(6 years, 11 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve under your chairmanship, Mr Brady. I welcome the opportunity to discuss this tragic issue, and I thank the hon. Member for East Renfrewshire (Paul Masterton) for securing this important debate and for his thoughtful remarks. I also thank the all-party parliamentary groups mentioned in this debate for their positive work.
I reassure all hon. Members that the Government remain committed to supporting the private Member’s Bill of my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) on parental bereavement leave and pay, which comes on the heels of a similar Bill brought last year by my hon. Friend the Member for Colchester (Will Quince), to whom I shall return in my remarks. I met the two of them today to flesh out some of the details of the issue.
Unquestionably, the death of a child is traumatic and deeply upsetting for any parent. I agree wholeheartedly with the hon. Member for Strangford (Jim Shannon) that the loss of a child or baby is the worst form of bereavement that a human can suffer, a point reinforced by other Members in their contributions. It consigns most sufferers to a lifetime of grief, which, at best, if they are fortunate, they learn to live with over time. That was powerfully put by the hon. Member for North Ayrshire and Arran (Patricia Gibson) in a speech of great impact. I extend my heartfelt condolences to her and to all Members, and all observers of this debate, who have been personally affected by this terrible, life-changing event.
The Government expect employers to be sympathetic and flexible when employees request leave in such circumstances, but acknowledge that that is not always the case. I have been upset to hear from several hon. Members about the survey, and about individual instances of inhumane behaviour that I do not think that any amount of human resources training could begin to address. We recognise that without a statutory entitlement to time off following the death of a child, the situation will not rectify itself.
Our manifesto committed to ensuring that bereaved parents can take time away from work to grieve for a lost child. As I have mentioned, the Government remain fully committed to that. I pay tribute to my hon. Friend the Member for Colchester for the huge amount of work that he did during the last Parliament, which led directly to the making of that commitment in the Conservative party manifesto. I know that a similar commitment was made in the Labour party manifesto.
The particulars of the Bill are being carefully considered, so it would be premature to go into too much detail about the proposals, but I will of course bear in mind the detailed questions and suggestions from the shadow Minister and discuss them with my hon. Friend the Member for Thirsk and Malton and with Treasury officials. Officials in my Department met interested stakeholders over the summer and had some fruitful discussions, which have helped to shape our thinking. I was heartened to hear that there is wide support for the Bill among employer and employee groups, charitable organisations and parents alike.
Many hon. Members have mentioned the importance of bereavement services. The quality of care that bereaved families receive can have long-lasting effects. The Government have invested £35 million to improve birthing environments from that perspective. The improvements include better bereavement rooms and quiet area spaces at 40 hospitals. There is, of course, more to do, as the hon. Member for Paisley and Renfrewshire North (Gavin Newlands) amply demonstrated in his contribution.
I am mindful of time. If the hon. Gentleman will forgive me, I only have five minutes left and a number of questions to answer.
The Government are supporting Sands, the stillbirth and neonatal death charity, to work with other baby loss charities and royal colleges to produce a national bereavement care pathway to reduce variation in the quality of bereavement care provided by the NHS. I noted the intervention by the right hon. Member for Enfield North (Joan Ryan) about the evolving needs of bereaved parents, some of whom will need to access bereavement services long-term. That point was reinforced by the hon. Member for North Ayrshire and Arran. Sands is also working on a project for NHS England on the role of bereavement midwives.
The Department of Health has published “Health Building Note 09-02: Maternity care facilities”, a guideline on the design and planning of maternity care facilities in new healthcare buildings and the adaptation and extension of existing facilities. In line with the guidance, we expect new build or redesigned maternity units to include facilities for parents and families who suffer bereavement at any stage of pregnancy or in the immediate aftermath. The standard of neonatal care across Scotland, as my hon. Friend the Member for East Renfrewshire has rightly pointed out, is a matter for the Scottish Government, but I share his concerns and encourage him to take it up with Scottish Ministers.
I listened with interest to the hon. Member for Glasgow East (David Linden) on the work of children’s hospices and palliative care services in Scotland, which should be brought to the attention of Health Ministers in the UK and, if possible, of those working on the national bereavement guidelines.
The self-employed were mentioned. Those who are self-employed and bereaved face different challenges from people who are employed, but no less demanding ones. As Matthew Taylor argued in his review of employment and protections, the tax that people pay and the entitlements that they receive are linked, so it is right that we consider the wider arrangements for the self-employed in a holistic way that includes tax benefits and rights. The Government will come back to the Taylor review, including those matters, with a full response before the end of the year.
Since 2010, we have taken steps to equalise the state benefits provided to the employed and self-employed, including giving the self-employed access to the full rate of the new state pension for the first time, so there is a precedent. We agree with the principle of equalising benefits for the self-employed, but that should happen alongside reforms to taxation, which will need to be considered carefully over the longer term. The self-employed will need to be consulted as part of those deliberations.
I draw hon. Members’ attention to the ACAS guidance document for employers, “Managing bereavement in the workplace—a good practice guide”, which was developed with the charity Cruse Bereavement Care for people who have lost a loved one. I hope that the valuable work done by so many hon. Members to raise awareness of this terrible issue will have an impact on employers, as well as on the health services and wider society.
Hon. Members raised the important point that some employers struggle to know the best way to support staff in these circumstances. We support the Bill introduced by my hon. Friend the Member for Thirsk and Malton, which will put matters on a statutory footing, but there is a lot more that employers can do. It was disturbing to hear of the survey showing that only a third of people who suffered this terrible experience felt adequately supported by their employers.
The ACAS guidance highlights the important role that employers can play and their duty of care to employees, and includes specific advice about parents who lose a child. Most importantly, it helps employers understand how grief might affect their employees. It provides practical steps that employers can take when they are notified by their member of staff, in the immediate aftermath, and when the employee returns to work. The guidance has been well received by employers, and we will consider how we can continue to work with ACAS to promote it further and embed a cultural change in companies up and down the country, given the importance of the issue.
I thank all hon. Members for their contributions to the debate. It has come at a valuable time in our thinking.
(6 years, 11 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve under your chairmanship, Mr Walker. I congratulate the hon. Member for Streatham (Chuka Umunna) on securing this important debate and on his opening remarks, which I listened to intently.
I am pleased to have the opportunity to respond to this debate and I want to make it clear that the Government take blacklisting extremely seriously. We hope and trust that blacklisting has already become and will remain a thing of the past, but we are not complacent, and I am even less complacent, having heard from the hon. Gentleman who introduced the debate about evidence that he wishes to put before me afterwards. I was shocked by what I heard and I share his view and that of other Members that blacklisting of trade union members and activists is completely unacceptable. It has absolutely no part to play in modern employment relations.
As hon. Members have noted, we have in place regulations targeted specifically at trade union blacklists and I believe they are both proportionate and robust enough to prevent abuse from occurring. I accept the point that has been made that the horrendous abuse of the past, which was overt, organised and clearly in breach of the law as it stands today, may have been replaced by a more covert approach. That must be borne in mind, but the Employment Relations Act 1999 (Blacklists) Regulations 2010 made it unlawful for an individual or organisation to compile, sell or make use of a blacklist of trade union members or those who have taken part in trade union activities.
Since the introduction of those regulations, no evidence has been presented to the Government or the Information Commissioner that these practices are recurring. If that is no longer the case, naturally I want to know about it. Any individual or trade union who believes they have been the victim of blacklisting practices has the right to take action. They do not have to wait for an independent investigation. They can enforce their rights under the regulations through an employment tribunal or the county court. Anyone who believes they have been affected has the right to pursue justice through these means and we would encourage them to do so.
The measures in the 2010 blacklisting regulations are reinforced by powers in the Data Protection Act 1998, which protect the use of personal data—that was very much needed in the examples we have heard this afternoon. I emphasise that this includes information on trade union membership and sensitive personal data. The Government take the protection of personal data very seriously.
The Information Commissioner’s Office is the regulatory body and was set up to investigate breaches of the Data Protection Act 1998. It has power to take enforcement action, including searching premises, issuing enforcement notices and imposing fines of up to £500,000 for serious breaches. The Government continue to bear down on those who seek to exploit personal data. We have published a statement of intent in relation to the proposed data protection Bill that was announced in the Queen’s Speech. The Bill will implement the general data protection regulation into UK law and will give us one of the most robust and dynamic sets of data laws in the world. It will give people more control over their data, require a higher standard of consent for its use, and prepare Britain for exiting the European Union.
As a result of the general data protection regulation, the Information Commissioner’s fining powers will increase substantially from 25 May 2018, to 4% of an organisation’s annual global turnover or €20 million, whichever is greater.
It is clear that data collection and data analytics in the workplace are gaining in importance. In the light of that and the strengthened framework that the general data protection regulation will create, the Information Commissioner’s Office intends to open a call for evidence, to which hon. Members have alluded, on the implications of modern employment practices in recruitment and selection, and the obligations of employers. The hon. Member for Streatham says that that should happen sooner rather than later. I agree with him. I believe that the call for evidence is scheduled for next year. I will talk to the Information Commissioner’s Office to see whether it can be brought forward.
The call for evidence is an important step in trying to establish not only the true picture of the level of blacklisting that may or may not take place in practice now, but how growth in digital services has created potential new risks for employees and how those may be addressed.
In my previous capacity on Suffolk County Council, when the council decided to outsource its highways to Kier, we took a motion to council calling for it to ensure that there was no blacklisting in relation to employees of Kier working for Suffolk County Council. That motion was passed unanimously, because Conservative members of Suffolk County Council—like, I am sure, Conservative Members of this Parliament—were vocally opposed to blacklisting. However, nothing was done to find out whether blacklisting was actually taking place. The Minister is talking to us about a search for evidence, but without a public inquiry to find out what has actually taken place, surely there is no way we will get to the bottom of this.
I thank the hon. Gentleman for his intervention. I can reassure him. If people in his borough have any evidence, the best thing they can do at the moment is to take it to the Information Commissioner, who will investigate it. In fact, the Information Commissioner does not need particular examples even. If they are seeing allegations made against a particular employer or within a sector, they will commit to investigating the issues that his constituents have raised.
The hon. Member for Ipswich (Sandy Martin), who made the previous intervention, mentioned procurement. Will the Minister tell us what steps the Government are taking on procurement to ensure that companies that blacklist workers do not get public sector contracts?
I will write to the hon. Gentleman on that matter. We expect high standards of corporate governance for major contracts awarded by the Government. If there is evidence of companies acting in the present day in not only a disreputable but a potentially illegal manner, that will be taken into consideration.
To press the Minister further on that point, we have heard powerful evidence today in relation to both Crossrail and Big Ben. Does she agree that if there is evidence of complicity in blacklisting, the companies concerned should not get public contracts until such time as they have remedied the bad practices of the past and, indeed, the present?
The shadow Minister makes a very reasonable point, which I will consider further. I think there is nothing to disagree with in what he has said.
We want to build on the work already undertaken by the Information Commissioner’s Office looking at profiling and big data analytics. The Information Commissioner’s call for evidence, once complete, will be the most recent and authoritative source of data that we have. I can assure hon. Members that the Government will consider the evidence collected and the report on it very carefully indeed.
I want to acknowledge the request from the right hon. Member for Delyn (David Hanson). I have indeed received correspondence from Mr Alan Wainwright. I have looked at it briefly and will examine it thoroughly. The right hon. Gentleman also asked me to look again at the situation with regard to the Shrewsbury 24, and I will write to him on that subject as well.
