Oral Answers to Questions

Ed Davey Excerpts

Thursday 9th June 2011 Commons Chamber

[Julian Smith (Skipton and Ripon) (Con)]

11. What steps he is taking to ensure that employment law supports business competitiveness, job creation and sustainable economic growth.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)]

My Department is leading a comprehensive review of employment-related laws across Government to remove burdens from employers and ensure that our labour market operates effectively. Our consultation on resolving workplace disputes, for example, closed on 20 April, and we will be coming forward with our proposals in the autumn.

[Alun Cairns]

Does the Minister agree that there is a need to reduce employment regulation following Lord Young’s excellent report which talked about businesses operating within a climate of fear; and what progress is he making in reducing red tape in general?

[Mr Davey]

I am grateful for my hon. Friend’s question. I met Lord Young to discuss his views, and he explained that in his meetings with business people they talked about the reality and the perception of red tape, particularly in relation to employment law. We are therefore tackling both aspects with our proposals to reform employment tribunals, our moratorium for micros, and the review of sickness absence and compliance and enforcement regimes. We also published the employers charter to show that the legal position is not as frightening as some employment lawyers would have firms believe.

[Julian Smith]

Are other Departments fully engaged with the employment law review? Which Minister is leading this across Departments? Does the Minister agree that in order to address this issue fully we need all Departments, not just BIS, to be engaged with it?

[Mr Davey]

I agree with my hon. Friend. We have written to other Departments that are going to work with us on this. It is very important that it is a cross-Whitehall review, and it will last the whole Parliament long because we are determined to make a real difference.

[Jack Dromey (Birmingham, Erdington) (Lab)]

On a day when BMW announces £500 million of investment in Britain, safeguarding 6,000 jobs—the result of co-operation between the union Unite and a world-class company—is it not time for the Secretary of State to stand up to his backwoodsman Back Benchers, who would seek to demonise workers, and instead to celebrate modern trade unionism as a force for good?

[Mr Davey]

I think the hon. Gentleman is referring to press reports of the speech by my right hon. Friend the Secretary of State to the GMB. I am afraid that if he reads that speech he will see that my right hon. Friend repeated the Government’s line, which has been the case since we were elected, that we wish to engage positively with trade unions. That engagement is paying dividends.

[Kerry McCarthy (Bristol East) (Lab)]

Does the Minister accept that it is counter-productive to create the impression that things such as maternity rights, employment protection, the minimum wage and health and safety laws are burdens on business and not essential to ensuring that companies operate in the best interests not just of their balance sheet but of their workers?

[Mr Davey]

I refer the hon. Lady to the consultation that we published just last month on modern workplaces. We wish to reform maternity and paternity law, which we believe will be a win-win for employees and employers. It will produce better rights for families than the previous Government provided, and provide more flexibility for employees and employers so that they can have adult conversations about how such leave should be taken.

[Nigel Mills (Amber Valley) (Con)]

5. What recent assessment he has made of the level of lending by banks to small businesses.

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[Nic Dakin (Scunthorpe) (Lab)]

13. What steps he plans to take to support those affected by job losses at the Tata plant in Scunthorpe.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)]

Of course, we were very disappointed to hear the news. It will be a worrying time for the workers affected, but I reassure the hon. Gentleman that the Jobcentre Plus rapid response service and the Skills Funding Agency are working with Tata Steel to support workers at the Scunthorpe plant.

[Nic Dakin]

I thank the Minister for his response. It would be good if he or the Secretary of State could come to Scunthorpe to see the situation first hand. Will the Government be bidding for European globalisation adjustment funds, for which the situation in Scunthorpe is eligible?

[Mr Davey]

I pay tribute to the hon. Gentleman for his efforts. He has met the Minister of State, Department for Business, Innovation and Skills, my hon. Friend the Member for Hertford and Stortford (Mr Prisk), and I am sure that he welcomed the announcement by my right hon. Friend the Secretary of State of the taskforce, on which the hon. Gentleman is serving. It is for the taskforce to come up with ideas not just for the regional growth fund but for European funding. If the taskforce can put together a bid, I am sure that it will get the Department’s support.

