Oral Answers to Questions

Tony Baldry Excerpts

Thursday 26th June 2014 Commons Chamber

[Vince Cable]

Before I reply directly to the supplementary question, may I thank the Under-Secretary of State for Business, Innovation and Skills, my hon. Friend the Member for Cardiff Central (Jenny Willott), who comes to the end of her admirable period in office at the end of this week as her colleague returns from maternity leave?

The Chancellor was not advocating a £7 minimum wage; he was explaining the simple arithmetic of what would happen if a real minimum wage were restored. The hon. Gentleman will well know that measures will be coming before the House to introduce much more effective enforcement action on the minimum wage. We should concentrate on strengthening the minimum wage, rather than pursuing the living wage as a mandatory option, about which there is confusion among Opposition Members.

[Sir Tony Baldry (Banbury) (Con)]

Will my right hon. Friend confirm that any employer found not to be complying with the national minimum wage legislation will be prosecuted, and that any employer seeking to use zero-hours contracts to get around the national minimum wage legislation will therefore be prosecuted? If employers seek to exclude people on zero-hours contracts from being able to take work with any other employer, cannot those contracts be declared void as being contrary to public policy?

[Vince Cable]

On the latter point, we shall discuss in the forthcoming legislation how enforcement action might be taken in respect of exclusivity contracts. The answer to the first part of the question is yes, indeed: if the minimum wage legislation has been breached, action is taken, initially by retrieving the sums involved and by naming and shaming, and under the forthcoming legislation it will be by very significant penalties.