The Government will continue to take a very close interest in this matter. If the Information Commissioner finds any evidence of current blacklisting, perpetrators can expect to feel the full force of the law, and I am sure—to go back to the shadow Minister’s intervention—that that would have implications for contracting as well. In the meantime, in the absence of clear, strong and compelling evidence to the effect that blacklisting is widespread, we remain of the view that the blacklisting regulations, alongside the proposed changes to the data protection rules, are appropriate and robust tools— the increased fines and accountability are further disincentives—to counter this abhorrent and illegal practice.
I urge all hon. Members to talk to their constituents who raise these matters with them and to the trade unionists in their constituency who have been affected, and to use the call for evidence as a means of exposing any current practice that might be continuing, so that we can eradicate this appalling abuse of people’s human rights at work once and for all.
(7 years, 1 month ago)
Written StatementsI have set performance targets for the Insolvency Service for the financial year 2017-18.
The Insolvency Service is the Government agency that provides public services to those affected by financial distress or failure.
The Insolvency Service provides the frameworks that deal with insolvency and the financial misconduct that sometimes accompanies or leads to it. Its aim is to deliver economic confidence through a corporate and personal insolvency regime which is regarded as fair and that gives investors, lenders and creditors confidence to take the commercial risks necessary to support economic growth.
In 2017-18, an important priority for the Insolvency Service will be to maintain its current high level of customer service while initiating a major change programme. I have set measures and targets at a level which reflects the challenges that the agency continues to face.
Attachments are available online at:
http://www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2017-07-20/HCWS84/
[HCWS84]
(7 years, 1 month ago)
Written StatementsI am today placing in the Libraries of both Houses, the report of the Working Group on Product Recalls and Safety.
The report is a culmination of longer term, ongoing work on product safety and recalls. An independent review of the recall system was undertaken by Lynn Faulds Wood in 2015, with her review published in February 2016.
The Working Group on Product Recalls and Safety was established in October 2016 to build on the initial work by industry to implement the review. The Working Group was tasked with providing options to support a tangible improvement in the safety of white goods and the recalls system, working to a clearly defined timetable.
The Working Group is chaired by Neil Gibbins, former Deputy Chief Fire Officer for Devon and Somerset and Chief Executive of the Institution of Fire Engineers. Its membership brings together product safety experts, the fire service and trading standards professionals to ensure that we utilise expertise in the relevant fields to identify necessary improvements to the system of product recalls and safety.
Key recommendations include:
a need for centralised technical and scientific resource capability to support decision making and co-ordination of activity of Local Authorities and the businesses that they regulate;
a detailed code of practice should be developed with input from all relevant stakeholders; this should be informed by behavioural insights research. This should set out expected good practice with regard to product safety corrective actions (including recalls);
full consideration should be given to establishing central capacity to co-ordinate product safety corrective actions at a central level;
systematic and sustainable ways to capture and share data and intelligence should be established and agreed by relevant parties—this should make use of existing systems used by trading standards and the fire service;
manufacturers and retailers should continue to work together and through standards-setting bodies to develop technological solutions to product marking and identification;
Primary authority provides a key mechanism for ensuring that businesses, local authority and BEIS expertise is shared to ensure the protection of consumers; and
the registration of appliances and other consumer goods with manufacturers by consumers should be encouraged to make corrective actions (including recalls) more effective.
Significant progress has already been made by the Working Group, supported by my officials at the Department for Business, Energy and Industrial Strategy, in relation to the development of a code of practice on corrective action and product recalls, and a public consultation will be published shortly. Further work to promote the registration of appliances, understand consumer responses to safety information and recall communications is set out in the report as an important step towards a strengthened product safety framework.
We are also keen to see continued progress on work to promote the registration of appliances and understand consumer responses to safety information and recall communications. My Department has supported the behavioural insights work, which underpins the understanding of consumer behaviour. We have also enhanced the product recalls webpages on gov.uk to make it easier to access information about white goods subject to a recall on grounds of a fire safety risk and made links to the Register My Appliance website.
The Working Group recognised the important role that primary authority partnerships can play in achieving better safety outcomes. My Department continues to champion and push forward the scheme. The legislative changes which we are bringing into effect in October will extend and simplify the scheme so that as many businesses as possible can access its benefits.
Following the tragic fire at Grenfell Tower, I asked the Working Group to consider whether there was any further work or recommendations for their report. The Working Group have completed that review and concluded that the original report remains valid and relevant. I publish that report today, with copies of the documents placed in the Libraries of both Houses.
[HCWS74]
(7 years, 1 month ago)
Commons ChamberI welcome the hon. Member for Cardiff North (Anna McMorrin) to her place and congratulate her on initiating this important debate.
These are worrying times for Tesco staff at the Cardiff customer engagement centre and their families—especially those families with more than one person employed there—and I am sure that all our thoughts are with them. As the hon. Lady said, at 1 o’clock on 21 June, before it was officially announced at 2 o’clock, Tesco notified its staff of its intended plans to simplify its customer services operation by expanding its office in Dundee and—sadly—closing the centre in Cardiff by February 2018. I know that the hon. Lady tweeted, shortly after Tesco told its staff, about how shocked she was to learn of the proposed closure, and raised the issue with my right hon. Friend the Leader of the House during business questions.
A 45-day consultation with the unions has begun. The Government’s focus is to support all those affected and to get people back into work as quickly as possible through Jobcentre Plus. I can assure the hon. Lady that we are working with the Department for Work and Pensions to ensure that the maximum service is available.
I wish to make the same point to the Minister that I made to my hon. Friend. The period of statutory consultation, even for such enormous job losses, has been halved from 90 days to 45 days. Whatever support the DWP and Jobcentre Plus can put in is very welcome, but 45 days is far too short a period for so many jobs to be found in a city such as Cardiff. Although Cardiff has good employment levels, 1,200 good jobs cannot be replaced in such a short time. Will the Minister look at reviewing that halving to assist companies in supporting their employees?
I thank the hon. Lady for her intervention and I did note her earlier remarks. I do not think there is any prospect of reversing that decision. I accept that it can prove difficult for people to find alternative employment within the 45 days, but a lot of support is going on in Cardiff, not just from the DWP and the Government but from the Welsh Assembly. It is a buoyant economy and I hope that people will find satisfactory employment within that timeframe.
It is not always easy to find another job, and even if people do so it does not alter the hurt they feel at the rejection that redundancy always involves. But business change is an inevitable consequence of competitive markets, and retail is a highly competitive market at the moment. Commercial and economic opportunities and threats mean that companies will need to reorganise, merge, expand and, sometimes, unfortunately contract in response. To ensure businesses remain viable and profitable, they need the flexibility to respond to the circumstances they are facing as best they can. At the same time, employees will want to know how the changes are likely to affect them, and what their options are for the future. It is vital, therefore, that there is effective consultation with employees about the potential for collective redundancies.
Is the Minister aware that this is the largest single number of job losses that has been announced in Wales for a decade? About 100 of my constituents are affected by the decision, and they will be very disappointed that the Minister batted away the point made by my hon. Friend the Member for High Peak (Ruth George) about the consultation period. Will she please reconsider, and talk to her Cabinet colleagues about the issue?
Let me reassure the hon. Lady. The fact that this is the worst case for 10 years points to the buoyancy of the economy in Wales. That part of the country is doing well. When I visited it just two months ago, I was very impressed by the dynamism that I found in Cardiff and the surrounding area. I do not share the hon. Lady’s pessimism about the opportunities for people. However, as I said earlier, I certainly appreciate that it is not a simple case of getting another job and all is well, particularly when a whole community is affected as this community has been.
Let me say something about the legislation. Collective redundancy legislation strikes a balance between the needs of the business and the needs of employees. It applies when 20 or more employees are made redundant at one establishment within 90 days. In those circumstances, employers have a statutory duty to consult employees’ representatives about the proposed redundancies. The consultation must be with the employees’ trade union representatives, or with other elected employee representatives when there is no recognised trade union. It must be completed before any dismissal notices can take effect, and it must be undertaken with a view to reaching agreement, although sometimes—I recognise this—agreement may not be possible. It must include consideration of ways of avoiding redundancies in the first place, reducing the number of people to be made redundant, and importantly, mitigating the effect of the dismissals. Employers also have a number of obligations, including a requirement to notify the Secretary of State for Business, Energy and Industrial Strategy of the proposed collective redundancies before the start of the statutory consultation.
Redundancy can be—and usually is—a stressful time for those affected. I want to highlight the service offered by the ACAS helpline, which can advise people on their particular circumstances. ACAS has also produced a guide for employers on handling large-scale redundancies such as those that we are discussing this evening.
Let me now say something about the support that is available to employees who are made redundant. Throughout the redundancy process, employers still have obligations to their employees, and should be thinking about the help that they can offer at all times. Employees with at least two years’ service who have been given notice of redundancy have a right to reasonable time off so that they can look for a new job or arrange training. The Department for Work and Pensions and the local Jobcentre Plus have already been in touch with Tesco to offer their support.
I recommend that, in the case of redundancies, employers should always contact Jobcentre Plus as soon as possible to discuss appropriate support that can be delivered locally. All decisions about appropriate support are made locally, because a decision based on a specific redundancy situation, an individual’s own transferable skills and experience, and the availability of jobs in the local area is far more likely to be the right decision.
Does the Minister agree that these are not normal redundancy circumstances? Does she agree that the DWP should dispatch the emergency taskforce to help those affected to seek new employment, and work with the Welsh Government as well?
I very much agree with what is behind the hon. Lady’s intervention. My right hon. Friend the Secretary of State for Wales is taking that forward, and has already met the chief executive. The south-east Wales district Jobcentre Plus will deploy its redundancy response action plan, which includes working with partner organisations such as Careers Wales, the Welsh Government, the National Employer Partnership Team, the local authority, DWP pensions and Tesco trade unions to deliver a bespoke package of support, which I think is what the hon. Lady is after. The typical support provided for individuals is matching people to local known job vacancies and/or helping to construct or improve CVs. Where there is scope to do so, support can be delivered on a group basis, for example by bringing redundant workers and employers together at a jobs fair as well as at group sessions and one-to-ones on site, to provide support and information on benefits, pensions, support from DWP and Careers Wales. Matching current vacancies to the skills and requirements of the affected individuals is a key part of the service Jobcentre Plus provides. This has been successful in many other redundancy situations.
Tesco has assured Government that its first priority is to do everything it can to support its colleagues in Cardiff, including helping them to find roles within Tesco, working with Jobcentre Plus, USDAW and the Welsh Government, and connecting with other local employers who might have vacancies.
One way in which Tesco could assist these staff members is not to make them redundant six weeks before they qualify for their annual bonus payment. Does the Minister agree that such behaviour should be discouraged?
I am very sympathetic to that point; that seems to add insult to injury. My right hon. Friend the Secretary of State for Wales has raised that issue with the chief executive of Tesco, and I am sure he will raise it again thanks to the hon. Lady’s intervention.
The Welsh Government have already established a taskforce, which stands ready to support the Cardiff workers once the outcome of the consultation is known. It is being led by Ken Skates; Fiona Jones, DWP’s director for Wales work services, is a member of the taskforce, too. Tesco has confirmed that it will also work closely with the Welsh Government on its redundancy action scheme—ReAct—a programme that funds training for people living in Wales who are facing redundancy. Tesco will be engaging with the Welsh Contact Centre Forum and will be keen to reach out to other employers who might have vacancies. A significant number of businesses have already approached both Tesco and the Welsh Government, but the current focus has to be on the ongoing consultation process before any detailed discussions can progress with other companies. At present, Tesco is not able to provide specific details on the package available to staff, as this will be considered as part of the ongoing 45-day consultation.
