Home Affairs and Justice

Michael Fabricant Excerpts

Thursday 10th May 2012 Commons Chamber

[Mary Macleod (Brentford and Isleworth) (Con)]

Because another of the Home Secretary’s roles is as Minister for Women and Equalities and because the Minister for Equalities, the hon. Member for Hornsey and Wood Green (Lynne Featherstone), is sitting on the Front Bench now, I want to focus my few words about the Gracious Speech on the contribution that women can make to our economy. The first line of the speech states:

“My Government’s legislative programme will focus on economic growth, justice and constitutional reform.”

I shall raise some points about the important role women can play in helping us to achieve economic growth.

Yesterday’s speech was, of course, delivered by a woman who has been an outstanding role model in this country and across the world, and it is wonderful to be celebrating her diamond jubilee this year. As I sat in the House of Lords Gallery listening to Her Majesty, I thought of another great female: Baroness Ritchie of Brompton, who passed away on 24 April. She did so much for women—especially in respect of Conservative candidates and helping more women achieve their potential in the House of Commons. As only 22% of current MPs are women, we clearly still need to do more.

Female entrepreneurs can certainly help to create economic growth. In the UK, 150,000 more start-ups would be created every year if women were to start businesses at the same rate as men do. If women here in the UK were to set up businesses at the same rate as women in the US, there would be approximately 600,000 more businesses, contributing about £42 billion extra to the economy. This is an important issue, therefore.

Some steps have already been taken. A women’s business council has been established, which advises the Government on how to boost the role women play in the economy. Funding has been announced for 5,000 female business mentors. The mentoring portal, mentorsme.co.uk, has been launched, providing a single point of contact for both those seeking mentoring and those who want to be mentors—and I would encourage anyone with business skills to become a mentor. There is also a £2 million fund supporting female entrepreneurs to set up in rural areas, under the rural growth networks scheme.

More can be done, however. My hon. Friend the Member for South Northamptonshire (Andrea Leadsom) spoke powerfully about the early development of children, and she also made a plea for us to scrap regulation on micro-businesses employing between one and three people. We must encourage new businesses and help them develop. The Federation of Small Businesses in my area recently talked about the national insurance holiday, a great initiative that gives a national insurance holiday of up to £5,000 in respect of a firm’s first 10 employees. It does not apply in London at present, but if it were to do so, that would greatly help my constituents. Also, it only covers the first year, and extending it to a second year would make a great difference to small businesses.

We must also further encourage enterprise education in schools and universities, so that many more young people, especially young women, consider the option of starting up a business. We must consider the child care options available to self-employed women, too, so they can run their business while also bringing up their children. Some women who sit on boards in the City told me recently that they would very much like to be female business angels, helping companies set up by women and also helping women create new enterprises.

Much more can be done for enterprise and to encourage women to become entrepreneurs. This month in my constituency we are having an enterprise event. All the women in the Hounslow area of the constituency have been invited to come along and talk with female entrepreneurs. We have some fabulous female-entrepreneur role models, and we must ensure that they can help inspire the next generation of entrepreneurs. Organisations including banks, StartUp Britain and chambers of commerce also have a role to play in this regard.

The second issue I would like to touch on is how women in the boardroom can make a difference to economic growth. We still have a lot of work to do here, but some progress has been made. This is an important issue, given the huge potential in having women at senior levels in business; we do not want to waste that talent, which could be contributing at such levels. Studies by McKinsey and others show the business benefits of having a more gender-balanced board. Companies with greater gender diversity significantly outperform their sector in return on equity, operating profits and stock price growth, not to mention increased quality of decision making and corporate governance. That is especially true where a board has more than three women members.

The work of Lord Davies and his committee has given this issue much more visibility in the City and elsewhere. Now, 15.6% of FTSE 100 companies and 9.6% of FTSE 250 companies have women board members. As we can see, there is still some way to go. We have set the FTSE 100 companies a target to increase that figure to 25% by 2015; changed the UK corporate governance code, requiring companies to be more transparent and to report on their policy for boardroom diversity; and encouraged head-hunters to adhere to a voluntary code of conduct.

We need to get more women into the boardroom, and more work needs to be done to develop the business case and to persuade the FTSE 350 companies of the benefits of gender diversity in the boardroom. We need to encourage chief executives and chairmen to act as ambassadors for change, and to meet “board-level” women who are ready to take up such positions. We need to identify priority companies on which to focus in increasing the number of women on boards, and to consider how best to increase the number of women in executive as well as non-executive board positions. There has been an increase in the latter, but not so much in the former. We need to look at every single level of the organisation in question to see what it is doing to encourage and promote women at all levels. We also have a role to play in monitoring and promoting examples of best practice. Careers advice is really important throughout women’s lives—not just when they are at school or leaving college or university—so that they have the confidence and ability to take up those critical positions.

There are other initiatives in the Queen’s Speech to help women. Flexible leave will help people to fulfil their potential and will provide support for families. Both parents can share the parenting responsibility and balance work and family commitments. Flexible leave will be really important in the long term and will help to make a real difference in getting women into senior positions in organisations.

The Queen’s Speech also refers to the modernising of adult social care. A lot of work is being done on the role of carers, who do an incredible job and do not get thanked enough for what they do. Often, they are elderly people. Given that we have an ageing population, this issue is becoming increasingly important, and I am very pleased that the Queen’s Speech addresses it.

Finally, the Queen’s Speech refers to the Government’s plan to spend 0.7% of gross national income as official development assistance from 2013. I congratulate the Government on the work that has been done on international development, but I want to encourage them to go further on micro-financing. The MicroLoan Foundation, a Chiswick-based charity that supports African women through micro-financing, has had 99% of such loans repaid. This is a great way to look at the longer-term economic sustainability and development of these countries, by supporting women and others, and helping them to get a great start in life.

I began by talking about the Queen and I will also end by discussing Her Majesty, because in the Queen’s Speech we also talked about reform of the rules governing succession to the Crown. I was pleased about that, because it is long overdue and we have wonderful examples among our monarchs. Queen Victoria was on the throne for 63 years and our current Queen is about to celebrate her diamond jubilee.

[The Lord Commissioner of Her Majesty's Treasury (Michael Fabricant)]

And Elizabeth I.

[Mary Macleod]

Elizabeth I too. We have so many examples of fabulous role models who have given years and decades of service to this country. Allowing female heirs to succeed to the throne when they are the first born is absolutely a step in the right direction.

These measures will all help to make Britain become even greater. We have never been a country that does not rise to the challenges that we face—indeed, we have faced and conquered them in so many different ways. This year of the diamond jubilee, and of the Olympics and Paralympics, is a year to celebrate who we are, what we have achieved and the potential of this country, and women are essential to this.