Productivity

Robert Flello Excerpts

Wednesday 17th June 2015 Commons Chamber

[Chris Leslie]

It is important to recognise that productivity problems are not the same across every single sector. Some sectors are managing to break through and making a difference, perhaps relative to other sectors in other parts of the world. It is important that we focus on apprenticeships and skills, but the quality of those apprenticeships is key as well. I will say more about skills, on which we have just had an Opposition day debate.

[Robert Flello (Stoke-on-Trent South) (Lab)]

Some apprenticeships are undoubtedly very good, but I am aware of some in north Staffordshire and the wider area that are little more than “YTS rebranded”—people come in, work for a period almost as exploited slave labour, are then kicked out, and the next batch of apprentices are brought in. There are some very good apprenticeships, but some are frankly scandalous.

[Chris Leslie]

I agree that we need far better scrutiny of the nature of apprenticeships and of skills and training. We sometimes have a blanket approach that all schemes or tax incentives are the same and—this is the classic Whitehall problem—leave them without going into the detail of how they add value and of how quality fits in. I would advocate a better look at the quality of such investments.

--- Later in debate ---

[Chris Leslie]

As one industry declines, others will have to fill the gap. It is also important to recognise that multiple aspects of energy activity and energy markets are coming on stream and we need to ensure that we develop them and exploit new opportunities for our country, for energy security and for our future economic prosperity.

[Robert Flello]

My hon. Friend is being extremely generous with his time. I was hoping that he might touch on the question of workers on zero-hours contracts. They have seen their salaries driven down to minimum wage levels, they might have to supply their own uniform, and, if they are an agency worker, they might not know from one day to the next what they will be doing and where they will be doing it. Is it any wonder that their productivity is depressed?

[Chris Leslie]

That is a crucial point. A far healthier environment is one in which the workforce feel valued and that they have a stake in the output, not just in their wages but as partners in the company or in the firm. Those are the sorts of discussions we must have about the economy we want for the long term.

The Chancellor faces a fork in the road, and this is very relevant as the emergency Budget on 8 July approaches. Will he take an ideological approach to public services and public investment or will he join a consensus that productivity, growth and living standards should be at the heart of those Budget choices? We are now hearing some practical options that are open to the Chancellor if he is serious about boosting productivity.

We need further reform of incentives to encourage research and development, support scientific discovery and underpin long-term financial backing for projects that do not necessarily always yield near-term returns. We need to break the politicking about infrastructure and flush through the pipeline of stalled projects. Ministers should feel free to steal the idea of a more independent and evidence-led approach to infrastructure prioritisation as advocated so eloquently by Sir John Armitt in his report for us before the election. We need to sweat the authorisations already voted for by Parliament to underwrite infrastructure development with Government-backed guarantees, which are so woefully underutilised at present. We need skills and training to flourish and not fall victim to short-term and ill-thought-through budget decisions driven by a political timetable. We need serious action on housing supply to help working people with the choices they face in work and to support new employment opportunities as they arise; and we need clarity that local enterprise partnerships will get the immediate devolved powers required to unlock local growth—not political delays because the Chancellor takes exception to a particular form of local governance arrangement.

We need an early decision in response to the Davies commission report on airport capacity. It is due imminently, but Ministers are already starting to kick it into the long grass. Apparently they are only going to address this vital question at the end of this year at the earliest. We also need real announcements, in short order, on specific rail interconnectivity between towns and cities. Those are some of the priorities that deserve urgent attention at the top of Government.

Will the Chief Secretary shed some light on the thinking of his great and glorious leader, the First Secretary of State, or will we have to wait for this agenda to fit into a Downing Street soundbite before it gets any attention? I genuinely wish the Chief Secretary luck in gaining favour with the Prime Minister-in-waiting, because right now we have a Chancellor distracted by his political ambitions who cannot even be bothered to debate productivity, let alone remember to mention it in his Budget speech. Britain cannot afford this issue being neglected any longer, and we will keep reminding the Chancellor—when he is here—of his responsibilities until real action is taken.