[Andrew Percy (Brigg and Goole) (Con)]

Members of Parliament across north Lincolnshire are working together closely on this important issue, which affects all of our constituents. Does it not demonstrate that the creation of a pan-Humber local enterprise partnership, which was recently agreed, is a positive step forward? We now need to send in our application and hopefully get Government approval for this pan-Humber LEP in order to support the renewables industry.

[Mr Davey]

We were delighted to be able to announce yesterday the decision on a new Humber estuary local enterprise partnership, which I am sure will play a positive role. I am sure that my hon. Friend would not expect me to say whether the enterprise zone will be awarded, but clearly the taskforce and the LEP are in a good position to represent that area.

[Brandon Lewis (Great Yarmouth) (Con)]

14. What steps he is taking to help young unemployed people find apprenticeship places.

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[Andrew Selous (South West Bedfordshire) (Con)]

T4. Small businesses are the engine of growth and jobs for our economy, and all the time that owners and managers spend dealing with red tape is time taken away from expanding their businesses, so what have the Government done to reduce regulation on small businesses?

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)]

I assure the hon. Gentleman that we are spending a huge amount of time on tackling red tape through the red tape challenge, and I can report to the House a little victory. On bank holiday Monday, I attended the EU Competitiveness Council to argue for an exemption for micro-entities from various accounting rules under an EU directive. I am sure that the House will be pleased to know that that exemption passed the Council.

[Nic Dakin (Scunthorpe) (Lab)]

T3. According to the Office of Fair Trading, self-regulation of debt management companies is not working. Does the Minister agree that it is time for the Government to act to protect vulnerable consumers?

[Mr Davey]

The hon. Gentleman is quite right. He knows that I met him and other members of the all-party group on debt and personal finance to discuss that very issue. He will know of my concern about it, which was shared across the meeting. When we respond to the call for evidence on consumer debt and personal solvency, we will have a lot to say about that very issue.

[Gavin Williamson (South Staffordshire) (Con)]

T5. We all welcome the fantastic news from Nissan and BMW, but we want to see automotive investment in the west midlands. Will the Minister assure the House that he and his officials are doing all that they can to attract automotive investment into the west midlands?

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[Andrew George (St Ives) (LD)]

Every day by which the creation of a groceries code adjudicator is delayed is a further day on which farmers, growers and food producers in this country and in the developing world go to the wall. What reassurance can Ministers give me and, indeed, the House that they will make every effort to ensure that a proposal which has cross-party support is implemented as quickly as possible?

[Mr Davey]

My hon. Friend, who has campaigned so vigorously and successfully on this issue, will be delighted to know that we published the draft Groceries Code Adjudicator Bill just before the recent recess. We hope that it will be scrutinised by the Select Committee and will attract interest across the House, and we hope to introduce the formal Bill on the basis of that scrutiny.

[Stephen Twigg (Liverpool, West Derby) (Lab/Co-op)]

T8. May I return the Minister to the issue of regional development agency asset sales, about which there is considerable concern in my constituency and throughout the north-west? Can he answer the question put to him earlier by my hon. Friend the Member for Birmingham, Erdington (Jack Dromey)? If assets can be gifted to Boris Johnson and London, why can they not be gifted to the rest of the country?

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[Mr Davey]

May I congratulate the hon. Lady on being the Member of Parliament who wants to meet me more frequently than any other? She omitted to tell the House not only that I have met her twice and that she failed to provide the evidence backing up her arguments for which I asked, but that I have met other Members of the House from the coalition parties who are campaigning on this issue, such as my hon. Friend the Member for Chippenham (Duncan Hames) and the hon. Member for North Swindon (Justin Tomlinson).