Oral Answers to Questions

Debate between Vince Cable and Tony Baldry

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.

Royal Mail

Debate between Vince Cable and Tony Baldry

Tuesday 1st April 2014 Commons Chamber

[Vince Cable]

Most of the Communication Workers Union members I meet acknowledge the considerable value of the shareholdings that they now have—they own the company.

[Sir Tony Baldry (Banbury) (Con)]

Not even Michael Heseltine at the zenith of his ministerial powers and capacity felt that he would be able successfully to privatise Royal Mail. Are not ministerial colleagues much to be congratulated on having privatised Royal Mail so successfully? Does my right hon. Friend agree that it does not lie in the mouths of those who left this country with an eye-watering public deficit to talk about concern for the taxpayer’s interests?

[Vince Cable]

The right hon. Gentleman’s initial remarks are apposite. Successive Governments have tried to privatise the Royal Mail for a long period. I would understand it if the Opposition had taken a principled stand on public ownership, but they have not. Indeed, I inherited a failed privatisation from the Labour Government and we made a success of it.

Oral Answers to Questions

Debate between Vince Cable and Tony Baldry

Thursday 23rd January 2014 Commons Chamber

[Sir Tony Baldry (Banbury) (Con)]

15. What his policy is on the national minimum wage.

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

Our aim is to maximise the wages of the low paid without damaging their employment prospects. We fully support the work of the independent Low Pay Commission in framing the pay rate recommendations for 2014. I have also asked it to consider the conditions that would be needed for faster, above inflation, increases in the national minimum wage.

[Vince Cable]

Yes, of course we are conscious of the extra cost that would fall on business. That is why the Low Pay Commission tries to make a balanced judgment between the impact on employment and the increase in earnings for workers. It must be left to make its judgments and its independence must be respected. On the tax implications, given that the Chancellor is now heavily involved in this proposal and supportive of it, I am sure that he will be helpful on that front as well.

[Sir Tony Baldry]

Some 14 million people are on the minimum wage, most of whom work in retail, hospitality or cleaning. They earn just over £12,000 a year and are hard-working people. It is rightly the ambition of the coalition to make work pay more than benefit. Does my right hon. Friend imagine that anyone thinks that an above-inflation increase in the minimum wage would not pay for itself and should not be available to help those who are working hard?

[Vince Cable]

My right hon. Friend reflects the thinking that framed the advice I gave to the Low Pay Commission. Indeed, such thinking is not merely attractive in that it gives an incentive for people to work and improve their earnings, but it has positive implications for public finances.

Royal Mail

Debate between Vince Cable and Tony Baldry

Wednesday 10th July 2013 Commons Chamber

[Vince Cable]

There is a long and complex debate about how water companies are operated. Of course, they have extremely high gearing because of the nature of their business and do not require anything like the same level of equity. We have a model that combines the best use of equity markets and the level of debt that the company will need to finance its future investment.

[Sir Tony Baldry (Banbury) (Con)]

Does my right hon. Friend agree that, although Royal Mail’s financial position has improved, it still lags considerably far behind international competitors such as Deutsche Post, Belgian Post and Austrian Post? Is not the simple fact that Royal Mail, as part of the public sector, has its hands tied in a way that its international competitors do not?

[Vince Cable]

Yes, it is tied because of the limitations on borrowing possibilities and what many people perceive to be the potential for political intervention. The companies that the hon. Gentleman mentioned—in Austria, Belgium and Germany—all of which are privatised, are indeed highly profitable, and they also invest heavily. They are making deep inroads into the international logistics market and it is time Royal Mail was competing successfully with them.

Oral Answers to Questions

Debate between Vince Cable and Tony Baldry

Thursday 8th November 2012 Commons Chamber

[Vince Cable]

I share the hon. Gentleman’s frustration that supply chains in that sector are not as well developed as they should be, not just in respect of the components, but also of the steel that contributes to the masts. That is why the Secretary of State for Energy and Climate Change and I are bringing together the renewables supply chain to develop the capacity that the hon. Gentleman wishes to see.

[Sir Tony Baldry (Banbury) (Con)]

Does my right hon. Friend agree that there is considerable potential for new, green manufacturing jobs in new housing systems? In Bicester, which has an eco-town project and aspires to become a new garden city, we are keen to have a green-collar cluster of companies manufacturing new housing systems.

[Vince Cable]

That is a very constructive suggestion. To put it in a wider context, there are already something in the order of 1 million green economy jobs, which is about 8% of our economy. The construction sector is potentially an important and big component of that, and I would be happy to talk to and work with the hon. Gentleman to encourage it.

Oral Answers to Questions

Debate between Vince Cable and Tony Baldry

Thursday 2nd February 2012 Commons Chamber

[Vince Cable]

Those were certainly not the allegations Rio Tinto Alcan made to me when I met representatives of the company. They made it clear that this was part of a global downsizing of their operations and that many countries are affected by it. I have visited the site and met the hon. Gentleman to discuss this. We are concerned about the future of the labour force, and we sought to help the company through the support for energy-intensive industries. Now that the company has decided to go ahead with closure, we will see what we can do to help the people in the area.

[Tony Baldry (Banbury) (Con)]

T7. What can the Department for Business, Innovation and Skills do to support the more than 1,500 community-led work clubs across the country to help young adults to recognise the apprenticeship opportunities that exist, ensure that further education colleges can provide training opportunities for those out of work, and link in the national careers service?

Higher Education and Student Finance

Debate between Vince Cable and Tony Baldry

Tuesday 12th October 2010 Commons Chamber

[Vince Cable]

I know that the hon. Lady is highly economically literate, going back over her history, but I think that on this particular issue, she has not read the report or perhaps not followed it closely enough.

The proposal for real interest rates applies only above the £21,000 threshold. Some numbers were published on the front page of The Guardian this morning that probably gave rise to the conclusion that the hon. Lady has drawn. Those figures are wrong, and the Institute for Fiscal Studies, which was quoted, has disowned them. It is clear from the analysis that the structure is progressive, but not in the way that she described.

[Tony Baldry (Banbury) (Con)]

For many mature students, the most cost-effective way to pursue a university degree is to do so as close as possible to their own home. Will my right hon. Friend encourage universities to collaborate much more closely with the further education sector to use FE campuses to help them deliver higher education degrees?

[Vince Cable]

That is a helpful intervention, and I completely agree. We certainly wish to see the university sector evolve in that direction more flexibly, providing more genuine choice, including two-year degrees, and portable qualifications between universities. The model that the hon. Gentleman described is very much the model of the future. I used to teach in a Scottish university where that was the norm, and that is a form of good practice that we could adopt here.