(9 years, 9 months ago)
Lords ChamberMy Lords, SMEs account for 80% of the tourism industry, so it is extremely important that we help SMEs to flourish through things like the deregulation task force. They are a very important part of the sector. The British Hospitality Association is looking to create further employment by the end of this year, with pledges of 60,000 jobs. The work that the Prison Service and, I think, the Clink Charity are undertaking with restaurants at certain prisons that I have heard of has been immensely successful. This is an example of where, in partnership, we can make some real progress.
My Lords, given the scale of the tourism and leisure sector, and indeed the robust economy that we hear so much about, will the Government at least try to persuade the industry to adopt the living wage?
My Lords, I think that the Government are very clear: where employers are in a position to pay the living wage, we very much encourage it. However, I repeat that a lot of the businesses involved are SMEs and family businesses, and that may not be possible. Still, we very much encourage that, where it is possible, it should be done.
My Lords, in thanking my noble friend I think that the clearly important feature of all these things is to ensure that we have a growing economy. That is why the Government are so determined to pursue the growth strategy with many apprentices and all sorts of advantages that we hope to bring through that.
My Lords, given that low pay makes a major contribution to poverty in rural communities, what plans do the Government have to promote the living wage in rural economies?
Noble Lords may be surprised to hear that I, with a rural background, do not see it as a town and country matter. We have a national economy and we need to encourage businesses to come to the countryside as, indeed, to urban areas. That will be the route to ensure that the living wage and good employment creation are in all parts of our nation.