Small Business, Enterprise and Employment Bill

Debate between Vince Cable and Richard Fuller

Wednesday 16th July 2014 Commons Chamber

[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.

[Richard Fuller (Bedford) (Con)]

One of the most significant issues in employment is the massive amount of corporate welfare in the form of tax credits for people on low incomes. A move to promote the living wage across a wide range of industries would have a positive impact on employment. Will my right hon. Friend tell the House what thoughts he had in this Bill for promoting the living wage, and say why he did not include those in the provisions under debate?

[Vince Cable]

Anything that raises wages takes people out of the tax credit net. There are, of course, other ways of dealing with this problem, one of which is taking people out of tax, and that is what the Government have been doing through their tax threshold. This Bill builds on the minimum wage system—I will say a few words about that in a moment—and does not relate to the living wage. The living wage presents all kinds of practical problems, not merely that it is way in excess of the current minimum wage and therefore presents problems for employment levels. There is a perverse feature that the recommended level of the London living wage, which would introduce a regional differential, is highest in London, which is an area with the highest levels of unemployment. If we are concerned with maximising employment, pursuing the living wage may not be the best of way of doing that. None the less, I have given guidance to the Low Pay Commission on how we increase real wages, and that is a major policy objective. I think we are better doing that by strengthening the minimum wage regime.

I assure the House that the Government are taking a series of steps to ensure proper penalties for employers who fail to comply with the minimum wage. In 2013-14, 650 employers received penalties totalling £815,000 for failure to comply with minimum wage law, and we have increased the penalty percentage from 50% to 100% of underpayment. A naming and shaming regime has come in since the new year, and we have increased the maximum penalty from £5,000 to £20,000, which came into effect in March. The Bill goes one step further. The maximum penalty will now apply on a per worker basis, rather than per notice. As a result, in future overall penalties will be substantially higher for employers that owe high arrears to multiple workers.

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[Vince Cable]

I will explain in a moment our proposal in relation to rents. The hon. Gentleman will know that a considerable variety of views emerged from the consultation. I know there are strong views that we should perhaps have done more—there will be plenty of opportunity to air them—but we have taken a big step forward. Let me briefly describe what it is.

The Bill will introduce a statutory code of practice, which I think has been the House’s basic demand over the years, to govern the relationship between companies and tied tenants. It will establish an independent adjudicator to enforce the code that will build on the experience of the groceries code adjudicator, which is building a track record in addressing similar problems. That should result—this is our objective—in getting transparency, fair treatment and the right to request a rent review for all tied tenants if they have not had one for five years, and the right to take a dispute to an independent adjudicator under the enhanced code.

[Richard Fuller]

Why did my right hon. Friend not exempt small pub companies, given that the problem is with large pub companies?

[Vince Cable]

As the hon. Gentleman will now have realised, we envisage a two-tier code system. There will be an enhanced code, with more demands on the bigger pubcos. Of course, other people are concerned that the provisions are not extensive enough. We have tried to identify the problems presented by the large pubcos, where we fully accept the major problems lie.

Let me give an example of a case that was drawn to our attention recently that in many ways exemplifies the issues. After seven years with a large pub company and a personal investment of £50,000, a tied tenant was renewing his agreement. His pub company presented him with a rent increase and reduced discounts on the price of beer. That means that, in effect, he will be paying £60,000 to his pub company for a year. Under our measures he would expect a detailed justification for the rent and, if he thinks it unfair, he will be able to go to the adjudicator for independent arbitration.

From the submissions that I have received, I am already aware that there are many concerns about the details, including of how the code will be formulated once the Bill goes through Parliament, as we hope it will. I am certainly very happy to receive any representations that Members want to make about those crucial details.

Another provision affecting small business is the public sector procurement market, which is worth £230 billion. Many small businesses have found it very hard going in the past, with bureaucratic and time-consuming processes. Under this Government, we have attempted to make the burdens less onerous—for example, by lifting the need for pre-qualification questionnaires—and, as a result, we managed to increase the direct spend in central Government procurement from about 6.5% to 10.5% between 2009-10 and 2012-13. It is our firm intention to lift that figure to 25% of central Government procurement next year.

Royal Mail

Debate between Vince Cable and Richard Fuller

Tuesday 1st April 2014 Commons Chamber

[Vince Cable]

There is no disaster or reason to apologise for what has taken place. There are many positive aspects of this privatisation, which I have already set out. Of course there are lessons to be learned regarding more technical criticisms that the NAO has made about the flexibility of the process, and we will listen to those should such a situation arise again.

[Richard Fuller (Bedford) (Con)]

The comparison of this privatisation with QinetiQ is relevant because, subsequent to that privatisation, many employees in Bedfordshire were thrown out of work while the bosses ran off with 107 million quid. Can my right hon. Friend advise me how much money the bosses of Royal Mail made from this privatisation, and say what has happened to the employees in terms of their security of employment and pensions?

