Compulsory Jobs Guarantee
Gordon Birtwistle Excerpts(9 years, 10 months ago)
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Mr Duncan Smith
Yes, it is appalling that the councillor is unhappy about the idea that more people are getting work in my hon. Friend’s constituency. The reason why she takes that attitude, I think, is that Labour wants only to be elected. The Opposition do not care about anyone else. They would rather tell bad news to get elected than have a success that they could trumpet. Perhaps that is the real point.
Ninety per cent. of all young people in Wales move off JSA within nine months, so at £6,000 a place, the alleged success that is being trumpeted is nothing like the value for money that the right hon. Member for East Ham mentioned earlier.
Gordon Birtwistle (Burnley) (LD)
In Burnley in 2009 we were classed as a basket case—a town that was going nowhere, or going down. That was at the time that the future jobs fund was happening. Last year we were cited as the most enterprising town in the UK. We have doubled the number of apprenticeships to 4,300 and the number of young people out of work has gone down by 47%. Surely that is the right way to go, not to force people into work that they do not want to do.
Mr Duncan Smith
May I say to my hon. Friend—I repeat, my hon. Friend—what an excellent job he has done in championing his constituency? He is right—it is about getting private sector businesses to create real jobs for young people and older workers to go into.
I want to deal in some detail with the jobs guarantee versus the future jobs fund. A Labour press release that I saw in 2014 extolled the Opposition’s pet project as
“building on the success of the Future Jobs Fund”.
The right hon. Member for East Ham carried on the Labour line. I hope that was noted back at headquarters. He is clearly to be trusted through the election, and I give him a lot of support for that.
As for the claimed success of the future jobs fund, the DWP analysis that I quoted earlier is important. It was commissioned under Labour and was subjected to extensive peer review by the National Institute of Economic and Social Research, which, as I said earlier, found that not only was the fund estimated to result in a net cost to the Exchequer but that, as I pointed out, the future jobs fund was not estimated to benefit the Exchequer at any stage, and the Exchequer would not be able to get back the money that it had spent on the programme.
By contrast, as the hon. Member for Ealing North said, young people want work experience. I remember that early on, when I first went into jobcentres, I was accosted by young people who said that the problem for them was that at job interviews they were asked whether they had job experience, and when they said they had none, they were told that they could not be given a job without work experience, but their response was that they could not get work experience without a job.
Under the previous Government, people were allowed only two weeks’ work experience before they were expected back at the jobcentre. What we did instead was to allow them up to two months’ work experience in a business, and an extra month if they were offered a job or an apprenticeship. So, by contrast, work experience under this Government—this is the interesting point—has achieved the same success rate at least as the future jobs fund achieved, but at a twentieth of the cost—£325 per place as opposed to £6,500 per place. Another difference is that the vast majority of positions under the work experience programme are in the private sector, whereas I can think of hardly any private sector companies that offered jobs under the future jobs fund. It is a success versus a costly failure.
Jobs and Work
Gordon Birtwistle Excerpts(10 years, 6 months ago)
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Vince Cable
I was going to go on shortly to what is underpinning labour market growth, which is strong and balanced economic growth. I will come back to that.
Gordon Birtwistle (Burnley) (LD)
Is the Secretary of State as disappointed as I am by the constant deriding of manufacturing and the growth in the economy by the shadow Secretary of State, who, every time he gets up, runs the economy down? Is that the right way to give confidence to businesses to drag us out of the recession that Labour left behind?
Mesothelioma Bill [Lords]
Gordon Birtwistle Excerpts(11 years ago)
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Mr Jones
The hon. Gentleman is being very optimistic. I do not know whether he has ever dealt with insurance companies, but if he thinks they are going to reopen this one, he is being naive, to put it politely. He is a Liberal Democrat, after all, so that is possibly acceptable. The answer to his question is no, he is not; once this has been done, that will be it. That is the important point.
The other issue I wish to discuss is other conditions. Mesothelioma is clearly a death sentence. [Interruption.] Sorry, I am never fair to Liberal Democrats. The hon. Gentleman may be trying to get some sympathy from me on behalf of Liberal Democrats, but he is certainly not going to get any after what they have done in supporting this Government. If he is looking for sympathy for Liberal Democrats, he can forget it.
