Remploy Workers

Debate between Mark Harper and Ian C. Lucas

Wednesday 26th November 2014 Westminster Hall

[The Minister for Disabled People (Mr Mark Harper)]

It is a great pleasure to serve under your chairmanship, Mr Havard. I congratulate the hon. Member for Wrexham (Ian Lucas) on securing the debate. It was surprising that we spent so little time on the full history of the process, going back to when the previous Government started the factory closure programme and recognised reality. I remember those events clearly, because I was the shadow Minister for Disabled People between 2007 and 2010. I had a small Remploy factory in my constituency in Lydney.

It is worth putting on the record that the right hon. Member for Neath (Mr Hain), who was the Secretary of State for Work and Pensions at the time, was right and had our support. It is disappointing that Opposition Members have ignored the reality. In a statement on 29 November 2007, he recognised that change was necessary. He said:

“The reality is that without modernisation Remploy deficits would obliterate our other programmes to help disabled people into mainstream work. With no change, in five years’ time Remploy would require £171 million a year on current trends.”—[Official Report, 29 November 2007; Vol. 468, c. 448.]

That would have represented the entire annual Workstep budget at the time. I know that he did not find that a comfortable process, but he recognised the reality that the situation simply was not sustainable and closed 28 factories. We know nothing about any of the employees involved in that, because the previous Labour Government chose not to follow their progress.

It was interesting to hear about the GMB survey. If I heard the hon. Member for Hayes and Harlington (John McDonnell) correctly—I am disappointed he could not stay for my response to his questions, but I am sure he will read it in Hansard tomorrow—he referred to 2,700 or so employees. As there were not that many disabled employees employed by Remploy enterprises when the Government came to office, it must be the case that quite a lot of those employees were made redundant by the factory closures under the previous Labour Government. We simply do not know anything about them, because the previous Labour Government failed to track their progress. That was an improvement made by my right hon. Friend the Member for Basingstoke (Maria Miller) when she was the Minister; she said that we would track employees’ progress. The only reason why we have any of the statistics is that we chose to maintain them while the previous Government did not.

[Ian Lucas]

I am grateful to the Minister for giving way. He said that Opposition Members ignored the previous Labour Government’s record, but I specifically referred to it and to their initial decision to close the Wrexham factory. Will the Minister withdraw the suggestion that I ignored the previous Labour Government’s record?

[Mr Harper]

If the hon. Gentleman looks at the record, he will find that he characterised it in a slightly different way. He skated over the matter. He characterised the decisions that this Government made, when faced with the same financial reality, in a completely different manner, and ascribed motives to the decisions that my hon. Friends took that are simply not warranted. He did not ascribe such motives to the right hon. Member for Neath when he made similar difficult decisions.

[Ian Lucas]

The Minister said that we ignored the record of the previous Labour Government. I specifically referred to it in my speech, so will he withdraw that suggestion?

[Mr Harper]

I am happy to say that he did not ignore it, but he skated over it and ascribed motives to my hon. Friends that were simply not warranted. He did not ascribe such motives to the right hon. Member for Neath who made similar decisions when faced with exactly the same difficult financial circumstances.

[Mr Harper]

The statement of the right hon. Member for Neath made it clear that, despite the 28 factories that he had to close, the previous Labour Government managed to keep open the sites that they did only

“on the basis of very stretching procurement targets and a tough forward plan.”

He continued:

“It will be up to everyone with an interest in Remploy—Government, management, trade unions, local MPs and other political representatives—to pull together to ensure that those factories meet their ambitious targets, otherwise they, too, could be put at risk.—[Official Report, 29 November 2007; Vol. 468, c. 449.]

The reality is that when this Government came to office we faced an even more challenging financial situation, due to the previous Government’s appalling fiscal legacy, which included borrowing £1 for every £4 that was spent. It is no good the hon. Member for Wrexham shaking his head. When this Government came to office, we inherited the worst fiscal position of any Government in the western world. The budget deficit was 11% of GDP. It is no good his shaking his head again. He simply cannot ignore that fact. We had to deal with it, and wanted to ensure that we could support disability employment programmes, on which we have increased spending. That would not have been possible had we not made difficult decisions about the Remploy factories.