In conclusion, I reiterate that retail is a vital sector for the UK economy and we are committed to it.
Will the Minister join the Leader of the House in condemning the way in which Tesco made this announcement? When I asked the Leader of the House about this shortly after the announcement, she was appalled at the way things had been done.
I do not think I would go as far as to condemn that, because I believe Tesco made every effort to inform people on a one-to-one basis. Some people were away. [Interruption.] If I am wrong about that, I apologise, but the information I have had is that Tesco did make every effort. Some people were away; it did contact them. It is appalling that some people found out about this on social media—and the situation in the Chamber lighting-wise has slightly thrown me off.
I know that the fact that retail is highly competitive and buoyant will be of little comfort to Tesco workers at the Cardiff customer engagement centre who are facing an uncertain future. Every collective redundancy situation involves individuals, and their needs need to be managed carefully. It is vital that individual workers receive the information and support that they need, as and when they need it. This Government and the Assembly in Wales stand ready to provide every possible support to the hon. Lady’s constituents and those of other Members representing the Cardiff area. I wish them all the very best in their search for new employment if the redundancies go ahead.
On a point of order, Madam Deputy Speaker. I apologise for the unusual nature of this point of order, just before the question is put. Have you or Mr Speaker had notice of any statements, written or otherwise, to be made tomorrow by the Secretary of State for Transport relating to crucial decisions in Wales on St Mellons parkway station in my constituency and to the worrying rumours about rail electrification in south Wales?
(7 years, 1 month ago)
Commons ChamberWith permission, Mr Speaker, I would like to make a statement about the independent review of modern working practices which was led by Matthew Taylor and published earlier today.
The review sets out that British business is successful at creating jobs, enhancing earning power, and improving life chances across the UK. Employment rates are the highest since records began. Unemployment and economic inactivity are at record lows. More people are in work than ever before, and minimum wage rates have never been higher. This is a story of success that this Government will seek to sustain.
The UK economy’s continued success is built on the flexibility of our labour market, which benefits both workers and business. Businesses can create jobs and individuals can find work because our labour market regulation balances the demands of both. Minimum standards set a baseline beyond which there is flexibility to set arrangements to suit all parties. Our dynamic approach responds well to fluctuations in the economic cycle, without the structural weaknesses present in some other countries. It is important that we preserve this success but also enhance it further. While the majority of people employed in the UK are in full-time, permanent employment, globalisation, demographics and especially technology are changing the way in which we work. We need to make sure the British labour market stays strong and everyone in the UK benefits from it.
That is why last year the Prime Minister asked Matthew Taylor, chief executive of the Royal Society of Arts, to lead an independent review into employment practices in the modern economy. That review has now been published, and I am delighted to lay a copy in the House Library today. It is a thorough and detailed piece of work for which I am very grateful, not only to Matthew and his panel members but to the numerous businesses, trade unions, organisations and individuals who have provided their views on this very important topic.
The review has a strong, overarching ambition that all work in the UK should be fair and decent, with realistic scope for fulfilment and progression. Matthew has outlined seven principles to meeting that ambition. I urge hon. Members to examine those principles and the rest of the report in detail, since it is an important contribution to a crucial subject.
In summary, those principles are that our national strategy for work should be explicitly directed towards the goal of good work for all; that platform-based working offers welcome opportunities for genuine flexibility, but there should be greater distinction between workers—or, as the review suggests renaming them, “dependent contractors”—and those who are fully self-employed; that there should be additional protections for that group and stronger incentives for firms to treat them fairly; that the best way to achieve better work is through good corporate governance, good management and strong employment relations; that it is vital that individuals have realistically attainable ways to strengthen their future work prospects; that there should be a more proactive approach to workplace health; and that the national living wage is a powerful tool to raise the financial baseline of low-paid workers, but it needs to be accompanied by sectoral strategies, engaging employers, employees and stakeholders to raise prospects further.
This is an independent review addressed to Government. Although we may not ultimately accept every recommendation in full, I am determined that we consider the report very carefully and we will respond fully by the end of the year.
Matthew Taylor has been clear: the UK labour market is a success—the “British way” works. He has also said, however, that there are instances where it is not working fairly for everyone. For example, he highlights where our legislation needs updating or where flexibility seems to work only one way, to the benefit of the employer. We recognise the points made. We accept that as a country we now need to focus as much on the quality of the working experience, especially for those in lower-paid roles, as on the number of jobs we create, vital though that is.
This Government have made a commitment to upholding workers’ rights. The Prime Minister has said repeatedly, in this House and elsewhere, that as we leave the EU there will be no roll-back of employment protections. The Queen’s Speech also set out that this Government will go further than that and seek to enhance rights and protections in the modern workplace. Today’s publication of the “Good Work” review, and the public consideration of Matthew’s recommendations that will follow, will help to inform the development of our industrial strategy this autumn. I commend this statement to the House.
When the Prime Minister took office last year, she stood on the steps of Downing Street stating that she was on the side of working people. Despite that rhetoric, the Conservatives have been in government for seven years and in that time have done very little for working people. They have presided over a lost decade of productivity growth. They have implemented the pernicious Trade Union Act 2016, which is, frankly, an ideological attack on the trade union movement, curbing its ability to fight for and represent workers’ interests. They have inflicted hardship on public sector workers with a pay cap that was confirmed for yet another year by the Department for Education yesterday. They promised workers on boards, but rowed back scared when powerful interests said that they were not particularly keen on the idea. And they introduced employment tribunal fees, which have made it much harder for workers to enforce their rights.
Today’s publication of the Taylor review was a real opportunity to overhaul the existing employment system in a way that would protect workers in a rapidly changing world of work. But, in the words of the general secretary of Unite, the biggest union in the UK:
“Instead of the serious programme the country urgently needs to ensure that once again work pays in this country…we got a depressing sense that insecurity is the inevitable new norm.”
Indeed, the Minister confirmed that she might not even accept all the proposals in the Taylor report, in any event.
Although the report is positive in sentiment in many areas, it misses many opportunities to clamp down on exploitation in the workplace. I do not have time to cover them all today, but I have specific concerns that the report may allow the Government to interpret references to the so-called dependent contractor in such a way as to allow them to row back on recent court victories for workers such as Uber drivers and those who work for Pimlico Plumbers.
Recent case law has suggested that a worker on a platform should be entitled to the minimum wage as long as the app is switched on and they are ready and willing to accept trips. However, the review suggests that the platform may insist on payment by piece rate, such that only an average driver, working averagely hard, will earn 1.2 times the minimum wage. That raises issues of enforcement and regulation—what constitutes a reasonable piece rate across platforms?—and it is something of a retreat from the common law position. Will the Minister confirm that the Government will not undermine workers’ rights on the minimum wage in that way? Founder of Pimlico Plumbers and Conservative donor Charlie Mullins said this morning that the report holds Pimlico Plumbers up as an example of
“best practice in the gig economy.”
This is a company that our judicial system has found to be an example of worst practice.
The report does very little to strengthen the enforcement of workers’ existing rights. Although Taylor agrees with Labour’s position on shifting the burden of proof to employers in determining self-employed status, the report does little else in that area, and it needs much more work. There is, for example, no movement at all on employment tribunal fees, which are a barrier to justice for many workers.
If the Prime Minister wanted ideas on strengthening workers’ rights, she could just have come to us. Just four of our manifesto commitments would go a long way to ending the scourge of exploitation in the gig economy: giving all workers equal rights from day one; strengthening the enforcement of those rights by beefing up and better resourcing Her Majesty’s Revenue and Customs, rather than imposing pernicious cuts, and by allowing trade unions access to every workplace; abolishing employment tribunal fees; and fining employers who breach labour market rights and regulations.
In the spirit of the so-called collaboration that the Prime Minister is so desperately seeking, will the Minister commit today to implementing those four simple measures, as a start? If not, will she accept that the Conservative party is not, and never will be, on the side of working people?
I am glad that the hon. Lady found some positive aspects in the report on which to compliment Matthew Taylor. I appreciate that she will not have had time to read it all yet, but I urge her to do so. It contains many recommendations that will be of benefit to workers and are worthy of the greater consideration that the Government will give them.
I will not comment on each of the recommendations that the hon. Lady raised, because they are Matthew Taylor’s suggestions and, as I have said, they will be given due consideration. She criticised the Government’s record, so I would like to remind her that this Government have introduced the national living wage and presided over the minimum wage reaching its highest rate, in real terms, since its introduction. The wage increases in the last year have been highest among the lowest paid, thanks to the national living wage. We have nearly doubled the budget for the enforcement of the national living wage. We have doubled fines for companies that underpay their employees. We have banned the use of exclusivity clauses in zero-hours contracts. We have done all that against the backdrop of protecting the growth in employment, which is, at almost 75%, at its highest level since records began.
Our record is one of achievement. The hon. Lady criticises us for enacting the Trade Union Act 2016, but most reasonable people would not criticise the idea that workers who are members of trade unions should have a proper say when their union decides to take strike action. That is the primary purpose of the legislation.
It is not all a garden of roses, otherwise the Prime Minister would not have requested Matthew Taylor to undertake the report. The Prime Minister said, when she announced Matthew Taylor’s investigation, that flexibility and innovation are vital parts of what make our economy strong, but it is essential that those virtues are combined with the right support and protections for workers. The Taylor review came to understand that flexibility does work for many people, and it is clear that an agile labour market is good for protecting employment.
Does my hon. Friend agree that productivity is at the heart of boosting wages for lower-paid workers? There are some really good examples of employers, working with the Living Wage Foundation and others, who have managed to boost the pay of lower-skilled workers by focusing on productivity, and that should be at the heart of this issue.
I wholeheartedly agree with my hon. Friend. Productivity is central to our industrial strategy. We have established a £23 billion fund to promote quality jobs, better skills and the higher pay that is, as he says, so important.
I refer to my entry in the Register of Members’ Financial Interests and my trade union activity over the 20 years before my election.
Today’s response to the Taylor review from the Government tells us everything we need to know about their frailty and approach to workers’ rights—a weak set of proposals that probably will not be implemented and a set of talking points that leaves the balance of power with employers and big business. It was interesting that neither the Prime Minister nor the Minister mentioned or commended the role of the trade unions in securing fair rights at work. Does the Minister agree that a “right to request” is different from a fundamental right enshrined in law? If a request is refused, what enforcement action will the Government take to force employers to do better?
Does the Minister accept that the report makes no distinction between a flexible workforce and the exploitation of that workforce? Does she also agree that while the Taylor report tries to propose new rights, some of those rights have been secured by trade unions taking employers to court, as the shadow Minister suggested? Can the Minister tell us what action the Government will take to enforce minimum wage payments when 200,000 workers in the UK are not paid the minimum wage? Will the Government advertise rights at work services, such as the Equality and Human Rights Commission, and does the Minister agree that it is time for a fair rights at work Act to guarantee fundamental rights at work?
I thank the hon. Gentleman for his critique. The “right to request” has been useful and valuable when it comes to requesting flexible employment. In any case, it is a recommendation that Matthew made, but it certainly warrants careful consideration. The hon. Gentleman mentions enforcement, and we are committed to making sure that workers on zero-hours contracts or the minimum wage get paid what they are legally entitled to be paid. That is why we have doubled the resources available to HMRC in the last two years to ensure enforcement of those important laws.
