Oral Answers to Questions

Debate between Vince Cable and Chris Williamson

Thursday 26th March 2015 Commons Chamber

[Vince Cable]

I am pleasantly surprised that somebody from the south-east is arguing for an expansion of airports—some of us have expressed doubts about the wisdom of that, but I am well aware of the interest in Kent in that airport, and I am sure it can add to the diversity of the sector.

[Chris Williamson (Derby North) (Lab)]

Rolls-Royce has received hundreds of millions of pounds from the British taxpayer for research and development, yet the company has not paid corporation tax for a considerable time. It is now offshoring jobs to low-wage economies—we have heard about India this morning. I have heard Ministers say that they want to rebalance the economy, so what steps has the Secretary of State taken to try to deter companies from offshoring high-skilled engineering jobs?

[Vince Cable]

There is indeed some offshoring taking place, but there is also a great deal of onshoring, by Rolls-Royce and other engineering companies elsewhere. Indeed, engineering that used to be carried out in India is now carried out in the UK. In particular, Rolls-Royce is investing: I have been to several events and seen the new advanced blades for its engines. The research and development and the production is being done in the UK and Rolls-Royce will continue to make a major contribution to the UK economy.

Small Business, Enterprise and Employment Bill

Debate between Vince Cable and Chris Williamson

Wednesday 16th July 2014 Commons Chamber

[Vince Cable]

Many provisions that we will discuss are about enforcement, which in everyday language is what we mean by having teeth. When we get to the relevant sections, the hon. Gentleman will see that much of this Bill is about tough enforcement of regulation, not simply about creating rules for their own sake.

Let me just deal with the issues around employment. I think we saw today some of the remarkable and positive developments that are taking place in the labour market. We now have unemployment down to 6.5%, which is one of the lowest rates in the developed world. More than a million jobs were created in the past year, which is a record. That is an extremely positive outcome of the recovery, which is now clear and well-established.

[Chris Williamson (Derby North) (Lab)]

Although it is welcome that those jobs have been created, will the Secretary of State accept that many of them are insecure and low paid? If people do not have money in their pockets because they are working on zero-hours contracts, that will have a negative impact on the long-term economic recovery of our country—[Interruption.]

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. We do not need Back Benchers to join in at this stage. We are all right; I am sure the Secretary of State can handle it himself.

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[Vince Cable]

Absolutely not. That is merely one aspect of a positive feature of the UK and a reason why companies wish to invest here. As I said, we want to maintain the best of flexibility while dealing with abuses. The evidence that we gathered led us to reject calls for an outright ban on zero-hours contracts, which some campaigning groups have argued for. Where we deal with abuse, we want effectively to ban exclusivity contracts when those do not guarantee any hours. There are two reasons for doing that. First, it is unfair to the individual that they are prevented from earning, but it also makes a nonsense of flexibility if employers prevent workers from migrating to work. Those are two good and powerful reasons for rejecting exclusivity arrangements, and they came through quite unambiguously in the consultation. Some 83% of 36,000 responses—a large number of responses—argued that such a ban should take place, and we will consult during the passage of the Bill on how we make that effective. Banning zero-hours contracts of any form is not straightforward, and some unscrupulous employers could simply shift to one-hour, two-hour, or three-hour contracts. We want to ensure that whatever we introduce is absolutely guaranteed.

[Chris Williamson]

The Secretary of State has addressed one of the points that I was going to make about the penalties associated with employers who exploit their employees and try to get round the restriction on zero-hours contracts by migrating people on to a one-hour or two-hour contract. He seems to be moving in that direction, so will he give a commitment that meaningful penalties will be imposed on employers who seek to exploit and get round the measures that he is bringing in, so that a financial penalty is imposed on employers if they step outside the law?

