Oral Answers to Questions

Ann McKechin Excerpts

Thursday 8th January 2015 Commons Chamber

[Jo Swinson]

Unsurprisingly, I disagree with the perspective at the end of the hon. Lady’s question. I agree that there are serious issues with zero-hours contracts. Although they work well for many people, as backed up by Chartered Institute of Personnel and Development surveys, there are other examples—she highlights some from her constituency—where that type of contract is not used as it should be. That is why we are taking action through the Small Business, Enterprise and Employment Bill to ban exclusivity clauses and why we are going further, with the development of sector-specific guidance to show what the proper and responsible use of these contracts looks like.

[Ann McKechin (Glasgow North) (Lab)]

The Minister will be aware that in parcel and distribution services there is not only widespread use of zero-hours contracts but, as we have seen with the collapse of City Link, increased use of self-employed contractors, who have ended up with no rights to redundancy, with losing pay, and with being increasingly abused. How will the Minister regulate the sector so that we halt this race to the bottom in labour conditions?

[Jo Swinson]

The hon. Lady raises a genuine point. The Government do recognise this as an area of concern, particularly as regards different employment statuses. My right hon. Friend the Business Secretary announced a review of employment statuses so that there can be greater clarity about the issues and we can see whether we need to make changes to the way in which different employment statuses are currently set out. The review is ongoing and we expect it to report over the next couple of months.

Oral Answers to Questions

Ann McKechin Excerpts

Thursday 20th November 2014 Commons Chamber

[Mr William Bain (Glasgow North East) (Lab)]

9. What steps the Government are taking to (a) enforce payment of the minimum wage and (b) encourage firms to pay the living wage.

[Ann McKechin (Glasgow North) (Lab)]

16. What steps the Government are taking to (a) enforce payment of the minimum wage and (b) encourage firms to pay the living wage.

[Julie Hilling (Bolton West) (Lab)]

20. What steps the Government are taking to (a) enforce payment of the minimum wage and (b) encourage firms to pay the living wage.

--- Later in debate ---

[Jo Swinson]

The key is not only increasing the fine to £20,000, but enabling that fine to be levied per worker rather than per employer. The fine, which is of course linked to the amount of arrears, covers all but three cases found over the last year. None of the others would have reached the £20,000 maximum. We will be fining employers more when they break the law, because those responsible employers who abide by the law deserve to know that those who break the law will be properly punished.

[Ann McKechin]

Seatruck, which operates domestic ferries between Aberdeen and Lerwick and Ullapool and Stornoway, pays its Estonian national seafarers as little as £3.66 an hour, while it benefits at the same time from the tonnage tax scheme operated by this Government. Is it not about time that we tackled the people who are undermining the national minimum wage, particularly for seafarers, by ensuring that regulations are tough enough to capture this group of people?

[Jo Swinson]

The hon. Lady raises the issue of seafarers, which has been raised by other hon. Members. I know that my predecessor, when I was on maternity leave, was dealing with this issue, and we continue to look at it. I reiterate to all hon. Members who have constituents concerned about not being paid the national minimum wage that Her Majesty’s Revenue and Customs will investigate every single complaint made to the pay and work rights helpline on 0800 917 2368. If people will please report instances of where the national minimum wage is not properly being paid, we can investigate and enforce it to ensure that people get what they deserve.

Oral Answers to Questions

Ann McKechin Excerpts

Thursday 6th March 2014 Commons Chamber

[Matthew Hancock]

Yes, of course I will join my hon. Friend. I also join him in paying tribute to my hon. Friends the Member for Burnley and for Harrogate and Knaresborough (Andrew Jones), who are apprenticeship ambassadors and do enormous work, in this House and beyond, to promote apprenticeships.

[Ann McKechin (Glasgow North) (Lab)]

19. If his Department will make an assessment of the main causes of insecurity in the workplace.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jenny Willott)]

The 2011 workplace employment relations study measured insecurity. It showed that job insecurity is related to three factors: whether a workplace had been subject to recent redundancies; if managers felt that the recent recession affected the business; and the number of changes to working terms and conditions experienced by employees.

