Oral Answers to Questions

Mark Pawsey Excerpts

Tuesday 7th November 2017 Commons Chamber

[Richard Harrington]

The hon. Lady will be aware that these matters are being discussed in the Bill Committee. The Government intend to build a consensual view to ratify the problem. I know she has a keen constituency interest. The Government are aware of all the issues. It is our intention to have the closest possible relationship with members of Euratom.

[Mark Pawsey (Rugby) (Con)]

It is very important that we achieve an agreement with the EU that enables us to retain as many of the benefits of Euratom as possible. Will the Minister say something about the future of small modular reactors in the UK?

[Richard Harrington]

My hon. Friend makes an excellent point. The Department is looking closely at small nuclear reactors. We have had presentations from many different companies and entities involved in developing this technology. We hope this will be brought to a conclusion very quickly. I commend him. I visited his constituency to see the research work going on there. We are very supportive of it.

Smart Meters Bill

Mark Pawsey Excerpts

2nd reading: House of Commons & Money resolution: House of Commons & Programme motion: House of Commons & Ways and Means resolution: House of Commons
Tuesday 24th October 2017 Commons Chamber

[Mark Pawsey (Rugby) (Con)]

I welcome the Secretary of State’s speech introducing this Bill. He set out very clearly the benefits of the smart meter programme and what the Bill’s two main provisions will do. First, the Bill will extend the Secretary of State’s powers by five years, from 2018 to 2023. It is interesting that the legislation gives such powers in five-year batches to ensure that the powers are not unlimited. There would be plenty of objections from the Opposition if there were unlimited powers in the Bill, which takes us to 2023. It is entirely appropriate that it should be brought before us, because the very ambitious pace originally set has not been achieved, and the programme is running rather more slowly than we anticipated.

We also heard, secondly, about the introduction of the special administration regime for the body—the data communications company—managing the communication between the smart meters and the energy companies, as well as about the need for resources and facilities to provide protection and rescue given the rare possibility of financial failure. I was very pleased to hear the hon. Member for Salford and Eccles (Rebecca Long Bailey) say that the Opposition will support the Bill and that they welcome and value its measures.

I want to touch on the status of the data communications company, because the programme is running behind schedule and the company is involved in handling rather bigger sums than previously expected. The costs are now expected to run to £900 million, and the project has become more complex than originally anticipated. The energy companies are under pressure from the regulator to increase the rate of installation, which has led to more of the SMETS 1 meters—the first generation meters—being installed. It would be helpful if the Minister clarified when he sums up what will happen when we move to SMETS 2 meters. There is some concern that SMETS 1 meters may need to be replaced. I think the Secretary of State said that there would be an upgrade, but will the Minister talk the House through that process. I will come back to that concern later.

The cost of proofing the technology against cyber-attack has increased. This place has been affected by such an attack, so we all understand the importance of that. We will need to look at the DCC’s cost and revenue. The provisions relating to protection and rescue are very important. Will the Minister comment on the likelihood that those provisions will be needed?

This debate gives us all the opportunity to talk about the aims and objectives of installing smart meters. I am pleased that we have now upped the rate, with 370,000 now being installed per month. The principle of smart meters is fantastic and brilliant: the information about usage is sent to suppliers by the network that is being created. There are real benefits for the utility company. It already knows rates of usage, but this will tell it specifically where the demand is coming from, how much demand there is and at what times of day. All that will enable utility providers to predict demand better, which will in turn give us all the benefit of security of supply.

There are also real benefits for the consumer. By being informed about their energy usage, the consumer can decide to use energy when it is cheaper. They will have a greater awareness of their usage, and they will be able to manage their bills better and reduce their consumption. I am struck by the analogy with the computers we all find in our cars these days.

Our car’s mileage per gallon will vary according to the speed at which we drive on the motorway and how we drive—how much of a hurry we are in. It is possible to modify the mpg. I always find it interesting to note how I might be able to get an extra mile per gallon by modifying my behaviour. I see a real parallel between that and the usefulness of smart meters.

