Industrial Strategy

Justin Madders Excerpts

Monday 27th November 2017 Commons Chamber

[Greg Clark]

My hon. Friend makes an important point. The purpose of the strategy is not just to inform the decisions taken by Government Departments—although it is important that they should be consistent with it—but to give confidence to investors so that they can predict the direction of policy. We have seen that today in the life sciences sector. It is important that the strategy is kept refreshed and up to date, and one of the proposals in the paper is to establish an industrial strategy council, which will be an independent body that can report to the House and others on progress and ensure that we are agile enough to keep up with developments in technology.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

As the Secretary of State knows, the Vauxhall car plant in my constituency is facing a huge challenge for its survival, so the focus on the supply chain in the automotive sector, on page 202 of the strategy, is to be welcomed. In order to be a success, however, we will need more than good intentions. Will he tell us what financial incentives will be available to encourage suppliers to relocate to the UK?

[Greg Clark]

Part of the sector deal with the automotive sector will do precisely what the hon. Gentleman suggests—that is, look at the supply chain and create opportunities, backed by the industry and the Government working together, to make it easier for suppliers, including small suppliers, to locate in this country. He is bang on the money: that is what was proposed by the sector and it has been agreed in the sector deal. That shows the value of this strategic approach, with the Government and the sector working together to address some of the known opportunities.

Vauxhall (Redundancies)

Justin Madders Excerpts

Monday 16th October 2017 Commons Chamber

[Justin Madders (Ellesmere Port and Neston) (Lab)]

(Urgent Question): To ask the Secretary of State for Business, Energy and Industrial Strategy if he will make a statement on the announcement by Vauxhall to move staff in Ellesmere Port from two production shifts to one in early 2018, resulting in 400 redundancies in the next few months.

[The Minister for Climate Change and Industry (Claire Perry)]

Just over 53 years ago, the first Vauxhall Viva rolled off the production line at Ellesmere Port. Since then, seven generations of Astra have been built at the port. Most recently, the plant secured the contract for the mark 7, primarily based on the productivity and co-operation of the local workforce. That is why it is particularly disappointing to hear that Vauxhall is considering voluntary redundancies of up to 400 staff at the Ellesmere Port plant.

As we said last week, this is a concerning time for families, particularly in the run-up to Christmas. I assure the hon. Gentleman and other right hon. and hon. Members that, once again, the Government are standing by to do all we can to support those affected. The Department for Business, Energy and Industrial Strategy is continuing to speak with the company, the unions and the wider supply chain and the Department for Work and Pensions is standing by to provide advice and support to those affected.

I will address three points. First, I will set out what is actually happening to try to reassure people who may be affected by the announcement today. Secondly, I will give some background to what I understand are the reasons for it happening. Thirdly, I will put the announcement in the broader context of the automotive industry.

Today, I have spoken to the head and deputy head of Cheshire West and Chester Council, the chief executive of the local enterprise partnership, the general secretary of Unite the union and the chief executive of Vauxhall UK. The consensus view is that this is due to a downturn in the sale cycle, particularly that of the Astra model, and the company is working through questions about the plant’s overall competitiveness.

I am told that workers at the plant have been informed. The statutory consultation period will now take place and no final decisions will or should be taken until it has been completed. The company is hopeful that reductions can be managed on a voluntary basis, and we will continue to work closely with it on its planning.

I was pleased to hear today from the leader and deputy leader of the local council that a redundancy action support plan, which has been used before, will be put in place and will involve the LEP, the council and the Department for Work and Pensions all working together. Given that many of the people working in the plant travel across the border from Wales to their jobs every day, it is particularly important to note that the Welsh Government have been involved and stand by, ready to support any activities.

Given how many skilled workers may be affected by the announcement, we are particularly keen, as we discussed last week, to ensure that those skills are not lost to the industry. I have asked that the Government’s talent retention scheme be deployed, if appropriate, and both the company and Unite the union have agreed that that would be helpful and will agree to work with us. As I have said, I understand that this is a particularly troubling time and we are all absolutely concerned to minimise worries, particularly in the run-up to Christmas.

As I have said, I am told that this is happening because the C-segment class, in which the Astra vehicles sit, is not selling brilliantly across Europe and, in particular, the sales forecast for that model has not been as desired. Therefore, a decision has been taken to maintain the competitive position of the plant, and that announcement is being made today. The Secretary of State and I have consulted the company extensively on its future plans, both for the plant in Elsmere Port, particularly given its long and illustrious history, and for the company and its footprint in the UK.

