Employment Support

Anne McGuire Excerpts

Wednesday 7th March 2012 Commons Chamber

[Mrs Anne McGuire (Stirling) (Lab)]

I thank the Minister for her statement, but frankly it was a statement that she obviously did not want to give to this House in person. Let me give this advice to the Minister and to Government Members: even if the situation is difficult, it behoves a Minister to come to this House to explain it. [Interruption.]

[Mr Speaker]

Order. These exchanges have already been too noisy. The House must calm down. We cannot have a situation in which people trade insults across the Chamber, shouting out “Where is this one or that one?” Let us just cool the temperature and have a decent exchange. The House knows that I will want to facilitate such an exchange.

[Mrs McGuire]

It is fair to say that Remploy is not an ordinary organisation; it is one that has been part of Government’s provision for disabled people since the second world war. We all recognise, in all parts of the House, that it has had to adapt to changing conditions over the years, but there is no point in the Minister trying to hide behind the statement by my right hon. Friend the Member for Neath (Mr Hain). My right hon. Friend came to this House and answered questions in this House, and he made some of the difficult decisions that we hoped would set Remploy on the road to success. Recently, however, there has been only one debate in this House on the future of Remploy, and that was held, thanks to the courtesy of the Backbench Business Committee, in Westminster Hall on 15 December. Today, the Government have tried to abrogate their responsibility as the custodian of the Remploy legacy and as the ultimate employer of the 1,752 people who today found out by written statement, or in some cases from telephone calls from Members of Parliament, that they will no longer be in a job in three months’ time.

Nobody in this House disagrees with the Minister when she says that disabled people want to have a choice about where they work. Nobody argues that such opportunities have not opened up over the past few years for many disabled people. However, many of the opportunities have been offered by organisations such as Remploy that give disabled people a real job in the jobs market. It was clear even from the Sayce review that the best factories offer job satisfaction, a supportive and accessible environment, and a reasonable income for their employees.

I will not run away from the fact that my Government, and I as a Minister, had to wrestle with the issues relating to Remploy. We cannot rewrite history. However, our position on disabled people in 2007 was astonishingly different from what the Minister has put before us today. If she truly believes in co-production, why was there no co-production with the trade unions, the disabled people who work in Remploy and the Remploy board over the past few months? I have the greatest admiration for Liz Sayce and for some of the work that she has done, but to put forward a closure programme that will potentially put 1,700 on the dole on the basis of a report by an individual is not acceptable.

We must recognise the legitimacy of the position of the mainstream of the disability movement, which is that it does not like supported factories or Remploy. However, that does not mean that it is wrong to support people in these factories. Perhaps the mainstream needs to recognise that Remploy offers a real job in a supported environment.

I will put some questions to the Minister before you call me to order, Mr Speaker. In opposition, the Conservative party supported the five-year modernisation plan, so why did the Minister embark on a review nearly two years before that timetable had been exhausted? Why are the Government pulling the funding from the next financial year, which leaves a period of only a few days? Was warning given to the Remploy board before the last couple of weeks that it would have to manage this speed of change and a massive redundancy programme over the next few weeks?

When the modernisation statement was made to the House in 2007, the now Minister of State, Department for Work and Pensions, the right hon. Member for Epsom and Ewell (Chris Grayling)—[Interruption.] Please do not laugh if I pronounce “Ewell” wrong. I do not know how it is pronounced. He said at that time:

“Let me assure Remploy and its employees that the next Conservative Government will continue the process of identifying additional potential procurement opportunities for them and the public sector work force.”—[Official Report, 29 November 2007; Vol. 468, c. 451.]

What has the Minister done, now that the Conservative party is in office, to ensure that her ministerial colleagues fulfil that promise? What discussions has she had with the major procurement Departments, including the Home Office and the Ministry of Defence? Did she look at the procurement opportunities that her Department could have offered to Remploy? What discussions has she had with her colleagues in the Department for Communities and Local Government to encourage local authorities to consider opening up opportunities for their local factories? What efforts has she made to encourage her colleagues to identify procurement opportunities under article 19?

Given the Minister’s intention to embark on this course of action, how did she involve the board of Remploy and the trade unions in the discussions about the issues identified in the Sayce report? I am not talking about their responses to the consultation, but about what real co-production she was involved in. What recognition did she give to the trade union analysis of the current operation of Remploy’s enterprises and the questions that it raised about the company’s business practices?

