Deregulation Bill

Ian Lavery Excerpts

Monday 3rd February 2014 Commons Chamber

[Ian Lavery (Wansbeck) (Lab)]

I was on the Joint—or pre-legislative scrutiny—Committee, and it was quite evident that there has been a lack of consultation with the people who will be involved in the Bill’s multitude of changes to regulations.

The Committee wondered whether there would be much opposition to the Bill as a whole and whether it would go through Parliament without any difficulties. When we look at the variety and the wide range of what the clauses are about, we can see that the Bill may contain problems. It moves from health and safety to driving instructors, and from sellers of knitting yarn—nearly every speaker has mentioned them—to child trust fund transfers. It is a mishmash of clauses about regulations, but the reality is that each one is important to somebody: each of these pieces of legislation is there for some reason.

The Minister for Government Policy made light of the Bill, which I am not sure is right, because it embodies plenty of important issues. The Bill is a package of measures, so for it to get the consent of the House, there need to be big changes. He mentioned Charlie Chaplin and children’s liqueur chocolates, for example, but we have concerns about safety and health, and others that I will come on to. I have grave concerns about clause 1 on “Health and safety at work: general duty of self-employed persons”, and clause 2 on the “Removal of employment tribunals’ power to make wider recommendations”, as well as clauses 61 to 64 on the “Exercise of regulatory functions”.

Clause 1 is a particular concern, because it serves no purpose other than to confuse. The hon. Member for North West Leicestershire (Andrew Bridgen) said quite the opposite, but we are entitled to take different views. That is the sort of thing that the Bill will invoke. The clause will take those self-employed who pose no risk to others out of the scope of the Health and Safety at Work etc. Act 1974 by restricting its coverage to a self-employed person

“who conducts an undertaking of a prescribed description”.

At this point, we are not even sure what the prescribed descriptions will be. They will be determined by the Secretary of State in regulations. The clause is therefore problematic because we are not sure what the regulations will say or mean.

[Mr Letwin]

Just to clarify, we have almost completed discussing that matter, and by the time the Bill is considered in Committee, we will have brought forward the full descriptions of the activities that are exempt.

[Ian Lavery]

It is good news that, at least in Committee, people will have a much clearer understanding of the descriptions.

It is not fair to say that there is no problem in relation to the safety and health of self-employed people. Fatality rates among self-employed people are 1.1 per 100,000, as opposed to 0.4 per 100,000 for employees. It is important to recognise and listen to what experts are saying. In opposing the clause, Richard Jones, the head of public affairs and policy at the Institution of Occupational Safety and Health—it is hardly a revolutionary organisation —said:

“IOSH fully supports the simplification of legislation and guidance, but is against lowering of standards that could lead to more accidents and deaths. As we have made clear to Government, we think it would be unhelpful, unnecessary and unwise to exempt certain self-employed from health and safety law, as the Government is proposing—causing more of a hindrance than a help. Health and safety is often misunderstood and wrongly labelled as a barrier to business—whereas in fact, it sustains business growth and success. The Government needs to promote this message, provide health and safety support for SMEs and debunk the misperceptions.”

The Prime Minister has made it clear to bodies such as the Federation of Small Businesses that he will continue to champion deregulation as a public service to small businesses. However, if clause 1 is agreed to, it might exempt 1 million people from health and safety law. Health and safety failures in the UK cost billions per year.

At present, the self-employed have a legal duty to ensure that they protect others from harm resulting from their work activity. There is no confusion: everyone is very clear that no one, even the self-employed, can take risks with the safety or health of others. That is the situation as it stands. At present, the Health and Safety at Work etc. Act can be used only when a person puts another person at risk. If someone is injured through their work, regardless of what they previously believed, the Act will apply. No self-employed person has ever been prosecuted or threatened with prosecution for risking only their own health. However, the Act means that the Health and Safety Executive has been able to give them guidance on how they can protect their own safety. Despite the Bill, every self-employed person will still have to do risk assessments to see whether their work poses a risk to others. If there is no risk, there is not a problem, which is just the same as it is now.

