Jo Swinson
Main Page: Jo Swinson (Liberal Democrat - East Dunbartonshire)Department Debates - View all Jo Swinson's debates with the Department for Education
(12 years ago)
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Ann McKechin (Glasgow North) (Lab)
1. What assessment he has made of the effect of payday lenders in areas of social deprivation.
The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jo Swinson)
The Government are not aware of any robust research that quantifies the effect of payday loans on areas of social deprivation, but I expect that there are links. We are very concerned about the findings of the interim report from the Office of Fair Trading’s payday compliance review and strongly support any enforcement action that the OFT takes. Payday lending can work for some people in some circumstances, but it is not a solution to long-term financial difficulty.
Ann McKechin
Scotcash, which represents many vulnerable families in Glasgow, has brought to my attention a payday loan agreement in which the APR is a staggering 7,200,000%. Given that Which? has indicated that more than 48% of those who take out payday loans believe that they will not be able to repay them, is it not now time for the Minister to commit to firm statutory regulation in 2013 rather than relying on wishy-washy voluntary codes?
Jo Swinson
The hon. Lady raises two specific issues in her question. Although there is concern about high interest rates, just as when someone hires a car for three days they do not look at the annual cost of doing so, with short-term credit the APR is not necessarily the most relevant statistic. The hon. Lady’s second point was on affordability assessments and the detrimental effect of people being lent money they should not be lent when debt advice would be much more appropriate. That is a significant concern. The Government are considering the OFT’s review and the OFT is already taking action—it has opened formal investigations into several payday lenders. We expect the final report early in the new year and the Government are committed to ensuring that we take action on this issue.
Alex Cunningham (Stockton North) (Lab)
2. What recent discussions he has had with the Secretary of State for Energy and Climate Change on investment in green manufacturing jobs.
Mr John Baron (Basildon and Billericay) (Con)
3. What plans the Government have to make it a requirement that more than 50% of the eligible membership must approve strike action for it to take place.
The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jo Swinson)
We have no such plans.
Jo Swinson
I hear what my hon. Friend says. Obviously, we are pleased that the CrossCountry and ScotRail strikes have been called off. Dialogue is always the best way to resolve these issues. Strike action is a sign of failure on both sides, so resolving the issues is always the best solution. On the subject of a minimum turnout and vote, I gently point out to my hon. Friend that his Conservative colleague, Nick Alston, is the new police and crime commissioner for Essex and was elected with the support of 6.6% of the electorate.
Natascha Engel (North East Derbyshire) (Lab)
The right to withhold one’s labour is a mark of a country’s democracy. Does the Minister agree that any move to restrict that right is a move in an anti-democratic direction?
Jo Swinson
The hon. Lady makes an important point. It is also worth noting that strikes and industrial action at present are at historically low levels. That is a sign of positive industrial relations and is to be welcomed. Trade unions play a very important role, and although the headlines generally focus on industrial action and strikes, the excellent work that they do on training and resolving workplace disputes often does not hit the headlines and should be commended. We always keep issues under review, but it is fair to say that the industrial action laws and situations are generally working well.
Mark Pawsey (Rugby) (Con)
4. What steps he is taking to increase the number of small and medium-sized enterprises which export to international markets.
John Glen (Salisbury) (Con)
I recently met Phil Downer, who runs a recruitment business, and he took me through the 14 pages of the new agency workers regulations that he has to fill in every time he recruits somebody for a few weeks. Will the Minister explain whether the red tape challenge is addressing this unnecessary regulation, which is a massive burden on a small business man who is trying to get on in my constituency?
The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jo Swinson)
The hon. Gentleman is a strong supporter of businesses in his constituency. The red tape challenge is looking at a wide range of issues and he is right to highlight that. We need to ensure that there is proper paperwork when it is necessary, but we will review whether the current burden is appropriate and proportionate.
Seema Malhotra (Feltham and Heston) (Lab/Co-op)
T2. Since the Davies report, we have seen an increase in the number of women in non-executive roles. However, the gender balance for executive roles has remained at approximately 5%. What plans does the Minister have to increase the proportion of women in non-executive and executive roles in 2013?
Jo Swinson
The hon. Lady is right to highlight the issue of executive roles, which is more difficult to address than non-executive roles in the boardroom. The Government are taking action. The Women’s Business Council is looking at what specific steps can be taken and we expect its report in May. More than 60 companies have already signed up to the Government’s Think, Act, Report initiative, looking in detail at how they recruit, promote, retain and pay their women executives so that we can ensure that women are reaching the boardroom not just in non-executive roles but in executive roles.
Mel Stride (Central Devon) (Con)
T5. The UK has among the most generous maternity leave provisions in the world, which mean that some employers have to provide time off for employees for up to a year. This is particularly onerous for very small businesses. Will my hon. Friend look at the possibility of reducing the level of maternity benefits for micro- businesses that employ 10 people or fewer?
Jo Swinson
At this time of year, when we remember the Christmas story, we can be thankful that in the past 2,000 years not only has maternity care improved somewhat, but so has the recognition in society of the positive role that women, and mothers in particular, can play in the workplace. I recognise that it can be difficult for employers when an excellent employee is away for a year. That is why I hope that, as a strong champion for small business and as a father, my hon. Friend will welcome the Government’s plans to introduce shared parental leave, which will let mums and dads choose how they care for their children. Of course, that will mean that many mums will return to work in under a year, which will help to deal with the problem he outlines, as well as help dads to spend more time with their child in the early weeks of their child’s life.
On the specific issue, approximately 1.5 million people become parents every year, and we would not want that talent pool to be dissuaded from applying to work for small businesses.
Mr Speaker
I think on the strength of that answer there is plenty of scope for an Adjournment debate in which, no doubt, we will hear about the Nordic nostrums and views about neanderthals from the hon. Member for Huddersfield (Mr Sheerman), who was scarcely able to contain himself a moment ago.
Jo Swinson
The Government are certainly looking very closely at debt management. The National Audit Office has looked at the Office of Fair Trading. It found that it has a positive role to play in enforcement action, and has been active in this area. We are trying to agree with industry a protocol to improve debt management and advice. We will continue to look at this carefully because, as the hon. Gentleman rightly says, this is important to many people.
Peter Aldous (Waveney) (Con)
T7. The Under- Secretary of State for Skills, my hon. Friend the Member for West Suffolk (Matthew Hancock), is due to visit Lowestoft college in the new year. I would be grateful if he confirmed that the additional funding for capital investment in further education colleges, further details of which he announced this morning, is available for refurbishment projects such as the one that the college has worked up and which will enable it to build on its excellent work in providing people with the skills needed in the energy sector?