(4 days, 18 hours ago)
Grand Committee
Lord Johnson of Lainston (Con)
My Lords, I am sorry, but we will have to wait a few more moments for the noble Baroness’s excellent speech, which I know is coming filled with logic and reason.
I want briefly to speak in favour of many of these amendments. I echo the points made by the noble Lord, Lord Dodds, on the importance of the validity of the evidence relating to the TPD. Does the Minister feel that this legislation is in the spirit of the Windsor Framework? It may be technically in line with it, but is it in the spirit of it to have two totally different trading environments on the island of Ireland? I am not sure whether information relating to the potential objections from member states to this is published and can be accessed. What can the Government tell us about the objections and the information that we can gather around that? If the Government will not accept these clear, simple and reasonable amendments, why not?
Creating a smoke-free generation is extremely groundbreaking and novel, fundamentally trampling on the human rights of an adult to make a free decision. This is seismic, though I disagree entirely with it. Many in the Committee believe in this and I have the greatest respect for the Minister, but it is a significant move away from all the liberties that this Parliament and Parliaments over many centuries before us have tried to protect. If we go down that path, it is important that there is true validity, that every option has been explored and that all the legal issues have been thoroughly explored. If not, you will lose the cultural change, which is what this is about. This is not just a technicality, about trying to change the law to reduce some act. It is a huge cultural change, changing the activities of people in this country. If it is done in a nefarious or opaque way and there are further complexities with endless legal challenges, it will lose its impact. It is important that we are open as to where the problems are and that we understand them better. Simply being told that everything is okay is not good enough.
I support the amendment tabled by my noble friend Lord Murray and will follow on from the well-made points from the noble Earl, Lord Russell. The Better Regulation Framework is an important component of how government functions. I challenge any Minister to explain to me what the Better Regulation Framework actually contains; I am afraid that I have never seen an example of it being properly followed. The key component is not just the nature of proportionality, which many laws simply do not fulfil, but the principle around a review of the effectiveness of regulations, their costs and impact. I have never seen a post-implementation review of any regulations; I am sure that they must exist somewhere, but I do not know how useful they are. In this instance, a review must go into the legislation in a very clear way. We must ask how we will assess whether this has been a success and we must establish now what that means. We should also make sure that we have some type of sunset, to ensure that there is a sense of focus.
The noble Earl, Lord Russell, mentioned the costs of implementation. To that I would add—forgive me if I misheard him—the effects on crime; whether the illegitimate marketplace has increased significantly, which we would expect; and whether it has actually worked. The amendment tabled by my noble friend Lord Murray has great logic, because if we were to create a smoke-free generation, surely all these excessive regulations, checks and so on will not be required, as no one will be engaging in tobacco usage of any sort.
I am aware that some of the amendments that we have put down challenge the principle of creating a smoke-free generation. We believe in them but, in this instance, we are looking at pieces of additional legislation that will make the Bill better. If the Government truly believe in their ambitions, our amendments will make them more likely to succeed.
My Lords, I strongly support my noble friend Lord Russell’s Amendments 195 and 196. As he said, they intend to support the core principles of the Bill and ensure effective delivery. It is one thing to legislate; it is quite another to deliver and even to implement. I am currently involved in following measures that were put into legislation through the Health and Care Act 2022, which have still not been implemented. We must make sure that things like that are properly implemented.
Whatever the Government’s intentions are now, when the facts change a sensible person changes appropriately, albeit along the same core principles. A number of potential barriers along the way have been suggested by noble Lords as we have debated the Bill, including today, such as an expansion of the illicit market; the possible clever responses of the tobacco industry to get round the intention of the Bill to protect young people and achieve a smoke-free generation; and technical issues such as age-gating, age verification and so on.
Although the Bill gives the Government wide powers to act, my noble friend’s points about having two reviews, to which his amendments would mandate the Government to adhere, would give naysayers confidence that any unintended consequences would be dealt with either by the Government using the powers in the Bill or by introducing further legislation if necessary after the reviews.
I particularly support my noble friend’s inclusion of nicotine use in his request for reviews. Although the use of vapes as a quitting tool has already been shown to be effective, we all know that they have been taken up by large numbers of young people who have never smoked tobacco. However, the industry is still very young and there is still little evidence about the effect of both the flavour additives and the long-term use of nicotine on the young brain and lungs. Over the coming years, that evidence will emerge one way or another. We already know how addictive nicotine is and that it can make people feel stressed, restless, irritable and unable to concentrate. That is problematic for children in school, which is the very reason why sales of nicotine vapes are banned for under-18s, although illicit sales to younger people are really problematic for teachers.
We also know that nicotine leads to short-term increases in heart rate and systolic blood pressure; as I understand it, that is why tobacco pouches are endemic among professional footballers before a match. Unfortunately, this habit is being copied by many of their young fans. Some use several of them, resulting in dizziness, nausea and, in a few extreme cases, fainting. We do not know about the long-term effects of the use of nicotine by very young people, as the research focuses on users of legal age; this is the sort of thing that may emerge over the next few years. As to the future, we will see how well vapes and other nicotine replacement therapies work as quitting tools. We need to be sure that the legislation will respond to this and other evidence.
