Deregulation Bill
Debate between Chris Williamson and Toby Perkins(10 years, 7 months ago)
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Toby Perkins
A substantial part of my speech will deal with precisely that point, because I think it represents perhaps the most fundamental flaw in the Bill. When the Minister presented his idea, he was probably told that it was good news that authors would no longer be suing themselves because their chairs were the wrong height. However, the real impact of the Bill is exactly as my hon. Friend has described it.
When people ask the Government what they will do about zero hours and the exploitation of workers, the Government misunderstand the question. The easy sacking of workers and the reduction in their rights is not an accident of Tory policy; it is Tory policy. It is precisely what Tory Governments have always been about. Of course, this is not actually called a Tory Government, but it certainly feels pretty much like one. This is what Tory Governments have always done, and they should be honest about that, rather than claiming that they are acting in support of small businesses or in anyone else’s name.
I was a small business owner myself for five years before I entered Parliament, and I entirely reject the idea that impoverishing workers and stripping them of their rights was done in my name or at my request. That just shows how out of touch the Government are. It is very unfair of them to introduce measures such as this, and then claim that they are doing it in order to support small businesses. In fact, they are doing it because it is what Tory Governments always do.
As the Minister said, this idea originated in Professor Löfstedt’s report on health and safety regulations, which was published in 2011. We supported most of the report’s recommendations, but we think that the professor failed to understand the nature of the British labour market when he said that the rights of the self-employed in Britain were greater than those granted by some of our European competitors, and, in particular, failed to appreciate the huge growth in false self-employment in this country to which my hon. Friend the Member for Leyton and Wanstead (John Cryer) referred.
At the end of the last Government, the World Bank said that Britain was the easiest place in Europe in which to set up a new business. That is a key feature of our economy, and in itself it is something to be celebrated. Indeed, the idea that people should pluck up the courage to go it alone and start a new business, should challenge the established order and should find new ways of innovating and different ways of doing things—adopting the values and attributes of entrepreneurs—is very closely aligned with the history of the Labour party. Challenging the established order is precisely what the Labour party has always done. Of course we support people who want to set up their own businesses, but the healthy push towards starting up new firms that was established under Labour—with the spirit of adventure coursing through the veins, and ambition bursting through every pore—is very different from the growing move towards bogus or forced self-employment that we have seen under the present Government.
Unite has drawn attention to the fact that many workers in the care sector have been pushed into false self-employment, with the result that people on whom much of the fabric of a decent society depends can be sacked without warning, receive no holiday or sick pay, have reduced benefit entitlements, and are denied access to employment tribunals. They do not want to set up their own businesses or become entrepreneurial, but they are being told that the only way in which they can care for the old people for whom they have cared for so many years is to become self-employed. It is important to recognise the difference between those who want to be self-employed and those who are being forced into it.
Chris Williamson (Derby North) (Lab)
Does this not demonstrate how out of touch the Conservative party and its Liberal Democrat poodles are with the views of the general public? Last week, the results of a Survation poll clearly showed that the overwhelming majority of the British public do not want public services to be delivered by the private sector; they want public services to be delivered by directly accountable public servants who are democratically available for scrutiny by locally and nationally elected politicians.
Toby Perkins
That is an important point. The exact nature of the alliance that was formed will have to be left to the history books to judge. Were the Liberal Democrats willing accomplices who wanted to support everything that the Tory Government did, or were they, as my hon. Friend put it, poodles who were simply excited by the idea of ministerial office, and who decided to join in when they did not really support what was being done?
I suspect that, as we head towards the 2015 general election, a whole array of Liberal Democrat Ministers will suddenly emerge and say, “They made me do it. I did not really want to pursue that policy. There were tough decisions to be made.” They will try to claim some little bauble: “We may have tripled tuition fees, VAT may have gone up and workers’ rights may have been taxed, but we got something out of it.” We shall see whether, when they bring their agenda to the 2015 election, they throw off the clothes that they have worn for the last five years and claim to be different. What an exciting time we have to look forward to.
