Economic Growth and Employment

Debate between Stephen Metcalfe and Guto Bebb

Wednesday 23rd November 2011 Commons Chamber

[Stephen Metcalfe]

I could not agree with my hon. Friend more. That is another problem that we have to sort out by clearing up the mess left by the previous Government.

Despite what Labour Members say and despite the sentiment behind this motion, we are, I believe, making good progress. As we have heard, we are creating the most competitive tax system in the G20; we are investing in businesses to help them start up and grow; we are encouraging inward investment and supporting exports; we are investing in science and technology and creating a more educated and more flexible work force. Of course there is still more to do, and I believe we are doing it.

For example, today, my right hon. Friend the Business Secretary announced new reforms to employment law—mentioned by the hon. Member for Streatham (Mr Umunna)—as part of the Government’s plan for growth, which will cut unnecessary demands on business while safeguarding workers’ rights. However, if we listen to the instant reaction from Labour, we find that they would have us believe that these measures are anti-employment and the reforms are about making it easier for companies to fire staff. I believe that the reverse is true. The Opposition spend a lot of time trying to cast employers as the bad guys—as a group of money grabbers trying to get rich off the backs of the workers.

[Guto Bebb (Aberconwy) (Con)]

Is my hon. Friend interested to hear the comments of the former Labour MEP Eluned Morgan, who is now a Baroness, when she stated that many in the private sector had sensed the animosity of the Labour party towards that sector?

[Stephen Metcalfe]

I would indeed agree with that view. I believe that all Government Members, and I suspect some Opposition Members too, would agree that the vast majority of businesses, especially small and medium-sized enterprises, know that their most valuable asset is their staff. Employers need staff and staff need employers. The problem has been that in the current economic climate firms are cautious about taking on additional risk, and that often means being cautious about taking on additional staff. I believe that making it easier for companies to manage their staff levels makes it easier for them to take on staff. Knowing that the risks of employment have been reduced might well unlock the employment door.