I welcome Matthew Taylor’s report today and commend the Minister for her statement, especially on tackling maternity and pregnancy discrimination, which the report says has doubled in the last decade and needs more action. Will the Minister outline what provisions in the report address the issues raised by the Women and Equalities Committee about workers’ lack of rights to access antenatal care during the working day, which the Minister—in her response to the Committee’s report—indicated would be addressed through the Taylor report?
I commend my right hon. Friend for the work that the Committee, which she chaired, has done to tackle the outrageous discrimination against pregnant women, which has no place in the modern workplace. There are provisions in the Taylor report, but work is ongoing across Government to improve the opportunities for pregnant women in the workplace to ensure that we make history of such discrimination.
As someone who lobbied the Prime Minister with reports on the gig economy to establish such an inquiry, may I thank the Minister for her statement today? May I tease from her a little more about the Government’s position on the trade-off between minimum standards at the vulnerable end of the labour market and flexibility? If the news reports are right, Matthew Taylor goes for flexibility rather than always implementing the national minimum wage. May we have an undertaking from the Government that they will always abide by the national minimum wage, even if that means a loss in flexibility?
I congratulate the right hon. Gentleman on all the work he did on these matters in chairing the Work and Pensions Committee in the last Parliament. I can assure him that minimum wages rates are sacrosanct. There will be no trade-off when it comes to ensuring that everybody is paid at least the minimum wage. When he reads the report, he will be more encouraged. Many of the people who attended the Taylor review’s evidence sessions said that they liked the flexibility of working atypically and that we should not lose that, but that flexibility should not be a one-way street with individuals absorbing all the risk. Although we will consider the recommendations further, I assure the right hon. Gentleman that I very much agree with those sentiments.
Does the Minister welcome the fact that the review established that the majority of employers follow good practice, and agree that our focus should be on those who do not to ensure that we level the playing field for all employers, all employees and all businesses?
I agree strongly with my hon. Friend. Employers who choose to break the rules—they are a small minority, but they exist—must expect consequences for their actions. The vast majority of businesses behave properly towards their employees, and they must not find themselves at the wrong end of an uneven playing field.
I declare an interest having done some work with the Chartered Institute of Personnel and Development during my time outwith the House.
I welcome the Prime Minister saying that there will be no roll-back of workers’ rights, but let me just say that those words are rather a departure from my experience of the Conservative position when I was Liberal Democrat Minister for employment relations in the coalition. I know that the Minister is genuine on this important issue, and it is a thoughtful report of more than 150 pages. As she prepares the Government’s response to the report, will she commit to consulting widely across the House through debates and speaking to the Select Committees on Business, Energy and Industrial Strategy, on Work and Pensions, and on Women and Equalities, to get the right response?
I thank the hon. Lady for her comments and commend her for her role in the coalition Government. I am glad that she acknowledges that the Government have moved forward in their appreciation of the difficulties faced by certain workers in the areas on which Matthew Taylor has focused. I can give her every assurance that we will indeed consult widely not only with industry, trade unions and members of the public, but across the House.
I welcome the report. At this early stage, can my hon. Friend give any indication as to what enhanced opportunities may be created for people with disabilities who are in the world of work or trying to enter it? They are a very important part of our constituency.
I thank my hon. Friend for that important point. The Department for Work and Pensions is undertaking various measures to improve the chances of people with disabilities accessing the workplace, and my Department is giving all the support it can to that inquiry.
Matthew Taylor said today that he wants employers to pay national insurance for people with whom they have a controlling and supervisory relationship. Do the Government plan to implement that aspect of the Taylor review, and can the Minister reassure workers that the Government do not plan to U-turn on their U-turn and increase national insurance for the genuinely self-employed?
I can assure the hon. Lady that, as the First Secretary of State said earlier this week, Parliament has spoken on the issue of national insurance class 4 contributions. That matter is now settled, and will not be revisited. I agree with her that we should pay close attention to ensure that people who are genuinely contracted to provide an ongoing service are given the protections that workers enjoy, and are not falsely labelled as self-employed.
On a similar point, will my hon. Friend confirm that there is a real risk that introducing the term “dependent contractors” will fudge the issue of whether someone is really employed or self-employed? Should we not focus on ensuring that the line is drawn in the right place and that those who engage so-called dependent contractors are paying employers’ national insurance, so that our own tax regime does not distort the market?
We will certainly consult carefully on those points. We will make sure not only that the Treasury is satisfied in respect of tax issues, but that we are satisfied that people are getting their rights if they are employees or workers—or, as Matthew Taylor is proposing to rename them, dependent contractors.
The Minister has welcomed the report. Is she in a position to accept any of its specific recommendations today? Can she tell us when there will be legislation to implement at least something in it, or is this all going to be batted off into the long grass?
As I said earlier, we will look at and consult on every single recommendation, but at this very early stage it is not really for me to say which I am personally inclined to recommend accepting and which I am not. I hope that the right hon. Gentleman will bear with us. Over the next six months—well, I said by the year end; it might be a little longer than six months—we will consult widely across the House, and the right hon. Gentleman will have every opportunity to make his views known.
I spent 45 years in the gig economy, and what I liked about it was that it was very flexible. In order to build a career, I found myself delivering bacon across north London from Smithfield market. I also became a removal man, among many other things. Does my hon. Friend agree that it is welcome that the report supports a flexible labour market, and is not in favour of restricting that flexibility when individuals want it?
I think my hon. Friend has read the summary of Matthew Taylor’s report very carefully because he understands that balance. He does not want us to end the flexibilities that have helped him in his career and close them off for people who are starting out on their careers now. As I have said, however, we must of course ensure that protections are in place.
It is not just my constituents who are part of the gig economy who do not have security. Many of my constituents have jobs in which they work 15 hours a week. They are pleased and proud to be working, but when they want full-time employment they instead see more people in the same organisations being given part-time hours. When will the Government get to grips with that element of the economy, and ensure that all those workers have a fair deal and the chance to work the full-time hours that they want so much?
The whole basis of the report is good work and the aspiration of good work for all, including, I believe, the constituents to whom the hon. Lady refers, but let me reassure her. Two years ago, the Office for National Statistics labour force survey found that nearly 70% of people on zero-hours contracts were content with the hours that they were working. However, that does mean that a third want more hours, which is a finding that we must embrace in the context of some of the changes that Matthew Taylor is recommending to help to achieve the good work and the working hours that the hon. Lady’s constituents want.
I, too, welcome the report. Does my hon. Friend agree that flexibility in the labour market benefits workers and employers equally?
My hon. Friend asks me a difficult question. I do believe—Matthew Taylor’s report bears this out—that flexibility benefits employers and employees, but I am afraid that the evidence given to the inquiry suggested that in too many cases that flexibility is a one-way street, as I said earlier. We must deal with the problem of people who are really at risk and whose employment position is far too insecure.
I welcome the Minister’s commitment to the Government’s upholding of workers’ rights, but as part of the Government’s response to the report, will she consider enabling workers to uphold their own rights? Will she look again at the fees for employment tribunals, which have led to a 70% reduction in cases brought by single claimants, such as those working in the gig economy, against their employers?
The hon. Lady makes an important point, but it is really a matter for the Ministry of Justice. Matthew Taylor has not actually recommended that we get rid of fees for employment tribunals, and I think we should recognise the positive aspect: the upsurge in the number of employment disputes that have been settled through mediation. However, I will continue to look at the issue that the hon. Lady raises.
The report praises and supports flexibility in the labour market, where individuals want it. Does my hon. Friend agree that it may be especially, but not exclusively, beneficial to students and young people?
I do agree with my hon. Friend. The figures suggest that nearly 20% of people on zero-hours contracts are students. Such flexibility also benefits many people who have parenting or caring responsibilities and do not want to work full-time. We certainly do not want to end that flexibility but, as I have said, we do want to improve protection.
The gig economy brings insecure work. Insecure work demands new rights, but those rights will be worthless unless the Government are prepared to put more resources into enforcement, regulation and inspection. Will the Minister commit herself to providing those additional resources when implementing the Taylor review?
I very much agree with the right hon. Gentleman that enforcement is crucial. As I said, we have doubled the resources available to HMRC for enforcing the minimum wage and they will continue to rise throughout this Parliament. We have also strengthened the powers of the Gangmasters and Labour Abuse Authority, and the recently appointed director of labour market enforcement has been tasked with bringing the work of the three major enforcement bodies together to understand the extent of the abuse and to recommend ways of giving those agencies the resources that will enable them to deal with it. I hope that the right hon. Gentleman will be pleased with the outcome, in due course.
I welcome the report and my hon. Friend’s statement. Does she agree that not only is it absolutely right for us to ensure that workers are treated fairly, but it is good for businesses too, because they will have a more engaged and therefore more productive workforce?
I heartily agree. This is all about improving work so that we have good work, with people who are able to grow in their careers, and a system in which those who are low-paid to start with need not be low-paid forever but can aspire to a better future. That will benefit British productivity and, as my hon. Friend suggests, improve the competitiveness of British companies.
Vital protection for all workers is provided by trade union membership and by trade union recognition. Since my time at the TUC more than 40 years ago, trade union membership in Britain has halved, while workers’ and trade union rights have been undermined by Tory legislation. When will the Government reverse that legislation?
The Government cannot mandate people to join trade unions. Trade unions are still an important force for the protection of workers’ rights among the sectors of the economy in which they are still dominant, and I commend them for their work.
If one talks to drivers for Uber or cleaners using platforms such as Hassle, they will largely acknowledge the benefits of flexibility to them. To coin a phrase, would it not be morally unacceptable to misread the 21st-century labour market and construct a set of rules that forced those people out of work, rather than allowing them to stay in it?
My hon. Friend will no doubt be pleased that Matthew Taylor very much agrees with his thesis.
Over 1 million workers are being exploited by sham umbrella companies and bogus self-employment. Changes to tax policy are what is needed to tackle that, but the Government prohibited Matthew Taylor from making any firm recommendations on changing tax policy, so how seriously can we take the Minister’s comments today, and when on earth are the Government going to eventually address these tax anomalies?
I assure the hon. Lady that no bar was put in front of Matthew Taylor; he was able to investigate as freely and as fairly as he saw fit. It is up to the Treasury to assess the tax situation and any potential loss of revenue, which of course arises due to bogus self-employment.
To contrast the previous question, will my hon. Friend join me in recognising one of the key findings of the review: thanks to the Government’s tax policies, once tax levels and tax credits are taken into account, average take-home pay for families with at least one member in full-time employment is higher in the UK than in any other G7 country?
I commend my hon. Friend for bringing that important fact to the notice of the House.
I am pleased to hear the Minister promoting this Marxist revolution that we are now living through, as the means of production are increasingly in the hands of the workers. Further to what she has just said, does she agree that the answer to some of the challenges is not just better regulations, but helping people to organise? If so, will she meet me, the Community trade union, the co-op movement and Indycube to discuss our work helping the self-employed to organise and unionise?
I am aware of the independent union of self-employed workers; it has been a force and has contributed to the inquiry. However, I will be only too pleased to meet the hon. Lady and her Community organisers as part of my consultation.
There is a marked difference between people who set up a business and take risks, including the risk of self-employment, and a few unscrupulous employers who force workers to go self-employed. In response to this excellent report, what will my hon. Friend do to ensure that people who are genuinely self-employed continue to receive benefits, but the unscrupulous employers do not?
