Small Business, Enterprise and Employment Bill

Debate between Jo Swinson and David Rutley

Wednesday 19th November 2014 Commons Chamber

[Jo Swinson]

I shall focus most of my remarks on the debate about the national minimum wage and zero-hours contracts, but I would like briefly to set out the effects of Government amendments 61 to 64, relating to the public sector exit payment measures. The measures are designed to enable the proportionate recovery of exit payments when a high-earning individual returns to the same part of the public sector shortly after their exit. The amendments are technical in nature and simply seek to clarify that the obligations can be placed on individuals who received exit payments when it is likely that they will swiftly return to the same part of the public sector.

[David Rutley]

I wanted the Minister to pause for a second on this issue, because it is important to recognise that this Government are taking action on something that has been going on for far too many years. Does she agree that taxpayers across the country who are concerned about these matters will understand that we have taken action so that high earners will not be taking an exit payment and then going off to another job in a few weeks’ time?

[Jo Swinson]

My hon. Friend makes an important point. This is a basic issue of fairness as well as value for money for the taxpayer. That is why this important measure is part of the Bill. The measure will allow the Government, for instance, to require a high earner who received an exit payment to make arrangements to repay the compensation before they are allowed to take up new employment in the same sub-sector of the public sector. In addition, the amendments clarify that obligations can be placed on the public sector body responsible for the exit payment and the subsequent authority that re-engages the individual as an employee, contractor, or office holder. The amendments are in line with the Government response to the consultation on these measures, which was published on 28 October. I am sure all hon. Members will agree that these amendments are an important clarification, and I look forward to support for them.

Turning to the more substantive issues, I thank hon. Members for tabling the amendments in this group and for the constructive and positive debate we have had. The hon. Member for Hayes and Harlington (John McDonnell) was unable to stay, but I thought his contribution was particularly good when he said that if we could not accept the amendments we could respond to their spirit. I very much hope to be able to do so. I shall set out why I do not think the amendments should be accepted as drafted, but I recognise the genuine concern expressed by hon. Members and we share the commitment to tackling the issues. The debate is really about the best way of doing that. It may not be through legislation, but I will explain how the Government intend to tackle the genuine issues raised.