Oral Answers to Questions

Debate between Margot James and Michael Fabricant

Thursday 8th February 2018 Commons Chamber

[Margot James]

I can reassure the hon. Gentleman. We have asked the independent Migration Advisory Committee to advise on the economic and social impacts of our exit from the EU. We are also speaking to the sector and its key trade bodies, such as Ukie and TIGA, as well as individual businesses such as Ubisoft and CE Europe, to ensure that top talent continues to be available to the sector.

[Michael Fabricant (Lichfield) (Con)]

16. What recent discussions he has had with Channel 4 on its potential relocation outside London; and if he will make a statement.

Thank you for reaching me.

Oral Answers to Questions

Debate between Margot James and Michael Fabricant

Tuesday 12th September 2017 Commons Chamber

[Margot James]

Much of what the hon. Gentleman refers to is covered by Matthew Taylor in his report, and one of his recommendations that we will be following up with interest is that all workers should be informed of their status in writing by their employer before they start their work.

[Michael Fabricant (Lichfield) (Con)]

Has my hon. Friend looked at the working practices of the John Lewis Partnership—with which I no longer have any connection whatever—and seen the way in which it has people on its boards of management? Does she not believe that this is an important way to achieve worker involvement?

[Margot James]

I thank my hon. Friend for his commendation of the John Lewis Partnership, with which I concur. It is, indeed, a very good employer, but it is not alone: many other large companies engage with their employees in much the same way.

Oral Answers to Questions

Debate between Margot James and Michael Fabricant

Tuesday 8th November 2016 Commons Chamber

[Margot James]

I thank the hon. Lady for her question and congratulate her on the work of the home electrical safety all-party group. Manufacturers are required by law to take corrective action when they discover a fault, whether the fault emerges in products sold online or in the high street. In addition to local trading standards, we fund National Trading Standards, which prevents many substandard products from coming into the UK. I will liaise with colleagues in DCMS about the issue that she raises this morning and report back to her in due course.

[Michael Fabricant (Lichfield) (Con)]

The hon. Member for Swansea East (Carolyn Harris) is right, as ever, especially on this point. This is not just about safety. There is a disincentive for firms to undertake research and development and develop products if they are then going to be counterfeited. Is not the moral of the story that people should not buy cheap products from back-street traders but go to renowned department stores—perhaps those which are never knowingly undersold?

[Margot James]

I thank my hon. Friend for that advertisement for the John Lewis Partnership. I assure the House that there are many other retailers that consumers can trust, and I think I will leave my answer at that.

Draft National Minimum Wage (Amendment) (No. 2) Regulations 2016

Debate between Margot James and Michael Fabricant

Thursday 8th September 2016 General Committees

[Margot James]

We are doing a great deal to improve enforcement. Sadly, there will always be cases of employers who have the very immoral intent of getting round this law, but the powers of investigation of Her Majesty’s Revenue and Customs are increasing, and we are increasing the expenditure on HMRC’s enforcement team. I will come on to make other points about enforcement; there are various other things that we are doing to increase it. Every single complaint made by an employee is automatically investigated by HMRC’s enforcement team. This year, we have increased the budget from between £13 million and £14 million to £20 million. We are serious about cracking down on employers that try to flout the law. I shall return to enforcement in due course, because I agree with the hon. Gentleman that it is crucial.

The Low Pay Commission has proved that a rising minimum wage can go hand in hand with rising employment. However, the carefully considered independent advice from the commission is central to this. The Government’s 2016 remit for the commission asked it to make recommendations for the new rates, based on maximising the wages of the low-paid without damaging their employment opportunities. The commission has made its recommendations following thorough consultation with business, workers, and their representatives, and extensive research and analysis.

The Low Pay Commission’s remit is clear: when considering the pace of increases to minimum wage rates, it should take into account the state of the economy. The commission has stated:

“the labour market had continued to perform well, with robust employment growth in low-paying sectors”.

Although the referendum result may have cast some uncertainty over forecasts and assessments made before June this year, we should remember that the labour market performed robustly during the worst recession in living memory.

The increases to the minimum wage rates are, of course, in addition to the national living wage for those aged over 25, which we implemented in April. It is the Government’s ambition for a national living wage to reach 60% of median earnings by 2020. In addition, the national minimum wage cycle will be aligned with the national living wage cycle from April 2017. That will reduce the burden on businesses of having to update their workforce’s pay more than once a year and will mean that the statutory pay floor for all ages is uprated simultaneously.

[Michael Fabricant (Lichfield) (Con)]

Is my hon. Friend aware that in the US, which had a minimum wage before we did, the rate is currently $7.25 an hour? That is only £5.50 at the current rate of exchange. Does that not put into context how good our minimum wage is, let alone the living wage?

[Margot James]

I thank my hon. Friend for his informative intervention. The fact that it is more or less dollar for pound indicates that we in Britain are doing as much as we possibly can to protect the interests of low-paid workers, and to pay them the maximum that the economy can afford without damaging their employment prospects.

--- Later in debate ---

[Michael Fabricant]

I thank the hon. Gentleman for that question. The analysis done by the Low Pay Commission and others suggests that unless we have different wage rates by age, people under the age of 24 or 25 will be unemployable. That is the problem. For example, if we set the rate too high, it would be a disincentive for companies to engage people in apprenticeships.

[Margot James]

Will my hon. Friend give way?

[Michael Fabricant]

Of course I give way to my honourable and very real Friend the Minister.

[Margot James]

I thank my hon. Friend for his enlightening comments and for giving way. To amplify his point about the difference between those under and over 25, he might be interested to know that unemployment among those 25-plus is just 3.7%, but it is still 13.6% for 16 to 24-year-olds. I agree with the Low Pay Commission that increasing those rates further for under-25s would put their employment prospects in serious doubt.

[Michael Fabricant]

Yes. Also, people pay a premium for experience, and the younger people are, the less experienced they are. Although 13%—was it 13%?

[Margot James]

It is 13.6%.