Women: Contribution to Economic Life

Lord Loomba Excerpts

Thursday 6th March 2014 Lords Chamber

[Lord Loomba (LD)]

I thank my noble friend Lady Northover for initiating today’s debate to mark International Women’s Day, which has now become a calendar date. I also congratulate my noble friend Lord Palumbo of Southwark on making a brilliant maiden speech today.

Today’s topic, women’s contribution to the UK economy and worldwide, is an important subject which is very close to my heart. I have always supported such issues both here and in other parts of the world. We all know that since World War II, many women have come forward to play a big role in the development of the UK economy by working in factories, retail, business and many other sectors. In addition, they have contributed to the development of these sectors by supporting their families. I am pleased to highlight this indirect contribution, which is often forgotten. Their contribution has been considerable and, without a doubt, has made a huge difference to the UK economy.

There is no dispute that women make a large contribution to the UK economy. I would like to focus on the contribution made by women in the clothing industry. I have been involved in the clothing industry for well over 40 years, starting from a market stall and going through different phases of retail, wholesale and the import business.

When I started my business in 1964 from a market stall in the north of England, I clearly remember that the clothing business was run mostly by men. We had assistants who were women but most of the wholesalers and manufacturers were men. I saw this trend going on until the late 1980s, when some of the high street multiple retailers started employing women buyers and heads of sales departments. It is a shame that it has taken so long to appreciate that women have the same ability as men in developing business strategy.

To give an example, recently the Financial Times reported:

“Where once men made up the majority of power players at the world’s big department stores, recent poaches and promotions have thrust five British or British-based women into the spotlight: Stacey Cartwright, the new chief executive of Harvey Nichols; Marigay McKee, president of Saks Fifth Avenue; Alannah Weston, deputy chairman of Selfridges Group; Averyl Oates, fashion commercial director of Galeries Lafayette; and Helen David, fashion director at Harrods”.

Those are just a few examples; internationally, the list of women is longer. There is a need for more women to come forward and take up positions in the fashion clothing industry so that they can contribute even more.

There is sufficient evidence that many companies, whether in the fashion business or any other business, do not have equal numbers of women and men on their boards. For example, there are 15 members of the Marks & Spencer board, only five of whom are women; at New Look, out of eight board members, there are no women; at Debenhams, two out of eight board members are women. This disparity is widespread: for example, at the moment only 20.4% of directors of FTSE 100 companies are women, falling to 15.1% for FTSE 250 companies.

A report by the Credit Suisse Research Institute, called Gender Diversity and the Impact on Corporate Performance, found that companies with at least one woman on their boards had better stock market results than companies with all-men boards. I am convinced that if proper education and training is given to a woman she can match a man in productivity and competitiveness. Therefore, I would like to ask the Minister to take the necessary steps to ensure that the right education and training is provided and that there are appropriate systems in schools from an early age.

During my life, I have seen the contribution made by women to the UK economy and around the world through the fashion industry. They could still increase their contribution if the Government would provide vocational skills and training in the areas of designing, making garments and business management. It would provide a huge opportunity for young girls and women to achieve much more in their lives, thus adding to the economy both nationally and internationally.

In conclusion, I ask the Minister to convince the Government that, to get more women to contribute to the UK economy, they should, through the Department for Education, institute an early focus on practical, industry-focused skills and knowledge development. This process should also include early work experience placements that involve learning high-level skills. I urge the Government to make this as important as academic topics.