[Vince Cable]

If the hon. Gentleman reflects on this matter, he will see that it is not about penalties. If the exclusivity ban is made effective—as we are determined it will be—the simple remedy for somebody who is affected is to go somewhere else. The issue of penalties is not relevant; we want to ensure that the ban is effective, which is why we are consulting on the best mechanism for making that happen.

Oral Answers to Questions

Debate between Vince Cable and Chris Williamson

Thursday 10th April 2014 Commons Chamber

[Chris Williamson (Derby North) (Lab)]

5. What steps the Government are taking to encourage firms to pay a living wage.

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

The Government support a living wage and encourage businesses to pay it when it is affordable and not at the expense of jobs. We recognise that these have been challenging times and we applaud companies that have chosen to pay higher wages.

[Vince Cable]

That is an interesting suggestion for nudging companies in the right direction, and I will certainly have a look at it. I am certainly very opposed to coercive measures because those would simply add to unemployment, but I will reflect on that suggestion, which is a new one.

[Chris Williamson]

I am pleased that the Secretary of State says that he supports the living wage, but as he will know—my hon. Friend the Member for Lewisham East (Heidi Alexander) has already pointed this out—that of the 4.8 million people who are paid less than the living wage, many work for multinational, highly profitable companies. What specific steps is he taking to encourage those highly profitable companies to pay the living wage? The people deserve to know that.

Job Insecurity

Debate between Vince Cable and Chris Williamson

Wednesday 5th February 2014 Commons Chamber

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

I am delighted to respond to the hon. Member for Streatham (Mr Umunna) and I appreciate that, as he acknowledged at the beginning of his remarks, he has a problem because trying to manufacture an Opposition day debate on the economy is difficult when it is now growing rapidly.

[Chris Williamson (Derby North) (Lab)]

Will the Secretary of State give way?

[Vince Cable]

Give me some time and I will happily take interventions. I am always generous with interventions and I will wait until a suitable point and give way to the hon. Gentleman.

The danger the hon. Member for Streatham faces is that of creating a cliché such as “triple-dip recession” or “no more boom and bust” that then proves to be positively cringeworthy when the situation changes. Labour’s slogan is now the “cost of living crisis”, and at first sight that is a plausible line of attack because, as I have always acknowledged, real wages fell in the wake of the financial crisis, the country is poorer and the consequences have been painful. The hon. Gentleman buttressed his argument by quoting from the Institute for Fiscal Studies that this painful process is likely to go on until the end of next year. That was what it said until quite recently, but I do not know whether he has seen its report today, which states that the cost of living crisis is to turn around this year. Inflation is now falling so rapidly and the economy recovering so quickly that it expects that turnaround to happen by the middle of the year. I fear that the “cost of living crisis” may be another to go in to the museum of clichés.

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[Vince Cable]

That is correct. I was merely referring to the point at which things start to turn around and improve. The IFS, like everyone else, underestimated the strength and speed of the recovery. Of course, its forecasts, like everyone else’s, may have to be revised upwards.

I have been responding to debates from my current position for the best part of four years, and I have seen the Opposition’s jobs argument go through four or five iterations. When we first started, the argument from the Opposition was that the attempt to deal with the fiscal crisis would result in mass unemployment. That now looks positively silly today, but if they go back to their speeches in 2010, that was their prediction. We now have the highest level of employment ever—30 million. We have 1.3 million more people in employment than in 2010. The jobless—unemployed—total has fallen not just in relative terms, but in absolute terms by 650,000 to 7.1 %. Of course, there are regional variations. I accept that there are particularly serious problems in the north-east, which is the only part of the UK that has double-digit unemployment.

It is worth contrasting the overall picture with some other countries that had a far less serious experience of the financial crisis than we did. Sweden has 8% unemployment. The unemployment rate in Canada, which everybody thinks is a wonderful economy—we recruited our central banker from there—is higher than in the UK. In the eurozone, even including Germany and Austria, it is 12%. Our unemployment position is significantly better than that of most other western countries.

