Commission on Race and Ethnic Disparities

Lord Bilimoria Excerpts

Wednesday 21st April 2021 Lords Chamber

[Baroness Berridge (Con)]

My Lords, yes, the Government commend the ambition of this report, which is for us to use it as

“a road map for racial fairness.”

I hope noble Lords have understood that, although we are not the country we were, and we are not in a perfect place—the commission does not say that—we want to work together. We applaud all those people who have stood against the injustices that we have seen decline over the years. We recognise that anywhere racist incidents exist, we all have a responsibility. It is not just government; wherever we see such incidents—many of us will have seen them in our own lives on public transport and places such as that—we must all speak up. We all have a responsibility to get to a racially fair society.

[Lord Bilimoria (CB) [V]]

My Lords, the CBI, of which I am president, recently launched Change the Race Ratio, an initiative to promote ethnic-minority participation in business. The Commission on Race and Ethnic Disparities made 24 recommendations. However, the disclosure of the ethnicity pay gap—one of the most transformative steps a company can take to address race inequality at work—was not one of them. Surely this should be a recommendation, as closing the UK’s ethnicity pay gap is about making our society fairer and more inclusive. Do the Government not agree that diverse companies perform better on every metric and that transparency should be the watch- word? While progress has been made on race inequality over the past few decades, there is still a long way to go.

[Baroness Berridge (Con)]

My Lords, yes, diversity of governing boards and businesses is indeed a strength. We obviously agree that people should be paid in accordance with their work and that there should not be an ethnic pay gap. However, it is the mechanism by which we get there that I believe we are in disagreement on. The report states that, when companies publish ethnicity pay gaps, they should also publish action plans and diagnoses as to how they are going to close that gap.