be paid below the minimum wage. I would welcome confirmation from the Government that they will not support that approach. Other than that, I welcome and support this statutory instrument.
Lord Newby
My Lords, we welcome these proposals. Unlike our view on the measure we discussed earlier, where we considered that the Government’s plan to protect and support people on low incomes was poor, we believe that the minimum wage is an unambiguous success. It is interesting to recall that when the minimum wage was being proposed siren voices suggested that hundreds of thousands of people would be put out of work as a result. That did not happen at all. All that happened was that hundreds of thousands of people were paid a decent wage instead of an indecent wage. That has undoubtedly helped to make society fairer.
It is therefore extremely welcome that the Government have approved and implemented the recommendations of the Low Pay Commission. The commission now clearly has bipartisan, or tripartisan, support and is almost beyond reproach in terms of a body assisting government to come to sensible conclusions. I seek an assurance from the Minister that this support this year for the Low Pay Commission and its work is likely to inform the Government’s view going forward and we can expect next year and in subsequent years that when the commission comes forward with its report the Government will approve it, as they have done this year. We are happy to support this statutory instrument.
Baroness Wilcox
My Lords, I am very grateful to the noble Lord, Lord Young, and to my noble friend Lord Newby, who have in principle supported this measure and asked one or two questions. The noble Lord, Lord Young, mentioned the challenge of the 50,000 new apprenticeships and 16 year-olds. Yes, it is a challenge; there is no doubt about that. But we will strive to do the best we can on this. He asked me to confirm that the Government will not embrace the Private Member’s Bill about the minimum wage. I do not know anything about this Bill, so I certainly cannot support something that I do not know anything about. So that is all right.
My noble friend Lord Newby said that this was beyond reproach. That is absolutely splendid. He asked for an assurance that the Government, who are supporting the Low Pay Commission this year, will do the same next year. If it says good things next year, I am absolutely sure that we will. So there we are.
The issues that we have been discussing are important because they concern the economy, employers and workers, so it is therefore right that we give careful consideration to these issues. I am very grateful to the noble Lord, Lord Young, and to my noble friend Lord Newby for their support. I commend these regulations to the House.