Energy Intensive Industries

Debate between Robert Flello and Julie Elliott

Wednesday 4th December 2013 Westminster Hall

[Robert Flello]

I want to make a very brief point—I am sure you would pull me up if I did otherwise, Mr Robertson. Are we not missing some of the wider implications? Germany has been mentioned time and again, but the way in which Germany is operating its system, getting rid of the monopolies and concentrating on local, not-for-profit providers, is completely different. That is the issue, really. It is about a fundamental root-and-branch review of how we do things, so that we do not have the six monopolies, but actually have a different way of doing things.

[Julie Elliott]

We can always learn from how other countries do things, although one of the things about Germany that is not publicised much is that it imports much of its nuclear energy from the Czech Republic, which is what sometimes leads to its cheaper prices.

I would like to comment on some of the things that have been said about the importance of our manufacturing industry, because manufacturing is a key part of our coming out of recession and moving into economic growth. It is not only something that this country should be very proud of historically as, moving forward, we are at the cutting edge of some of the best manufacturing in the world. I personally feel very strongly about that and I am pleased that a number of hon. Members have talked about its importance to our economy.

There are concerns that the carbon floor price, which was introduced by the Chancellor of the Exchequer, imposes an additional burden on energy intensive industries and hampers our competitiveness. It is also on an upward trajectory: it is going up year on year. It was increased again in last year’s Finance Bill. The hon. Member for Tiverton and Honiton (Neil Parish) is no longer present, but he talked about the carbon floor price being a green tax. It is important to state on the record that the carbon floor price tax is entirely a revenue-raising tax; it goes to the Chancellor.

We cannot afford to end up in a situation in which the carbon floor price damages energy intensive industries while at the same time achieves a weak carbon-abatement effect. It is important to take a sector-by-sector approach. The issues inherent in and the support required by the ceramics industry, for example, may not be quite the same as those in the steel industry.

I am particularly pleased that the Minister of State, Department of Energy and Climate Change, the right hon. Member for Sevenoaks (Michael Fallon), will provide the response on behalf of the Government, because I am sure that he will be able to provide some clarity on where he stands on the carbon floor price. Earlier this year, before he became an Energy Minister, he called the carbon floor price

“a fairly absurd waste of your money”,

before going on incidentally to announce that it had been introduced by Labour, although as I have said, it was introduced by the present Government in 2011. I would be interested to know where the Minister stands now on that statement. How can he square it with his support for the carbon floor price?

It is vital that we keep British industry competitive, while decarbonising its activity. Much more work is needed, in conjunction with energy intensive industries, to develop a plan for how to achieve that.

Zero-hours contracts

Debate between Robert Flello and Julie Elliott

Tuesday 9th July 2013 Westminster Hall

[Julie Elliott]

That is absolutely correct. In fact, a number of Departments have responded to parliamentary questions by saying, “We don’t know.”

Many people will not realise that they are on zero-hours contracts. If, as it seems, zero-hours contracts are part of the new labour market, and not simply a reaction to the recession, we need to show our willingness to combat their worst excesses. Zero-hours contracts affect only approximately 1% of the work force, but that is 1% of a very large number and cannot be ignored.

Although they are on the increase in the public sector, zero-hours contracts are still more prevalent in the private sector, which is responsible for 85% of all such contracts in the UK. It is clear why zero-hours contracts appeal to employers, as they reduce risk by conferring greater flexibility to enable them to weather fluctuating demand. We want to do what we can to make it easier and more attractive for employers to hire new people, but all too often zero-hours contracts are the answer. Staff who have worked for their employer for less than a year make up more than a third of all zero-hours contracts. Young workers, newer workers and women are shouldering the burden while employers enjoy the benefits.

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

I congratulate my hon. Friend on securing this debate. Is not one of the fundamental issues that zero-hours contracts are about transferring the burden and the difficulty of dealing with a contract from the employer to the most vulnerable and the lowest paid? How can it be in any way fair to transfer that burden from the employer to someone right at the bottom of the pile?

[Julie Elliott]

It simply is not fair, and it simply is not acceptable in most cases.

Having a high number of employees on zero-hours contracts is also potentially damaging to employers as it can lead to inadequate staffing levels, the loss of training and skills development and an inability to attract and hold on to the highest quality staff. Too many people are living a life on call, and I hope this debate will move the conversation forward from discussing the existence of such contracts to evaluating solutions to the problem.

Zero-hours contracts can have a devastating impact on people’s lives. Workers employed on such contracts have little certainty of their expected weekly earnings and therefore cannot plan their family finances. People with employee status have several legal rights that workers do not, such as the right not to be unfairly dismissed, maternity rights and redundancy rights. The inherent variability of earnings throws into doubt an individual’s eligibility to claim various forms of benefits. The disruption to family life that results from frequent short-notice requirements to work makes so many things, from child care to the weekly shop, nearly impossible to plan.