[Ann McKechin]

The Minister will be aware that research from the Chartered Institute of Personnel and Development shows that approximately 1 million people in this country are currently employed on zero-hours contracts. We know that many of these are exploitative, so will the Minister confirm whether the Government will use the opportunity of the forthcoming Queen’s Speech to legislate to end the misery that is suffered by so many in our communities?

[Jenny Willott]

The hon. Lady will know that the Government looked at zero-hours contracts last summer, and are currently consulting on related issues such as exclusivity clauses and so on, which are just some of the problems that people have highlighted. Following on from that consultation, we will look at what measures need to be taken to ensure that such contracts are used positively and not to cause problems for those who are being exploited by them.

Oral Answers to Questions

Ann McKechin Excerpts

Thursday 23rd January 2014 Commons Chamber

[The Minister for Universities and Science (Mr David Willetts)]

There are of course no caps on the number of legitimate, properly qualified students who can come to study in Britain, and I take every opportunity to visit India, as does the Prime Minister, to communicate that message there. Properly qualified Indian students are welcome here.

[Ann McKechin (Glasgow North) (Lab)]

T8. The Financial Times this morning quotes a Treasury spokesman as saying that an interest rate rise is “not something we are worried about” and a “sign of success”. Does the Secretary of State concur with that view?

[Vince Cable]

Fortunately, my many responsibilities do not include the setting of interest rates. I am happy to leave that to the Governor of the Bank of England, who has made an admirable impression.

Oral Answers to Questions

Ann McKechin Excerpts

Thursday 18th July 2013 Commons Chamber

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

10. What the outcomes were of his Department’s summit meeting with payday lenders on 1 July 2013; and if he will make a statement.

[Ann McKechin (Glasgow North) (Lab)]

11. What the outcomes were of his Department’s summit meeting with payday lenders on 1 July 2013; and if he will make a statement.

--- Later in debate ---

[Jo Swinson]

Significant action is being taken. The Office of Fair Trading has referred the industry to the Competition Commission because of widespread non-compliance. It is taking its own enforcement action, which has already resulted in a third of the lenders that have responded so far—the rest are due to do so this month—leaving the market altogether as a result of the tough action being taken. We have given the FCA stronger powers to enable it to ban products, impose unlimited fines and order money to be paid back to consumers who have been ripped off. That is a pretty comprehensive package of action to clamp down on this unscrupulous and irresponsible lending behaviour.

[Ann McKechin]

If other jurisdictions, such as Florida, already have effective real-time recording systems that stop borrowers accumulating unpayable debts, why cannot we have such a system here, now?

[Jo Swinson]

Such systems rely on the industry to be able to update them. The industry is looking at and working on that. We have credit reference agencies, which work well in many of the credit markets, but the real-time issue that the hon. Lady raises is a genuine one and more difficult to set up than the systems in place. We are encouraging the industry to address that, because it will help to improve affordability assessments.

Oral Answers to Questions

Ann McKechin Excerpts

Thursday 21st March 2013 Commons Chamber

[Matthew Hancock]

We have made it clear that we expect a new norm for school leavers to go either into apprenticeships or to university. On average, 10 people apply for every apprenticeship vacancy. There is huge enthusiasm, but much more that we can do.

[Ann McKechin (Glasgow North) (Lab)]

Further to the question from my hon. Friend the Member for Wirral South (Alison McGovern), surely the Government should adopt a comprehensive strategy to tackle gender segregation, just as they have—rightly—supported the Davies report on senior women on company boards.

[Matthew Hancock]

A comprehensive strategy is about ensuring that we support women as well as men who want to do apprenticeships, and that is exactly what we are doing.

Apprenticeships

Ann McKechin Excerpts

Thursday 14th March 2013 Commons Chamber

[Matthew Hancock]

I hope that they will. I welcome my hon. Friend as the apprenticeship ambassador in Parliament, as was announced today. His role is to ensure that we expand apprenticeships, listening to both parliamentarians and businesses as we take these reforms forward.

