Employment Support

John Bercow Excerpts

Wednesday 7th March 2012 Commons Chamber

[Mrs Anne McGuire (Stirling) (Lab)]

I thank the Minister for her statement, but frankly it was a statement that she obviously did not want to give to this House in person. Let me give this advice to the Minister and to Government Members: even if the situation is difficult, it behoves a Minister to come to this House to explain it. [Interruption.]

[Mr Speaker]

Order. These exchanges have already been too noisy. The House must calm down. We cannot have a situation in which people trade insults across the Chamber, shouting out “Where is this one or that one?” Let us just cool the temperature and have a decent exchange. The House knows that I will want to facilitate such an exchange.

[Mrs McGuire]

It is fair to say that Remploy is not an ordinary organisation; it is one that has been part of Government’s provision for disabled people since the second world war. We all recognise, in all parts of the House, that it has had to adapt to changing conditions over the years, but there is no point in the Minister trying to hide behind the statement by my right hon. Friend the Member for Neath (Mr Hain). My right hon. Friend came to this House and answered questions in this House, and he made some of the difficult decisions that we hoped would set Remploy on the road to success. Recently, however, there has been only one debate in this House on the future of Remploy, and that was held, thanks to the courtesy of the Backbench Business Committee, in Westminster Hall on 15 December. Today, the Government have tried to abrogate their responsibility as the custodian of the Remploy legacy and as the ultimate employer of the 1,752 people who today found out by written statement, or in some cases from telephone calls from Members of Parliament, that they will no longer be in a job in three months’ time.

Nobody in this House disagrees with the Minister when she says that disabled people want to have a choice about where they work. Nobody argues that such opportunities have not opened up over the past few years for many disabled people. However, many of the opportunities have been offered by organisations such as Remploy that give disabled people a real job in the jobs market. It was clear even from the Sayce review that the best factories offer job satisfaction, a supportive and accessible environment, and a reasonable income for their employees.

I will not run away from the fact that my Government, and I as a Minister, had to wrestle with the issues relating to Remploy. We cannot rewrite history. However, our position on disabled people in 2007 was astonishingly different from what the Minister has put before us today. If she truly believes in co-production, why was there no co-production with the trade unions, the disabled people who work in Remploy and the Remploy board over the past few months? I have the greatest admiration for Liz Sayce and for some of the work that she has done, but to put forward a closure programme that will potentially put 1,700 on the dole on the basis of a report by an individual is not acceptable.

We must recognise the legitimacy of the position of the mainstream of the disability movement, which is that it does not like supported factories or Remploy. However, that does not mean that it is wrong to support people in these factories. Perhaps the mainstream needs to recognise that Remploy offers a real job in a supported environment.

I will put some questions to the Minister before you call me to order, Mr Speaker. In opposition, the Conservative party supported the five-year modernisation plan, so why did the Minister embark on a review nearly two years before that timetable had been exhausted? Why are the Government pulling the funding from the next financial year, which leaves a period of only a few days? Was warning given to the Remploy board before the last couple of weeks that it would have to manage this speed of change and a massive redundancy programme over the next few weeks?

When the modernisation statement was made to the House in 2007, the now Minister of State, Department for Work and Pensions, the right hon. Member for Epsom and Ewell (Chris Grayling)—[Interruption.] Please do not laugh if I pronounce “Ewell” wrong. I do not know how it is pronounced. He said at that time:

“Let me assure Remploy and its employees that the next Conservative Government will continue the process of identifying additional potential procurement opportunities for them and the public sector work force.”—[Official Report, 29 November 2007; Vol. 468, c. 451.]

What has the Minister done, now that the Conservative party is in office, to ensure that her ministerial colleagues fulfil that promise? What discussions has she had with the major procurement Departments, including the Home Office and the Ministry of Defence? Did she look at the procurement opportunities that her Department could have offered to Remploy? What discussions has she had with her colleagues in the Department for Communities and Local Government to encourage local authorities to consider opening up opportunities for their local factories? What efforts has she made to encourage her colleagues to identify procurement opportunities under article 19?