[Ian Lucas]

When this Government came to office, they inherited growth and falling unemployment from the previous Labour Government. Will the Minister confirm—he should know this, because I have checked him on it once already—that the deficit is higher now than it was this time last year?

[Mr Harper]

The deficit has been reduced by a third compared with the position that we inherited from the previous Government. The hon. Gentleman can ignore those fiscal realities, but there are now 2 million more jobs in the private sector. The most recent set of statistics contained the excellent news that the number of disabled people in work has increased by 259,000 over the past year, and that the employment rate for disabled people has also increased. There is more to do of course, but that is welcome news.

It is worth putting on the record the financial position that was faced by my predecessor, my right hon. Friend the Member for Basingstoke, when she had to confront the challenges. Two factories were specifically referred to in the debate. The Wrexham factory, referred to by the hon. Member for Wrexham, was losing £878,000 a year in 2011-12. The Croespenmaen factory, referred to by the hon. Member for Islwyn (Chris Evans), was losing £889,000. I do not deny that they may well have won some contracts and increased their business, but the truth is that those factories were losing a significant amount of money.

That is important because that money—around £25,000 a head—was being spent on a small number of disabled people when thousands of disabled people in all our constituencies were not benefiting. If that money had carried on being spent, it would have put at risk the Government’s other employment programmes. We have increased the amount being spent on the Access to Work programme, and we are increasing the resources going into both the Work programme for employment and support allowance claimants and Work Choice. If we had not taken these decisions on the Remploy enterprises that were losing money, those programmes would have been put at risk. The entire Access to Work budget is £108 million a year, which is less than the Remploy factories were costing. The situation was simply unsustainable.

The decisions were difficult. In this very room, the right hon. Member for Stirling (Mrs McGuire), then the Minister with responsibility for disabled people, had to set out and defend her Government’s policies to some of her colleagues. She received my support, because she was doing the right thing. Even if they are from an opposite political party, Ministers who do the right thing deserve support.

Looking back at the decisions that we made, various organisations were supportive of what we did. Disability Wales said at the time that it

“endorses the promotion of fully integrated services and does not see Remploy as either progressive or forward thinking in their approaches to service provision”,

and that Remploy

“are now standing in the way of full integration and indirectly hampering individuals’ chances of progression.”

Those are not my words, but those of Disability Wales. Disability Rights UK said:

“We appreciate that the Sayce Review has caused some concern for disabled people and their trades union representatives working in Remploy factories. However, we believe segregated employment for disabled people is unacceptable.”

On Monday, I was at a Scope event with the shadow Minister and spoke to several representatives from disabled people user-led organisations, all of whom told me that closing the Remploy factories and moving away from segregated employment towards supporting people in mainstream employment were the right things to do.

We have put aside more support for disabled people, not less. The hon. Member for Wrexham said at the beginning of his remarks that we were spending less money on disabled people and that he would go on to set that out, but I did not actually hear him do so. We are spending £50 billion on support for disabled people through things such as personal independence payments and ESA. We have signed up 1,100 employers to our Disability Confident campaign in order to increase the chances of disabled people finding work. The employment figures bear out that that is starting to be successful.

--- Later in debate ---

[Mr Harper]

I am grateful, Mr Havard. Let me tackle the point about the Welsh Government’s offer, mentioned by the hon. Lady and the hon. Member for Islwyn. The offer was not really an offer. The Welsh Government wanted us to carry on subsidising the factories and to carry on spending a significant amount of money—some £25,000 a head—on a small number of disabled people, which would have been at the expense of the programmes that we were running to support a much larger number of disabled people. If the Welsh Government had said that they had a significant amount of money to put on the table, things may have been different, but they did not. They wanted us to continue to subsidise the factories, which was simply unsustainable. The previous Government knew that. I sat in here and listened to the uncomfortable decisions that Ministers in the previous Government took. They were not comfortable decisions, but they were the right decisions. Those Ministers had the support of my party and me when making those decisions, because they were the right thing to do.