There are other diseases involved here, and it is very interesting to read what Lord Freud said in the other place. He said:
“The issue of individuals who have developed other asbestos-related diseases through negligence or breach of statutory duty and are unable to bring a civil claim for damages of course needs to be addressed.”—[Official Report, House of Lords, 20 May 2013; Vol. 745, c. 690.]
It would be interesting to know what other compensation schemes or other redress the Government are considering introducing. I would not hold my breath, given the record of other Conservative Governments. They have never done anything. This is the first time they have done something for asbestos victims. We do need to know though, because Lord Freud, who has a strange relationship with the Conservative party, is clearly sympathetic to looking at some of the other debilitating asbestos-related conditions.
Gordon Birtwistle (Burnley) (LD)
The hon. Gentleman comments on what the Conservatives have done over many years. Will he, during his speech, explain what the Labour Government did on this issue for the 13 years they were in power?
Jobs and Business
Gordon Birtwistle Excerpts(11 years, 7 months ago)
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Mr Chuka Umunna (Streatham) (Lab)
Before I start, I should just say that I understand that my hon. Friend the Member for Hartlepool (Mr Wright) and the Secretary of State for Business, Innovation and Skills, shared a birthday yesterday. I just want to wish them a belated happy birthday so as to start on a positive note before moving on to the Government’s record since the previous Queen’s Speech. It is right for us to take stock, to look at where we are now and where we were last year, before considering Her Majesty’s Gracious Speech.
When we convened to debate the speech last year, unemployment had soared beyond 2.6 million, we were in a double-dip recession, and the Government were borrowing £150 billion more than they forecast to pay for the cost of their failed economic plan. The Secretary of State’s answer to that state of affairs was to bring forward an enterprise Bill that started with some sensible measures, but ended up becoming a Christmas tree of a Bill. It contained measures to water down the statutory remit of the Equality and Human Rights Commission, to trample over people’s rights at work, to overturn health and safety protections that have existed for more than 100 years, and to abolish—this came rather late in the Bill’s progress—the Agricultural Wages Board that protects agricultural workers. That was all done in the name of growth, without a scintilla of evidence to show how doing so would create jobs and boost enterprise.
The right hon. Gentleman then went on to co-sponsor the Growth and Infrastructure Bill. That did not even feature in last year’s Queen’s Speech, but sought, among other things, to establish a shares for rights scheme where, in return for being given shares in their employer’s company, employees would be required to sacrifice their rights at work. That was described by the Government’s own side as having all the hallmarks of being thought up by somebody in the bath. Again, no evidence was produced to show that the measure would produce growth.
There is an irony in all this. Last year, the Business Secretary had gone around saying that he did not think much of the Prime Minister’s employment law adviser, the Conservative donor Adrian Beecroft, and his proposals to run a coach and horses through people’s rights at work, which, by Mr Beecroft’s own admission, had no evidence base whatever. There is clearly a thin line between love and hate, because the Secretary of State did Mr Beecroft proud in the last parliamentary Session. That is not to say that his coalition partners should be absolved of the blame—they were all in it together, to coin a phrase. Notwithstanding the fact that what they were doing was wrong in principle, I fail to understand the politics of it. Let us take the Conservative party, a party that has not won a general election since 1992. We are told that it has a strategy of gaining 40 seats and retaining 40 of their most marginal seats at the next general election, yet 70% of those 40 seats it wishes to retain have significant numbers of agricultural workers. In fact, 10 of the constituencies most adversely affected by the abolition of the Agricultural Wages Board are Conservative marginals, including Lancaster and Fleetwood, Weaver Vale, Hastings and Rye, Sherwood, and Morecambe and Lunesdale. At the general election, we will remind every single voter in those seats of the Conservative party’s betrayal of them.
What has happened to the economy since the Government’s first two Queen’s Speeches? The Secretary of State made various international comparisons in his contribution. Since October 2010, the UK economy has grown by just 1.1% compared with the 6% forecast made by the Office for Budget Responsibility, and 3% growth in Germany and 4.3% growth in the US during the same period. Unemployment is stuck around the 2.5 million mark. A large number of those in work are working part time when they want full-time work, and people have faced an average pay cut of £1,700. Let us not forget that that was all being done in the name of reducing borrowing. We now have a situation where the Government are borrowing £245 billion more than they planned—the equivalent of the health and education budgets combined, and then some.