Given the Minister’s intention to embark on this course of action, how did she involve the board of Remploy and the trade unions in the discussions about the issues identified in the Sayce report? I am not talking about their responses to the consultation, but about what real co-production she was involved in. What recognition did she give to the trade union analysis of the current operation of Remploy’s enterprises and the questions that it raised about the company’s business practices?

There is a feeling around the House that the consultation was flawed from the beginning because the Minister said that she was

“minded to accept the recommendations of the Sayce review”.

A Government cannot start a consultation if they have already said they are minded to accept the recommendations.

By how much will the Minister reduce the subsidy to Remploy in the next financial year and the one after? She highlighted the fact that there may be options for the so-called stage 2 factories. What will those options be, and what criteria will she lay down for the transfer of any business and its associated assets to the open market?

The Minister says that the support that she will give to disabled people who are made redundant will last for up to 18 months and potentially be a personalised budget of £2,500. How is that £2,500 expected to meet the needs of many of the people in Remploy?

Where will the jobs come from? At the factory in Ashington, 35 people are chasing each job, and in Acton—

[Mr Speaker]

Order. I say to the shadow Minister that I know these are extremely important matters, but I feel sure that she is bringing her questions to a close. In fact, I am certain that she is in her last sentence.

[Mrs McGuire]

I am indeed, Mr Speaker.

I finish by saying to the Minister that in each constituency where there are factories at which redundancies will be made, there are tens of people chasing every job. She made a point about the increase in Access to Work, but that scheme requires jobs. Tonight, 1,700 people do not know whether they will have one in three months’ time.

[Several hon. Members]

rose—

[Mr Speaker]

Order. There is much interest and I am keen to accommodate it, but brevity is of the essence.

[Mr Richard Bacon (South Norfolk) (Con)]

I welcome the extra £15 million that the Under-Secretary has announced today for helping disabled people. Does she agree that we are likely to secure better value for money for that extra funding, and we will be able to help more disabled people, if it goes to individuals rather than institutions?

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[Hon. Members]

Order, order.

[Mr Speaker]

Order. Members can have their opinions. Let us cool it and hear the Minister’s answer. I say that to no particular individual but to the whole House. Let us hear the Minister.

[Maria Miller]

I suppose that I should remind the hon. Member for Bolsover (Mr Skinner) that he supported a Government who closed 28 factories. What is inexcusable is that his Government did absolutely nothing on tracking to establish how to put in place the right support for individuals affected by their decisions. The simple truth is that as a result of the Labour party’s approach, the factories have lost £225 million since 2008. That is money that we should have been using to support more disabled people into work, and that is at the heart of our proposals today.

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[Mr Speaker]

Order. Before the Minister replies, I seek confirmation from the right hon. Lady that she was not suggesting the Minister misled her here in the Chamber.

[Ann Clwyd]

indicated assent.

[Mr Speaker]

No. We are grateful for that confirmation. The Minister will have heard the question, and she can answer.

[Maria Miller]

And I can say to you, Mr Speaker, that I would never want to mislead the right hon. Lady at all, here or in any other place. I would gently bring to her attention the fact that there are 37 disabled people employed in the Aberdare factory. The loss at that factory last year was £800,000, and that is against an estimated 13,600 disabled people in Cynon Valley who are of working age. Does she not believe that we should be doing more to support those individuals? The proposals in today’s statement will do just that.

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[Mr Mike Hancock (Portsmouth South) (LD)]

I have to say that once again I find myself in disagreement with my coalition colleagues on this matter. Can the Minister give an assurance that those companies that are not—[Interruption.] I have to apologise, Mr Speaker: that was a call from the Remploy factory. Can the Minister give an assurance that there will be sufficient help to enable—[Interruption.]

[Mr Speaker]

Order. I think we should hear the voice of Portsmouth.

[Mr Hancock]

May I seek an assurance from the Minister that those factories that are happily not up for closure at present will be given all sorts of assistance? I would also like her to give an indication, if she can this evening, of what help will be given to those Remploy operations to stay in business. Does she also accept that some people employed by Remploy—many in my constituency have been there for 10 or 15 years—will find it difficult to find other employment?