That brings me to my third point about the broader context. As we have seen with many other companies, the technology in the auto sector is pivoting away from the traditional models, towards electric, potentially connected and autonomous vehicles. We are doing all we can to support manufacturers in that shift, and to position the UK as the leading place for those decisions and investments to be taken.

We have already delivered more than £500 million of public and private money through the Advanced Propulsion Centre. We will spend £1.25 billion of Government investment over the next five years to support that. The Faraday challenge is particularly important—we have invited all operators to contribute to it—and will help us ensure that we are the leaders in developing the electric battery technology of the future.

Of course, the auto industry has been an incredible success story. Thanks to the workers in the plants, we now have the highest productivity levels in Europe and sales of cars made in the UK are up 70% since 2009. It is a huge success story and we have generated many exports.

All of us in this House should think really hard about the message we are sending to those looking to invest in this industry in the UK—[Interruption]—and back the fact that we have highly productive plants and highly skilled workforces. Regardless of the changes that may happen in this sector, this is the place for auto companies to invest in the future. Perhaps Members who want to chunter otherwise should think about the messages we are sending to those investors.

Another important point—

--- Later in debate ---

[Mr Speaker]

No, the hon. Lady has finished for now. We will hear from her again, probably before very long, but what I am trying gently to say to her is that was taking too long. I call Rebecca Pow—[Interruption.] Order. It is so long since the start of the ministerial reply that I had forgotten that we have not yet heard from the hon. Member for Ellesmere Port and Neston (Justin Madders). We shall hear from him first.

[Justin Madders]

Thank you, Mr Speaker, and I thank the Minister for her response.

This is deeply concerning news for those at the plant and for the automotive sector more widely. It will have a significant impact on the local economy. What action can the Minister take to ensure that there are no compulsory redundancies? As she said, the consensus is that the reason for this decision is changing consumer trends, but PSA has also given a very clear warning about the future. Nature abhors a vacuum, as does business. Industry is crying out for the clarity that it needs to invest in the future of this country, but all it sees coming out of Westminster is the squabbling, plotting and manoeuvring of Ministers in a Government completely paralysed by their own self-indulgent activities. If this news tells us anything, it is that business will not wait around while Ministers argue among themselves. I should make it clear that I do not include the Minister as one of those concerned more with their own future than with the country’s, but I ask her to say to her colleagues that the posturing and prevarication has to stop.

It has been made repeatedly clear that without clarity on future trading arrangements, the UK car industry remains vulnerable. What assurances can the Minister give to my constituents that their future matters to all in the Government? The plant union, Unite, has shown that it can work positively with management, but it cannot do it on its own. It needs backing across the board from the Government, and support in the Budget that is approaching. I hope that the Minister will confirm that she is making a very strong case to the Treasury for a much greater level of support in terms of reducing plant costs and expanding the local supply chain. To that end, will she seek to meet those at the highest level of PSA and other stakeholders, including trade unions and local MPs, so that we can discuss how this support can be delivered as an urgent priority?

These are not just my constituents; they are my friends and neighbours. When I go back home, I want to tell them that Parliament is united and determined to give them all the backing required, so that the redundancies announced today are the last.

[Mr Speaker]

That was commendably within time, and a good example to other colleagues on both sides of the House.

--- Later in debate ---

[Claire Perry]

I commend my hon. Friend for his experience. Again, there are frequent, regular and detailed calls about the company’s long-term strategy with regard to the UK and investment in this highly successful and very productive plant and in the people who work there. I also want to point out that the Ellesmere Port enterprise zone and the cluster of businesses around it has been incredibly successful.

[Justin Madders]

indicated dissent.

[Claire Perry]

The hon. Gentleman shakes his head, but I am told by the head of the local enterprise partnership and the local council that it is, so perhaps he should consult a little more widely. I think that was a bit of low blow. This is about ensuring that we have the right support for the industry, that we have a thriving supply chain and that there are the best possible conditions for them to thrive and grow.

Taylor Review: Working Practices

Justin Madders Excerpts

Tuesday 11th July 2017 Commons Chamber

[Justin Madders (Ellesmere Port and Neston) (Lab)]

I welcome the report’s acknowledgement that employment tribunal fees are a barrier to justice. The recommendation of fee-free tribunals to establish employment status is positive, but what can be done to ensure the quality of representation at the tribunals? What protection will there be to prevent the detrimental treatment of someone bringing a claim? Is it also the case that, once someone’s status has been determined, a fee will still have to be paid?

