Inequality

Debate between Jo Swinson and Michael Meacher

Thursday 27th November 2014 Commons Chamber

[Jo Swinson]

I will talk about the particular reforms in a moment. There are two ways in which the Government’s reforms can have an impact on executive pay and, therefore, company behaviour when agreeing directors’ remuneration. One way, obviously, is to have a binding vote that a company could lose, and as a result the pay policy would not go forward. The other way—it is an important one—is that companies, because they know they will face a binding vote on executive pay, will be incentivised to have more detailed discussions with investors and shareholders in advance of the annual general meeting. I would not want us to get into a situation in which we thought that it was only if lots of votes were won that the reforms were not successful, when actually it might be a sign that there is much more engagement, which in itself would be a sign of success.

[Mr Meacher]

Does the Minister accept that, despite the good intentions of the Business Secretary’s reforms, the fact that they have not actually been exercised suggests that we need to go significantly further and that that is probably because of the excessive influence of very wealthy fund managers and, in particular, because the work force has no say at all? Does she believe that the work force should have some say in executive pay?

[Jo Swinson]

I certainly think that the points the right hon. Gentleman made about involving the work force are important. That is why our reforms require that it be set out how employees have been involved and consulted. It is not a prescriptive approach, but it requires that to be taken into consideration. Indeed, the Government have tried in other ways to influence corporate governance. For example, the work we have done on employee ownership has supported different types of ownership and engagement models, through various changes to the tax system and the provision of materials on how to make it easier for companies to convert to employee ownership models, so that employees can be much more involved in the running of their companies. We know that that can have real business benefits, because employees buy much more into the success of the company. That also starts to deal with some of the productivity issues that the hon. Member for Hartlepool mentioned.

Blacklisting

Debate between Jo Swinson and Michael Meacher

Wednesday 16th October 2013 Westminster Hall

[Jo Swinson]

The hon. Gentleman and I have discussed the issue informally around the House on a few occasions, and I very much welcome the work that he and his Select Committee have been doing on it. I look forward to reading the Committee’s report. We are, of course, willing to look again at whether there are any gaps in the legislation as a result of any evidence that his investigation discovers.

On Crossrail, at the beginning of September the two parties involved—I think it was Unite and BFK—announced that blacklisting had not taken place. A further statement was issued by Unite some days later. I am happy to look at that and hear from the hon. Gentleman and Unite whether there are specific issues there, particularly with contracting, which may be partly why that issue arose. I am happy to liaise with him as his Committee continues its investigation with a view to producing a report.

[Mr Meacher]

Is it not clear that at the moment it is illegal to compile or maintain a blacklist, but not to use a blacklist, to supply information or to be supplied with information by someone else? Such matters need to be made illegal, so that all the problems we have heard about today are covered.

[Jo Swinson]

As I have said, I will happily look at the specific regulations, which include provisions on supplying information for blacklists. Perhaps the right hon. Gentleman will write to me if he has any further points, particularly if there are more details that I can study. It is clearly not appropriate for anyone to create a list or to supply information for such a list, or to blacklist workers, because that would quite rightly leave them open to employment tribunal claims or to possible action for breaches of data protection. The protections were put in place in 2009.

As I mentioned, we made a series of commitments about blacklisting in a debate in the House in January 2013. We promised to investigate any evidence provided about the continuation of blacklisting, to look carefully at the Scottish Affairs Committee’s findings about blacklisting that happened before 2010 and to review the legislation if the Committee identified evidence that the practice was continuing.

We are honouring those commitments, and I want to inform the House about our actions since that debate. In February, the Independent Police Complaints Commission began an investigation into allegations that the police may previously have provided information to the Consulting Association blacklist, a point that various Members have made. I suspect that you would not be happy, Sir Alan, if I commented on a live IPCC investigation, but we will of course be interested to see its outcome. If anyone has concerns about allegations that are not currently under investigation by the relevant authorities, I encourage them to take such allegations to the IPCC or, for data protection breaches, to the Information Commissioner’s Office.