The Secretary of State is an economist. The reason why this strategy is failing was put very well to me, when I sat on the Treasury Committee, by a former member of the Monetary Policy Committee, Adam Posen. He highlighted the problem of the Government’s strategy. What they were attempting to embark on was an experiment. It was the most extreme consolidation embarked on by any Government in the western world at this point in a country’s recovery from the economic heart attack to which the Secretary of State referred. That is why their policy has failed.
Gordon Birtwistle (Burnley) (LD)
The hon. Gentleman says that the German and US economies have done well and have not faded like our economy. Does he accept that those two countries supported their manufacturing sector while the Labour party, when it was in charge, ran our manufacturing sector down from 22% to 9% of GDP?
Mr Umunna
I certainly accept that we want to grow our manufacturing sector, but the Secretary of State has conceded that, for example, the things we did in the automotive industry by setting up the Automotive Council have helped to increase the output of that sector. So I do not agree that we did nothing to boost manufacturing in this country.
My right hon. Friend the shadow Work and Pensions Secretary will talk later about the failure of the Government’s schemes to get the unemployed back to work.
Mr Umunna
I completely agree with my hon. Friend. Some things I support, such as the start-up loan scheme, could be of real benefit to our different diverse communities, particularly to young people and young entrepreneurs seeking to set up businesses. The problem up to now—I appreciate that James Caan is doing fantastic work on this—is that there has not been enough awareness of it. I have offered to help him raise such awareness in our different diverse communities.
Gordon Birtwistle
Does the hon. Gentleman agree that the destruction or non-acceptance of careers advice in schools—by both the previous Government and, I have to say, the present Government—is not helping young people to get into apprenticeships or further education? Does he agree that if we got professional careers advice back in our schools, more young people would be interested in doing apprenticeships rather than going to university to study subjects that in some cases will not lead to any job?
Mr Umunna
That is an extraordinary intervention from the hon. Gentleman, given the huge cuts that this Government have made to information, advice and guidance, including to careers advice. I remind the hon. Gentleman that it is his Government—and he voted for it—who have cut and destroyed Connexions. I know from experience in Lambeth in my constituency that Connexions made a massive difference.
Let me move on to infrastructure. Good infrastructure, of course, is at the heart of an industrial strategy and crucial to creating the right business climate. That is why we asked the chairman of the Olympic Delivery Authority, Sir John Armitt, to crack this issue for us.
In the Queen’s Speech, after three years of dither and delay, we have finally seen some movement on transport infrastructure in the form of the HS2 Bill. I think I speak for many business people when I say that people would like to see this Government move on aviation, too. The Government should bring forward the date for Sir Howard Davies’ review of aviation and ensure that his report is produced before the general election. We need no more dither and delay on that issue either.
Gordon Birtwistle (Burnley) (LD)
It is a pleasure to make a contribution to the debate on the Gracious Speech, which was delivered earlier in the week. I want to talk about the economy, particularly in relation to apprenticeships and trainees.
I intervened on the shadow Secretary of State about rebalancing the economy, and he accepted that we have to do that. He did not comment when I asked him why the previous Government reduced the 22% of GDP that came from manufacturing to 9%, and how they managed to do that. Rebalancing our economy is vital to get this country out of the financial mess we are in, because we cannot rely on the City and the service sector to pull us out. We came into government three years ago with the manufacturing sector representing, as I said, 9% of GDP. Thankfully, that proportion is now growing.
Unfortunately, we do not have enough people in this country to do the jobs that the manufacturing sector is going to need. It is anticipated that over the next 20 years the civil aerospace sector will be ordering $7 trillion to $9 trillion-worth of new aeroplanes. Many of the parts and engines for those aeroplanes are manufactured in the UK. That will almost double the aerospace industry in the UK, but as things stand we will not have the skills to deliver those products to the industry. That is a big problem.
Mark Hendrick (Preston) (Lab/Co-op)
The hon. Gentleman will know that Barnoldswick, which is not very far from his constituency, has a major manufacturer of aerospace blades for Rolls-Royce engines. Why do not Rolls-Royce and other similar companies working in the aerospace sector take on and train more apprentices to meet the demand he is talking about?