Chris Williamson
Does my hon. Friend agree that it serves nobody’s interests to indulge in this race to the bottom and force people into this bogus self-employment, when the reality is that it is an excuse for exploitation? If people have got less money in their pocket, they have less money to spend in the wider economy. That has a negative impact, and we end up in a downward spiral and a situation whereby, as the figures I have seen today from Her Majesty’s Revenue and Customs show, in the last 12 months this so-called economic miracle that we are seeing under this Government has resulted in the top 300,000 seeing an increase in their income after tax, but the rest—29 million taxpayers—have seen a reduction. Bogus self-employment and forcing people into self-employment is contributing to that.
Toby Perkins
My hon. Friend makes an important contribution and he is right. The issue of bogus self-employment, and the broader issue of the vision this Government have for our economy, is working very badly for people in our constituencies and working quite well for a small number at the top. It was ever thus; this is what the Conservative party was set up to do. It was set up to ensure that the rights of a privileged few were protected and to try to convince enough of the lower orders to buy into it in the meantime. That is why the Conservatives did not want the lower orders to have the vote for 100-odd years. We all know where they are coming from, and no doubt if they could get rid of the lower orders having the vote now, they would do it again.
Toby Perkins
That is another important dimension. We are in danger of straying slightly from our amendment, but it is important that we see this amendment in the context of the economy.
My hon. Friend the Member for Derby North (Chris Williamson) also made an important point about the impact of all of this on our economy. Not only does it undermine employment rights and leave his constituents and mine worse off, but it also hits taxpayers in the pocket, because according to the Treasury’s own estimate, around 300,000 workers in the construction sector alone are effectively in bogus self-employment. That costs the Treasury more than £380 million every year so there is less money going into our public services and into the public coffers because of this issue. This is far from being a construction-site problem, however. That has happened over many years, but in a whole variety of areas—care workers, as spoken about earlier, bookkeepers, sales agents, and from the factory floor to the shop floor—staff who look to all of us to be employers are legally self-employed. While bogus self-employment has previously been predominantly a tax and rights issue, an exemption in respect of health and safety only increases the incentive for employers to pursue this route as a model of recruitment, reducing safety in the workplace, making it an optional extra rather than a hard-won right.
That changing environment places huge responsibilities on us as law-makers, and they must not be overlooked. Labour in government maintained a flexible workplace, not always, I have to say, to the delight of colleagues across the movement who would have liked further protection. We recognised there was a balance to be struck, however, and we still do, but we did that in a way that aimed to ensure that protection against the exploitation of individuals was not sacrificed in exchange. If these Tories really were the workers’ party, they would understand that a flexible workplace that works against the public interest is bad for Britain and bad for business, too.
Returning to this new clause, no self-employed person has ever been prosecuted or threatened with prosecution only for risking their own health. Given that the Bill’s intention is that only people who pose no risk to anybody will be exempt, there will be no practical impact on businesses or individuals. The Health and Safety Executive consulted on Ofsted’s proposals in 2012 and the majority of those responding to the consultation opposed the idea. All in all, I and many other small business owners would recognise the picture painted by the Royal Society for the Prevention of Accidents, which has said that many low-risk, self-employed individuals are
“de facto, already exempt…They will never be routinely inspected. And they are not going to sue themselves if they have an accident!”
If there are no known cases of the self-employed suing themselves and no prosecutions that are being prevented, this is a solution in search of a problem to solve.
The problem it in fact attempts to solve is the perception that this Government have over-promised and under-delivered on regulation. Whenever we hear the Minister defend this, he does not have a lot to say about anyone who will positively benefit. What he says is that there will be a perception that there is less people have to do before they become self-employed. Well, he can say that to the carers, who are being told that they are now self-employed when looking after the old lady they have been looking after for the past 20 years. He should ask whether that removes a disincentive to them setting up a business. That is the reality of what is happening under this Government.
Toby Perkins
I never cease to be delighted to hear from my hon. Friend, so I will give way to him again.