The Secretary of State met the Information Commissioner, Christopher Graham, in April to make sure that he is ready and able to investigate any new evidence that comes to light. In July, the hon. Member for Glasgow South West (Mr Davidson) and his Scottish Affairs Committee announced that there was new evidence and information about the continuation of blacklisting. Within 24 hours of that communication, we alerted the Information Commissioner’s Office, which began an investigation. I understand that the ICO is in touch with the Select Committee to ensure that the ICO is provided with the information it needs to further its investigation. I know that the Scottish Affairs Committee is very keen to work with the ICO, for which I thank the hon. Gentleman.

I should tell the House that despite the significant debate on the issue—I am glad that it is a high-profile one, because people will therefore be aware that we are open to new evidence—the Scottish Affairs Committee was the first body to get in touch with new information about the continuation of blacklisting. Significant amounts of evidence have been presented about blacklisting in the past, but the Committee’s evidence is the only piece we have received since the regulations came in and, therefore, the only information that we have been able to act on. We will of course carefully consider both the Scottish Affairs Committee’s report and the outcome of the Information Commissioner’s investigation into its evidence.

Some hon. Members have called for a public inquiry, but while those two investigations are ongoing, it makes perfect sense to await their outcome before jumping to an additional inquiry. The issue is currently being explored through those two avenues, and we should wait to see the reports.

My hon. Friend the Member for Stevenage (Stephen McPartland) asked a question, which was echoed by other Members, about ensuring that the victims of this abhorrent practice are made aware of that fact. I very much enjoyed his comment that he was the first Conservative MP to write for the Morning Star, which I am sure its readers appreciated. That earned him a kind offer from the hon. Member for Nottingham North to give him information about how to join a trade union. Perhaps my hon. Friend should be careful, but I note that no Conservative Whips are in the Chamber, so perhaps we will not tell them.

My hon. Friend’s very fair question was about proactively contacting people on the database. It is important to say that there is a fast-track service, so anyone who suspects that they are on the list can find out whether that is the case and get a copy of the information. For anyone who is interested—hon. Members may wish to pass this on to constituents who are concerned about the issue—the helpline number is 0303 123 1113. So far, 3,919 people have contacted the helpline, of whom 446 have been identified on the Consulting Association blacklist.

The ICO is trying proactively to contact individuals on the list in other ways. It has made sure that union lawyers can access some of the information, so that they can write to any of their members they identify on the list, and invite them to get in touch with the ICO. The ICO has undertaken a project with Equifax to check whether address information in the files is up to date. As a result, it has written to 103 individuals, of whom 27 have contacted the ICO to make a subject access request. The ICO has also worked with the Department for Work and Pensions to determine whether up-to-date addresses can be identified from a national insurance number when that is included in the information held. The ICO hopes shortly to write to individuals for whom it has obtained up-to-date addresses.

I understand Members’ frustration, but I would say in the ICO’s defence that such processes are not straightforward. The information is not contained in a snazzy database; much of it is on paper or in card files, and some of it is very scant, with sometimes only a first name and surname. If the name is John Smith, that is almost meaningless, for someone trying to contact the person, without address details and other information. The range of actions that the ICO is taking to piece information together—working with unions, the DWP and credit reference agencies—is certainly very positive. I repeat that anyone who is concerned should contact the helpline.

[Mr Meacher]

The Minister is making a case for the ICO’s efforts to contact people. The obvious question that remains is whether the ICO is under instructions to correspond with or contact everyone for whom it has information that is adequate enough to enable it to do so. That is the key point. I understand that if the name is one like John Smith, that person cannot be traced, but when the ICO can contact someone because it has a name, a telephone number or anything else, is it under instructions to contact them?

[Jo Swinson]

The ICO is making every effort to contact people. It is not a body sponsored by the Department for Business, Innovation and Skills, but we have discussed the issue with the ICO, and that is exactly what is happening. We recognise that there are some cases in which the process is difficult, but the ICO is determined that when it can contact people, it absolutely is doing so.