My hon. Friend makes a good point. We do not want to stand in the way of the incentives for people who genuinely take a risk by starting a business. They are the majority, and we do not want to do anything that upsets that balance. At the same time, as my hon. Friend will realise, we need to end the scourge of fake self-employment.
Disappointingly, the report does not go far enough on the issue of zero-hours contracts. The Labour Welsh Government have failed to support the prohibition of zero-hours contracts in devolved areas on seven occasions. Is it not the case that vulnerable workers in Wales are being let down by both the Tories and the Labour party?
As I have said, many individuals want to work in the flexible way that is afforded by zero-hours contracts, and almost 70% of people on those contracts are happy with their hours. As I have also said, we must take steps to promote the value of good work as an opportunity for the third who are not, whether they are in Wales or the rest of the United Kingdom.
The Minister tells us that 20% of such people are students and that 70% are satisfied. Can she complete the hat-trick by telling us what the mean weekly earnings for someone on a zero-hours contract actually are?
I am afraid I will have to write to my right hon. Friend with that answer.
Put a copy in the Library; I am sure it will be of educational value to all of us.
Matthew Taylor writes in his report:
“We must equip our children and young people to enter the labour market successfully, but Government, employers and individuals also need to make sure everyone is best placed to thrive throughout what might be a working life spanning 50 years or more.”
How do the Government square that with the previous Prime Minister’s policy of stopping compulsory work experience in schools, which in its first year led to a drop of 60,000 work experience placements in our schools across the country? Will she look at that again?
That is a matter for the Department for Education. I agree that work experience is very important to young people and I am sure the Secretary of State will look favourably on that. My Department is looking to boost opportunities for lifelong learning to engender a culture in which people can progress in their careers.
Before I became a Member of Parliament, I was self-employed for almost 30 years. I was also the self-employment ambassador to the previous Prime Minister, David Cameron, and I worked with Matthew Taylor on this report. I found him to be extremely non-partisan and an absolute gentleman. May I urge my hon. Friend to accept the proposed measures for the self-employed, especially the maternity and paternity benefits?
I will certainly take on board my hon. Friend’s views, which are based on many years’ experience. I thank him for his contribution to the report.
We have flexibility in the labour market on one side of the coin, but insecurity for people in employment on the other. There has been criticism, for instance from Unite the union this morning, that insecurity is to be the new norm, and we want to avoid that. Will the Minister think about reversing the coalition’s decision to extend from one year to two the protection of employment threshold?
I do not accept the premise that insecurity is the new norm. One of the purposes of this report was to look closely at the extent of insecurity and to produce recommendations on how that might be mitigated when it is not desired by the workers. I will consider the question that the hon. Gentleman raises, but it was not addressed in this report.
Speaking at the launch this morning, Mr Taylor suggested that traditional cash-economy workers such as window cleaners could use an app to collect money and declare directly to Her Majesty’s Revenue and Customs, so why does Uber, which has the most cutting-edge, fully automated app, not seem to declare the payments it makes to drivers directly to HMRC or to collect the national insurance numbers of drivers? Will the Minister strongly suggest that it does so?
The app was one of the most interesting suggestions. There might be limitations to the apps currently available, but in no way was Matthew Taylor advocating that these should be mandatory. They should, however, be available in a more sophisticated form than at present.
As the Government look towards this gig economy, will they consider Matthew Taylor’s remarks that:
“Our welfare system is a cruel mess”?
On universal credit, he said that
“no one outside Government thinks it will make the system fairer…There is a better way. A universal basic income…can improve incentives and rewards for work, increase human freedom and dignity”.
Will the Government consider his conclusions?
That matter has not been addressed by the report. I urge the hon. Gentleman to address his questions to Work and Pensions Ministers.
Matthew Taylor urges the Government to consider reducing tribunal fees. May I urge the Minister to go further, particularly in relation to pregnancy discrimination? Get on with abolishing them, and extend the period during which a case can be brought before a tribunal, because a period of pregnancy and maternity is a busy time when people are unlikely to be thinking about a court case.
I agree with the hon. Lady’s concluding remarks and hope she will input her views as part of the consultation.
The Minister has twice referred to the fact that flexibility seems to work only one way—to the benefit of the employer. Does that flexibility include her Government’s failure to prosecute a single employer in Wales last year for flouting the minimum wage rules?
To correct the record, I was not saying that flexibility was always a one-way street in favour of the employer; I said that this was, in exceptional cases, a real problem that needs addressing, but that is not necessarily the norm. In response to the other matters the hon. Lady has raised, I urge her to contribute her views as we go through the consultation.
When the Minister is considering how to respond to the review, will she talk to her colleagues in the Department for Digital, Culture, Media and Sport about the youth full-time social action review, which is considering the question of long-time volunteering? I realise that these are slightly different issues, but there is still a considerable overlap. The question of safeguards and protections is the same in some cases, so it seems sensible to wrap the two together.
The hon. Gentleman makes good points about volunteering and the framework that governs it, and I hope that he will make them during our consultation.
I want to ask the Minister two quick questions. First, on the extension of workforce protections, will that include secondary contractors? For instance, if one person in a team of three or four is the main contractor, will dependent contractor status be extended to other people in the team? Secondly, while being a dependent contractor might provide a minor uplift for people who are self-employed, does the Minister agree that some employers will see this as an opportunity to downgrade people with employment protection to the status of dependent contractor against their will?
The hon. Gentleman raises a number of issues. There is no intention to downgrade anybody’s rights. We want to be in a position to safeguard people’s rights and, when possible, improve them—we certainly do not want to downgrade them. I am sure that he will put his detailed observations into our consultation.
This Government continue to justify the existence of zero-hours contracts on the basis of flexibility, but the problems could largely be addressed if flexible working could be properly expanded and given a framework so that we knew exactly what it meant. Will the Government use this opportunity to properly expand flexible working and explain what it actually means?
I cannot accept the premise behind the hon. Gentleman’s question. We are not seeking to end zero-hours contracts, because too many people want them and the flexibility associated with them, but we are seeking to root out abuse where it exists.
The Taylor review recommends that the Government should make it easier for people in flexible arrangements to take their holiday entitlement. In the past, the Minister has struggled to explain the Government’s powers in this area. Will she tell us what powers currently exist to enforce the payment of holiday pay and, with the summer fast approaching, will she act on the Taylor report’s recommendations swiftly?
I can reassure the hon. Lady that Matthew Taylor has recommended that we take the issue of holiday pay seriously and ensure that it applies to all workers who are entitled to it. The Treasury will be taking forward those suggestions.
The Minister is right to say that the transfer of risk is at the heart of the problem. Drivers at AO World in my constituency are classified as self-employed but treated as employees without rights. Is there anything in the Taylor report that would end the practice of fining drivers every time there is an accident?
Perhaps the hon. Lady would like to write to me with more details because this is the first time I have heard of that particular practice. It certainly sounds wrong, and I would be delighted to consider it further within the powers that currently exist.
Page 11 of Mr Taylor’s report says:
“we have to examine why, with employment levels at record highs, a significant number of people living in poverty are in work.”
For as long as I have been here, when Members have asked questions about poverty, it has been the Government’s practice to respond with statistics about employment and unemployment. Will they now finally accept that such a thing as in-work poverty not only exists, but is a brutal fact of life for millions of people on these islands?
We have always been absolutely committed to reducing poverty, wherever it exists. The national living wage has gone a long way towards providing workers with a framework so that they need not sink into poverty, and I urge the hon. Gentleman to consider that fact further.
As someone who has done a few gigs in his time, may I urge the Minister to reject the execrable think-tankery jargon of the term “dependent contractor”? Work is work, and workers are workers. “Dependent contractors of the world unite; you have nothing to lose but your chains,” is not going to change anything.
Order. For those new Members of the House who are not aware of the musical distinction of the hon. Member for Cardiff West (Kevin Brennan), I can inform them that he is an illustrious member of the parliamentary rock band, MP4. If colleagues have not yet heard the band, they have not fully lived. I hope that they will hear the band in due course, preferably in Speaker’s House, where it has played before and will play again.
The hon. Gentleman refers to the term “dependent contractor”. This recommendation was designed to improve clarity and to increase the chances of workers getting the rights to which they are entitled, but it is just that: a recommendation. He is free to lobby against our acceptance of it during the course of our consultation.
I welcome the report’s acknowledgement that employment tribunal fees are a barrier to justice. The recommendation of fee-free tribunals to establish employment status is positive, but what can be done to ensure the quality of representation at the tribunals? What protection will there be to prevent the detrimental treatment of someone bringing a claim? Is it also the case that, once someone’s status has been determined, a fee will still have to be paid?
One of Matthew Taylor’s recommendations is that before an employee takes a case to an employment tribunal, they should receive firm advice on what their status is in reality. That would end a huge amount of uncertainty and unnecessary expense. We will consider that and all the other recommendations in this excellent report, which I commend to the House. I found much of it inspiring, and I hope that we can all work together to improve the quality of work in this country, as well as the number of jobs.
(7 years, 1 month ago)
Commons ChamberI beg to move, That the Bill be now read a Second time.
The purpose of the Bill is to approve four draft decisions of the Council of the European Union. All four draft decisions rely on article 352 of the Treaty on the functioning of the European Union, which allows the EU to take action to attain the objectives set out in the EU treaties, for which there is no specific power given. That can be done only with the approval of the European Parliament and the unanimous support of all member states. Before the UK can agree those draft decisions at the Council, Parliament must first give its approval. Section 8 of the European Union Act 2011 provides that a Minister may vote in favour of an article 352 decision only where the draft decision is approved by an Act of Parliament. I am pleased that Members of both Houses will have the opportunity to scrutinise and decide whether to approve such measures.
The UK is leaving the EU. Until that process has concluded, the UK remains a full member of the EU, and all the rights and obligations of EU membership remain in force. That includes exercising the UK’s vote in the Council of the European Union on these four draft decisions. Whether or not those EU decisions involve the UK directly, they may make a difference to the context of the negotiations. While we are leaving the EU and its institutions, we will continue to maintain a resolute friendship and alliance with all the European countries. We have been working in peaceful partnership with EU member states for decades to build a prosperous and stable Europe.
Will my hon. Friend give way?
Order. It is quite important to be clear to whom the Minister is giving way. The hon. Member for Stone (Sir William Cash) was perfectly convinced that it was he that she had in mind, but the hon. Member for Bridgwater and West Somerset (Mr Liddell-Grainger) looks similarly confident that it was he. Take us out of our misery, Minister.
I apologise for the confusion. I was referring to my hon. Friend the Member for Bridgwater and West Somerset (Mr Liddell-Grainger).
Thank you very much for that clarification, Mr Speaker.
My hon. Friend is fully aware that I am the president of the European Conservatives in the Council of Europe. We have had support from the Government and from colleagues in both Houses, and I am sure she would like to make it clear that the Council of Europe is still an important part of what we do here. It was set up by the British in 1948 under Sir Winston Churchill and continues to play an important part through the European Court of Human Rights. I hope she will confirm that it will continue to play that important role.
I commend my hon. Friend for all his work within the Council of Europe, and confirm that that will continue long after we have successfully concluded our Brexit negotiations.
The Prime Minister set out a bold and ambitious vision for the UK. She outlined our key negotiating objectives as we move to establish a comprehensive new partnership with the EU.
I will make a little progress and then give way.
That vision for a partnership in the best interests of the United Kingdom means that we will also continue to work with the EU on tackling areas of common interest.
