Payroll Companies
Debate between Lord Cryer and Jim Sheridan(11 years, 11 months ago)
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John Cryer
My hon. Friend makes a very good point. It would be a sensible solution for the Department to conduct an inquiry into the various tax dodges, particularly in construction, but in other industries as well; into blacklisting and all those slightly shadowy practices, some of which are straightforwardly illegal, some of which verge on illegality and some of which are straightforwardly legal; and into how it affects people and business and economic confidence.
Jim Sheridan (Paisley and Renfrewshire North) (Lab)
Apart from the impact on employees, such an inquiry might cover how much damage is being done to small and medium-sized enterprises in the construction industry, which are suffering seriously during this recession only because they treat their employees fairly and are undermined by such people.
John Cryer
That is a very good point. I have met many employers, including in my constituency—I represent two boroughs, Redbridge and Waltham Forest, because it crosses borough boundaries—who have told me exactly that: “We are a legitimate employer. We want to do our best by our employees. We want to protect them. We want to give them decent wages, holiday pay, sick pay, pension entitlements and all that. Sadly, however, we are being undercut by people who are frankly cowboys.”
It would be an excellent idea for BIS, perhaps under the leadership of the Minister, to look into such practices and see exactly what is going on. Those practices are not often brought into public light, partly because people who suffer under them are very nervous about reporting them. People have come to my surgery, as they probably have done to those of many other hon. Members, to tell me about such practices, but as soon as I ask them whether they will go on the record, they say, “Well, no. I can’t go on the record, because I will never work again, at least not in the industry”—for instance, construction—“as I will effectively be blacklisted.”
In conclusion, the two elements—the loss of money to the Treasury, which is very significant, and the loss of rights and pay, the resulting loss of economic confidence and the basic unfairness of some of the practices—should be brought to light and be ended, which is why I am interested to hear the Minister’s response.