The other principal advantage I see is that of accurate billing. Many people pay for gas and electricity on the basis of what they estimate they may need, so in many instances they pay for more than they use. That is great, because it sometimes allows them to build up a credit and they do not have a debt to the energy provider, but as one person put it to me, that is not great for the family cash flow; so paying their bills on the basis of the amount of energy used rather than an estimate provides a real benefit.

The fourth advantage, which we have not yet seen but is a matter of concern, is that with smart meters, switching between suppliers ought to be easier because anyone looking to switch would have much more accurate data on which to compare suppliers’ tariffs. That should enable them to make a more informed decision. The technology within the meter should enable the switch to be made more easily. There is a real link here—the Secretary of State referred to it—between that ability and the need for some control and management of prices.

[Matt Western (Warwick and Leamington) (Lab)]

I have not done this before. There is a huge amount of sense in everything that the hon. Gentleman is describing, but I was surprised to hear—and maybe he would be—that more deprived households have not been prioritised for the introduction of smart meters. Given what the hon. Gentleman has been saying, it would be a real advantage to their household economy if they were prioritised. Would he welcome that?

[Mark Pawsey]

I thank my constituency neighbour for his remarks. Of course, the issue is the use of the second generation of meters—the SMETS 2 meters—and we need to get them into as many places with prepayment plans as possible, so that those households too can get the benefits of seeing when their electricity is cheapest and using their appliances when they get maximum advantage.

[Amanda Milling]

My hon. Friend mentioned switching. We need to actively encourage consumers to switch their energy providers to a much greater extent, so I am sure he will join me in welcoming the package of initiatives that are being taken. We talk about smart meters today; we have the energy switch guarantee as well. We should also be looking to make the process easier.

[Mark Pawsey]

I could not agree more. In many ways I regret the need for us to consider a price cap, because I believe the answer to the problem that we are trying to tackle is to make it easier for consumers to understand exactly how much energy they use and how much it would cost from another supplier and to make it possible for them to make an easy, effective switch.

[Sir Edward Davey]

In answer to the hon. Member for Warwick and Leamington (Matt Western), is not the real point that consumers on prepayment meters have to pay more than the rest of the population because of the cost of administering a prepayment meter and a move to a smart meter would remove that cost, so prepayment meter consumers are likely to benefit the most, and that aspect of the roll-out, which I tried to achieve as Secretary of State, should be accelerated?

[Mark Pawsey]

The right hon. Gentleman makes a superb case for getting smart meter roll-out moving as quickly as possible.

There are lots of reasons why we need to move on to SMETS 2 meters, but we have some problems with smart meters and SMETS 1. I had not come across those until this weekend, when I received an email from my constituents Mr and Mrs Lafferty, who are dual-fuel customers of First Utility. They were interested in the idea of a smart meter; they understood the benefits; and they arranged for an installation. In the first instance, that took two to three months, and regrettably the meter was installed in a location that was not particularly accessible to them, as elderly residents. Their daughter has to look at the meter. She also has to look at the meter because, just a few months after the installation of their smart meter, they decided to transfer to another provider, EDF, believing that there would be a better price. They were astonished to find, however, that their smart meter was not compatible. Their smart meter is now being used as a dumb meter, with their daughter having to visit their home to take readings. One concern is that such accounts discourage people from taking advantage of smart meters.

I put a message out on Facebook to my constituents to comment on the issue and, if I may, Madam Deputy Speaker, I would like to read one or two. One said that they

“had smart meter installed by one company. It worked fine, but then I changed company and it doesn’t work for the new company. Ridiculous that there isn’t a standard technology.”

The answer, of course, is that there will be, but we need to crack on with it. Another constituent said:

“good to see how much we were spending but it hasn’t changed the way we do things.”

That is something we need to get across. Another said:

“Not yet changed supplier, but I know when we or if we do, we will need to change the meter. The installer said they are working on a meter which would be easily compatible across all suppliers so wouldn’t need changing. So it might be worth waiting.”

We must not put people off in the short term, because of any issues that are happening right now.