[Margot James]

One of Matthew Taylor’s recommendations is that before an employee takes a case to an employment tribunal, they should receive firm advice on what their status is in reality. That would end a huge amount of uncertainty and unnecessary expense. We will consider that and all the other recommendations in this excellent report, which I commend to the House. I found much of it inspiring, and I hope that we can all work together to improve the quality of work in this country, as well as the number of jobs.

Opel/Vauxhall: Sale to PSA Group

Justin Madders Excerpts

Monday 6th March 2017 Commons Chamber

[Greg Clark]

I will, indeed, and I am grateful to my hon. Friend for her question. I have mentioned two areas in particular. On research and development, bringing together our universities and research institutions with the companies in the sector through the Automotive Council is very important. On the training of people who are going to work in the sector, I have had the pleasure of visiting the campus of Warwick University, where the automotive innovation centre is being built with a school for apprentices that will train 1,000 apprentices a year to work in this sector, and those are important developments. I have mentioned the supply chain, and through the industrial strategy we will make Britain even more attractive, particularly for smaller and medium-sized enterprises to service the major companies.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

I thank the Secretary of State for keeping colleagues informed as matters have developed. It is clearly good news that we have a guarantee that production will continue until the end of the current Astra run at Ellesmere Port, but there is a deep concern in the community about what will happen after that. The noises that we have heard from PSA so far have been about plants being judged on their efficiency. I am very confident that, with the track record we have at Ellesmere Port of unions and management working together, we can put a very good case forward. However, there are things beyond their control, which is where the Government can step in, whether on business rates, procurement or the supply chain. I would like assurances from the Secretary of State that he will do everything in his power to ensure that we have a competitive environment for the Ellesmere Port and Luton plants.

[Greg Clark]

I will indeed. I will work with any hon. Member who has an interest in securing the future of this company and others in our economy. The hon. Gentleman is absolutely right. The fact that plants will be judged, as they tend to be in the automotive sector for new models, on the basis of competitive efficiency is a strength for us in this country, because our automotive plants are the strongest in the world. I would rather we competed on efficiency. I will work, through the Automotive Council and our industrial strategy, to ensure that all the competitive elements that have been so successful to date will continue and increase.

Vauxhall/Opel: Proposed Takeover

Justin Madders Excerpts

Monday 20th February 2017 Commons Chamber

[Justin Madders (Ellesmere Port and Neston) (Lab)]

(Urgent Question): To ask the Secretary of State for Business, Energy and Industrial Strategy if he will make a statement on the proposed takeover of Vauxhall and Opel by PSA.

[The Secretary of State for Business, Energy and Industrial Strategy (Greg Clark)]

Vauxhall is one of our oldest and most valued motor manufacturers. It has been making cars in Britain for 113 years and has been owned for the last 92 years by an overseas investor, General Motors. There are over 40,000 people employed directly by GM or in Vauxhall’s retail or supply chain in this country. Last Tuesday, news emerged that GM was in discussions with French company PSA about the future of GM’s European operations.

I spoke to the president of GM by telephone that afternoon and communicated the importance we attach to Vauxhall’s presence in the UK and to its workforce. I am grateful to Mr Ammann for travelling to meet me in my office last Thursday morning. In our meeting, he told me that no agreement with PSA had been reached and discussions were ongoing, that he shared my assessment of the success of the Vauxhall plants in Britain and the Vauxhall brand, and that GM’s intention was that any deal should be about building on the success of these operations, rather than seeking to rationalise them.

Following my meeting with GM, I travelled to Paris to meet my counterpart in the French Government, the Industry Minister, and following those discussions I met PSA board members for two hours later on Thursday night. I emphasised once again the importance I attach to the continuing success of Vauxhall in Britain and the recognition of its workforce. The PSA executives said that they, too, greatly valued the Vauxhall brand and the commitment of its workforce, and that any deal would build on these strengths. They also emphasised that their operational approach in recent years has been not to engage in plant closures, but to focus on continuous improvements in plant performance. On behalf of the UK Government, I emphasised our commitment to securing continued mutually beneficial access to European markets, and our intention, as part of an ambitious industrial strategy, to enhance the competitiveness of the UK economy generally—including, of course, the automotive sector. Earlier today, my Minister of State spoke to his German counterpart.

