Rana Plaza: Fashion Industry

Lord Sugar Excerpts

Tuesday 10th December 2013 Lords Chamber

[Baroness Northover]

My Lords, this was a major disaster. We want to do everything we can to make sure that such disasters do not happen in future. Both the noble Baroness, Lady Young, and I made reference to the fact that the United Kingdom is doing a lot in Bangladesh, not least through the accord, which is legally binding and to which a number of UK and European companies have signed up. In the United Kingdom, we are working with British companies for the very reasons that the noble Baroness outlines. In September, the United Kingdom launched its action plan on business and human rights to give effect to the UN guiding principles on business and human rights. Its purpose is to see the changes that the noble Baroness identifies right the way through the chain of operations. Next spring, there will be an event focusing on this.

[Lord Sugar (Lab)]

The general retail industry, and importers in general, have reacted very well in embargoing factories that employ children. This was relatively easy for them, because they sent their inspectors to the factory and the position was clear. In the case of possible structural damage to buildings, the ability to appraise this is beyond the expertise of most commercial enterprises. After all—to take, for example, one of Britain’s leading retailers—Sir Philip Green is many things but he is not a structural engineer. Is it not the responsibility of Governments in those countries to ensure that building regulations are complied with and that safety certificates are issued which will assure importers that the manufacture of their goods in those factories is done in a correct and proper fashion? Will the Minister send a strong message to those countries, warning them that if those certificates are not forthcoming, it could result in the banning of importation of goods from factories that do not comply?

[Baroness Northover]

The noble Lord is right to identify responsibilities here. There are responsibilities, as the noble Baroness indicated in her original Question, in terms of the brands themselves and the work that they do. Clearly there are responsibilities in the countries concerned. In the case of Bangladesh, there is a legally binding accord that includes the unions representing garment workers, and independent structural and fire safety inspections are being undertaken of the factories from which these companies are sourcing. It is very important to make sure that regulation is in place and that it is properly implemented,