Equality and Diversity (Reform) Bill

Nigel Evans Excerpts

Friday 21st October 2011 Commons Chamber

[Damian Green]

What I am saying is that the bodies are already acting themselves, so the undesirable outcome of which my hon. Friend is fearful will not happen. I have talked about various organisations; let me mention specific companies. Centrica, BT and Barclays have all provided programmes or initiatives to assist in the recruitment, retention, development and advancement of women and persons from other protected groups in the workplace, and to broaden their career aspirations. That makes the point that I alluded to earlier: good and constructive use of positive action is not woolly-minded, or political correctness gone mad, or whatever the cliché du jour is; it has practical benefits for the organisations that voluntarily opt for it.

I refer my hon. Friend to a report published in 2008 by the CBI, the TUC and the Equality and Human Rights Commission entitled “Talent not Tokenism: the business benefits of workforce diversity”. It showed that diversity in an organisation promotes productivity and efficiency, and increases market opportunities. Several UK employers recognise the benefits of positive action; it fills skill gaps while generating a more diverse work force. That added diversity in turn gives employers a better understanding of customers’ needs, opening up new markets and attracting new business.

More businesses than ever, including FTSE companies at all levels—those in the FTSE 100, FTSE 250 and FTSE 350—are using voluntary positive action measures to improve the diversity of their top management and boards of executive and non-executive directors. Lord Davies’s report, to which my hon. Friend referred, acknowledged that corporate boards perform better when they comprise experienced people with a greater range of skills, perspectives and backgrounds. His report indicated that there is a business case for increasing the diversity of corporate boards, and especially for gender-diverse boards, so that businesses can draw on the full range of available talent and achieve effective governance and performance.

To address my hon. Friend’s point directly, Lord Davies’s report ruled out the setting of mandatory quotas to compel businesses to appoint female directors to their boards, so my hon. Friend is right not to believe everything that he reads in the media. The statistics are stark. The proportion of women on FTSE 100 company boards is 14.2%, and the figure is 8.9% for FTSE 250 companies. Previously, almost half the FTSE 250 companies had no women director on their board. A recently published report by the Cranfield School of Management on the progress made on some of the recommendations outlined in the Davies report shows that, for the first time, a minority of FTSE 250 companies have all-male boards. Moving down the size scale, FTSE 350 companies face an even greater challenge in increasing female representation on their boards.

My hon. Friend may have heard of the 30% Club, which comprises a group of UK company chairmen, if I am allowed to use that word, who are voluntarily committed to bringing more women on to UK corporate boards. The 30% Club supports a voluntary target to ensure that every UK corporate board has at least 30% female representation by 2015.

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. I think that the Minister is going slightly wider than the Bill, so could he perhaps drag it back to public authorities?

[Damian Green]

I shall certainly drag it back to public authorities, and indeed specifically to the proposal by my hon. Friend the Member for Shipley to repeal the Sex Discrimination (Election Candidates) Act 2002, in which I know you have a particular interest, Mr Deputy Speaker. The effect of the Bill would not be what I think my hon. Friend intends, because the majority of that Act has already been repealed by the Equality Act 2010. I urge him to look at schedule 27 of that Act—the repeals and revocations schedule—which repeals most of the Act that he seeks to repeal. The 2002 Act has largely been repealed because the provisions relating to elections in England, Scotland and Wales are now contained in the Equality Act 2010. Repealing what remains extant of the 2002 Act would not achieve what I assume to be the aim of the Bill, as the provisions relating to the selection of election candidates would continue to be permissible for registered political parties in Scotland, England and Wales if they chose to use them.

What remain extant of the Sex Discrimination (Election Candidates) Act are provisions that relate solely to Northern Ireland. The 2002 Act amends the Sex Discrimination (Northern Ireland) Order 1976, permitting political parties to adopt single-sex shortlists when selecting candidates for elections to certain bodies. Repealing the 2002 Act would only create further confusion and disparity, as the provisions relating to electoral shortlists could continue to be used in England, Scotland and Wales, but not in Northern Ireland.

In any case, we consider that the provisions relating to the selection of election candidates remain a legitimate tool for parties that wish to use them. The provisions enable registered political parties to take action to address any disparity in their representation of men and women in elected office, including the use of women-only shortlists. We have had a great deal of discussion about the under-representation of women elected to the House—only 144 of 650 Members are women, equating to about 22% of MPs—and it is widely agreed across the House that although progress has been made, it is not yet complete and there is a need for political parties to make the House more representative of the diverse population in this country, because that will enable us to deliver better governance.

I should point out to my hon. Friend the Member for Shipley and to the House as a whole that the use of those provisions is time-limited, as they are due to expire in 2030 when, we hope, the representation of women in political or other elected office will have increased significantly. The provisions do, however, contain a power to allow a Minister to extend their use beyond 2030 if insufficient progress has been made in increasing female representation. Given the fact that we have given ourselves two decades to achieve that aim, I hope that we can do so without requiring that extension.

By attempting to prevent the use of positive action under what I hope I have persuaded hon. Members are entirely appropriate circumstances, the aims of the Bill contradict Government policy to promote fairness, equality and diversity and to tackle under-representation in targeted areas such as “women on company boards” and “elected office”. Many public authorities have long used forms of positive action in relation to matters connected to recruitment and promotion, and they strongly support the continued use of those provisions. Some registered political parties have successfully used these measures in recent years and, as far as I am aware, there is no opposition from any of the major political parties to using positive action to redress gender representation.

The key thing to remember is that the use of any form of positive action in our country is entirely voluntary, whether it is in providing services, in employment-related matters, in increasing participation in particular activities, or in politics. Organisations will use the provisions only if there is a real benefit for them in doing so. Without the use of positive action, it would not be possible to develop the initiatives outlined in the coalition programme for government to tackle the numerous barriers to social mobility and equal opportunities that exist in our society in relation to age, gender, race, religion and sexual orientation. It is not possible to build a fairer society without being able to take the necessary measures to end discrimination in the workplace; to promote gender equality on the boards of listed companies; to promote improved community relations and opportunities for people of black and minority ethnic backgrounds; to provide internships for under-represented groups; and to fund targeted mentoring schemes to help under-represented groups to start businesses. It is clear that my hon. Friend’s Bill would remove this voluntary but important opportunity for organisations and political parties to make strides in tackling the continued disadvantage and under-representation experienced by persons with protected characteristics in work forces and in civic, public and political life across the UK. To stop the use of positive action would cause a major setback in the progress already made in addressing disadvantage or under-representation in our society. I therefore urge my hon. Friend to withdraw his Bill.

[Philip Davies]

With the leave of the House, may I thank everybody who has contributed to the debate, those who supported my Bill—I particularly thank my hon. Friends the Members for Bury North (Mr Nuttall) and for North East Somerset (Jacob Rees-Mogg) for their typically robust comments on my behalf—and those who contributed to the debate even though they did not agree with me?

It is sad that in this age it is so difficult to persuade Members of the merits of the principle that people should be given jobs on merit, and merit alone. It is like pushing water uphill to try and make the case for that basic and, I should have thought, obvious proposition. On that note I shall conclude the debate and press the motion to a Division.

Question put, That the Bill be now read a Second time.

The House proceeded to a Division.

[Mr Deputy Speaker (Mr Nigel Evans)]

I ask the Serjeant at Arms to investigate the delay in the No Lobby.

The House having divided: Ayes 3, Noes 39.