We remain in close contact with GM, PSA and the French and German Governments, and I look forward to meeting Carlos Tavares, PSA chief executive, later this week. Of course, I have also met, and will continue to meet, the trade unions and Members of this House with constituency interests. I will do everything I can at all times to secure the best possible future for Vauxhall and its workforce. Our unity of purpose in seeking this good future should be a source of strength in the House, and I will keep the House informed at every opportunity.

[Justin Madders]

I thank the Secretary of State for his response and for the helpful way in which he has kept me and other interested parties informed as matters have unfolded. As he said, not only are thousands employed directly at the plants in Ellesmere Port and Luton, but there are tens of thousands of other people working in the associated supply chain and sales network.

I want to make it clear that Vauxhall is a British success story. The plants in Ellesmere Port and Luton benefit from dedicated and highly skilled staff, who are among the most efficient anywhere in Europe. If this takeover does go ahead, we need to get the message out that risking the closure of either facility would be a retrograde step not just for the UK economy, but also for the new owners. Will the Secretary of State confirm that the Government stand ready to use all the tools at their disposal to safeguard British jobs at Vauxhall?

Of course, this is a worrying time for everyone affected, but it is not a new experience. There have been threats to the plants in the past, but they have been seen off by industry-leading collaborations between unions, workforce, management and Government. I want that to carry on, so can the Secretary of State confirm that he will continue to work closely with everybody at every stage?

Although it would be an over-simplification to characterise the proposed deal as being entirely down to Brexit, there are understandable concerns about Brexit’s potential impact, particularly if tariffs were imposed. Will the Secretary of State ensure that the future of the automotive sector is put front and centre of our negotiations and that a red line will be that there will be no deal that imposes tariffs—not just on the finished product, but on components in the supply chain?

We are very proud of our automotive sector in Ellesmere Port and Neston, but we know we cannot take it for granted. I will do everything I possibly can to fight for the future of Vauxhall, and I expect nothing less from the Government.

[Greg Clark]

I commend the hon. Gentleman, and I am grateful to him for giving us the opportunity to update the House on these matters. I completely agree with him about the importance and the success of the workforce at both Ellesmere Port, his constituency plant, and Luton, and of course the supply chain, the retail network across the country and the call centre and customer service sector.

Every part of Britain has a stake in Vauxhall, so I completely agree with the hon. Gentleman: we will do everything we can. My personal commitment, and the commitment of this Government, will be unbounded to make sure that the future, building on the success of the plant in the hon. Gentleman’s constituency and the workforce, will be maintained. That is my purpose, and I am grateful for the hon. Gentleman’s support for that. I will of course work with all the groups, including the trade unions and the workforce, to make that case to the new owners, if new owners there are to be.

Exiting the EU and Workers’ Rights

Justin Madders Excerpts

Monday 7th November 2016 Commons Chamber

[Justin Madders (Ellesmere Port and Neston) (Lab)]

I rise to speak as a Member with more than 15 years’ experience as an employment lawyer before I entered this place and as someone who was motivated to seek election here in part because I do not believe our current system of workplace protection is adequate.

As we saw in the EU referendum, telling someone on a zero-hours contract or in agency work that there is a risk to their job from Brexit just did not cut it; a culture has been created in this country that views employment as a flexible, disposable concept. People do not know from one week to the next how many hours they will work or whether they will work at all, yet some still wonder why millions of people voted to reject the status quo. So although I welcome the assurances given on workers’ rights so far, I believe we need to go much further to obtain a workplace settlement that puts fairness at its heart. As I will explain, I am still concerned, despite the assurances given, about whether employment rights will be retained, given the track record of many in the Cabinet on this matter.

Employment workplace protection in this country at its current level is woefully inadequate. A person can work somewhere for two years of their life but still find themselves cast aside without any reason and without recompense, even if they have done nothing wrong—that was introduced by the coalition Government. How can people feel confident enough to plan for their future if we have a system that sacrifices that future at the altar of flexibility? We need a country where people have the security of knowing that if they do a good job and if their employer runs the business well, they are going to be rewarded properly and are likely to stay in work. What we have instead is a hire-and-fire culture where workers are seen as disposable commodities and where loyalty counts for nothing.

I would like to see many improvements in the current law—a reduction in the qualifying period for unfair dismissal claims, the strengthening of unfair dismissal laws and the abolition of employment tribunal fees, which we are still waiting for the Government’s review of—but in the context of Brexit the immediate concern has to be to retain what we currently have.