The hon. Member for Llanelli (Nia Griffith) wanted me to cover the support that we have provided to Remploy employees. We put in place the people help and support package, which has been referred to by a number of Members. It was an £8 million package available for individuals to access for up to 18 months after factory closure, and it included access to a personal caseworker and a personal budget. The caseworkers hold meetings and discussions with employees affected to identify suitable support and opportunities, and to signpost or refer them to appropriate provision.

The hon. Member for Wrexham mentioned three individuals. I spotted a report of his meeting with them in the Daily Post, in which he said:

“I saw three Remploy workers last week who are still unemployed and I met them at the Remploy Agency”.

I am happy for him to correct me if I am wrong, but Remploy tells me that of the three individuals whom the hon. Gentleman met, one is in employment at a local cleaning firm, working in a local educational establishment; one has just received his Security Industry Authority licence and has a job offer at a local company; and one does indeed remain out of work, but he has been on a work placement and work trial, and he received a job offer, which he decided to decline. Two of the three are in work or about to start work, which is positive.

[Ian Lucas]

It is two and a half years since the Government made the announcement of the redundancies. Two of those three people were out of work. In my remarks, I did not say—the Minister can check Hansard—that they were not in work. A lot of my speech was about the fact that people are worse off even when they are in work. That was a specific aspect of my speech. He should not misrepresent what I said in the debate.

[Mr Harper]

I am not; I am quoting from the newspaper report. If that is not what the hon. Gentleman said, obviously it has been misreported, but the quote is that he met three Remploy workers “who are still unemployed”. I am simply pointing out that one is employed, one has just received a job offer because he has his SIA licence, and the other person does indeed remain out of work but had received a job offer. I am simply putting that on the record. If he did not say that they were unemployed—

[Ian Lucas]

Two and a half years.

[Mr Harper]

The thing is, we know about the Remploy workers who lost their jobs through out factory closures; we know nothing about those who lost their jobs under the previous Government. More of them lost their jobs under the previous Government, who did not track the progress of such employees, but we did so, which was welcome.

Let me say more about what the hon. Member for Llanelli was asking about. The other thing that we built into the package of support was a community support fund, providing grants to local voluntary sector and user-led organisations so that they could run job club projects to support disabled Remploy employees. In Wales, three local organisations have successfully delivered such community support fund projects, supporting 90 participants, 72 of whom have moved successfully into employment. In July I had the chance to visit one of those community support fund projects at the Lennox Partnership in Glasgow. I understand that 833 former Remploy employees have participated in such projects, which have enabled 352 people to take up new employment opportunities.

On the statistics, we can of course only track employees who have given us permission to do so—we cannot find out what is happening to employees if they did not wish us to know that. On the figures that we have, therefore, 774 of the 1,507 people who were made redundant are in work, which is more than half of them. At the end of October, to update the figures that the hon. Lady had, we had spent £5.7 million of the £8 million support fund; we expect the budget to be fully spent.

It is also worth mentioning Remploy employment services. When the right hon. Member for Neath made his statement, which I remember clearly, he said that the employment services part of the Remploy business had got some 5,000 people into work that year, which was the same as the total number employed in the factory network. The employment services business has continued to be successful. Since 2010, it has supported more than 100,000 disabled and disadvantaged people into work. As Members know, a commercial process is under way at the moment and on track to be completed by next March. The employment services business has been successful in getting a significant number of people into work. As shadow Minister, I had the opportunity to visit some of the successful people whom it had placed in work.