There is a feeling around the House that the consultation was flawed from the beginning because the Minister said that she was

“minded to accept the recommendations of the Sayce review”.

A Government cannot start a consultation if they have already said they are minded to accept the recommendations.

By how much will the Minister reduce the subsidy to Remploy in the next financial year and the one after? She highlighted the fact that there may be options for the so-called stage 2 factories. What will those options be, and what criteria will she lay down for the transfer of any business and its associated assets to the open market?

The Minister says that the support that she will give to disabled people who are made redundant will last for up to 18 months and potentially be a personalised budget of £2,500. How is that £2,500 expected to meet the needs of many of the people in Remploy?

Where will the jobs come from? At the factory in Ashington, 35 people are chasing each job, and in Acton—

[Mr Speaker]

Order. I say to the shadow Minister that I know these are extremely important matters, but I feel sure that she is bringing her questions to a close. In fact, I am certain that she is in her last sentence.

[Mrs McGuire]

I am indeed, Mr Speaker.

I finish by saying to the Minister that in each constituency where there are factories at which redundancies will be made, there are tens of people chasing every job. She made a point about the increase in Access to Work, but that scheme requires jobs. Tonight, 1,700 people do not know whether they will have one in three months’ time.

[Maria Miller]

I am very happy to have come to the House today to discuss our proposals. [Interruption.] Communication is very important on this matter, and many Members have had many conversations with me about Remploy over the past two years. I have already laid a written statement and met many of the MPs affected. Indeed, I have spoken to the right hon. Member for Stirling (Mrs McGuire), and my right hon. Friend the Secretary of State has spoken to the shadow Secretary of State, the right hon. Member for Birmingham, Hodge Hill (Mr Byrne), who is not in his place.

We take staff communications very seriously indeed on a matter such as this. It is not right for the right hon. Member for Stirling to call into question the way in which it has been managed, because my colleagues at Remploy have put great effort into ensuring that disabled people employed by Remploy are well aware of today’s process. Indeed, we have worked closely together throughout the consultation process. As I have said, there were 1,400 submissions, including from disabled people, Opposition Members and staff at Remploy factories.

Most important of all, this Government decided when we came to office to take forward the modernisation plan that Labour Members had put in place. In these very difficult economic times, we could have taken a different decision, but we chose not to. We chose to stick with that plan and see how things progressed. I am afraid that in year four of the modernisation plan, it is clear that the objectives that Labour set out were simply not going to come to fruition and were not realistic. I think some Opposition Members will know that.

The right hon. Lady asked a number of questions, some of which I believe I may have answered in my statement, but I want to ensure that I have covered every point she made. The Remploy board has been fully informed of all the procedures that we have gone through and all the decisions that have been made, and my right hon. Friend the Secretary of State has spoken to his Opposition counterpart to ensure that he was well informed in advance of today. We ensured that the procurement commitments that Labour put in place were taken forward. In fact, we have been working with Remploy for the past two years to attempt to make the modernisation plan work, but we are where we are and these difficult decisions now needed to be taken.

There has been a great deal of discussion by Opposition Members about the number of jobs that are available to disabled people. I should like to put it on record that the employment services arm of Remploy has done a magnificent job of helping disabled people into work. I believe that many hon. Members will agree with that. Indeed, last year, Remploy’s employment services arm supported 20,000 disabled people throughout the country into work, with 2,000 individuals with disabilities in Wales and another 2,000 in Scotland helped into work. Those jobs are available if individuals can get the support and training to access them.

The decisions are not easy, but we are continuing a policy that the previous Administration started. When we came into government, we confirmed that we would continue that plan. The truth is that the Opposition would have had to make those decisions themselves.

We enlisted the help of experts to try to ensure that our decisions were right. Liz Sayce, in her role in Radar, brings to the matter an expertise that many hon. Members will acknowledge. Today, we are taking forward her recommendations, and I am afraid that I cannot understand the tone or the nature of the right hon. Lady’s remarks.

Labour Members should remember that many factories were closed on their watch, and perhaps they did not make the right decisions then. They would have had to face the same choices. Today’s discussion is not about money because, as Opposition Members know, the money and support for specialist disability employment is protected under the Government—£320 million plus an extra £15 million to ensure that the changes that we are making today will result in more disabled people in work, with more money to support them to do that.