That situation will not change, but what will change is the confusion and complacency that the Bill will introduce. Self-employed people will be unsure whether they are covered, or they may assume that they are not covered if they are not on the list of prescribed occupations or sectors, even assuming that they are fully aware of the list. Worse still, people who control workplaces for the self-employed will wrongly think that they do not have a duty of care to them. Self-employed people who employ others may interpret the provision to mean that they are exempt from the law. Given that the most dangerous industries—agriculture and construction, for example—contain a high proportion of self-employed people, anything that confuses the situation is a recipe for disaster. The Bill states that it will reduce the

“burdens resulting from legislation for businesses or other organisations or for individuals”.

In fact, it will do the opposite. It will not change the situation for those who genuinely do not pose a risk to others, but will create complete confusion for all other self-employed people.

Clause 2 removes the power of employment tribunals to make wider recommendations to employers who are found to have discriminated unlawfully. The Labour party totally opposes that clause. Before the introduction of the Equality Act 2010, a tribunal could only provide a remedy to successful claimants and could not recommend that an employer address the root causes of the discrimination. In almost three quarters of cases, the victim leaves the workplace. The tribunal was unable to ask an employer to change its policies, its practices or a culture that would be likely to lead to further discrimination.

The Government want to repeal the provision that allows tribunals to make wider recommendations because of employers’ fears about inappropriate or excessive recommendations. However, there is no credible evidence to support that argument. In 2012, there were 19 cases in which tribunals issued wider recommendations, according to a recent study that was published in the Equality Opportunities Review. In 15 cases, the recommendation was for training on equality and diversity. In seven cases, respondents were asked to address equality issues generally or to review policies. Such recommendations are made by a tribunal judge and two lay members, including one who represents business. After considering all the evidence at the full hearing, they make proportionate and reasonable suggestions to address the serious cases of discrimination.

Clauses 61 to 64 have been discussed widely by Members on both sides of the House. They are of great concern to Labour Members. They will impose a new duty on some bodies to have regard, in exercising their regulatory functions, to the desirability of promoting economic growth. It is, of course, important that regulators do not set out to impede economic growth. However, having a statutory duty that obliges them to have regard to economic growth in the exercise of their functions, with no clarity as to how it might operate, will potentially interfere with their ability to perform their statutory duties. There is a danger that those who are regulated will attempt to use the new duty to override the actions of the regulator. For example, a business could argue that requiring a particular process to be undertaken before it conducts a certain activity would prevent it from making a profit and thus reduce its ability to grow. On the other hand, not conducting such a process could lead to an accident or to an employee becoming ill. Which of the competing duties would prevail and who would make that decision?

On education, paragraph 1 of schedule 14 removes the requirement on governing bodies in England to ensure that policies that are designed to promote good behaviour among pupils are pursued at their school. Surely it is a mistake to remove that requirement. In the past few days, the Secretary of State for Education has stated that discipline is lacking in schools, and has said what teachers, head teachers and governing bodies should do to instil more discipline. However, under the Bill, behaviour policies may be watered down or removed. Effective pupil behaviour policies are made through collaboration between the head teacher, the governors and the teaching staff. Ofsted is inspecting pupil behaviour more closely than ever before.

Paragraph 3 of schedule 14 transfers the responsibility for determining school term dates from local authorities in England to governing bodies. Teachers and parents share concerns about letting schools decide on their own terms and holidays. The National Union of Teachers commissioned YouGov to survey teachers in 2013. The vast majority of teachers—80%—said that it was important that schools maintained similar term dates. There are also concerns about the statutory guidance on staffing matters in schools.

Before I conclude, I want to mention a number of other clauses that cause me great concern. Clause 23 will remove restrictions on the provision of passenger rail services. Clause 26 will remove the duty to order the rehearing of marine accident investigations. Clause 59 relates to ambulatory references to international shipping instruments. I am concerned about those clauses among many others.

In Committee, consideration needs to be given to a raft of serious and detailed issues, especially safety and health. This is a mixed bag of a Bill. It is hard to support it in its present state because of the variety of deregulatory measures that it contains. Some of them are simple, but some of them are very significant.