[Ann McKechin (Glasgow North) (Lab)]

The Minister will be aware of the stark gender segregation in STEM apprenticeships. Will he tell us what steps he is going to take to achieve an increase?

[Matthew Hancock]

Yes, we have specific pilots to deal with this issue. The employer ownership pilot involves a consortium led by Rolls-Royce, BAE and others and it is aimed at increasing the number of women engaged in engineering. The best argument in favour comes from apprentices themselves. The apprentice of the year is a female engineer who works on the Typhoon Eurofighter. She is an inspiration, and it is the arguments that she puts—better than me—that will help to encourage girls and young women to look to engineering as an exciting career prospect.

Oral Answers to Questions

Ann McKechin Excerpts

Thursday 7th February 2013 Commons Chamber

[Michael Fallon]

That was a most ingenious formulation in support of the bid from the Swindon and Wiltshire local enterprise partnership in wave 2 of city deals, which is under consideration at the moment. I will ensure that the use of redundant land is one of the aspects that we consider.

[Ann McKechin (Glasgow North) (Lab)]

11. What assessment he has made of the effect on consumer behaviour of Government advice on debt.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jo Swinson)]

The Government established the Money Advice Service in July 2011 to co-ordinate and monitor free debt advice. We also support advice through the National Debtline and Citizens Advice. Nevertheless, the evidence suggests that many people are still unaware that there is free debt advice and so fall prey to high up-front fees and profit-driven advisers. Today, I am therefore announcing a new debt management protocol that will protect consumers and ensure they know where to go for free debt management advice.

[Ann McKechin]

Last week, I listened to a pointless radio advert from the Money Advice Service that advised people how to get a mortgage. Surely debt advice from the Government should focus on priorities such as vulnerable families who are finding it difficult to afford basic food or their rent, far less the luxury of obtaining a mortgage.

Gender Balance on Corporate Boards

Ann McKechin Excerpts

Monday 7th January 2013 Commons Chamber

[Ann McKechin (Glasgow North) (Lab)]

I welcome the opportunity to speak in the debate. As the Minister will know, I am a member of the Business, Innovation and Skills Committee. The Committee is currently undertaking an inquiry into women in the workplace, which will include a review of the recommendations of the Davies report. I do not want to pre-empt our final report and recommendations to the Government, but I will say that we wanted to institute a cross-party inquiry for the very reasons that the Minister gave earlier.

Diversity on boards is good for companies, and therefore good for the British economy. Given the present state of the economy, we should explore every avenue that may lead to increased innovation, diversity and productivity. In response to what was said by the hon. Member for Esher and Walton (Mr Raab), let me point out that diversity means introducing different experiences to a board, rather than a single set of pre-judged experiences. The hon. Gentleman advanced the classic Catch-22 argument that those who do not have enough experience cannot join a board, but those who are not members of the board do not have enough experience in the first place. However, we all have to start somewhere.

Evidence given to our Committee has made it clear that there are strong views on both sides about the imposition of quotas, but it has also shown that some companies have taken strategic steps to increase diversity through, for instance, regular reporting on how they are achieving a gender balance. I was interested in what was said by the hon. Member for Reading West (Alok Sharma) about the use of reporting to drive progress. Pay transparency is another key component, as are solid targets and consistent ways of ensuring that progress is made. As with politics, progress can go back as well as forward. Unfortunately, when it comes to membership of the Cabinet, it is going back. It is important to have a clear and consistent policy in this regard.

We should take account of companies that are keeping their heads well down and not joining in the argument because they think that if they do not participate in it they can ignore it. I do not rule out the use of quotas if we find that a persistent sector of the economy does not consider diversity to be integral to the progress of the economy overall, and I think that the Government have a role to play in that respect. I agree that quotas are not the only way of achieving diversity, but I think it important for the Government to think about procurement and about how they spend money on training and higher education.

