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Parliamentary Debates (Hansard) Thursday Volume 579 10 April 2014 No. 152 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Thursday 10 April 2014 £5·00 © Parliamentary Copyright House of Commons 2014 This publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 395 10 APRIL 2014 396 Vince Cable: The hon. Gentleman’s constituency is a House of Commons good example of what is happening in the labour market. The claimant count is down to about 2.5%, which is much lower than it was when we took office. Many Thursday 10 April 2014 engineering companies are short of labour and wages are going up. We have been through a difficult period, but one of the success stories is that employment has The House met at half-past Nine o’clock massively increased—465,000 during the last year. His constituency is a very good example of the policies working. PRAYERS Mr David Nuttall (Bury North) (Con): Does the Secretary of State agree that retailers would find it [MR SPEAKER in the Chair] easier to pay higher wages if they were allowed to open all day on Sunday? Oral Answers to Questions Vince Cable: I suspect that it would make relatively little difference. We had a modest experiment at the time of the Olympics. The results did not show a great deal of real economic consequences, but we are always open to new evidence. BUSINESS, INNOVATION AND SKILLS Andrew George (St Ives) (LD): Provided that it does The Secretary of State was asked— not undermine fair trade or UK competitiveness, a significant increase in the minimum wage would clearly Living Wage be both desirable and the right thing to do. But will my right hon. Friend look particularly at the care sector, 1. Heidi Alexander (Lewisham East) (Lab): What where I fear there is a race to the bottom as a result of steps the Government are taking to encourage firms to there simply being a floor where the minimum wage has pay a living wage. [903648] been set? 5. Chris Williamson (Derby North) (Lab): What steps Vince Cable: I remind my hon. Friend that, based on the Government are taking to encourage firms to pay a the recommendations of the Low Pay Commission, the living wage. [903653] Government announced recently the biggest increase in cash terms since the financial crisis—a 3% increase, The Secretary of State for Business, Innovation and which is an increase in real terms. I suspect that with the Skills (Vince Cable): The Government support a living central problem in the care sector, which is with domiciliary wage and encourage businesses to pay it when it is care workers whose travel times are not properly counted, affordable and not at the expense of jobs. We recognise we are dealing with an abuse of the minimum wage that these have been challenging times and we applaud system, and it needs to be pursued in that context. companies that have chosen to pay higher wages. Mike Kane (Wythenshawe and Sale East) (Lab): A Heidi Alexander: The UK’s largest supermarkets, Tesco, KPMG study found that the introduction of a living Sainsbury’s, Asda and Morrisons, together make billions wage increased productivity and reduced sickness of pounds in profits every year, but they still do not pay absenteeism and staff turnover. In fact, its introduction all their staff a living wage. Will the Secretary of State was cost-neutral for all these firms. As it makes such a look at amending the corporate governance code to good business case, why are the vast bulk of local require all publicly listed companies to report annually authorities that have introduced a living wage Labour the number of individuals they employ who earn less ones? than a living wage? Vince Cable: The process that the hon. Gentleman Vince Cable: That is an interesting suggestion for described is the right one: if it is good business practice, nudging companies in the right direction, and I will good businesses will follow it and out-compete their certainly have a look at it. I am certainly very opposed competitors, and I hope that that is what will happen. to coercive measures because those would simply add to unemployment, but I will reflect on that suggestion, Student Loans which is a new one. Chris Williamson: I am pleased that the Secretary of 2. Paul Blomfield (Sheffield Central) (Lab): What State says that he supports the living wage, but as he will recent estimate he has made of the resource accounting know, and as my hon. Friend the Member for Lewisham and budgeting charge on student loans. [903649] East (Heidi Alexander) has already pointed out, of the 4.8 million people who are paid less than the living The Minister for Universities and Science (Mr David wage, many work for multinational, highly profitable Willetts): We currently estimate the RAB charge to be companies. What specific steps is he taking to encourage around 45%. The estimate changes frequently in the those highly profitable companies to pay the living light of new economic forecasts and will continue to wage? The people deserve to know that. change. 397 Oral Answers10 APRIL 2014 Oral Answers 398 Paul Blomfield: Back in the days when the Minister and 2011, when an excellent Liberal Democrat council was confidently predicting that the RAB charge would was laying the foundations for the bid for Siemens that not rise above 32%, writing in The Independent in October is now happily realised. 2012, he described a RAB charge of 38% as the worst outcome for the taxpayer. How does he describe a RAB Miss Anne McIntosh (Thirsk and Malton) (Con): charge of 45%? May I praise the Government for the role of agri-tech funds in rebalancing the economy in the north? One of Mr Willetts: What we have achieved with our higher the issues holding back growth in the north is badly education reforms is significant savings to the taxpayer congested and unsafe roads such as the A64. Will my and extra income going to our universities. That is the right hon. Friend use funds from his Department, working right combination. with the LEP, to improve the A64? Mr Liam Byrne (Birmingham, Hodge Hill) (Lab): Vince Cable: One of the joys of the new pots of The whole House will want to join me in congratulating funding that are available for local enterprise partnerships Toni Pearce on her re-election as president of the National is that LEPs can decide for themselves what their priorities Union of Students. Figures this morning from the are. I am aware, because I grew up in the region, that Sutton Trust and the Institute for Fiscal Studies show there are serious infrastructure bottlenecks, and I am that Toni’s generation will now be paying off their sure that that will be high in its priorities. student loans into their 50s. Will the Minister get to the Dispatch Box and confess that this student debt system Mr Nigel Dodds (Belfast North) (DUP): The Secretary is now not only unsustainable, but unfair? Does the of State and the whole House will no doubt welcome Conservative party have any plans to raise the £9,000 this morning’s excellent news that 1,000 new jobs have fee in the next Parliament? been created in Belfast by US software company Concentrix. That is very good news in terms of rebalancing the Mr Willetts: Let us be absolutely clear what today’s economy. Will he continue to work with the Northern IFS report shows. It shows that people on lower earnings Ireland Executive on matters such as corporation tax to throughout their working lives are going to pay back ensure that the number of private sector jobs continues less. That is a deliberate feature of our reforms which to grow in the Province? means that they are fairer and more progressive than the system we inherited from the Labour Government. Vince Cable: The Northern Ireland Executive is doing Meanwhile, people who earn a lot during their working an excellent job in attracting inward investment. I have lives as a result of going to university will pay back been to see some of these high-tech companies. The more. That is what we intended with these reforms, and Titanic quarter is a good example of the growth that is that is what the IFS shows we are delivering. taking place. I am delighted to hear the news that the right hon. Gentleman has announced. We are certainly Economy (Rebalancing) happy to continue to work with the Executive. 3. Diana Johnson (Kingston upon Hull North) (Lab): Mr Philip Hollobone (Kettering) (Con): My constituents What progress he has made on rebalancing the economy in Kettering were very worried when told by the Opposition across the UK. [903650] that 1 million jobs would be lost in this country as a The Secretary of State for Business, Innovation and result of the Government’s attempt to rebalance the Skills (Vince Cable): The regional growth fund plays a economy. Does the Secretary of State therefore share key rote in stimulating private investment and employment my delight in the latest figures from HM Treasury in areas dependent on the public sector. Today, my right showing that since 2010 an extra 4,800 jobs have been hon. Friend the Deputy Prime Minister has announced created in Kettering—a massive 11% increase? 50 further projects and programmes that have been awarded regional growth fund support in round 5. Vince Cable: My hon. Friend describes a trend that is Together they will share £300 million of RGF support apparent across the country.
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