The hon. Member for Islwyn mentioned the consultation process and the time line. I deliberately read out the relevant section from the 2007 speech of the right hon. Member for Neath, so it is not as if the factories did not know that there was an issue. From 2007, he put on the table the fact that those factories that were not closed by the previous Labour Government had to hit what he described as stretching targets and a tough forward plan if they were to be successful. The idea that people only started thinking about such things when we set out our proposals is not true; those factories all knew that they were losing money, and that there was a significant challenge to get profitable work from 2007, or five years before we set out our proposals.

Furthermore, when the Sayce review was under way, there was a consultation on our process in which people could commit to things. That process was not as swift as the hon. Gentleman made out. There were two stages: in stage 1, the Government reduced its subsidy to Remploy from the beginning of the new financial year, so that we ceased funding factories that made significant losses and restricted funding to those factories that might have the prospect of a viable future. The Remploy board looked at all the factories and decided which ones had a reasonable chance of being successful. At the end of that early stage, therefore, some factories were closed.

In a further commercial process, the board worked with bidders and interested parties to see if there were other viable options. The fact is, however, there were no viable options for most of those businesses. Some of the businesses successfully exited Government control. At stage 1, the health care business in Chesterfield and the filters business in Barrow successfully moved into the private sector, and the employees there have ongoing employment. At the end of stage 2 of the commercial process, three businesses successfully exited Government control, completing the process.

A reasonable chance was given to those businesses that had a reasonable prospect of being successful, but in the commercial judgment of the board some businesses simply did not have a viable future. That is why the decision to close them was taken at that time.

Parliamentary Under-Secretary of State for Welfare Reform (Disabled People)

Debate between Mark Harper and Ian C. Lucas

Tuesday 28th October 2014 Commons Chamber

[The Minister of State, Department for Work and Pensions (Mr Mark Harper)]

I am very disappointed by the tone of the hon. Member for Stretford and Urmston (Kate Green). This is a cynical debate, and I think my right hon. Friend the Secretary of State put his finger on the issue because if the hon. Lady meant what she said about the remarks of my noble Friend Lord Freud, she should have exposed them when she first knew about them. The fact is that the Opposition, right up to and including the Leader of the Opposition, used those remarks as a cynical device to detract attention from the excellent performance of the economy and the 2 million jobs that were created—news that was announced on 15 October but that the Leader of the Opposition did not want the House to focus on. That is what this is about.

[Ian Lucas (Wrexham) (Lab)]

Will the Minister give way?

[Mr Harper]

Not until I have at least made some opening remarks.

The Leader of the Opposition did not want the House to focus on the fact that employment is at record levels or that there has been the largest annual fall in unemployment on record. He did not want the House to focus on the fact that the claimant count had fallen below 1 million or that there had been the largest annual fall on record of youth unemployment. He did not want the House to focus on the fact that long-term unemployment was down, and that there are 400,000 fewer workless households since 2010. That is what this was about—a cynical piece of politics, and the hon. Lady had no answer to the charge of my right hon. Friend the Secretary of State. [Interruption.] She did not, and that will have been exposed to all those watching this debate.

--- Later in debate ---

[Ian Lucas]

Will the Minister confirm that the deficit increased by 10% in the past year?

[Mr Harper]

Let me focus on the motion before the House—[Interruption.] We have reduced the deficit by a third since the election. The hon. Gentleman does not want us to focus on the record of job creation among businesses in our country, so let us get back to the motion.

UN Syrian Refugees Programme

Debate between Mark Harper and Ian C. Lucas

Monday 20th January 2014 Commons Chamber

[Mr Harper]

My hon. Friend is right. As well as the support we are providing in Lebanon to the Syrian refugees, we are of course making sure that we are providing support to it in order to promote stability. We are also providing help to make sure it can deliver the support it is having to deliver because of its location as a neighbour of Syria. I therefore think we are both helping refugees in Syria and providing the necessary support to Lebanon so that it can step up and do what it is required to do in the region.