Oral Answers to Questions

Mark Pawsey Excerpts

Tuesday 27th June 2017 Commons Chamber

[Greg Clark]

I am very surprised to hear that question from the right hon. Gentleman. Of all the people in this House, he was a great proponent of a city deal and a devolution deal for Birmingham and the west midlands, the value of which is over £1 billion. Looking around the Chamber, there are many Opposition Members who have made precisely such a case that we should invest in areas of the country, outside of national programmes. It seems to me to be reasonable to continue that programme.

[Mark Pawsey (Rugby) (Con)]

I took soundings from small businesses in Rugby at a small business expo run by the Federation of Small Businesses on Friday. Their single biggest concern related to the recruitment of staff, in that the skills they are looking for often are not available among local jobseekers. Given those instances, will the Secretary of State reassure us about the training of young people and the ability to recruit staff from the EU moving forward?

[Greg Clark]

I will indeed. One of the big findings, which has been reinforced by the consultation on the industrial strategy, is that we need to ramp up the level of skills and technical education and training in this country. We will respond to the consultation in the weeks ahead, but my hon. Friend can rest assured that that will be one of its key pillars.

Oral Answers to Questions

Mark Pawsey Excerpts

Tuesday 14th March 2017 Commons Chamber

[Margot James]

I assure my hon. Friend that we consult small businesses all the time. The Department for Exiting the European Union regularly engages with the Federation of Small Businesses. We will, in due course, ask that Department to hold a roundtable for small businesses to discuss the very issues that he raises.

[Mark Pawsey (Rugby) (Con)]

7. What steps he is taking to support small business growth.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Margot James)]

rose—

[Margot James]

I am glad that the hon. Lady is so keen to hear my answer to this question.

We support small business growth by ensuring that small businesses can access finance and wider support. The British Business Bank is already supporting more than 54,000 smaller businesses with £3.4 billion of finance, and I am leading a taskforce to enable SMEs to accelerate their growth potential and realise their growth prospects quicker.

[Mark Pawsey]

I know that Rugby is a great place to run a business, but many small businesses continue to tell me that an obstacle to their expansion is still a shortage of suitable industrial premises. At a time when our authority is preparing its local plan, what discussions has my hon. Friend had with her counterparts in the Department for Communities and Local Government to ensure that adequate land is allocated for the development of business units?

[Margot James]

We work closely with the Department for Communities and Local Government, and I recently co-chaired a successful roundtable with my hon. Friend the Minister for Housing and Planning and providers of finance. We will be having a further meeting, and I shall obviously consider the needs of businesses in Rugby for more space.

--- Later in debate ---

[Joseph Johnson]

Support for innovation has received its biggest boost since 1979 in the autumn statement and in the Budget that was just announced. The industrial strategy challenge fund has just seen the first allocation of £270 million, which will help to boost innovation in key areas across the economy.

[Mark Pawsey (Rugby) (Con)]

Diesel-powered generators add to poor air quality. Will the Minister welcome the contribution of Off Grid Energy, a small, innovative business in my constituency, whose mobile hybrid units provide green energy to the construction and event sectors?

[Mr Hurd]

My hon. Friend makes an extremely good point. Through him, may I congratulate the business involved?

Opel/Vauxhall: Sale to PSA Group

Mark Pawsey Excerpts

Monday 6th March 2017 Commons Chamber

[Greg Clark]

The hon. Gentleman is right that we need to stay engaged and to make sure that these commitments are delivered. I will make sure that we do that, as will colleagues in the trade unions and others. I think the hon. Gentleman will agree that it is important that these commitments have been given very clearly in writing today, which is far better than the opposite. As for the experience of Peugeot in Ryton, he will know that I have raised the matter with the management of PSA in the past. They describe a very different strategy from that which they pursued at that time. It is a different management, and their strategy now is based on expanding production, not closing plants, which again I welcome.