These two age points are significant since they have been suggested as an alternative by some opponents of the generational escalator in the Bill. Why not, they suggest, simply raise the legal age of sale to 21 or 25? A promise of reviews at these age points will help encourage those people to support the Bill as it stands, so I hope that the Minister will accept these two amendments; I prefer them to the amendment in the name of the noble Earl, Lord Howe, except that I certainly support his reference to small businesses. I am sure that noble Lords will know about these matters from previous debates, but perhaps we could put our heads together before Report.
On the amendments in the name of the noble Baroness, Lady Hoey, regarding the EU’s Technical Regulation Information System and the standstill period that now impacts on the Bill, it is important to note that several EU countries, such as Greece, Romania and Italy, object pretty routinely to all tobacco control legislation in the EU. There is no new information today that is cause for concern regarding this Bill.
On the legal opinion to which the noble Baroness referred, it appears to have been shared with only the Daily Mail—it certainly has not been published—so I am unable to take a view on it; besides, doing so is probably beyond my skill set and pay grade anyway. I just hope that the Minister has good legal advice.
There is a point to be made here, however, about how the UK seems to have found itself in the worst of both worlds, with EU states being able to object to legislation that we wish to bring in to protect the health of our nation but with us having none of the benefits of being a member. That is a point for another debate, though. I hope that the Minister can confirm that any such objections will not be binding on the UK; and that this sovereign Parliament will be able to push ahead with this important legislation.
I turn to Amendment 216 in the name of the noble Lord, Lord Murray of Blidworth. He appears to be expecting a different Administration in the next Parliament; I will leave it to the Minister to reply to the noble Lord’s comments.
(2 years, 6 months ago)
Lords ChamberMy Lords, I do not always find myself in agreement with the noble Lord, Lord Robathan, but in this case I give him three cheers. He is absolutely right: it has been totally unfair that people have not received the tips they should have. In the past, I have myself asked the question of whether the 10% was going to go to all the staff and, when told that it was not, I refused to pay it and left cash on the table for the waiter. That is one way of dealing with it. The Bill of the noble Lord, Lord Robathan, is another, and I congratulate him and support it.
The Minister of State, Department for Business and Trade (Lord Johnson of Lainston) (Con)
My Lords, I thank my noble friend Lord Robathan for bringing the Employment (Allocation of Tips) Bill through the House. I agree with him on many things, and particularly on this. I also thank noble Lords from across the House, particularly the noble Baronesses, Lady Blake and Lady Chapman, who spoke in recent debates, for their valuable contributions on the Bill during its passage.
The Government are very pleased to support this important Bill, which deals with tips, gratuities and service charges, which I will subsequently refer to as “tips”. The measures in the Bill will protect millions of workers. We believe that tips should be passed on in full and without deduction to workers. Indeed, many across this House and across the country would regard that as common sense. Tips left by customers are intended to reward the hard work and excellent service of staff rather than topping up the revenue of businesses. The Government are therefore pleased to support the changes made through this legislation and to hear support for it across this House.
I will restate what these measures will do once legislative passage is secured, and what they will not do. Employers will be prevented from making any deductions when distributing tips to their employees, with the exception of those already required or permitted—for example, by tax law. Existing legislation already sets out how tips should be treated for the purposes of tax and national insurance, as the requirements differ depending on whether the payments are made by cash or card and on whether tips are paid directly to workers or are processed and distributed by the business or an independent tronc. No changes are proposed to these tax laws. The majority of businesses, those who already do the right thing in passing on tips in full to their employees, will be largely unaffected. The Bill will ensure a level playing field.
On the statutory code of practice on tipping, when considering the distribution of tips in their organisation, employers will be required to have regard to the statutory code of practice, which will promote fairness and transparency in relation to the distribution of qualifying tips that will include various example scenarios. Employment tribunals will also be required to have regard to the code of practice where relevant in the event that a worker takes a claim against their employer on the grounds of unfair or improper tipping policy or procedure.
We expect that these tipping measures and the code of practice will come into force about a year after Royal Assent is granted to the Bill. This will ensure time for adequate stakeholder input, including a full consultation period, before the final version is brought before both Houses of Parliament for approval. I stress that, from conversations we have had with the industry, it is important that the variabilities to ensure fairness are properly considered, so a proper consultation period is necessary and right.
To conclude, bringing forward this new law will protect millions of workers, among them many of the lowest paid, and give them an avenue to seek remedies. Consumers will be able to rest assured that the tips they leave are going, as intended, to reward the good service and hard work of staff, rather than boosting the revenues of businesses. Additionally, businesses that are already doing the right thing—passing on tips to workers in full without deduction—will be able to be confident that they are not at risk of being undercut by their less reputable competitors.
The Government are pleased to support these new measures and have been glad to see the level of support for them across both Houses during the passage of this Bill. The Government are committed to fairness and to providing opportunities for hard-working people, which is exactly why we are supporting multiple pieces of employment regulation, including this one, on tipping. Ultimately, this Bill is about granting fairness to service workers, who for too long have not had protection from bosses taking tips, and about making sure that customers’ intentions to recognise good service are met. I am personally very pleased to support these new rules. I again thank my noble friend Lord Robathan for his sponsorship of the Bill as it has moved through the House. I also thank my honourable friends Dean Russell and Virginia Crosbie for their sponsorship in the other place and their hard work in this area.