I am much encouraged not only by the fact that the Minister is giving way but by what my hon. Friend the Member for Bridgwater and West Somerset (Mr Liddell-Grainger) said. It may be that we are no longer brothers and sisters in Europe, but we are cousins. Therefore to that extent we will continue to seek to maintain good relations with the EU, despite the fact that we are absolutely going to leave.
I heartily agree with my hon. Friend that we will continue to foster good relations with our EU friends long after we leave the European Union. Keeping that in mind, we are content that all four decisions that the Bill addresses are reasonable, proportionate and in keeping with our best interests, and will not result in any additional financial burdens on the UK.
As I have said, article 352 decisions must be agreed by all EU member states unanimously. When all member states are in a position to vote on the decision, the European Council will schedule a meeting of the Council of the European Union. If all member states vote to approve the draft decisions at that meeting, the European Parliament will be asked in turn to approve the draft decisions. If it does so, the decisions are adopted into EU law. All member states apart from the UK have agreed the EU-Canada decisions, and all member states except the UK and Germany have agreed the Fundamental Rights Agency decisions. We do not believe that any of the draft decisions should be considered contentious in any way.
It has been suggested that, as we negotiate our exit from the European Union, the United Kingdom should abstain in decisions in the Council. Will the Minister explain what the impact of a British abstention would be on those decisions?
I assure my hon. Friend that, were we not to pass the Bill this afternoon, the draft decisions would not proceed. We are still full members of the European Union and therefore our consent is required for the draft decisions to take effect.
The Minister is being generous with her time. She indicated one other country that has yet to ratify or vote on this—namely, Germany. Does she have, or has she been given, an indication as to when support may come from Germany?
Any such comment from me would be speculation, which I intend to avoid, but I point out that Germany, like the United Kingdom, needs the consent of its national Parliament before its Ministers can vote on such draft decisions.
As I said, all member states apart from Germany and ourselves have agreed the Fundamental Rights Agency decisions, and we do not believe that any of the draft decisions are contentious. The Government are committed to being constructive in the UK’s ongoing engagement with the EU. Holding up progress on business that is simple and uncontroversial would undermine that approach and the principle of sincere co-operation that lies behind it. It is therefore clearly in the UK’s interests to approve these draft decisions. Delaying the decisions could have a negative impact on the UK’s exit negotiations with the EU, including discussion on any future framework. There will, of course, be further opportunities to examine more fundamental aspects of the work of the EU in other debates. However, I am sure hon. Members will recognise that, whatever their views on EU exit, it is in the UK’s interests to approve these draft decisions.
Will the Minister confirm that, as part of our ongoing relationship with the European Union until we achieve our freedom, the provisions of the trade agreement secured with Canada will be implemented fully in the United Kingdom, and that we will continue to play a proactive role within the EU and beyond in encouraging further free trade with Canada?
I welcome my hon. Friend’s intervention. I remember his excellent work when he was a trade representative to Canada and I assure him that the Comprehensive Economic and Trade Agreement negotiations, completed between the EU and Canada, will cover the United Kingdom for as long as we are members of the EU. After that point, it will be up to us to decide the terms of any future trading relationship with Canada, bearing in mind the—I won’t go any further on that.
Will the Minister give way?
I will make a bit of progress. I am concluding my remarks on Canada and trade. I will give way to my right hon. Friend the Member for Wokingham (John Redwood) when I have made further progress.
It is therefore clearly in the UK’s interests to approve the draft decisions. Delaying the decisions could have a negative impact on the UK’s exit negotiations, including discussions on any future framework. There will, of course, be further opportunities to examine more fundamental aspects.
Surely the Minister would confirm that the Canadian trade agreement, along with all the others the EU will have in place when we leave, will novate to us, assuming that both we and Canada wish it to do so? That will clearly be the case, so it will carry on.
I accept the first part of what my right hon. Friend says, but I do not wish to predict what the UK and Canada may find it important to discuss in their trade relationship in the years to come.
I will make a bit more progress and then I will give way.
The first two decisions will enable two countries, the Republic of Albania and the Republic of Serbia, to be granted observer status in the EU’s Fundamental Rights Agency. Before I go any further on that point, I will give way to the hon. Gentleman.
I am grateful to the Minister for giving way. I was not going to raise a point on CETA this afternoon, but as it has been raised by her colleagues I just wondered what estimate the UK Government have given to renegotiating a CETA-type Canada deal following Brexit.
I thank the hon. Gentleman for his intervention, but I remind him of the scope of the Bill. It does not include much detailed discussion about our future trade relationship with Canada. For the avoidance of doubt, the Canadian decisions are about competition law, not trade.
The Fundamental Rights Agency was set up to support EU institutions and EU member states by improving the knowledge and awareness of fundamental rights issues in the EU, with a view to ensuring respect for fundamental rights. The agency does this through the collection and analysis of information and data. It can also formulate opinions on specific topics, either on its own initiative or at the request of EU institutions. It also has a role in communicating and raising awareness of fundamental rights, but it cannot hear individual complaints. EU accession candidate countries can be given observer status at the agency. This allows the agency to collect and analyse fundamental rights data from those countries, but it does not allow them the right to vote in decisions as part of the agency’s management board.
How does the agency differ from the Council of Europe? The Council of Europe looks after democracy and the rule of law within Europe, and it carries out exactly the same activities as the agency.
The goal of the agency is to provide expertise on fundamental rights to EU institutions, member states and countries seeking accession when implementing EU law. The specific tasks of the agency are: to analyse and share information on fundamental rights in the European Union; to carry out scientific research and surveys on fundamental rights issues; to formulate opinions on specific topics, either on its own initiative or as requested by EU institutions; and to increase awareness on fundamental rights in the EU.
Albania was granted EU candidate status in June 2014. The UK supported the awarding of EU candidate status on the condition that Albania redoubled its reform efforts, with particular focus on justice and home affairs, especially tackling organised crime, corruption and illegal migration. The UK welcomed Albania’s progress in adopting legislation towards a judicial reform package in July 2016. Albania must now fully implement the judicial reform package as soon as possible, so that it can underpin other reforms.
Serbia was granted EU candidate status in 2012 and accession negotiations were launched in January 2014, with the first four negotiating chapters opened during 2016. The UK continues to support Serbia on its reform path, including through funding projects in Serbia.
Will the Minister comment on whether Serbia’s membership of the agency would have any impact on the pursuit of war crimes in Serbia, as part of its effort to increase human rights?
I cannot comment specifically on the likely impact on the treatment of war crimes in Serbia, a subject about which the Foreign Office is extremely concerned—as, I presume, is my hon. Friend—but I think it can only be a mark of progress for Serbia to be admitted in the way that this decision enables it to be.
The Minister says that this is a mark of progress, but I cannot accept that. This sounds like motherhood-and-apple-pie Eurospeak. Exactly the same words were used during the accession of Croatia, but has Croatia handed over its war criminals and does it have the rule of law yet? Both were promised. It has one of the longest borders in the EU, which is used for sex trafficking and human trafficking. We heard exactly the same then, but there have been no improvements. Why does the Minister believe there will be improvements with Albania and Serbia?
To correct the hon. Gentleman, I do not think I said that I thought there would be improvements; I said that I thought it would be a mark of progress. I was trying to limit my enthusiasm to that degree, mindful of what he says about Croatia. However, I would say that it is early days and we can only go down the path of progress. The UK continues to support Serbia on its reform path, including through funding projects in Serbia.
Serbia has more work to do on anti-discrimination policies, improving the situation for vulnerable people and ensuring freedom of expression. Observer status at the Fundamental Rights Agency should help Albania and Serbia to reform in the areas we are discussing. Albania and Serbia should also be allowed to benefit from instances of good practice and evidence from other EU member states in relation to human rights. The Government are therefore satisfied of the need to support these two decisions.
The third and fourth decisions are necessary to implement a co-operation agreement between the EU and Canada on competition enforcement. The decisions will allow the agreement to be signed and allow conclusion of the agreement after it has been approved by the European Parliament. This competition co-operation agreement will replace an existing agreement that has been in place since 1999. It replicates and builds on the provisions in the earlier agreement by allowing the European Commission and the Canadian Competition Bureau to exchange evidence obtained during investigations, including confidential information and personal data.
The existing co-operation agreement with Canada dates from June 1999, and at that time the exchange of evidence between the parties was not regarded as needed. In the meantime, the bilateral co-operation between the European Commission and the Canadian Competition Bureau has become more frequent and deeper in terms of substance.
The Government have already told the Exiting the European Union Committee, on which I served during the last Parliament, that following our withdrawal from the EU we will no longer benefit from, for instance, the information exchange agreements between our competition regulator and the Canadian Competition Bureau. That renders much of the Bill rather pointless, does it not? Can the Minister explain how pulling us out of global deals such as the one that we are discussing will be helpful?
I have explained that the purpose of the decision is primarily to support our role as a continuing member of the EU until the negotiations are complete, in two years’ time. Until then we will be covered by it, but after that date we shall have to see what has been agreed during the negotiations. The existing competition agreement with Canada does not allow the sharing of confidential information, but the new one does. I shall return to that point in a few minutes.
The absence of the possibility of exchanging information with the Canadian Competition Bureau is regarded as a major impediment to effective co-operation. The proposed changes in the existing agreement will allow the European Commission and the Competition Bureau to exchange evidence that both sides have obtained in their investigations. That will be particularly useful in all cases in which the alleged anti-competitive behaviour affects transatlantic or world markets. Many worldwide or transatlantic cartels include Canada and, via Canada, the Commission will gain a good opportunity to have access to additional information concerning those cartels.
Co-operation with third-country competition authorities is now standard practice in international competition investigations. In addition to the agreement with Canada, the EU has concluded dedicated co-operation agreements with the United States, Japan, Korea and Switzerland.
I now return to the intervention by the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards). I omitted to say that even after the Brexit negotiations have been completed, the competition agreement with Canada will continue to apply to British companies if they are trading with the single market of the European Union.
The most advanced agreement is the one with Switzerland, which already contains provisions on the exchange of evidence, and the proposed update would bring the agreement with Canada to the same level as the one concluded with Switzerland.
I am sure Members will agree that the ability to share information is increasingly important for effective and efficient international competition enforcement. Access to information from other jurisdictions can be important to the reaching of a robust enforcement decision. Co-operation and information sharing between jurisdictions can help to ensure that enforcement bodies do not reach different decisions based on different sets of information.
The agreement contains general safeguards for the transfer of information, and additional safeguards for the transfer of personal data. Personal data can be shared only with the express written consent of the person or company to whom they relate. In the absence of consent, such data can be shared only when both competition authorities are investigating the same related conduct or transaction. Furthermore, the transfer of the data will be subject to independent oversight. The agreement also contains safeguards for information provided by a company under the EU cartel immunity or leniency programme. Such information cannot be shared without the express written consent of the individual or company that provided it.
As I have noted, the decisions will have no financial implications for the UK. I confirm that I do not consider that any of the Bill’s provisions interfere with the rights set out in the European convention on human rights, so no issues arise in connection with its compatibility with those rights.
I wonder why there is no cost. Surely, if there is to be an added layer of complexity in the sharing of information—which may be a good thing—there must be a cost in respect of the time of the officials involved.
I am assured that no costs are associated with these decisions, other than those that arise in the normal course of Government business.
It is intended that the Bill will come into force on the day of Royal Assent. For the reasons that I have outlined, I commend it to the House.
With the leave of the House, Mr Speaker, I am grateful to have the opportunity to respond to the debate.