[Mark Pawsey (Rugby) (Con)]

The Secretary of State is right to draw attention to the transformation that has happened in the motor industry since the days when PSA was running and operating at Ryton. We now have an industry with world-leading expertise in autonomous vehicles and electric technology, which my right hon. Friend saw from Jaguar Land Rover on his recent visit to Warwick University. Does he agree that this merger provides the PSA Group with an opportunity to access the innovation and creative thinking of our designers, and the flexibility and quality of our workforce?

[Greg Clark]

I completely agree with my hon. Friend. One of the big advantages of locating in this country is that manufacturers can join a vibrant consortium of people collaborating in a network, as at Warwick, which is recognised as a world-leading place to do automotive research. We want to build on that and attract more businesses to support it.

Oral Answers to Questions

Mark Pawsey Excerpts

Tuesday 13th December 2016 Commons Chamber

[The Minister for Universities, Science, Research and Innovation (Joseph Johnson)]

We look forward to reading that research. It clearly contains some interesting findings, of which we will take full note.

[Mark Pawsey (Rugby) (Con)]

T3. A construction business my constituency has alerted me to corporate mandate fraud, by which a fraudster pretends to be a company and asks its customers to change the bank account details for future payments. What steps can the Minister take to alert all businesses to such criminal behaviour? What discussions has she had with the Home Secretary about bringing the perpetrators to justice?

[Margot James]

I am grateful to my hon. Friend for drawing attention to this type of fraud, which affects businesses in all sectors. It is essential that business owners and staff know what to do when they are notified of changes to bank account details. The best pointer in the first instance is the advice available on the Action Fraud website.

Tidal Lagoons and UK Energy Strategy

Mark Pawsey Excerpts

Tuesday 6th December 2016 Westminster Hall

[Carolyn Harris (Swansea East) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Paisley. The lagoon is located in my constituency and that of my hon. Friend the Member for Aberavon (Stephen Kinnock). Since I was elected the people of Swansea East have made it abundantly clear that the tidal lagoon is one of the issues that matters most to them. It matters for jobs, for investment, for business and for industry.

[Mark Pawsey (Rugby) (Con)]

The hon. Lady is talking about investment in jobs, and there will be an impact in my constituency, where GE will build the 16 generators, involving £18 million of investment in the plant at Rugby and the creation of 100 additional skilled design, installation, service and maintenance roles. Is not that a compelling reason to proceed?

[Carolyn Harris]

That was very clever of the hon. Gentleman, and yes, it is a compelling reason.

Most of all, the project matters for the sake of hope, which I am sure the hon. Gentleman’s constituents will now have. It was, and remains, a beacon of hope for a region in transition. Swansea knows a thing or two about making the most of its natural assets, but our once great industries are now in decline and our city has suffered as a result. When the lagoon plan emerged—a modern plan for a new low-carbon era that would once again place Swansea’s natural resources at its core and redeploy a skilled and committed workforce built up over decades—we questioned, probed and challenged. When we were satisfied with the answers we received, we backed it to the hilt. Let me make it abundantly clear: Swansea supports the tidal lagoon, but more importantly, it needs it. It is the foundation stone for our city deal. It is important for the regeneration of our waterfront; for our plans to get people back into work; for retaining the next generation of talent; and for showcasing to the UK and the world a city that I am proud to call home.

I was sceptical about the need for an independent review, but I am delighted to report that those of us who saw the review in action were impressed by its engagement and endeavour. However, it is now finished, and I hope that the Minister will explain what we can expect next. We have heard this afternoon that the review may be lodged today, so we need to know what the next steps are. We have seen the views of the 40-strong all-party group and the more than 100 Back-Bench MPs from across the House who signed a letter to the Government to support the project. Now is the time for the Government to put their money where their mouth is. Now the deed is done, and we need to know where we go from here. We need to know that Swansea will get the tidal lagoon it deserves.

Corporate Governance

Mark Pawsey Excerpts

1st reading: House of Commons
Tuesday 29th November 2016 Commons Chamber

[Greg Clark]

My hon. Friend is absolutely right. One reason why Government Members are unambiguously pro-business is that the opportunities that that gives to people not only to earn a good living, so that they can support themselves, but to achieve their potential and go on to make full use of their talents is an incredibly inspiring way in which people can blossom. That is why we want to see flourishing businesses in this country.