[Chris Williamson]

Will the Secretary of State at least acknowledge that the degree of underemployment is masking the real problem in the economy? If those people were put in full-time equivalent posts, the number of unemployed people would be a much bigger picture, would it not?

[Vince Cable]

I am going to come on to underemployment and part-time employment shortly, because it is a legitimate concern. Obviously, there are people who took part-time jobs in the depth of the recession who now want full-time work—of course that is true. What the hon. Gentleman might not be aware of is that in the past year the number of people in part-time employment has actually fallen in absolute terms by 7,000, and that the number of people in full-time employment has risen by 475,000. There was an issue relating to part-time jobs in the depth of the recession. It was understandable that people took part-time jobs in a very difficult situation, but over the last year the position has changed dramatically. Building an argument around part-time employment is now of historic interest, not contemporary interest.

National Minimum Wage

Debate between Vince Cable and Chris Williamson

Wednesday 15th January 2014 Commons Chamber

[Vince Cable]

I think it is £2.68, and it was going to be frozen at £2.65. [Interruption.] It is a very small increase, but there was an issue of principle involved, which is why I intervened to change it.

Let me proceed on the issue of the mandate. The Low Pay Commission has consistently regarded jobs as an important objective of policy—rightly, and we must respect that judgment because it is based on serious analysis. Let me quote a good study carried out by the Resolution Foundation, and I believe the National Institute of Economic and Social Research was involved, too. It analysed the effects of a general increase to the living wage level, which Labour Members would like to see happen.

The analysis suggests that if other things were equal and if all low pay were increased to the level of the living wage, there would be a net loss of 160,000 jobs. Worse than that, there would be a loss of 300,000 jobs among the unskilled and among young workers, because massive substitution would take place. That does not mean that the living wage is a bad idea as a voluntary principle, but it does spell out very brutally what would happen if Governments ignored the Low Pay Commission and took a cavalier view of the impact of the minimum wage on jobs.

[Chris Williamson (Derby North) (Lab)]

Is that not precisely the argument that was used by those who opposed the introduction of the national minimum wage in the first place? Is this not just a repetition of that flawed argument?

Oral Answers to Questions

Debate between Vince Cable and Chris Williamson

Thursday 21st March 2013 Commons Chamber

[Chris Williamson (Derby North) (Lab)]

8. What recent assessment he has made of manufacturing activity and future capacity in that sector.

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

After years of manufacturing being in relative decline we are seeking to bolster manufacturing capacity and drive the transformation to a skilled economy. On Monday we launched an aerospace strategy with £2 billion Government-industry funding for an aerospace technology institute. Rounds 2 and 3 of the advanced manufacturing supply chain initiative opened for applications today.

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[Chris Williamson]

I hope the Secretary of State supports early-day motion 1185 which calls for the 600 taxpayer-funded carriages for the Crossrail project to be built at Derby’s Bombardier factory, safeguarding more than 10,000 jobs. Given that the Mayor of London will have a big say in where those trains are built, will the Secretary of State tell the House whether he is making the socio-economic case to the Mayor for building those trains in the UK, and specifically in Derby?

[Vince Cable]

We will certainly make the case for tendering to be conducted in a proper, strategic way. One lesson we have learnt over the years is that the rather opportunistic approach that used to happen in public sector tendering for public transport was not helpful, and we will certainly make the strategic case directly with Government and public agencies.

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[Mr Speaker]

Steve Baker, not here. Sir Bob Russell, not here. I call Chris Williamson.

[Chris Williamson (Derby North) (Lab)]

T3. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

My Department plays a key role in supporting the rebalancing of the economy through business to deliver growth while increasing skills and learning.

[Chris Williamson]

A recent report by the respected consumer group Which? highlighted the extent of irresponsible lending in the high-cost credit market. Do Ministers think that the Office of Fair Trading’s recent threat to revoke the licences of 50 payday lenders goes far enough to stamp out bad practice in the sector?