Chris Williamson
I am enjoying my hon. Friend’s speech immensely, and I had the privilege of serving on the Committee with him. Does he agree that this is a very wide-ranging Bill? A hell of a lot of effort has been put into it by Ministers, yet it has achieved so very little. Has there ever been a Bill where so much effort has gone in with so very little impact and positive outcome for the British people?
Toby Perkins
That is an interesting point, and it brings to mind a gentleman who was a team mate of mine at Sheffield Tigers rugby club. He had a huge neck and giant shoulders—he was a great big bear of a man—but from the waist down he had, short, very thin legs. He was one of those people who, when he stood up, apparently shrank, so he earned the name “the giant little man”, and this is a giant little Bill. There is huge scope to it and very little that is got out of it at the end—but I am digressing slightly.
That was, in fact, precisely the point I was about to come on to in my speech, so I am very grateful to my hon. Friend for his intervention. Alongside the minuscule benefit and very real consequences for the bogus self-employed, there is also the confusion that is likely to be caused and the messages that sends about health and safety as being an optional extra, rather than something businesses should always attend to.
Entrepreneurs and micro-business owners might wrongly believe they are now exempt from health and safety obligations towards clients and visitors to their premises. We know that that is not the reality of what this Bill does, but it is all about perception. If people are now being told, “If you’re self-employed, you don’t have to worry about health and safety,” it is unsurprising if that is the explanation people hear.
In its evidence to the Joint Committee, the Institution of Occupational Safety and Health described the decision to exempt certain self-employed individuals as “unnecessary, unhelpful and unwise”. It foresaw a lowering of standards and a lack of clarity about who was, or was not, covered.
The current system is clear and there is no compelling reason for this change. There is no list of self-employed martyrs brought to the courts because of badly adjusted blinds in their offices, who, having fought the issue to the highest court in the land, have now decided that, because the glare on the screen was a bit bright and it hurt their eyes, they will sue themselves. This group of people does not exist as one for us to stand up for in this place, so there is no compelling reason for this change.
For all the reasons I have outlined, we think this is a much-mistaken clause and our amendment would simply remove it. However, even if the Government do not listen to all the voices arguing against the clause in its entirety, there are serious and important flaws in its drafting that they really should look at. It will be interpreted—the Solicitor-General admitted as much in Committee—such that the exemption from the exemption will be based on whether someone’s work is in a job that is considered to pose a risk to them or to others. However, it pays no attention to whether they are responsible for the safety of their workplace. So a self-employed person working in someone else’s workplace, who to all intents and purposes appears to be employed, is in fact self-employed, has no say in the quality of the health and safety regulations administered there, and would be exempt from protection. The clause makes no reference to whether they are responsible for the safety of their workplace—it assumes they would be, but as we have heard, that is not the case—or to whether the workplace itself is dangerous. So, someone who is in a dangerous workplace, but in a job that is considered not dangerous, will not be covered. For example, because a sales agent selling construction goods on a building site on a self-employed basis is not in a dangerous job, they would be exempt from protection on health and safety grounds, despite working in an environment in which an average of almost 60 people have died every year during the past 13 years.
Fire Services (Derbyshire)
Debate between Chris Williamson and Toby Perkins
Chris Williamson (Derby North) (Lab)
My hon. Friend might not be aware that two of the three fire stations earmarked for closure in Derby were built in the past four or five years. I have been petitioning on the streets of Derby with the Fire Brigades Union, and the people of Derby are alarmed about the impact the closures will have on response times. Does my hon. Friend agree that, if the Minister were to give Derbyshire a fair deal, none of these ridiculous cuts, which put the people of Derby at risk, would be necessary and we could have a fire and rescue service to be proud of?
Toby Perkins
I absolutely agree with my hon. Friend. I take this opportunity to pay tribute to his knowledge and the tremendous work he has done on this issue.
The publication of the desired locations for new stations enables the current owners of the land to increase the sale price significantly. That will cost the taxpayer yet more cash. If we let the people who sit on the land know that we want to buy it, that will obviously push the price up. Similarly, a fire authority sitting with a used fire station asking, “Who wants to buy it?” will lead to a financial catastrophe.