Economy: Manufacturing
Debate between Viscount Younger of Leckie and Baroness Wall of New Barnet
Viscount Younger of Leckie
We have placed a legal requirement on schools to secure independent careers guidance, including information on apprenticeships, and we are successfully increasing the numbers of apprentices in the engineering and manufacturing technology sector subject area. In 2012-13, there were 138,700 such apprentices, an increase of 10.3% on 2011-12, and we have opened 17 university technical colleges, with a further 33 in development.
Baroness Wall of New Barnet (Lab)
My Lords, is the noble Viscount aware of the recent Jaguar Land Rover publication which talks about busting the myths? This company—along with Semta and EAL, which the noble Baroness mentioned—is doing a magnificent job with apprenticeships. However, it is perhaps a little unfair to suggest that all this started with this Government. Jaguar Land Rover now has seven plants in the UK, four of which were opened, with R&D and apprenticeships, way back in 2004. The Government are to be applauded for carrying on what was already in place. Over that period apprenticeships have grown, on which I congratulate them.
Viscount Younger of Leckie
My Lords, I would not disagree with the noble Baroness but I would echo her thoughts that Jaguar Land Rover has done a magnificent job in leading our exports into new markets abroad. This is on top of the excellent news about Bombardier in the Midlands, a decision which gives a new vote of confidence in British manufacturing and which supports 760 manufacturing jobs and 80 apprenticeships in the UK.
Living Wage
Debate between Viscount Younger of Leckie and Baroness Wall of New Barnet
Viscount Younger of Leckie
My noble friend has made some strong and passionate points and I agree with the gist. However, I should say that our key policy is to support the low-paid through the national minimum wage. It is set at a level that helps as many low-paid workers as possible, but without damaging their employment prospects. My right honourable friend Vince Cable has asked the Low Pay Commission to look at what economic conditions would be needed to allow the national minimum wage to rise in the future by more than current conditions allow, without having an adverse impact on jobs.
Baroness Wall of New Barnet (Lab)
My Lords, I am sure that the noble Viscount is aware of the benefits that the living wage have already demonstrated. He referred specifically to SMEs in his response. I advise him that many SMEs, particularly those in the engineering and technical sectors, already pay well above the minimum wage. They feel that it is the right way forward because they benefit from the commitment of their employees.
Viscount Younger of Leckie
The noble Baroness makes a good point. Unlike the national minimum wage, which aims to maximise support for the low-paid without damaging their employment prospects, the living wage is derived from an assessment of households’ living standards. Although that is important, it focuses on household expenditure rather than the income and affordability of companies.