[Mark Pawsey (Rugby) (Con)]

The Secretary of State has already referred to the important role of small businesses in which the relationship between owners and their employees is very different from that in larger organisations. Will he say a little more about the level at which the proposals he has announced today will be introduced?

[Greg Clark]

In the consultation, we asked what the cut-off should be. Clearly, there is no intention to capture small businesses in the disclosure requirements that are more appropriate to large businesses. That is something that we will consider as part of the consultation, and I hope that my hon. Friend will contribute to it.

Oral Answers to Questions

Mark Pawsey Excerpts

Tuesday 8th November 2016 Commons Chamber

[Greg Clark]

I am disappointed with that question. Perhaps it was rewritten by Seumas Milne when the hon. Gentleman was not looking—that might account for it. He knows very well that I will be vigorous and active right across the economy in promoting Britain as a good and competitive place to do business. That is our responsibility in government, and no one will discharge it with more vigour than me.

[Mark Pawsey (Rugby) (Con)]

12. What steps his Department is taking to increase opportunities for the development of small businesses.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Margot James)]

We are committed to creating the best environment for small businesses to start and grow. The British Business Bank has provided £3.2 billion of finance to over 51,000 small businesses. The doubling of the small business rate relief will mean that 600,000 small and medium-sized enterprises will pay no rates at all.

[Mark Pawsey]

The Minister will be pleased to hear from Rugby’s local chamber of commerce that our businesses are doing well—so well, in fact, that there is a shortage of industrial accommodation, especially smaller units, and that is holding back start-ups and small businesses wanting to grow. Can any steps be taken to encourage property developers to provide more accommodation for this important sector?

[Margot James]

My hon. Friend works tirelessly for businesses in Rugby, and it is great to hear about their growth. I urge him to get in touch with the Coventry and Warwickshire LEP. When I visited it in September, I was advised that the Coventry and Warwickshire growth hub is providing support to local businesses that are expanding and looking to move premises.

--- Later in debate ---

[Greg Clark]

The hon. Gentleman might have noticed that we have commissioned a review of these new employment practices, which Labour did not do when it was in government. There is perhaps a problem for him in that the review is being led by Matthew Taylor. I do not know whether the former head of the policy unit under Tony Blair counts as a person he trusts with the review; nevertheless, he is engaged with the review and will report to the Government and to the House.

[Mark Pawsey (Rugby) (Con)]

T2. Returning to the Swansea Bay tidal lagoon project, does the Minister agree that a decision to proceed, making use of expertise in power generation provided by GE Energy in Rugby, would provide an opportunity for the UK to become a leader in this sector?

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Jesse Norman)]

I will not add to what we have already said about the Swansea Bay tidal lagoon, but I want to celebrate—the industrial strategy will celebrate—the work of world-leading companies such as GE Energy in my hon. Friend’s constituency and their capacity to benefit from opportunities arising from low-carbon technologies.

National Minimum Wage (Workplace Internships) Bill

Mark Pawsey Excerpts

Friday 4th November 2016 Commons Chamber

[Mark Pawsey]

My hon. Friend has given an interesting account of an industrial tribunal case, illustrating what we do not want to see happening. My grave concern about the Bill is that it would prevent many of our young people from getting valuable experience.

[Mr Nuttall]

I fear that if the Bill becomes law there is a danger that what now appears to be the settled law as laid down by these cases will be thrown into doubt and there might be a whole raft of new cases with new definitions to be challenged in the courts. As I will say later, although this Bill refers to “employment practice”—a new term to me, which I will come on to—there is no clear definition, as far as I can see, of what is meant by that, and I anticipate it will have to be tested in the courts and in industrial tribunals.

Let me turn to the case of Hudson against TPG Web Publishing Ltd in 2011. It was also held in this case that the claimant was a worker. Keri Hudson worked eight hours a day between 10 am and 6 pm for a publishing company and supervised a team on a website. The employer had considered paying her but decided not to. The tribunal concluded that she was a worker with a contractual relationship existing between herself and the employer and was therefore entitled to be paid the minimum wage. The reneging on the payment was a key factor because it demonstrated that the respondent recognised that the position at least could be a paid position.