The Bill will approve four draft European Council decisions. The first concerns the participation of the Republic of Albania and the Republic of Serbia as observers in the work of the Fundamental Rights Agency. The Republic of Albania and the Republic of Serbia both want to become members of the European Union. This measure does not extend the competency of the Fundamental Rights Agency. Albania and Serbia should be supported to increase their human rights awareness and promote fundamental rights within their countries, and I was pleased by the support that the House gave to that position.
I will deal with a few questions raised by hon. Members on this decision. My hon. Friends the Members for South Suffolk (James Cartlidge) and for Stone (Sir William Cash), to whom I express my appreciation for his work in chairing the European Scrutiny Committee, asked about the impact on Serbia’s war crimes record. The decision will allow Serbia to have access to the expertise of the agency and allow data on human rights in Serbia to be gathered and shared, providing steps to improve Serbia’s human rights protections. The UK continues to urge Serbia to meet its obligations to co-operate fully with the International Criminal Tribunal.
The hon. Member for Sefton Central (Bill Esterson) asked whether the UK could remain part of the Fundamental Rights Agency post Brexit. The Government are looking at the UK’s relationship with all EU bodies, including the FRA, as part of the exit negotiations. My hon. Friend the Member for Cheltenham (Alex Chalk) pointed out that the FRA is completely distinct from the European convention on human rights, and our membership of that convention continues post Brexit.
My hon. Friend the Member for Henley (John Howell) spoke with considerable authority on the work of the Council of Europe, of which he is a member, and the overlap between that body and the FRA. I share his hope and belief that the valuable work of the Council of Europe will continue long after Brexit.
On the co-operation agreement between the EU and Canada on competition enforcement, the UK has a large number of companies that are well placed to compete internationally in a system of genuine free and open competition. The agreement will help to ensure free and open competition by facilitating enforcement against international cartels. There are a number of questions in this area. The hon. Members for Birmingham, Erdington (Jack Dromey) and for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) asked about UK companies continuing to be subject to EU anti-trust jurisdiction. The EU has jurisdiction over competition effects within the EU single market. That will continue after we leave the EU, and UK companies will have to comply with EU competition law when they operate within the EU single market, just as US, Japanese and Canadian companies do. The key point about the Council of Europe concerns the setting of standards and the overseeing of these matters. We welcome greater co- operation on international competition enforcement.
The hon. Member for Sefton Central asked whether, after EU exit, we will have to continue to share with the EU information received from Canada. The UK Government will be free to enter into their own arrangements to share information with Canada directly, and the UK and Canada will need to negotiate any such agreement. He also asked about international agreements after the UK leaves the EU, and whether this agreement provides a model. The UK will be free to enter into international agreements on competition, and we believe that this agreement is a good model.
We have had a good debate on co-operation on international competition enforcement, which will ensure that British businesses continue to compete on a level playing field. I think I have answered most of the points that hon. Members raised during the debate, and I commend the Bill to the House.
Question put and agreed to.
Bill accordingly read a Second time.
European Union (Approvals) Bill (Programme)
Motion made, and Question put forthwith (Standing Order No. 83A(7)),
That the following provisions shall apply to the European Union (Approvals) Bill:
Committal
(1) The Bill shall be committed to a Committee of the whole House.
Proceedings in Committee of the whole House, on Consideration and up to and including Third Reading
(2) Proceedings in Committee of the whole House, any proceedings on Consideration and any proceedings in legislative grand committee shall (so far as not previously concluded) be brought to a conclusion two hours after the commencement of proceedings in Committee of the whole House.
(3) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion three hours after the commencement of proceedings in Committee of the whole House.
Programming committee
(4) Standing Order No. 83B (Programming committees) shall not apply to proceedings in Committee of the whole House, to any proceedings on Consideration or to other proceedings up to and including Third Reading.
Other proceedings
(5) Any other proceedings on the Bill may be programmed.—(Nigel Adams.)
Question agreed to.
Business of the House (Select Committees)
Ordered,
That, at this day’s sitting, the Speaker shall put the Questions necessary to dispose of proceedings on the Motions in the name of Andrea Leadsom relating to Standing Orders etc. (Committee on Exiting the European Union) and Women and Equalities Committee and the Motion in the name of the Prime Minister relating to Select Committees (Allocation of Chairs) not later than two hours after the commencement of proceedings on the Motion for this Order; such Questions shall include the Questions on any Amendments selected by the Speaker which may then be moved; proceedings may continue, though opposed, after the moment of interruption; and Standing Order No. 41A (Deferred divisions) shall not apply.—(Michael Ellis.)
(7 years, 1 month ago)
Commons Chamber3. What his policy is on the non-release or late release of cash retentions in the construction industry.
Unjustified late and non-payment of a retention payment or any amount owed is unacceptable. These practices cause particular problems for small businesses in the construction sector, and the Government are committed to tackling them. We will shortly be publishing research into these issues, alongside a consultation document.
The system of cash retentions has been wreaking havoc in the construction industry for decades. Can the Minister assure us that there will soon be radical action to overhaul the system, and can she explain why it has taken so long?
There is, indeed, far too much abuse of the system of cash retention, and it has been going on for too long. The burden of administrative time spent securing payments and the drain on working capital weigh far too heavily on smaller firms in the supply chain, and I can assure the hon. Gentleman that we will be taking action.
If the Government had only listened in 2015 to the amendments the Labour party tabled to the Small Business, Enterprise and Employment Bill, we would already have a solution. We were told then that the Government were going to take action. We were told again a few months ago that they were taking action with their proposals about naming and shaming businesses that did not publish their late payments. We now have yet another consultation. Research from Crossflow Payments shows that 74% of small businesses do not believe that the Government’s recent changes will make any difference. Can we have a policy that actually enforces action on late payments, rather than the series of consultations that we have had?
I agree that action is needed, but it is important that we take the right action. We have undertaken a consultation, the results of which will be published shortly. That will be followed by a consultation on the 2011 changes to the Housing Grants, Construction and Regeneration Act 1996, which will consider the merits of ring-fencing retentions and the extent to which contractors are making the payment of retentions conditional on the performance of obligations under other, completely separate contracts.
4. What steps he is taking to ensure that the electric grid is able to support the charging of the number of electric cars estimated to be in use by 2020.
5. What steps he is taking to support the growth of small and medium-sized businesses in the Thames Gateway.
Supporting small business is a crucial part of our industrial strategy. The Government are investing in the Thames Gateway, including through the local growth fund and the new lower Thames crossing. We will continue to work with industry and local authorities in the Thames Gateway to create the conditions for all businesses to thrive.
The lack of connectivity between Kent and Essex frustrates commerce between those two counties. The lower Thames crossing will help with that, but it will take some years for it to be built. Will the Minister use that time to work with local businesses in the area to unlock its huge potential, which has yet to be fully realised?
The lower Thames crossing is due to open in 2025. In the meantime, local growth hubs will continue to deliver support services to help businesses in the area to grow over that period. In addition, almost half of the South East local enterprise partnership funding of £274 million is directly supporting growth in north Kent and south Essex by improving transport infrastructure, addressing skills needs and creating new business spaces.
The Minister will know that one of the strengths of the Thames Gateway is the closeness of connections elsewhere in Europe, and one of the worries that small and medium-sized businesses have is whether they will be able to continue to recruit staff from other EU countries after Brexit. Will she acknowledge the strength of concerns of firms in the Thames Gateway, and can she offer them any reassurance about the prospects after Brexit?
Having travelled around the country talking to many businesses over the past year, I acknowledge those concerns in the Thames Gateway area. However, I was reassured—I hope the right hon. Gentleman was, too—by the Prime Minister’s opening contribution to the negotiations last week and the reassurance she offered many hundreds of thousands of EU citizens currently residing in the UK, including those working in the right hon. Gentleman’s area.
I welcome the hon. Gentleman to the House, along with the considerable expertise he brings on labour market issues from his former employment.
Zero-hours contracts allow people to access the labour market who cannot or do not want to commit to standard, regular work. The Government recognise the concerns about employers who may be breaching the rules or otherwise exploiting their position. We want to make sure that everyone is paid properly and receives the employment rights to which they are entitled.
I thank the Minister for her response and for her kind words. Given the ease with which, just yesterday, £1 billion was found to protect only one job in Westminster, will the Minister please say what actions the Government are taking to encourage business to offer genuine financial and personal security to the nearly 1 million workers on zero-hours contracts?
The Government believe that people are entitled to be treated fairly at work, regardless of what type of contract they have with the company for which they work. The Prime Minister commissioned Matthew Taylor to undertake a review of the rights of employees. He will report on the ways in which employment regulations need to keep pace with changes in the labour market very shortly.
I welcome the Minister’s statement that the Government are determined to ensure that employees get their employment rights. Why, then, did the Government introduce the huge fees for access to employment tribunals? Will they now abolish those fees?
Employment tribunals are a matter for the Ministry of Justice, but I am in discussions with it over the review of employment tribunals that it has undertaken and we keep a watching brief on the matters the hon. Lady raises.
What does the Minister have to say to the young dustman who said to me, “Jack, I’ve just got married. We’re about to have a baby. We’re paying a fortune in rent. We’d love to buy our own home, but no chance, because I’m on zero-hours contracts”? Is not the truth that he and millions of workers like him have seen through the pretence that the Conservative party is somehow the party of the working class, and the false claims and the phoney promises, and have simply had enough of falling pay, squeezed living standards and insecurity in the world of work?
I think we should have perspective on these matters, because less than 3% of the UK workforce are actually on zero-hours contracts, and according to the most recent research 70% of those people are content with the number of hours they are working. I do accept the hon. Gentleman’s point about his constituent, however, and that is precisely the scenario that Matthew Taylor has reviewed and will report on very soon.
10. What safeguards the Government plan to put in place to protect small businesses as part of negotiations on the UK leaving the EU.
Ministers in the Department for Exiting the European Union and I are in regular discussions with small and medium-sized enterprises and their representatives, and we are arranging a joint ministerial roundtable with SMEs to ensure that their voices are heard throughout the Brexit negotiations. Only last week, the permanent secretary of the Department for Business, Energy and Industrial Strategy and I held a roundtable with small businesses on the negotiations.
A survey by the Federation of Small Businesses found that 92% of exporting small businesses trade in the EU single market. How does the Minister predict those small businesses will be affected by the loss of our membership, and how will she ensure that the sector continues to be represented in any future negotiations?
The Government are committed to negotiating a full and open trade agreement with the European Union on our departure. As my right hon. Friend the Secretary of State said earlier, we are aiming for a situation in which no tariffs are applied to SMEs that export into the single market and there is no unnecessary bureaucracy.
Many SMEs in my constituency are part of European and global supply chains. Does the Minister understand that those businesses, as well as larger financial services businesses, need clarity and certainty? When will she and the Government be in a position to give those businesses certainty about the transitional arrangements that will be put in place? As she knows, businesses are already making investment or de-investment decisions.
The hon. Gentleman’s points are valid, but they are part of the ongoing negotiations, which, as he knows, have some way to go. However, we are defending our position as the No. 1 destination for foreign direct investment, and we will ensure that SMEs have a strong position in global supply chains into the future.
11. What plans he has to implement an energy price cap.
T3. Research by Citizens Advice found that half the people on zero-hours contracts, and two thirds of people on temporary contracts, worryingly believe that they are not entitled to paid holiday. Kirklees citizens advice bureau has found employers deliberately misleading workers about their rights. What steps is the Minister taking to make sure that workers are aware of their rights to a fair holiday? What repercussions will there be for companies that mislead staff? Can the Minister confirm when the Taylor review will be published?