[Ian Lucas (Wrexham) (Lab)]

Does the hon. Gentleman, whose views I respect, acknowledge that operating a blanket ban and excluding the most vulnerable few from admission to the UK is undermining the authority with which he speaks from the Front Bench? Will he listen to the mood of the House, which is clear for all to hear, and go away and change this policy?

[Mr Harper]

I do not agree with the hon. Gentleman; we do not operate a ban. As I have said, 1,100 Syrian refugees have been granted asylum in the United Kingdom under our normal rules in which people make a case for international protection. That is more than most European countries have done, and we are providing the largest ever humanitarian response—more than all our European partners combined. I think that is a record of which we can be proud.

Oral Answers to Questions

Debate between Mark Harper and Ian C. Lucas

Monday 25th March 2013 Commons Chamber

[Mr Harper]

Our overseas visa and entry clearance services have delivered a very good performance, with over 90% of visas issued within 15 days. If my hon. Friend wishes to raise a specific example—and it sounds as if he does—in which there was a longer delay, I would be grateful if he gave me the details and I can investigate matters with the UK Border Agency.

[Ian Lucas (Wrexham) (Lab)]

Does the Home Secretary agree that police and stewards can effectively control football matches, as they did yesterday at Wembley stadium, when they were able to witness Wrexham football club’s glorious victory over Grimsby Town in the FA trophy final?

West Lothian Question

Debate between Mark Harper and Ian C. Lucas

Tuesday 29th March 2011 Westminster Hall

[Mr Harper]

I hear reports of his excellent chairmanship. The right hon. Member for Torfaen talked about the commission, and I will come to that at the end of my remarks. A number of Members talked about the settlement that we reached in the Parliamentary Voting System and Constituencies Act 2011. As I have said many times, it was not partisan; it was about treating every single part of the United Kingdom in the same way to ensure that each had the exact number of seats for the number of electors they have. There were many who said that because of devolution, we should ensure that Scotland, Wales and Northern Ireland had fewer seats in this House per head of the electorate, but that was something that the Government did not want to do; we wanted to ensure that we treated each part of the United Kingdom—Wales, Scotland, Northern Ireland and England—in exactly the same way, and that is what we have done in legislation. We have been very fair and even-handed.

The right hon. Gentleman talked about the Welsh Grand Committee. He should be aware that the hon. Member for Rhondda thinks that the Welsh Grand Committee is a Welsh grandstanding Committee. When we were debating the Legislation (Territorial Extent) Bill in the House of Commons, the hon. Member for Rhondda said:

“The truth is that, all too often, the Welsh Grand Committee has been a pretty futile body.”—[Official Report, 11 February 2011; Vol. 523, c. 638.]

Given that that is the view of Labour’s official spokesman, I am amazed that hon. Members made so much fuss about whether the Welsh Grand Committee could discuss the Parliamentary Voting System and Constituencies Act 2011. I drew the remarks of the hon. Member for Rhondda to the attention of the Secretary of State, and very interesting she found them.

[Ian Lucas]

The point is simply that Welsh MPs did not have the opportunity to discuss the issues, or any of the amendments, in the main Chamber. It would not have been difficult for the Secretary of State for Wales to have allowed a Welsh Grand Committee to take place, so that we could discuss the issues.

[Mr Harper]

I sat through all the debates on the 2011 Act, and of the 40 MPs who spoke on Second Reading, a large number were Welsh Members of Parliament. Although we did not have as long to spend on the groups of amendments as we would have liked, we spent a long time talking about the Bill and its effects on Wales. Welsh MPs spoke for a great deal of time, and I had tremendous pleasure in listening to the arguments that they put forward.

My hon. Friend the Member for Cities of London and Westminster (Mr Field) drew our attention to the over-representation of Wales. That is something that many people in England—not Conservative Members of Parliament but members of the public in England—resented, and we sorted that out in the 2011 Act. We have dealt with every member of the United Kingdom in exactly the same way and treated every part fairly.