Gordon Birtwistle
I can tell the hon. Gentleman that I was pleased to visit the Rolls-Royce training facility in Derby only a couple of weeks ago, and I was delighted to see the millions of pounds of investment being put into it. Rolls-Royce has picked up the story and is getting on with it.
There has been a lack of apprenticeships and training, certainly in engineering, in which I have been involved all my life, for the past 20 years. We cannot have someone who is an apprentice today assembling aeroplane engines tomorrow. It is a long process. The Government have started that process with the apprenticeships scheme, and over the next few years we will be able to deliver on this. It is very difficult to train apprentices to become skilled people who can deliver what is needed for $9 trillion-worth of aeroplanes over the next 20 years, but we must get on with it. Thankfully, we have made a start, although we are not moving fast enough.
We quickly need to resolve the situation with the national aerospace supply chain centre, which has been agreed by the Government but for some reason is stuck in the Whitehall mandarins division. Having been here for three years, my view of what goes on behind the scenes with the mandarins is that it seems like “Yes, Prime Minister”. I watched that series on television and thought, “No, it can’t be like that”, but actually it is. We come here and listen to all the statements about what we are doing, and then it is still being done 12 months down the line. Setting up the national aerospace supply chain centre must be a priority, and I hope that it is located at the Samlesbury site of BAE Systems. I hope that the proposed national skills centre will be set up at the same site. That centre will train 600 apprentices a year for the aerospace industry, for United Utilities, and for the shale gas industry—another industry coming through in the north-west that will need skilled people.
Bob Stewart
Many people who learn trades in the armed forces have a problem translating their qualifications into civilian life. We could do more to equate armed forces qualifications from places such as Cosford with those that are required in the aerospace industry, because there are people who could easily move into that industry.
Gordon Birtwistle
My hon. Friend makes an excellent point. I was about to move on to the oil industry, to which former members of the armed forces make a substantial contribution. I was on an oil rig in the North sea about 12 months ago and quite a number of ex-military personnel were working there. The medical officer was an ex-Army officer and some of the cooks in the restaurants were ex-Army personnel. It is good to see that they are making such a contribution.
The oil industry, which is more or less a forgotten industry, contributes billions of pounds to economy. One national oil company is about to invest $11 billion in the North sea. The site is about 100 km off the coast of Scotland, but every bit of kit is being provided from overseas. That is an outrageous scandal. That kit should be produced in the UK. Unfortunately, we do not have the companies to do that any more because we have let them disappear over the past 20 years. The previous Government let them disappear without batting an eyelid because they thought that the financial sector could bail us out of anything.
Mr Kevan Jones
The hon. Gentleman is speaking complete and utter 100% rubbish. If he goes to the north-east of England or to Scotland, he will see first-rate British companies that are providing not only hardware for the oil industry, but vital support.
Gordon Birtwistle
Exactly; once the kit has been provided, the support comes from those companies. No company on the north coast of Scotland can build a 17,000-tonne jacket or a topside that weighs more than 45,000 tonnes for the North sea. Those pieces of kit are being built in Spain and South Korea.
Mr Jones
If the hon. Gentleman goes to the technology park at Walker in Newcastle, he will see that 80% of the world’s under-sea umbilical cable is built by two companies in the north-east. That is a success story not just for the north-east, but for UK plc. I am sorry, but his notion that there is no productivity in this country for the oil and gas sector is complete rubbish.
Gordon Birtwistle
I refer the hon. Gentleman to what I said earlier about major structures. I agree that sub-sea equipment is built here. I used to own an engineering company that still builds sub-sea equipment. However, we can no longer build major structures.
Gordon Birtwistle
I do not want to have that debate across the House, Mr Deputy Speaker.
I will move on to trainees and apprenticeships, and the national shortage of skilled people for the jobs of the future. I was told yesterday that of the £106 million budget for the National Careers Service—bear in mind that 1 million young people are out of work— £84.5 million is spent on people over 25, £15 million on prisoners and £5 million on offering careers advice to young people. I think that that is the wrong way round. We should be spending at least half the money on getting young people into the jobs of the future and a little less on people over 25 years old and prisoners. I was shocked to hear that we spend three times more money on careers advice for prisoners than on careers advice for young people who are leaving school. That is outrageous and I hope that the Government will look at it. We need to increase the number of apprenticeships and traineeships to provide people with the skills and the jobs that will be required for this country’s economy in the future.
