Amendment of the Law

Debate between Vince Cable and Stephen Timms

Thursday 20th March 2014 Commons Chamber

[Vince Cable]

The hon. Gentleman’s analysis is spot on. Of course that is what has happened. We have managed to avoid mass unemployment, but the average productivity level has fallen. If we are to grow, and if living standards are to grow—that seems to be the focus of the debate—productivity must rise, which prompts the question of how we do it. We are currently doing it in an environment that is severely constrained. We must remember—and I think that the shadow Chancellor often forgets this—that one of the massive legacies of the crisis was the structural deficit. A deficit of that kind does not go away when growth increases; it is there, it is structural, and it will have to be dealt with. The structural deficit, defined as we defined it when we formed the coalition, has fallen from about 5.4% of GDP to 2.7%. We are nearly halfway, but we have to continue the job, and the next Government will have to continue the job. In that context, we must proceed with an agenda of raising productivity and growth.

[Stephen Timms (East Ham) (Lab)]

Does the Secretary of State acknowledge that a particularly serious problem is long-term unemployment among both young and older people, which, according to the figures released yesterday, has increased? Does not more need to be done to tackle that problem?

[Vince Cable]

It does, but the figures produced over the last year suggest that long-term unemployment is falling, along with unemployment in general.

Job Insecurity

Debate between Vince Cable and Stephen Timms

Wednesday 5th February 2014 Commons Chamber

[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.

[Stephen Timms (East Ham) (Lab)]

It is not an historic concern. The number of people who are working part time because they cannot find full-time work is still more than 1.4 million. It has never been that high before. It is a current problem, which the Secretary of State should be concerned about.

[Vince Cable]

It is a current problem, but it is a declining problem. The trend over the past year is striking: the new jobs being created are full-time jobs and part-time employment is declining. Of course, there are a lot of people who took part-time employment under very difficult conditions who now want full-time work. If the recovery is sustained, as it must be, then this problem will resolve itself, but I accept that there are a lot of people in unsatisfactory employment situations.

--- Later in debate ---

[Vince Cable]

I am surprised at that. I am not an expert on employment law, but I thought that protection from dismissal for trade union activities was a fully protected employment right. If the story is as has just been described, I would have thought the person concerned would have a good case to support his job.

Let me deal with the areas where the Opposition spokesperson was critical. He referred to the fact that we have quite deliberately tried to reduce the scope of employment tribunals, both by extending the qualifying period from one to two years and through the fee system, albeit with remission in respect of people on low incomes, as I think he would acknowledge. That was done for a specific reason. We are trying to ensure that difficult cases are moved from a legal, court framework to a framework of conciliation through ACAS. Lest anyone imagine that ACAS is some right-wing, business-friendly organisation that is against employees, let me point out—I do not know whether this has been picked up by the Opposition—that I recently appointed Brendan Barber as its head, so those whose employment disputes are referred to it can be pretty confident that they will be dealt with properly. It is surely right and sensible for small and medium-sized companies in particular not to tie up a lot of time and money in litigious processes when their disputes can be dealt with much better through conciliation.

The motion also refers to the dilution, as it has been described, of health and safety standards, although the hon. Member for Streatham did not refer to that in his speech. I do not know whether he has read the Löfstedt report, but it makes the position very clear. Essentially, what we have suggested is that where there is high-risk employment—and there is a great deal of it in agriculture, construction and manufacturing—the inspection regime should remain intact, but where there is found to be a low risk and that finding is evidence-based, the level of inspections should be reduced. No attempt is being made to undermine the safety regime applying to dangerous occupations.

It is worth bearing it in mind that, under the present Government, as under the last, British safety records are exemplary. According to our most recent survey, there were 148 fatalities last year. That is 148 too many, but the figure is comparable to the figure for the best previous year, 2009-2010, and significantly better than the figures in any other previous years. It means that we have a better health and safety record than almost any other country, including Germany, and that we are three times safer than France. Members should try to remember that important context before making throwaway references to diluting health and safety.

[Stephen Timms]

This is not a throwaway reference. I wonder whether the Secretary of State has seen the interview with Professor Löfstedt, whom he mentioned earlier. In that interview, which was published last month, the professor mentioned some of the steps the Government have taken on, for example, civil liability. He said:

“It’s very unfortunate; it’s more or less ideology. I have been trying to promote evidence based policy making and this does not help”.

That is what Professor Löfstedt is now saying about what the Government are doing.

[Vince Cable]

My impression is that the policy we have been pursuing is very much evidence-based, and the examples I have given on inspections are in precisely that category. However, my colleagues from the Department for Work and Pensions know much more about this aspect of the subject than I do, and no doubt they will respond to the right hon. Gentleman’s point.

Finally, let me deal with the one issue on which the hon. Member for Streatham spent quite a lot of time and with which he had a certain amount of fun. I refer to the “shares for rights” scheme. Of course, it is possible to develop a critique of that scheme, but what I find amusing is that at least three totally separate and conflicting arguments have been advanced against it. The first is that downtrodden workers will be stripped of their employment rights. When the scheme was being dealt with in Parliament, we tried to ensure that it would be entirely voluntary, and indeed we responded to proposals from the Opposition in order to entrench that.

Another line of criticism has nothing to do with downtrodden workers, but is all about highly paid executives carrying out a tax scam. That may be true. However, a third criticism—which we heard from Back Benchers and which is, at least currently, supported by the facts—was that neither of those things are happening, because not many people are taking up the scheme. If the Opposition are going to launch a full-frontal attack on the proposals, they should work out which of those three arguments they believe in.

Oral Answers to Questions

Debate between Vince Cable and Stephen Timms

Thursday 5th December 2013 Commons Chamber

[Vince Cable]

The hon. Gentleman seems to have forgotten that Britain has by far the largest offshore wind industry in the world, and under the guarantees that we gave yesterday it now has the incentive to expand—and will do so, both onshore through the supply chain and offshore in the wind farms.

[Stephen Timms (East Ham) (Lab)]

11. What progress he has made in setting up a business bank operating regionally and locally.

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

The British business bank is being established to increase the supply of capital to smaller businesses throughout the UK, resulting in increased competition in the banking sector from alternative lenders, such as peer-to-peer lenders and challenger banks. It is being established with £1 billion of new capital, with another £250 million announced on Monday for new small business programmes.

[Stephen Timms]

The Secretary of State will know that Bank of England figures show that small business lending fell by £1.5 billion over the past quarter. Can he reassure us that this new institution will be more than simply rebranding the previous schemes that have proved so unsuccessful?

Oral Answers to Questions

Debate between Vince Cable and Stephen Timms

Thursday 13th January 2011 Commons Chamber

[Vince Cable]

When I was in opposition I spent quite a lot of political energy arguing against a 50p tax rate. However, in the present context we have to understand that the burdens of the very difficult period through which we are passing have to be shared fairly, and that is why the tax remains in place.

[Stephen Timms (East Ham) (Lab)]

What assessment has the Department made of the impact on competitiveness, particularly in rural areas, of the delay, from 2012 to 2015, in the target date for a universal broadband service?

[Vince Cable]

I think that that is a question that the right hon. Gentleman may now wish to direct to my colleagues in the Department for Culture, Media and Sport.