Future of Specialist Disability Employment

Lord Collins of Highbury Excerpts

Tuesday 10th July 2012 Lords Chamber

[Lord Collins of Highbury]

My Lords, I hear what the Minister said about the worthy objective of ending what I used to call “sheltered employment” and moving towards more integrated employment, but the Government on this occasion have a duty as an employer to employees who are incredibly vulnerable. There are already 515,400 disabled workers out of work in the UK, as well as 1.9 million people who are not disabled looking for work. I fear that unless there is a U-turn by the Government on closing the Remploy factories, the 2,800 disabled employees will be put on the scrap heap and most of them will never work again.

Quite simply, this is the wrong plan at the wrong time. To use another phrase: it is too fast and too deep. I am afraid that the Government have not understood all the implications of Liz Sayce’s report. She understood the need for change, but in making that change she also understood the need to involve the employees and the people who work hard in Remploy in ensuring that they have the possibility of a future. The Government have ignored those recommendations—in particular, about the time and speed of the implementation of these changes.

Why do the Government not honour the recommendations of Liz Sayce that they have chosen to ignore? Why do they not give factories six months to develop a business plan and two years before the subsidy is fully withdrawn? Why is there not a proper plan for transition that gives hope to people in work to remain in work? The viability of the Remploy factories could be decided not by a panel appointed by the department but by one that genuinely involves business and enterprise experts, as well as trade unions, rather than a simple unilateral action by the department. Will the Minister consider restarting the process on a proper basis that will enable businesses to examine whether they have a proper viable future? The public sector in each local authority area could be involved so that we can properly understand how government and local purchasing and employment policies impact on the viability of these factories.

I welcome the commitment in Liz Sayce’s report. The Government need to take a more flexible approach to transitional funding. Some of these factories—beyond those that the Minister has referred to—may need more time, particularly in areas with the highest unemployment. As we have heard today, some may need less. We are talking about the future of nearly 3,000 workers, and it is time for the Government to put the emphasis on ensuring the success of enterprises rather than saying there is no hope. I urge the Minister to look at this issue. It is not impossible to look at the tender process and to work in a way that meets the timeframe set down by Liz Sayce’s review. It is simply not credible to suggest that potential bidders can be drawn up at such short notice. With the number that we have got in the report and in today’s Statement, it is the clear position of the Opposition that not enough time has been given to the future prospects of these factories. I urge the Minister to consider these points and look at the whole picture and the impact of the proposals, which will mean thousands of workers having no future.