One other aspect we should be considering is regulation of the London stock exchange. Requiring companies that are members of the stock exchange to look at how they achieve diversity on their boards and throughout senior management is a way of avoiding primary legislation while driving progress. In response to the hon. Member for Esher and Walton, I should add that one of the companies that gave evidence to us, Clydesdale bank, has set a target of increasing the number of women in the three top senior management roles over the next few years. That is one way women can gain experience in executive director roles, as well as non-executive director roles, which have been referred to.

This is a work in progress, but the Government need to be at the heart of it.

[David Mowat (Warrington South) (Con)]

The hon. Lady said that companies that are more diverse grow more quickly and that there is evidence of that. Is this not, then, a self-correcting problem, because all companies need to grow, and those that are struggling to grow and are not diverse enough should surely be doing what is required to correct that? Surely this is self-correcting, so the measures she is describing are unnecessary.

[Ann McKechin]

A persistent group of people will always resist change if they can. Despite the good track record, there are contrary voices, as we heard during the Business, Innovation and Skills Committee inquiry, stating that men are inherently better at doing these things anyway and that things will be fine. That view should not be accepted in the 21st century. The public, this Parliament and the Government should take an active role in engaging with this. Issues of pay transparency, part-time work, child care and business culture should interest us all, whether we are in business or not.

I concur with my hon. Friend the shadow Business Secretary about it being important that we respond positively to the EU over how this country and this Government can make a difference to the economy, which will, I hope, improve if we ensure that diversity is key to our corporate structures.

Oral Answers to Questions

Ann McKechin Excerpts

Thursday 20th December 2012 Commons Chamber

The Secretary of State was asked—

[Ann McKechin (Glasgow North) (Lab)]

1. What assessment he has made of the effect of payday lenders in areas of social deprivation.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jo Swinson)]

The Government are not aware of any robust research that quantifies the effect of payday loans on areas of social deprivation, but I expect that there are links. We are very concerned about the findings of the interim report from the Office of Fair Trading’s payday compliance review and strongly support any enforcement action that the OFT takes. Payday lending can work for some people in some circumstances, but it is not a solution to long-term financial difficulty.

[Ann McKechin]

Scotcash, which represents many vulnerable families in Glasgow, has brought to my attention a payday loan agreement in which the APR is a staggering 7,200,000%. Given that Which? has indicated that more than 48% of those who take out payday loans believe that they will not be able to repay them, is it not now time for the Minister to commit to firm statutory regulation in 2013 rather than relying on wishy-washy voluntary codes?

[Jo Swinson]

The hon. Lady raises two specific issues in her question. Although there is concern about high interest rates, just as when someone hires a car for three days they do not look at the annual cost of doing so, with short-term credit the APR is not necessarily the most relevant statistic. The hon. Lady’s second point was on affordability assessments and the detrimental effect of people being lent money they should not be lent when debt advice would be much more appropriate. That is a significant concern. The Government are considering the OFT’s review and the OFT is already taking action—it has opened formal investigations into several payday lenders. We expect the final report early in the new year and the Government are committed to ensuring that we take action on this issue.

--- Later in debate ---

[Mr Willetts]

We got an excellent outcome from the European Space Agency ministerial last month. Britain is now the leader of the ARTES 2 programme for the development of the next generation telecommunications platform. It is great to see British businesses taking a lead here, and this will increase broadband speeds and reduce costs for UK users in rural and remote areas, making satellite broadband even more accessible.

[Ann McKechin (Glasgow North) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

My Department plays a key role in supporting the rebalancing of the economy through business, to deliver growth while increasing skills and learning.

[Ann McKechin]

Given the acknowledged need to get finance quickly to the SME sector, does the Secretary of State share my concern that the British business bank will not be fully operational until the autumn of 2014? Given that private sector models such as Aldermore have been up and running to a much quicker timescale, can he give an assurance that he will try to speed the process along at his end?

[Vince Cable]

The business bank has already been established, and it will be up and running next year. Of course, the full clearance of European state aid, which is a necessary formality for certain kinds of lending, will take longer. I acknowledge the role of Aldermore and other banks, such as Metro and Handelsbanken, which is very important. This bank will complement and support them.