Small Business, Enterprise and Employment Bill

Debate between Catherine McKinnell and Chuka Umunna

Wednesday 16th July 2014 Commons Chamber

[Catherine McKinnell]

My hon. Friend is making a powerful argument. Further to the Secretary of State’s response to my inquiry about a constituent who came to me, I just want to clarify that she had already gone to the helpline and been told that she had to go to tribunal, but she did not want to do that because she was frightened of the costs.

[Mr Umunna]

That is an example of the effects of what this Government are doing, which I think is truly reprehensible.

The other issue about tribunals is that there is a serious problem of non-payment of employment tribunal awards. We therefore welcome clause 136, which will allow for the imposition of financial penalties on employers who fail to pay the compensation that is awarded at tribunal. Indeed, the Department’s own research indicates that in 2013 just 49% of people successful at tribunal were paid all the compensation due to them, with 35% receiving none of their compensation at all. However, I am not too sure how these provisions are intended to be enforced or what will happen to those seeking redress from a company that has gone insolvent, for example. That is another issue for Committee.

Let me move on to where I believe there will be real disappointment at the modesty of the Government’s proposals, starting with the national minimum wage. We know what the Conservative party’s argument is going to be at the next general election—all this nonsense about Labour ruining the country. Let me remind Conservative Members that, when we entered government in 1997, some people in this country were earning as little as £1 an hour. We are proud to be the party, along with an entire labour movement, that saw to it that a national minimum wage was introduced. For that reason and many others, I am more than happy to debate our record and the real difference we made to the country when we were in office. We left it in an immeasurably better situation in 2010 than we found it in 1997. [Interruption.] As I said to the new Minister for Business and Enterprise, I am happy to debate these matters with him in future.

Economic Growth and Employment

Debate between Catherine McKinnell and Chuka Umunna

Wednesday 23rd November 2011 Commons Chamber

[Mr Umunna]

It is clearly the case, as we saw from the evidence of the Department’s permanent secretary to the Business, Innovation and Skills Committee a couple of weeks ago.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

I reiterate the point about the expertise that has been lost due to the abolition of the RDAs. The European regional development fund is another vital source of money for businesses. Millions of pounds, particularly in the north-east, remain unspent, and only one fund, from the regional growth fund in Manchester, has been used as match funding for ERD funding. That is a huge waste of important business support that could be going to people throughout the country.

[Mr Umunna]

Perhaps the Secretary of State will address that comment in his response.

Almost one year after the regional growth fund was announced, and six months after due diligence should have been completed, the winning bidder to which I have referred has still not received any money from the regional growth fund. It is clear to me, in that case, where the blame lies for the delay: it is not with the successful bidder. That organisation provides onward distribution of fund awards to businesses that desperately need it. As a result of the chaos, confusion and delay, the bidder in that case tells me that between 3,000 and 4,000 businesses are being deprived of the moneys they need, putting an estimated 11,800 jobs at risk.

What about the other bidders that provide the onward distribution of funds, and the businesses that could support jobs and growth? As I have said, the situation is a fiasco. It is no way to run a Department, and it is no way to treat our businesses or grow our economy. The Secretary of State and his Department are not doing enough to get our economy growing; what little they are doing, they are doing badly.