At that time the National Union of Journalists said of the judgment:

“This sends a clear message to media companies that if they treat interns like cheap labour, the NUJ will take you through the courts.”

It is clear from this case that the issue of interns who are actually carrying out work has been tested in industrial tribunals, which have found that if someone is working, they are liable to be paid. Unions have, to be fair to them, taken up this cause and are alert to the problem, and in appropriate instances take cases to a tribunal.

--- Later in debate ---

[Philip Davies]

Of course my hon. Friend is absolutely right. That is a point that I, too, have considered during this debate, because my hon. Friend the Member for Elmet and Rothwell made a point about how expensive it is to live in London and to take accommodation in London, which is absolutely right. Many opportunities for internships and work experience are in London, so I have to say to him that paying under-18s £4 an hour—the current rate of the minimum wage for under-18s—will not give them the opportunity to come and take up a work experience place in London; they would still have to rely on parental support, other family support, or other means.

The Bill will not make a blind bit of difference to the people my hon. Friend is targeting. They still will not be able to afford to take up opportunities in London, which will still be the preserve of more affluent people. Again, that is why the Bill will not achieve what he sets out to achieve and why I think I have a better solution.

My hon. Friend the Member for Bury North (Mr Nuttall) was right: many people doing work experience are already entitled to the national minimum wage. We should make that point clear. I made it earlier in an intervention, but I see a difference between people who are—[Interruption.] I think that my hon. Friend the Member for Rugby (Mark Pawsey) does not agree with me here; he is a bit more hard-core than I am.

[Mark Pawsey]

First time ever.

[Philip Davies]

As a well-known softie, I take a slightly different view. There is a difference between companies and organisations that are actively seeking a member of staff to come in and do some work for them, are advertising for that and in effect are trying to get somebody to do that job for nothing, and other companies. These are personal things, I guess; I think that situation is different.

I have never advertised for an unpaid intern. I have never said that I want somebody to come and work for me unpaid for x period of time. I do not think that that is right. Whether it should be illegal is a different issue, but I do not think that it is right; it is not to my taste.

[Philip Davies]

We do not hear that very often in this Chamber; I welcome that kind of intervention.

[Mark Pawsey]

Will my hon. Friend give way?

[Philip Davies]

If my hon. Friend is going to intervene in a similar way—

[Mark Pawsey]

I was going to make a distinction. It is known that MPs provide internships, so there would often be no need for my hon. Friend to advertise his own internship. However, if other businesses were minded to take on a young person and provide them with experience in that way, they would need to provide some mechanism to do so, and placing an advertisement would seem to me the obvious thing to do.

[Philip Davies]

That is a perfectly reasonable argument to make and I do not necessarily disagree with it. As I say, the questions that we decide in this place are whether things should be legal or illegal. I am merely saying that I do not personally think it is right to advertise for a job and expect someone to work unpaid; that is not to my taste. There is a world of difference between that and someone saying, “Can I come and do some work experience with or volunteer for you? I really want to do something. Will you accommodate me?” The problem is that the Bill does not distinguish between those two approaches, which is unfortunate, because there is a massive distinction between them.

Labour Members criticised the Government’s work experience scheme for people on benefits, saying that it allowed companies such as Tesco to exploit workers and get cheap labour. However, the Government said, quite rightly, that taking somebody on work experience is not cheap labour, because, usually, the employer has to invest an awful lot of time and effort into accommodating that person. I have no complaint about that. My hon. Friend the Member for Bury North is very happy to give up his time to give people career advice and help and support. I am sure that that applies to every Member, irrespective of their party. That is what we should do, but it is wrong to say that such people are a source of slave labour. The reality is usually the other way round: it is usually the employer who makes the sacrifice in order to give people the opportunity. I fear that the Bill does not accurately reflect the nature of that relationship. It seems to think that it is a one-way street when it is anything but a one-way street.

