National Minimum Wage

Lord Hannan of Kingsclere Excerpts

Wednesday 21st February 2024 Lords Chamber

[Lord Offord of Garvel (Con)]

I thank the noble Lord for that. There is a wage scale, as he will well know. For those aged 18-20, it is £8.60 an hour and for those under 18 it is £6.40 an hour, an apprentice rate. The point of this is a scale. We all start work on lower wages and increase our wages as our skill levels increase. We must not be in a situation where we, in effect, lock young people out of the market. We must ensure that young people get into the market earning wages and then increase their skills and their wages. The noble Lord will know well that many studies have been done on the wage scar, which blights young people if they do not get into a job early and get training. We want young people in a job early, trained up, so they can increase their wages.

[Lord Hannan of Kingsclere (Con)]

My Lords, has my noble friend the Minister’s department made any assessment of whether these increases in the minimum wage, which go well above and beyond average wage increases, have impacted the ability of companies to take on interns, which is normally the main route into employment; whether they have had an impact on speeding the adoption of automation and assimilating the upfront costs; whether employers respond by cutting in-work benefits, discounted meals and so on, to compensate; and, not least, what the impact is on the price rise of the finished product, because often people on minimum wages are also consumers of minimum wage products? If, for example, fast food becomes much more expensive, it is not going to be hedge fund managers who pay.

[Lord Offord of Garvel (Con)]

I thank my noble friend for that. The cost to business is a consideration that we must consider. The cost of this particular increase will be £3 billion over six years and I emphasise that it will fall largely on the SME community. Some 99% of our companies are SMEs, with 2.5 million VAT-registered companies. Setting aside the 10,000 companies that employ 30% of the workforce, 60% of the workforce are employed in SMEs and they are bearing the brunt of exactly these wage increases. We survey employers and they want to pay higher wages. We want a good, well-paid workforce but we must do so in a way that balances the needs of business and workers.

UK-Canada Trade Deal: Suspension of Negotiations

Lord Hannan of Kingsclere Excerpts

Tuesday 30th January 2024 Lords Chamber

[Lord Offord of Garvel (Con)]

I thank the noble Lord for that question. We fundamentally agree with that. We have been talking with the cheese manufacturers all the way through this. We send £200 million-worth of food to Canada and it sends us the thick end of £600 million back, mostly wheat, maize and lobster. However, we do not want to take the hormone beef. That is where the beef is. The issue, therefore, is that we have £18 million of trade that we need to try to support, and we will do our best to support those impeccable farmers, especially in the West Country and in Wales.

[Lord Hannan of Kingsclere (Con)]

My Lords, Canada is notorious for gearing its trade policy around its dairy sector, which is particularly strong in Quebec. However, is not the wider issue here whether Britain will always follow EU rules on sanitary and phytosanitary standards? According to the WTO, SPS measures must never be economic and can be justified only by science. The EU’s ban on these various kinds of beef has been condemned by its own scientific advisory agency and by the WTO. Is it the view of my noble friend the Minister that our SPS regime, as long as it is tied to the Brussels one, it is compatible with WTO regulations?

[Lord Offord of Garvel (Con)]

This is the issue. Canada has been in a recent—2016—deal with the EU and understood the SPS rules of the EU. It understands fundamentally that we are not reducing our rules on SPS, but it has seen an opportunity, and you go for the gap when you see the opportunity, do you not? If you are a trade negotiator, you think to yourself, “Where can I get my point of advantage?” On our two outstanding issues, the cheese and the rules of origin—where, again, we are pretty much sorted with a rollover from the EU—Canada has seen an opportunity to cross that line. It is a pause in negotiations and we will get back round the table as soon as it comes back over the red line.

British Steel

Lord Hannan of Kingsclere Excerpts

Wednesday 8th November 2023 Lords Chamber

[The Earl of Minto (Con)]

My Lords, I do not think I said that we are throwing employees into a wide market. In fact, I think I said that we would provide support to see them through the transition. We have a fair and open market for Chinese investment in this country. It is a major world trading relationship and, while I understand some of the political issues behind it, just to avoid a country of that weight is slightly isolationist.

[Lord Hannan of Kingsclere (Con)]

My Lords, will my noble friend the Minister confirm that the industries that use steel employ many more people than the industries that make steel? We have 34,000 steelworkers and 176,000 people making cars. We have the better part of 0.5 million working in agriculture and 2 million working in construction. The way to protect jobs is to bring the price of steel down, not raise it. Will my noble friend confirm that our Trade Remedies Authority found no case whatever for the tariffs that we have inherited from the EU and continue to maintain on imported steel? Will he make clear that the way to make this country competitive is to remove excess costs on energy so that our industry can compete? By the way, we are still our own biggest supplier by far, and no foreign country accounts for more than 14% of our imports.

[The Earl of Minto (Con)]

That was a very detailed question indeed, with which I entirely agree.

Baby-changing Facilities

Lord Hannan of Kingsclere Excerpts

Tuesday 6th June 2023 Lords Chamber

[The Earl of Minto (Con)]

Although that is not entirely within my brief, I entirely agree.

[Lord Hannan of Kingsclere (Con)]

My Lords, I wonder whether the Normandy landings would have been so successful had they all been obliged to have baby-changing facilities on every vessel. This idea of state regulation for baby changing takes the nanny state to a literal level. Can my noble friend the Minister confirm that, in the other place, the Government were elected on a manifesto promising minimal regulation, and that providers of services have every incentive to offer their customers the best deal they can afford without needing to be told what to do with the full coercive power of state law?

[The Earl of Minto (Con)]

My Lords, I entirely agree. In fact, my role is about regulation and reducing the amount of it. We should all agree that, by reducing regulation, business becomes easier and more productive, everybody’s salaries improve and there are increased job opportunities.

CPTPP: Conclusion of Negotiations

Lord Hannan of Kingsclere Excerpts

Wednesday 19th April 2023 Lords Chamber

[Lord Hannan of Kingsclere (Con)]

I congratulate and thank my noble friend the Minister for enlivening this Eeyore-ish mood with some Tigger-ish enthusiasm. The benefits of CPTPP seem to be obvious to the lengthy list of countries which have formally applied for or are mulling membership—a list which includes Thailand, Taiwan, South Korea, the Philippines, Costa Rica, Ecuador, Colombia and Uruguay. Of course, I understand that my noble friend is bound by diplomatic protocol, but will he take this opportunity to express some optimism about the prospect of the United States joining that list? CPTPP was to a large degree negotiated not just by senior members of this Administration but by President Biden himself. American accession to that pact would allow an improvement in the terms of trade between our countries, bound together as we already are by language, law, custom, kinship, habit and history.

[Lord Johnson of Lainston (Con)]

I am always grateful to my noble friend for his eloquence. He is a very difficult act to follow, even though his question is so true to my heart. I am afraid I will not be drawn into suggesting who should potentially be admitted into the CPTPP because we are not yet members, but as I said, I am delighted that this entire organisation acts as beacon of free trade around the world. We want more countries to see the world through the lens of us and our aligned partners. I very much support, conceptually, many of my noble friend’s comments and I thank him for his support in this House and for continually making sure that the torch of free trade is held high in this place.