Trade Union Bill

Lord Collins of Highbury Excerpts

Thursday 25th February 2016 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills and Department for Culture, Media and Sport (Baroness Neville-Rolfe) (Con)]

My Lords, I thank the noble Baroness, Lady Wheeler, for her clear, comprehensive and relatively succinct introduction to this enormous group. It is plain that the sense of the Committee is that there are concerns about Clause 14, for reasons that have been fully debated. However, we have looked carefully at the clause and the amendments, and I will try to explain our thinking in a clear and objective fashion.

It is important to note that check-off was introduced in a very different time when bank accounts were not common and workers were paid in cash. We are now in a modern era of online banking, where public sector workers’ wages are almost all paid directly into bank accounts and direct debit is the obvious alternative. The average consumer already has six direct debits. This is the direction of travel, as my noble friend Lord Leigh said. An advantage of moving to direct debit is that a union and its members will have a direct subscription relationship without any need for a public sector employer to be an intermediary.

It is, of course, about the public sector that we are talking, to respond to my noble friend Lord Forsyth. If we were designing a union membership payment method today from scratch, no one would choose to put the employer as an intermediary in the subscription relationship between a union and its members.

[Lord Collins of Highbury (Lab)]

What about Tesco?

[Baroness Neville-Rolfe]

I suspect that if it was starting now, rather than 100 years ago, things would be different because of the direction of travel.

[Baroness Neville-Rolfe]

I think we have set out clearly in our impact assessment and elsewhere the way things are going. There is clear evidence that there has been a big move to direct debits, internet banking et cetera. I do not think anyone could dispute that. As a former employer in the private sector, I was thinking that if one was setting out on this today, one would not necessarily do it in the same way.

[Lord Collins of Highbury]

I shall give the Minister a simple fact. She talked about Tesco. She was part of a partnership arrangement. Can she tell me how old that arrangement is and how important payroll deduction is to it? In my memory, it is relatively recent.

[Baroness Neville-Rolfe]

I think check-off existed for a number of years at Tesco, long before I arrived. We had the partnership agreement to which the noble Lord refers in the late 1990s, and I was involved in that. Check-off is part of the arrangements. In the Bill, we are not seeking to regulate the private sector; we are talking about the public sector, and there is a cost which is set out.

--- Later in debate ---

[Baroness Neville-Rolfe]

I have already sought to answer this question. Deductions for things such as pensions, childcare vouchers, Cycle to Work and all the other things that have been mentioned have tax or national insurance implications so it makes sense for them to be made through payroll. The collection of union subscriptions should be the concern of trade unions rather than of tax-funded employers. That is the difference.

[Lord Collins of Highbury]

It is a long time ago for me but I remember that part, if not all, of the subscription for craft unions in particular was treated for tax purposes and was declarable in terms of being alleviated—professional fees as part of a trade union subscription. Where that applies in the public sector, will it no longer apply?