People are already covered by the national minimum wage legislation, and it would be wrong to pretend otherwise. Many forms of work experience, placements and internships are covered; equally, there are some, which may be referred to as unpaid work or expenses only, where somebody gives their services free of charge. My hon. Friend the Member for North East Somerset (Mr Rees-Mogg) has made a very good point: what is wrong with the principle of somebody giving up their time free of charge because they want to contribute to a cause they believe in, or because they want to help out? Who cares whether it is for their own benefit or for altruistic purposes? If that is what they want to do, why should we have a law that says that they must not be able to do it? I really do not think that the state has any business in stopping people volunteering for causes that they believe in. That would be the only possible outcome from the Bill: it would make it virtually impossible for people to volunteer for causes in which they believe.

The hon. Member for Elmet and Rothwell has mentioned data, but precise data are difficult to find. In 2010, the Government estimated that there were 70,000 interns at any one time. The most common length of an internship was recorded in a YouGov poll in 2014-15 as between four weeks and two months—that is very different from my experience of taking people on—with only 3% of internships lasting longer than a year. The same poll found that 26% of firms with an intern paid nothing or less than the national minimum wage. London Economics found that 13% to 16% of graduate interns are unpaid, but the Sutton Trust suggests that a third of them are unpaid. There is a big discrepancy between those two figures and I am not entirely sure which is right.

Many loaded statistics are used to justify a statutory requirement to make internships paid, such as those used to argue that unpaid internships are less likely to lead to a job offer, but with 47% of paid internships and 36% of unpaid internships leading to a job offer, it seems that both options are very good at enabling people to move pretty rapidly into a paid job. Surely one of the things that the Government should always be looking to do is to help people find a job as quickly as possible. It is clear from the figures that, whether it be paid or unpaid, an internship is among the most successful options in helping people find a full-time job. We should be celebrating that, not looking at how we can curtail it.

In 2010, the Chartered Institute of Personnel and Development did a survey of mainly large employers. It found that, among those that employ interns, 49% said that they paid interns the national minimum wage; 18% said that they did not pay interns a salary but covered their travel costs; and only 3% said that they did not pay them anything, meaning neither pay nor travel expenses.

The various options currently available for unpaid interns online show how useful such internships can be. One advert on indeed.co.uk says of its unpaid internship offer:

“Jewelstreet is the UK’s #1 designer jewellery website and has won multiple national and regional awards. We are offering a unique internship in a dynamic working environment, based in North Devon.”

I am delighted to see that my hon. Friend the Member for North Devon (Peter Heaton-Jones) is in the Chamber. It goes on:

“Additionally over 70% of our internships have resulted in an offer of permanent employment.”

That takes us back to the point, which was made by my hon. Friend the Member for Rugby, that if the company did not advertise it, nobody would know that such an opportunity was available. It is great—surely we should celebrate this—that 70% of the people doing an internship get an offer of permanent employment at the end of it. It seems to me that we should celebrate that in this House, not make a mess of it.

CDP is offering the following:

“The internship will be at CDP’s London office and the successful candidate will have the opportunity to be involved in a range of activities within the Cities team. It will be a valuable experience for anyone seeking a career in the area of climate change, sustainability and the urban environment. The internship will run across key stages of the project, including defining the scope and structure of the outreach, communications planning, engagement and technical support”.

Again, I am sure that a lot of people who believe in the cause of climate change and want to do something about it would find such experience invaluable, either to see whether they want to pursue a career in that area or so that they can campaign on that issue in their spare time. We should welcome such opportunities, not decry them.

I am trying to go through a few points at speed, because I know that some of my colleagues wish to speak. When my hon. Friend the Member for Elmet and Rothwell proposed his ten-minute rule Bill in 2014, he said:

“Just last year, the National Council for the Training of Journalists found in its 2013 report that 82% of new entrants to journalism had done an internship, of which 92% were unpaid.”—[Official Report, 13 May 2014; Vol. 580, c. 593.]