The hon. Lady is right to draw attention to workers who are misled and workers who believe erroneously that they have fewer rights than they do. We are absolutely committed that any individual, whatever contract they are on, is entitled to their rights. We have increased the powers open to Her Majesty’s Revenue and Customs to enforce those rights.
T9. Market towns are vital to the rural economy, and they are the heart of rural communities, drawing people together across the 531 square miles of my constituency. Modern shopping habits, however, can mean that it is difficult for businesses in market towns to survive. What are the Government doing to support our much-needed and much-loved market towns?
Market towns, such as the ones in my hon. Friend’s constituency, will have all the support we are giving to the retail sector and high streets so that they can flourish.
T4. The National Audit Office recently published a report on Hinkley Point C that is nothing short of damning, describing it as “risky and expensive”. When will the Government listen to the experts and scrap this costly expenditure, and when will they invest instead in carbon capture and storage?
The Secretary of State is aware that I have long campaigned for parental bereavement leave, and I was delighted to see this policy in not only the Conservative manifesto, but the Labour manifesto. On that basis, will he kindly set out what steps the Government will take to introduce this important benefit?
I agree that bereaved parents should have the opportunity to grieve away from the workplace, and we will seek to provide for that. I am willing to meet my hon. Friend to discuss further how we might make such provision.
The Secretary of State has talked repeatedly today about the discussions he has had on Brexit. Which trade unions has he met, and when?
(7 years, 2 months ago)
Written StatementsOn Friday, I laid before Parliament two sets of regulations that modify the existing national measures to implement the UK’s transposition of Article 30 of the EU Fourth Anti-Money Laundering Directive. These regulations are made under powers under section 2(2) of the European Communities Act.
The regulations modify and extend the UK regime for a public register of information about people with significant control over UK companies and limited liability partnerships (LLPs). The register is a core element of the UK’s drive to improve corporate transparency. This statement, the regulations and the guidance have been informed by responses received to the discussion paper “Implementing the Fourth Money Laundering Directive: transposition of Article 30: beneficial ownership of corporate and other legal entities” [1].
Specifically, the regulations:
modify the existing national measures in relation to the legal entities covered (companies, LLPs and SEs) by requiring information to be updated on the register within a prescribed timescale
extend the amended measures to unregistered companies and listed companies on UK secondary markets
apply a modified form of the regime to limited partnerships governed by the law of Scotland and to qualifying general partnerships governed by the law of Scotland, collectively known as “eligible Scottish partnerships”
amend the provisions on circumstances in which information not shown on the public register may be accessed.
Transposition is not required in relation to limited or general partnerships registered or formed under the law applicable elsewhere in the United Kingdom, in view of the distinct, legal status of Scottish partnerships in section 4 of the Partnership Act 1890.
I have also issued and published, in draft, updated statutory guidance on the meaning of significant influence or control in the context of companies, for the register of people with significant control. This is required by paragraph 24 of Schedule 1A of the Companies Act 2006, and is subject to negative resolution by either House.
The term “significant influence or control” is included in the fourth and fifth specified conditions for being a person with significant control. The statutory guidance is required to explain how that term should be interpreted.
I have also published guidance on the meaning of significant influence or control in the context of eligible Scottish partnerships and have updated guidance on the regime for all legal entities in scope and for people who might become a person of significant control over them.
[1] https://www.gov.uk/government/consultations/implementing-the-fourth-money-laundering-directive-beneficial-ownership-register.
[HCWS7]
(7 years, 4 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve under your chairmanship, Ms Ryan. I congratulate the hon. Member for Hammersmith (Andy Slaughter) on securing this important debate and echo the remarks of hon. Members about his spearheading of the whole campaign.
We have made considerable progress since I last had the opportunity to engage in a debate on product safety. However, I see from hon. Members’ remarks, to which I have listened carefully, that that has perhaps not been communicated as effectively as it should. Allow me to put that right. I reiterate that the Government take consumer product safety extremely seriously. On the safety issue identified in Whirlpool tumble dryers, I and my officials have been in regular contact with Whirlpool and its management. I must say that I have been shocked to hear the extent to which Whirlpool has not engaged with other hon. Members; I think that it might come to regret that. I hope that, in the new Parliament, it will manage to put that communications issue right.
I met the chief executive of Whirlpool and emphasised the need to resolve the situation quickly and pushed the company hard on meeting its obligations. I have repeatedly pressed it in further correspondence on the need to ensure that consumer safety remains paramount and that consumers have accessible routes to resolve their issues with the company’s products quickly and effectively. I am concerned about the number of unregistered machines still on the market; as hon. Members have mentioned, second-hand machines and people moving into homes with an existing machine and not realising the safety issues make it a complex situation. I will come back to that when talking about the working group that we have set up.
I am concerned to hear of the experiences of some consumers who have registered their machines with Whirlpool and who have faced unacceptable delays in having their machines modified.
The advice given to one of my constituents was to unplug her tumble dryer, to plug it back in only when she was going to use it and to then watch it. I do not know if the Minister has ever tried to move a tumble dryer or washer dryer when the plug is at the back, but it is not something that can be done. The manufacturers have to take far greater responsibility for keeping our families safe than they do at the moment.
I agree with the hon. Lady; that is not practical advice.
Whirlpool has, however, been taking action to address the concerns that we have debated this afternoon. The hon. Member for Swansea East (Carolyn Harris) is the only one among us, apart from myself, who has met Whirlpool. What Whirlpool said to her is largely right, in terms of what it has lived up to following the proposals that its representatives made when they met her some time ago.
Whirlpool has increased its engineer workforce by 50%, allowing it to resolve approximately 100,000 cases per month. It has now exceeded the number of cases that it anticipated resolving when it met the hon. Lady. It has modified more than 1.5 million machines—almost 90% of the total number registered with the company—but, of course, that leaves 10% unresolved, to say nothing of all the other machines out there that nobody knows of. Whirlpool now employs the UK’s largest technician workforce, at 1,700-strong, which is almost three times the size of the next largest one in the country.
In response to demands for a full recall, I understand the attraction of that proposition, but the key must be to take whatever action is most likely to achieve the outcome we are all aiming for, which is to ensure that consumers are protected from unsafe products. That may be statutory recall in some instances, but other forms of corrective action, including making modifications to products in a consumer’s home, may be more proportionate, appropriate and effective in other cases. It is often better and more effective to encourage a company to accept its responsibilities and take action proactively.
I appreciate that time is short, but on that point, will the Minister give way?
I had important constituency business to attend to. The Minister is correct in saying that modifications at home might be the correct course of action. Indeed, I witnessed a modification to my tumble dryer. However, the issue I have is that Whirlpool is not disclosing to Which? or to any of us the independent expert analysis stating that such modification makes the tumble dryer safe.
I am sorry that my hon. Friend has not had satisfaction from Whirlpool on that. Whirlpool wrote to me on 4 November outlining its engineer training programme and auditing programme of the machines that it has modified. I am happy to share that correspondence with him and other hon. Members.
We hear from industry and other experts that recall programmes typically have a success rate of resolving between 10% and 20% of affected products. In this case, Whirlpool’s resolution rate is over 40%, which is well above the industry norm. We can therefore posit that the action taken by Whirlpool in co-ordination with Peterborough trading standards has achieved more in terms of resolving cases than recalls typically achieve, meaning a greater number of consumers have been protected from potential harm.
I will give way once more. There is more material that Members will be interested in.
We are talking about 5.2 million machines and 120 different models. Is there a timescale for how many years it will take for resolution to be arrived at and all those machines to be repaired or replaced?
I can only reiterate what I have already said. Of those machines, 1.5 million have already been modified, and only 10% of cases registered with Whirlpool are outstanding. Whirlpool is modifying machines at roughly the rate of 100,000 per month.
The role of Peterborough trading standards has been discussed. That team has ensured that Whirlpool has taken responsibility for resolving the issue and agreed actions deemed proportionate to the level of risk. The initial risk assessment was peer-reviewed and agreed by two other trading standards departments, at Norfolk County Council and Hertfordshire County Council. As a responsible regulator, it has kept the issue and the evidence under continuous review and made decisions accordingly. It issued enforcement action to ensure that Whirlpool gave clear advice to consumers not to use the product before it had been repaired, and it has been in close contact with Whirlpool to agree and oversee the corrective action programme.
I note hon. Members’ comments about Whirlpool’s motivations and the extent to which it was moved by the threat of judicial review. It is impossible for me to comment on that speculation, but I would point out that Whirlpool had already resolved the majority of those 1.5 million cases prior to the threat of judicial review, which was later removed. As a result of Peterborough’s actions, Whirlpool did not, as Members implied, sit on its hands; it commenced a programme of corrective action back in November 2015. I have covered issues about Whirlpool’s customer service, so I will move on.
I want to acknowledge the remarks of the hon. Member for Merthyr Tydfil and Rhymney (Gerald Jones) about the manufacturing of white goods. I was sorry to hear of the manufacturing losses in his constituency, but I am pleased to report that Whirlpool tumble dryers and some of its other white goods are manufactured not abroad but in Bristol.
I will turn to the working group on product recalls and safety. I take to heart the suggestion by the hon. Member for Hammersmith that the Government should look at the safety of all electrical goods and not just tumble dryers. That brief has been given to the working group. An online hub of information on product recalls, known as “Recall Central”, has been developed on gov.uk. That follows up one of Lynn Faulds Wood’s recommendations, cited by the hon. Gentleman.
When I took on the product safety brief, I reviewed the remit of what was then called the recall review steering group. Like the hon. Gentleman, I considered two years far too long to wait for discernible improvements in the system. In October, I rebooted the group and established the working group on product recalls and safety to develop credible options for improving product safety and the recalls system, setting a more challenging timetable of six months. I asked the working group to focus in particular on identifying the causes of fire in white goods and the action needed to reduce that threat.
The group is better resourced than its predecessor. Officials in my Department are supporting the group and are in regular contact with the Home Office about fire prevention. The group consists of experts in the fire services, trading standards, consumer groups and industry, including Electrical Safety First. The chair, Neil Gibbins, has extensive experience of fire safety, as former deputy chief fire officer for Somerset and Devon, and a background in enforcement.
I am grateful to Neil Gibbins and members of the working group for their work. They submitted their initial recommendations in December, which were published on gov.uk. Each meeting has had its notes published on gov.uk, and hon. Members can visit that site. The group submitted its full report to me earlier this month, which might explain why I have not yet published it, in less than the six months given to it. If it had not been for the Easter recess and the calling of the general election, I would now be planning the publication of the report. The group has already commissioned the British Standards Institution to develop a code of practice on corrective actions and recalls to improve consistency and transparency.
The hon. Member for Poplar and Limehouse (Jim Fitzpatrick) raised the issue of consumer behaviour and attitude, which is very important. The working group has commissioned consumer behavioural insights research, which I gather has almost concluded, to help ensure that the code of practice, and indeed the whole process of encouraging and motivating consumers to register their appliances, is taken forward in the optimum way.
I must leave time for the hon. Member for Hammersmith to wind up the debate, so I will conclude. In terms of Brexit, I would like to reassure Members that the Government have absolutely no intention of watering down consumer protection and consumer safety. The opposite may well be the case. I would also like to reassure the House generally that the Government take these issues very seriously indeed, and I look forward to the hon. Gentleman’s concluding remarks.