Royal Mail

Debate between Vince Cable and Richard Fuller

Wednesday 10th July 2013 Commons Chamber

[Vince Cable]

The best way of reassuring the public is to demolish some of the myths. The fact is that the universal service obligation was clearly underwritten by Parliament; it is embedded in legislation and cannot be removed. I hope the hon. Lady will pass that message on to her constituents.

[Richard Fuller (Bedford) (Con)]

May I commend the Secretary of State for this most welcome announcement? The people in my constituency who will be most concerned about it will be the postal workers. Will he spend a moment reassuring them about their future in a privatised Royal Mail? In particular, what does he anticipate the additional capital that a private Royal Mail will be able to take on will do for them and their jobs?

[Vince Cable]

As I explained, Royal Mail has offered a three-year deal to the workers which they are still considering. It is relatively generous in respect of pay—considerably in excess of the public sector norm. They are being given assurances on the nature of work and the absence of any further outsourcing. They will benefit under these proposals from the appreciation of the shares they receive free of charge. I would have thought that if I were a Royal Mail worker thinking of my individual situation, I would think this a very good deal.

Budget Resolutions and Economic Situation

Debate between Vince Cable and Richard Fuller

Thursday 21st March 2013 Commons Chamber

[Vince Cable]

A CCS competition is taking place. As the Chancellor pointed out in his Budget, there is a recognition of the problems of energy-intensive industries in the north-east, Scunthorpe and south Wales. They will be given an extra year of support as a result of yesterday’s announcement.

[Richard Fuller]

I commend my right hon. Friend’s comments on exports—I have seen for myself UK exports to the Nigerian market. Does he agree that getting traditionally reluctant small and medium-sized business to export is key? Does he also agree that the employment allowance will enable some of our small businesses to take on those additional employees to attack those new markets?

[Vince Cable]

The hon. Gentleman is right on both counts. I was recently in Nigeria supporting that effort. If we are to have momentum, it must come through small and medium-sized companies. Frankly, the export effort in many emerging markets was neglected for most of the past decade—the relationships are not there and must be built up. He is also right that the employment allowance, which will help 400,000 micro-companies, is a big step forward and a big incentive to them to take on that extra member of staff.

In my concluding section, I shall address some of the big strategic choices made in the Budget. We can argue about temporary changes, but it is important that the country has a sense of direction. First, the industrial strategy gives a sense of direction; secondly, the changes in money and banking policy are fundamental after the crisis; and thirdly, the tax agenda creates a greater level of fairness.

On the industrial strategy, I was teased earlier about the “compelling vision” for the British economy, but we clearly need a vision of the economy that goes beyond one Parliament and Government, and that stretches decades ahead. That is why we have made the commitment to long-term planning and working in partnership with business in those sectors of the economy that need such a framework. We have produced agreements with the aerospace industry, and will do so with the automotive and biological sciences industries, and with the supply chains in renewable and non-renewable energy, which were desperately hollowed out in the years when manufacturing was neglected under the previous Government. We are trying to rebuild those supply chains.

A Back-Bench colleague made the point that we have an extra 70,000 jobs in manufacturing after 1 million were lost in the decade of the Labour Government. Of course, the industrial strategy is not just about manufacturing; it is about key service sectors such as education and higher education, and professional and financial services, which are equally important in driving exports.

Industrial Strategy

Debate between Vince Cable and Richard Fuller

Monday 10th September 2012 Commons Chamber

[Vince Cable]

I certainly like to think I am a voice of progressive opinion. We are dealing with changes in the tribunal system that will help small-scale companies to deal with some of the issues they have. But as I pointed out to the House the other day, the specific proposal of no-fault dismissal is not something we are proceeding with.

[Richard Fuller (Bedford) (Con)]

With the Government accounting for 50% of the economy, I am sure the Secretary of State will agree that industrial strategy should be based not on more borrowing for more government, but on more encouragement for more entrepreneurs. Will his Department therefore look at the local enterprise funds initiative, which has the potential to galvanise people who can invest in businesses in their local community to do so, and which more than 83 Members of Parliament have already expressed an interest in setting up in their local communities?

[Vince Cable]

That is an extremely good suggestion and I am very happy to talk to the hon. Gentleman in more detail about how he sees this happening. Of course, we have the local enterprise partnerships—perhaps they have a key role in making that happen. However, his premise is correct: it is entrepreneurs in the private sector who will drive recovery, and they are fundamental to the industrial strategy.