I am interested in that because when I was growing up, my ambition was to be a journalist. I am delighted that the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Stourbridge (Margot James), is in her place, because I did a week’s work experience at the local paper in Stourbridge to see what it was like and to try to fulfil my ambition to become a journalist.

There is no reason on earth why I should have been paid by the local paper in Stourbridge for what I did. As it happens, I had the opportunity to write a couple of stories and visit the local court to see some cases and report on them. I clearly was not doing the job to a standard that deserved any payment. It would have been outrageous if I had been paid for my efforts, which obviously needed rewriting on many occasions before they were fit to appear in the local paper. However, it was great experience for me just to see what went on in a local newspaper office. It was also fantastic when I applied for a National Council for the Training of Journalists course—the one-year course in newspaper journalism that I did at Stradbroke College in Sheffield—to be able to point out that I had such experience. That counted very heavily in my favour when I applied for the course. It was not a great hardship that I was not paid by the newspaper for that work experience; it was actually for my benefit. It certainly was not for the benefit of the newspaper, which I suspect had to invest a great deal of time and effort in looking after me for the week, and the work certainly did not justify paying me anything.

--- Later in debate ---

[Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)]

I congratulate the hon. Member for Elmet and Rothwell (Alec Shelbrooke) on bringing the Bill before the House. He has sought to introduce legislation on the issue previously, and I commend him for his tenacity. I am glad that a Government Member has taken to heart the Prime Minister’s promise to work for the many, not the few, and is using his initiative to make that pledge a reality.

For our young people leaving university and looking to enter the world of work, a degree is not the passport to job security that it was for their parents and grandparents’ generation. Competition in the graduate job market is fierce. One estimate is that there are 73 applicants for every graduate role. In that environment, employers will plump for the candidate with the most experience, but there lies the trap that too many young jobseekers fall into: they cannot get a job without experience, but they cannot get experience without a job. Internships are a great way to gain that experience and enhance a CV. When they are done well, they are a great boon to employers and interns alike.

The RISE scheme in Sheffield, for instance, is a collaboration between our two universities, the city region and the private sector. It has so far placed 200 graduates with 120 small and medium-sized enterprises that would not normally recruit interns, with minimum pay requirements built in. There is also the recruiter Instant Impact, which specialises in finding paid internships with start-ups. Or why not look closer to home? I do not want to be accused of buttering anyone up, but the Speaker’s parliamentary placement scheme does fantastic work in making this place accessible to people who would not otherwise have had the chance to work here, and paying them properly into the bargain. When I was elected back in May, I inherited a young man who was coming to the end of his placement on the scheme. He waxed lyrical about the boost it had given both his CV and his broader outlook, and he was an absolute life-saver for me when it came to getting myself set up and finding my feet here.

However, the Bill deals with the other side of the coin: unpaid internships, through which employers take advantage of young people who are desperate to break into highly competitive sectors, or simply trying to improve their prospects. The system is rigged in favour of those who can afford it—or perhaps it would be better to say whose parents can afford it. Young people from my constituency, and indeed most young people across the country, cannot afford to work for nothing. Careers in law, medicine, the media, fashion, finance and the arts are all beyond the reach of some of our brightest and our best. Those careers are monopolised by the children of the wealthy, who can support them through months of unpaid work, while those from more modest backgrounds are shut out. It is not just social mobility that suffers; by denying opportunities to so many young people, businesses are missing out on hiring real talent, simply because of that talent’s background.

There is, of course, also the simple moral imperative to ensure that someone doing a fair day’s work receives a fair day’s wage.

[Mark Pawsey]

What would the hon. Lady say to Opposition Members who say that if the Bill went through, there would be fewer internships?

[Gill Furniss]

I would have to have a quiet word with them about that.

I appreciate that the hon. Member for Elmet and Rothwell has linked this Bill to the minimum wage, rather than the so-called living wage. We have to strike a balance between providing fair pay for younger people and making internships too expensive for employers to run. By ending the exploitation of young people through internships, this Bill goes a long way towards levelling the playing field.

I have been brief because I realise that the hon. Gentleman is passionate about the subject of his Bill and I do not want to contribute to its being spoken out.