Remploy

Jim Shannon Excerpts

Tuesday 16th October 2012 Westminster Hall

[Mr Bain]

I entirely agree with my hon. Friend. There has been an impression of a lack of transparency about the way in which this tendering process has operated, which means that lessons could be learned for stage 2 for the other factories that are under threat.

I am aware that the Minister cannot provide guarantees that there will not be any compulsory redundancies, but I hope that she will be able to assure us that the Government will strive to ensure that as many as possible of the disabled workers at Remploy Springburn and the other factories involved in the current tendering process keep their jobs under any new ownership.

Will the Minister also provide a guarantee that TUPE regulations will apply to any sale of the Springburn Remploy factory and any of the others involved in the current tendering round and in any future round of tendering for those factories potentially involved in stage 2?

The right to a fair and stable pension matters greatly, especially to disabled people with higher living costs. Will the Minister guarantee that the current accrued pension entitlements up to the point of transfer will be honoured by any new owners of Springburn Remploy and the other factories in the current tendering round? Will she further outline what minimum criteria for future pension entitlements of current staff and of any new staff in the future the Government will insist on from future Remploy factory owners, mutualisations, leases, or employee buy-outs if the fair deal for staff pensions policy is not to apply to this tendering process?

There are some serious questions to answer about the conduct of this tendering process. Given the shambles that we have seen elsewhere in government over railway franchising, is the Minister content that this process has been conducted in a procedurally and legally watertight manner? Is she sure that there are no grounds for disappointed bidders to challenge the way in which this has been conducted? Will there be a full external audit of the process that both the public and the Members of this House can have confidence in? Is she satisfied that the 90-day consultation is anywhere near adequate? The Sayce report makes it clear that a consultation period of no less than six months is required to help bidders or employee-led buy-outs put together proper business plans to save factories. Why, for example, did the Minister’s predecessor not provide me with any information on the Springburn factory’s profitability, despite repeated requests in writing, whereas she was happy to comment on the financial position of other factories in her original statement? What lesson have the Government learned about providing additional support for management-led or employee-led mutualised ownership of Remploy factories beyond that which her predecessor was prepared to offer earlier this year? Will greater consideration be given to leasing factories to local authorities, other public agencies or even the devolved Administrations, if that might help save jobs or reopen factories, as is hoped in Wrexham?

Households with a disabled person are more likely to live in poverty than those without a disabled person. The hundreds of disabled people who work for Remploy deserve more certainty about their future than the Government have been able to provide to date. The critical thing is not only the ownership of the factories and finding jobs for those Remploy workers who have already, tragically, been laid off after the Government’s wilful refusal to listen and protect proper rights at work for Remploy staff. It is also the procurement procedures that public bodies apply to ensure that supported employment workplaces get a fairer deal for the future. That is the challenge for the Government and their devolved counterparts elsewhere in the UK.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Gentleman for bringing this matter before the House. In Northern Ireland we have an organisation called Accept Care, which is similar to Remploy. Accept Care is partially funded by the Northern Ireland Assembly and creates jobs for disabled people, gives them the training they need and, afterwards, employs them. Does he feel that perhaps the Government need to spend a wee bit now to help those people find jobs and make those businesses profitable?

[Mr Bain]

Absolutely. My hon. Friend has illustrated that the Government have not done enough to learn lessons from other jurisdictions that have had more progressive policies on care for the disabled and support for disabled workers than, sadly, this Administration have followed in recent months.

If we are truly to build a society that values the disabled, it is critical that we do more to protect the right to the dignity of a good job for those able to work and provide proper lifelong skills and training and a decent standard of living for all. That is no less than my constituents who work in Remploy Springburn and those who work in the other Remploy factories across the country deserve, and it is the Government’s duty to deliver.

--- Later in debate ---

[Esther McVey]

Absolutely. It is not just inspiration, but the support of a good team. The independent panel has considered the comments of Scottish and Welsh representatives. I think a report will be coming out on that. The hon. Member for Aberdeen North (Mr Doran) and I met yesterday, and I hope that he now has a meeting with the CEO of Remploy. Straight away, I asked what we could do in the Aberdeen factory. All the points he raised with me about the assets, the factory and site ownership were dealt with this morning. I do not have the answers, but we are on to that. My phone lines are open. I am always here. If anybody wants to know anything more, I will be available to answer their questions.

[Jim Shannon]

As I said earlier, we have something similar in Northern Ireland. Do the Government intend at least to seek it out and see how it works? The finance comes from the Northern Ireland Assembly and it does the same thing that Remploy does in England and Wales. A new Accept Care is opening in the north-east too, in Darlington, so some things are happening that could benefit us all.

[Esther McVey]

I will take advice from wherever it comes and that could possibly play a part in stage 2. I do not know how it could possibly go backwards and affect stage 1, but I will listen and consider what can be done for stage 2.

Question put and agreed to.