Oral Answers to Questions

Debate between Ian Lavery and Jo Swinson

Thursday 8th January 2015 Commons Chamber

[Ian Lavery (Wansbeck) (Lab)]

Most companies pay the national minimum wage, but increasingly we have seen more companies not wishing to pay it and developing numerous professional scams—making individuals pay for uniforms, non-payment of mileage, bogus employment and bogus apprenticeships. What will the Government do to police the national minimum wage effectively in respect of these companies?

[Jo Swinson]

The hon. Gentleman raises a very serious issues and alludes to today’s TUC report, which I look forward to reading in detail. We have expanded the resources available for the enforcement of the national minimum wage; we have increased the penalties; we have introduced the naming and shaming scheme; and we will continue to clamp down hard on those companies that break the law. Many of the practices he outlined, which would seem to be in the report, are already against the law. The pay and work rights helpline in Her Majesty’s Revenue and Customs will also help to clamp down on these employers.

Blacklisting

Debate between Ian Lavery and Jo Swinson

Wednesday 23rd January 2013 Commons Chamber

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jo Swinson)]

We have had a good debate today on an absolutely appalling practice. There have been light-hearted moments when hon. Members have mused on their own blacklisting history, but there is no way in which we can make light of the impact of the practice on individuals and their families. Many hon. Members have powerfully and eloquently expressed, through stories from their constituents, how it has wrecked careers, families and lives, made it impossible for people to get a job, and created huge financial problems, health problems and emotional stress.

We have talked about the past, and I enjoyed the history lessons from the hon. Member for Wansbeck (Ian Lavery), who talked about etymology, going back to the 1600s, and from the hon. Member for Bassetlaw (John Mann), who talked about his grandfather’s experience. He also told the House the horrendous story of the rather dodgy guy posing as an employee on behalf of the Economic League. That showed the extent to which some people were prepared to go to get information.

More recently, persistent suspicions and concerns were raised in the 1990s, which resulted in, among other things, the Employment Relations Act 1999. Regulations were drafted in 2003 and implemented in 2010, after the scandal of the 2009 Information Commissioner’s Office investigation. I want to dwell briefly on that investigation. It was launched after information was passed to the Information Commissioner suggesting that there had been serious breaches of data protection legislation. That demonstrates that the ICO is willing to investigate and to take action when it is provided with information and evidence, including anecdotal evidence.

I absolutely understand the feelings that have been expressed in the House today, however. The £5,000 fine imposed on the gentleman who had been running the Consulting Association was described by the right hon. Member for Oldham West and Royton (Mr Meacher) as “paltry”. The hon. Member for Liverpool, Walton (Steve Rotheram) said that he wanted to see criminal sanctions imposed on those involved in the activities. Frustration was expressed by hon. Members that no one had been brought to book for what had been happening.

I absolutely share that frustration and that sense of injustice, but that was the regime that was being operated at the time. The £5,000 fine seems paltry, given the impact of the activities on so many thousands of people, but it was the maximum that could be imposed at the time. Calls have been made for criminal action to be taken, but those practices did not constitute a criminal offence at the time and we cannot make them a crime retrospectively. That is a convention that the House follows, with good reason, and we must abide by that principle.

[Ian Lavery]

The problem was not so much that the £5,000 fine was paltry; it was the fact that it was paid by a company that was carrying out blacklisting: Sir Robert McAlpine.

[Jo Swinson]

The hon. Gentleman makes a very good point. It is fair to say that Members have also expressed concern about the level of the fine, however, and it is right that the legislation now in place allows for a fine of up to £500,000. That is far more appropriate for such a serious offence.

I appreciate that there has been a generally good tone to the debate today, and that it has not been overly partisan, but it is simply factual to point out that if the 2003 regulations had been implemented in 2003, the victims uncovered by the investigation in 2009 could have received compensation of £5,000 or more each, and a fine of up to £500,000 could have been levied—£5,000 might not seem very much to a big construction company, but £500,000 certainly does.

It is also worth looking at the list of 3,213 people who the Information Commission uncovered were on the Consulting Association’s blacklist. One point that has not been made today—I want to put it clearly on the record because there are people who are interested in this issue and will be following proceedings—is that anyone concerned that they might have been on the blacklist can either go to the ICO’s website, at ico.gov.uk, or call the fast-track helpline on 0303 123 1113, to find out whether they were on it.