Directors’ Pay

Debate between Vince Cable and Richard Fuller

Wednesday 20th June 2012 Commons Chamber

[Vince Cable]

Guidance will be issued, particularly on what needs to be disclosed and how the legislation will be implemented. The starting point of the hon. Gentleman’s question is absolutely right. To make it clear, we have no objection to people being very well rewarded if their companies perform well. We want to see rewards for success.

[Richard Fuller (Bedford) (Con)]

I draw the House’s attention to my entry in the register of interests as a non-executive director of an alternative investment market-listed company. The Secretary of State is absolutely right to focus on the long-term perspective of compensation and to opt for a three-year, rather than a one-year, binding vote. Will he also emphasise another point about company performance? Often, the issue is relative company performance. When times are good, it is good for a chief executive officer to reflect, particularly in their equity performance, that their company is doing well, because all companies are doing well. I think, however, that the Secretary of State’s aim is that the best companies, doing comparatively well, should be better rewarded. Will he comment on that?

[Vince Cable]

That is a helpful point that is emerging from the study on long-termism, the analysis of which shows clearly that people’s overriding motivation in respect of remuneration changes with relative performance, but what actually matters is absolute performance.

Enterprise and Regulatory Reform Bill

Debate between Vince Cable and Richard Fuller

Monday 11th June 2012 Commons Chamber

[Vince Cable]

My hon. Friend makes the point in a fair and balanced way, and he defines exactly what we are trying to achieve.

[Richard Fuller (Bedford) (Con)]

I am grateful to my right hon. Friend for saying that he will have no truck with compensated no-fault dismissal, but with many businesses, through the Institute of Directors and the Federation of Small Businesses, making the case for compensated no-fault dismissal, what representations has he had on that? Why has he been so strenuous in saying that he will have no truck with it?

[Vince Cable]

I am happy to go back and look at the correspondence, but the Federation of Small Businesses, as well as the Engineering Employers Federation, made it absolutely clear that they did not think that was a sensible approach for business.

Office for Fair Access

Debate between Vince Cable and Richard Fuller

Monday 20th February 2012 Commons Chamber

[Vince Cable]

The one aspect of the so-called campaign of vilification that does concern me is that slights have been cast on the reputation of Professor Ebdon’s university, which is in fact excellent. Here are some of the key facts: 90% of the university’s graduates are engaged in work or further study within six months; last year it was given one of the Queen’s Awards for Enterprise; it was given top quality assurance in the most recent audit; and, in the most recent research assessment exercise, it was complimented on its world-class research. Those are the things that we should remember about Professor Ebdon’s achievements in his existing university.

[Richard Fuller (Bedford) (Con)]

Six months ago, it was my pleasure to present Professor Ebdon with a lifetime achievement award. I think that some of my hon. Friends may have wished that that had been the end of his career.

Is it not true that Professor Ebdon has brought analytical rigour to all the tasks that he has undertaken, that he has over 40 years of experience in the sector, and that if we continue to heap public opprobrium on people who step forward to serve their country—as was the case with Stephen Hester, and as has been the case with Professor Ebdon in the press—fewer people will step forward to give our country that help?

[Vince Cable]

I consider that to be a very fair and generous assessment of Professor Ebdon by, I believe, the local Member of Parliament.

Oral Answers to Questions

Debate between Vince Cable and Richard Fuller

Thursday 2nd February 2012 Commons Chamber

[Richard Fuller (Bedford) (Con)]

With no pressure from the Secretary of State for a cut in the jobs tax, no meaningful roll-back of job-destroying red tape, no pressure from him for a cut in enterprise-sapping tax rates and his lauding as a good example the pillorying of people for fulfilling their Government contract, can he advise me of what he is doing to encourage enterprise rather than to discourage it?

[Vince Cable]

I think my ministerial team have given an extremely good account of the many things that we are doing in that area, starting with an extraordinary cut in the amount of red tape, which I think is the issue that most concerns my hon. Friend.

Local Growth White Paper

Debate between Vince Cable and Richard Fuller

Thursday 28th October 2010 Commons Chamber

[Vince Cable]

I think I answered that in my statement. In areas that really matter to business, such as the availability of trained manpower, there will be, as the hon. Gentleman will remember from the outcome of the comprehensive spending review, an increased number of apprenticeships and increased commitment to innovation centres, for example. Those are the things that really matter.

[Richard Fuller (Bedford) (Con)]

My right hon. Friend will be aware of the enthusiasm in Bedfordshire for the proposed south-east midlands local enterprise partnership and the hard work of the Liberal Democrat mayor of Bedford for that initiative. Does my right hon. Friend agree that the response to the cry of “No funding” from Opposition Members is that the real cry here is, “No more central diktat on local growth and local funding”?

[Vince Cable]

My hon. Friend makes exactly the right point. This was a good example of cross-party working and it is about decentralisation and local decision making, rather than centrally driven decisions.