Mark Hendrick
We do not need caveats. The Labour Government will not take responsibility for the housing market in the US. The Minister says that we blamed international factors, but the current Government try to blame the eurozone for the current deficit, which is absolutely ludicrous. The policies they introduced when they came to power in 2010 were such that a second dip was likely. We told them a second dip was likely, and that is what happened. We have nearly had a third dip.
The 1 million jobs in the private sector that the Government keep bragging about are low-paid jobs, many are part time, and they are doing nothing to contribute to growth in this country. As we can see, growth is flatlining.
The Government talk about the growth of more than 100,000 apprenticeships. The hon. Member for Burnley was perfectly correct on the excellent apprenticeships offered by companies such as BAE Systems, Rolls-Royce and many other good companies up and down the country. When I was an apprentice—I am sure he was an apprentice in his day—apprenticeships generally took three or four years, and apprentices had to gather lots of skills and relevant qualifications. Some of the so-called apprenticeships that the Government label as such are weak and involve very little in the way of qualifications. Some apprenticeships are in things such as cake decoration or hairdressing. We need hard skills in high-tech, high added-value industries to get this country back in growth and back to being a power in the industrial world, but they are not the skills involved in what the Government label the 100,000-plus apprenticeships.
Gordon Birtwistle
Yes, I was an apprentice engineer, and apprentices then did three or four years, but I have friends who are apprentice hairdressers and a relation who was an apprentice baker. It is wrong to decry the skills available. It might not take three or four years to learn them because of technology, but people work hard for those skills and deliver a service with them afterwards.
Mark Hendrick
I would go along with that, but we are not comparing like with like. I am saying that an apprenticeship over four years that leads to a highly skilled job with well respected qualifications is very different from what is on offer. In the past, those positions have not traditionally been called apprenticeships.
Mark Hendrick
The 3 million figure comes from the European Commission and many other respected and independent bodies. [Interruption.] The hon. Gentleman, from a sedentary position, wishes to challenge that figure. Can he give me a figure and substantiate it? Voting no in the referendum will have a serious impact. We can argue about whether it will affect hundreds of thousands of jobs or up to 1 million jobs, but it will have a serious impact on employment and our ability to trade.
Many people are saying that due to globalisation we are trading more with countries such as China and India. That is welcome, but is no substitute for the market we have on our doorstep—the EU. Any future trade with the EU, should we choose to leave, will be conducted on terms dictated by the remaining members of the EU, not a British Government. That will have a big impact on jobs and a bigger impact on the prosperity of this country.
Gordon Birtwistle
I am grateful to the hon. Gentleman for giving way; he is being very generous. Does he agree with the protestations of some Members that if we pull out of Europe Mercedes will still be delighted to deal with us? My concern is whether the people of Germany will still be delighted to deal with Jaguar Land Rover when we are no longer a member and tariff barriers are introduced.
Oral Answers to Questions
Gordon Birtwistle Excerpts(11 years, 9 months ago)
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Steve Webb
I am looking forward to two hours with the Select Committee this afternoon after this warm-up. My hon. Friend is absolutely right, in that some of the women in the group we are talking about will miss out on nearly £20,000 of pension if they were to be treated the same as a man born on the same day. I think that very few of them would think that a good deal.
Gordon Birtwistle (Burnley) (LD)
Does my hon. Friend agree that the reforms to the state pension will be advantageous to women in the future?
Steve Webb
Absolutely. The process of state pension reform was happening at a glacial pace and equality between men and women was many decades away. We have brought that equality forward and men and women on both sides of the House should welcome that fact.
Employment Support
Gordon Birtwistle Excerpts(12 years, 9 months ago)
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Maria Miller
There was a statement earlier and I just want to make sure that the hon. Lady is clear that what Remploy announced today is that it will be consulting on the future of the people who will be affected by the announcements. She used the word “sacked”, but that is not correct. I can absolutely assure her that the support that will be in place will be the support she would expect to be there for her constituents to make sure that every one of them has the support to enable them to get back into employment.