Parliamentary Voting System and Constituencies Bill

Debate between Mark Harper and Ian C. Lucas

Tuesday 15th February 2011 Commons Chamber

[Mr Harper]

There is a general acceptance in the other place, not only among Conservative peers and those supporting the Government parties, but from many Cross Benchers, that the behaviour, not of the House of Lords but of a small number of former Labour MPs who have gone to the other end of the building, was unacceptable.

[Ian Lucas (Wrexham) (Lab)]

Community councils in my constituency have discussed the removal of the right to make oral representations in public inquiries on parliamentary changes in conjunction with the presentation of information to them from the Boundary Commission on local council boundary changes. It will still be possible to consider local council boundary changes in a local public inquiry, so why is it wrong for a parliamentary constituency to have the right to a public inquiry over the most fundamental changes to boundaries since the 19th century?

[Mr Harper]

The hon. Gentleman raises the issue of people’s ability to have their say in person. Such provision was not in the Bill originally, but we listened carefully to the debate in the other place, and there were a number of very good arguments. Among others, Lady de Souza and Lords Pannick and Wolff were of the view that it was important to allow local people to have a say, so we tabled a Government amendment and an associated new schedule enabling an outlet for local opinion, and that was included in the Bill.

The proposed changes were accepted without a Division in the other place, but I have said—I think, accurately—that there was then an attempt effectively to turn that process of public hearings back into the largely discredited legalistic inquiry process. There was a debate, but the other place, having decided that it did not want to accept the idea, was content with our proposal for public hearings.

Parliamentary Voting System and Constituencies Bill (Programme) (No. 2)

Debate between Mark Harper and Ian C. Lucas

Tuesday 12th October 2010 Commons Chamber

[Mr Harper]

My hon. Friend is right. I am glad that he finds my argument compelling, and I am sure that he will support the programme motion if Members feel the need to put it to a vote and test the opinion of the Committee.

It is true that the coalition agreement committed both coalition parties in the Government to supporting a referendum on the voting system, and the Government subsequently decided that 5 May next year was the right date. The House has already endorsed the principle of the Bill, and later this afternoon we will conduct a line-by-line scrutiny of it. I will be asking Members on both sides of the Committee to endorse the date, although I will expect support only from Members on this side.

[Ian Lucas (Wrexham) (Lab)]

The hon. Gentleman is being very generous and very reasonable. In that spirit of reasonableness, will he have a word with his unreasonable colleague the Secretary of State for Wales, who is refusing to allow a Welsh Grand Committee debate on the implications for Wales of this major constitutional Bill? We have not been given any explanation for her decision. Would it not make sense to allow time for debate in a separate forum, to enable more time to be made available for debate in the Chamber?

[Mr Harper]

I simply do not recognise the hon. Gentleman’s characterisation of my right hon. Friend the rather excellent Secretary of State for Wales. He will note that I have been joined in the Chamber by her Under-Secretary of State, my hon. Friend the. Member for Clwyd West (Mr Jones), who will be supporting me on the Bill. There will be adequate time in the five days that we have provided for debate on how the Bill affects Wales, in terms of both the boundary changes and the referendum, and I feel sure that the hon. Gentleman and his Welsh colleagues—including the hon. Member for Rhondda (Chris Bryant), who is sitting on the Opposition Front Bench—will acquit themselves well in speaking up for Wales during that debate.

The motion specifies the clauses and schedules that are to be debated, and the days on which they are to be debated. Beyond that, it will be for you, Mr Speaker, and for Members themselves, to decide how best to use the time. As I have already said in response to interventions, we have provided extra time on each day to allow for statements. On the fourth day, as we know, there will be a significant statement on the spending review, and having assumed that you will allow questions on it to run for a significant period, Mr Speaker, we have provided the necessary extra time.

I believe that the programme allows the Committee adequate time. I believe that it delivers on the promise that I made on Second Reading to allow the significant issues to be both debated and voted on, and I hope that Members on both sides of the Committee will feel able to support it.