Gordon Birtwistle (Burnley) (LD)
Having anticipated this event I took the opportunity to discuss with the Remploy factory in Burnley the future of the site. Will the Minister confirm what will happen to the assets of that site? Will she be prepared to hand them over to the work force so that they can start up their own business? They tell me that without the present astronomical overhead costs from central control and Government interference, they will be very successful, but they need assurances that they can take it on as an individual business. Will they be able to take on the company’s assets?
Maria Miller
I assure my hon. Friend that I would very much like to work with him on that and look at the proposal he mentions. We have spoken at length about this and I am sure that, working with officials, we can make sure that the details are available to anyone who has a firm proposal to put forward.
Pensions Bill [Lords]
Gordon Birtwistle Excerpts(13 years, 2 months ago)
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Fiona O’Donnell
Perhaps we can have that conversation another time. The point is that the Government do not have the political will to do something about this. In opening for the Opposition, my hon. Friend the Member for Cumbernauld, Kilsyth and Kirkintilloch East mentioned that it is not just the Prime Minister of this Government who does not “get” women; the whole team do not “get” women.
At Prime Minister’s questions two weeks ago, I watched the Prime Minister’s Parliamentary Private Secretary gathering—almost dragging—women from their seats in order to create a female halo around the Prime Minister. He and his Government need to understand that the reason he is turning women off has nothing to do with stage management or presentation. The reason is the policies—such as the one we are discussing—which are adversely and unfairly impacting on women. I urge Liberal Democrat Members in particular, who have at times pushed the Government on this issue, to go the whole hog tonight and back the amendment.
When a Government consider an inequality impact assessment, that is not political correctness gone mad—it is not just something the previous Labour Government left for the current Government. Rather, it is about good government and good decision making, so that when a Government make a decision, they are in full possession of the facts about how that decision will impact on people.
Gordon Birtwistle (Burnley) (LD)
I would have some sympathy for the hon. Lady’s cause if she could explain where we might find the money to fund what she wants. [Interruption.] This is not about the future jobs fund. Will the hon. Lady tell us where the Labour party would find the cash?
Oral Answers to Questions
Gordon Birtwistle Excerpts(14 years, 2 months ago)
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Chris Grayling
The hon. Gentleman is absolutely right. I am sure that he would agree that one of the great failings of the past 13 years has been the fact that we have consistently had 2.5 million people on incapacity benefit, and the previous Government did absolutely nothing to help them to get back into work, which is a terrible tragedy and a huge waste. We intend to change that. The Work programme will deliver tailored, specialised support for those people—support that is relevant to them, and designed not in Whitehall but by the people working with them on the front line. We intend to make a difference to those people in a way that the previous Government did not.
Gordon Birtwistle (Burnley) (LD)
May I report that the pilot scheme in Burnley has now started? We have managed to get the local jobcentre involved with a local recruitment company, Vedas Recruitment and Training. The scheme seems to have started well; my only concern is that funding may run out before we complete it. Will the Minister guarantee that funding will carry on for a short period afterwards, if necessary?
Chris Grayling
I thank my hon. Friend and all those in Burnley, including those in the local authority and other local agencies, who have come together to help make the first stage of the migration from incapacity benefit a reality. I assure him that it is my belief that the money that we have supplied to Burley should be sufficient to see us through to the point when the Work programme starts next year. If there are issues, I will be very happy to talk again, and we will see what can be done about them.
Oral Answers to Questions
Gordon Birtwistle Excerpts(14 years, 6 months ago)
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Steve Webb
As the hon. Lady knows, jobs that are already contractually bound will go ahead. However, she falls foul of the old new Labour fallacy—that just because the Government temporarily fund a job, that makes it into a real, lasting job. I am afraid that life is not like that; the Government’s payment of a temporary subsidy does not make a permanent job. We will be investing in long-term, sustainable employment, which will benefit older people far more.
Gordon Birtwistle (Burnley) (LD)
My constituents in Burnley suffer more deprivation than most, with areas of high unemployment left to rot by the previous Government. Will the Minister ensure that the Department managing the apprenticeships scheme looks into areas such as Burnley to ensure that they are given a fair chance of providing apprentices for the future?