As I said, I welcome the assurances given, but they do not go far enough. We are all familiar with the term “gold-plating”, and in 2011 the Government announced they were ending the gold-plating of EU legislation and would not go beyond the minimum requirements of the EU legislation when implementing it in this country. I consider the term “gold-plating” to be misleading and insulting when talking about basic rights at work, as it conjures up images of opulence and extravagance that simply do not reflect the reality of most people’s experience in the workplace.

One example of where employment legislation is considered to have gone beyond the original EU rules is what is covered by the definition of “pay” in the agency worker regulations, but probably the most widely discussed relates to the working time regulations. The most obvious example of supposed “gold-plating” is the requirement for 28 days’ paid leave in UK law, whereas only 20 days’ paid leave is granted in the directive. It is not just the removal of the gold-plating that concerns me, as many other facets of the regulations could be altered domestically which would fundamentally change and weaken those rights. Could the maximum working week be increased? Could the number of hours worked before entitlement to a rest break accrues change? Could the way weekly rest breaks are calculated alter? Could these be changed across industries to suit? Could we see a return to the prevention of the accrual of holiday pay during sick leave? On collective redundancies, we have already gone down from 90 to 45 days in respect of the consultation, but the Government could go even lower. At the moment, businesses are required to consult trade unions where they are recognised, but what is to stop this Government taking the opportunity to undermine trade unions yet again by altering the rules so that employee representatives could be consulted instead?

There are similar provisions in the TUPE regulations, where there is also another good example of supposed gold-plating, with the application of the service provision changes. That applies to thousands of transfers every year, so I hope there will be no attempt to restrict TUPE’s reach. Another area where there is an opportunity for those who want to see an erosion of rights is in relation to post-transfer changes to terms and conditions of employment, a fiendishly complicated area of law, much of it subject to European Court of Justice judgments. I fear there will be a temptation for those who want to rid us of supposed red tape to say that it would be much simpler just to say there are no specific post-transfer restrictions on changes to terms and conditions.

So the Government can claim to be protecting employment rights derived from the EU, but they could, if they chose to, nibble away at those rights in the way I have outlined. I believe the temptation will be too great for many Government Members—I refer not to removing rights altogether but to significantly weakening them. Why do I say that? One has only to look at what members of the Cabinet have said in the past to get a flavour of where they are coming from. Although we have heard plenty about them tonight, these comments are so concerning that it is worth repeating a few again. Let us start at the top, because the Prime Minister, in an interview with HR magazine in March 2010, when she was shadow Work and Pensions Secretary, said:

“Issues we are particularly concerned about are the Working Time Directive…and the Agency Workers Directive.”

In 2012, the Foreign Secretary said that the UK should scrap the social chapter. Last year, he said that the Government should “weigh in” on all that “social chapter stuff”. He claimed that the weight of employment regulation was “back-breaking”. When the Secretary of State for Defence was Minister for Business and Enterprise, he said that the Government must

“turn the screws tighter on burdensome red tape”,

and “de-regulate further and faster.”

The Secretary of State for International Trade and President of the Board of Trade, the right hon. Member for North Somerset (Dr Fox), has also had quite a lot to say on the subject:

“To restore competitiveness we must begin by deregulating the labour market. Political objections must be overridden…It is too difficult to hire and fire, and too expensive to take on new employees…It is intellectually unsustainable to believe that workplace rights should remain untouchable”.

I could not disagree more with that. It is not just what the Government have said, but what they have done. The last coalition Government introduced legislation that enabled employees to be bought out of their statutory employment rights. They also introduced employment tribunal fees that have proved to be a massive barrier to people seeking to enforce their rights, as well as doubling the qualifying period before people can claim unfair dismissal.

If there has been a sudden and belated conversion to the importance of employment rights, I would welcome it and encourage Government Members to join me in arguing for increased workplace protection. If they agree that these rights are important, they will also know that not only are they about individual dignity and respect in the workplace, but they have social and economic value and are an essential component of a healthy, stable and progressive country.

Employment rights ensure that people can participate in the labour market without facing unfair discrimination. They give vulnerable workers more job security and stability of income. They help to encourage a committed workforce and the retention of skilled workers. They are not something that we spend enough time talking about in this place, but most of our constituents will be affected by them. While we need more workplace protection not less, I and everyone else on Labour’s Benches will be keeping a close eye on this Government in case they attempt to water down the rights that we currently have.

Nissan: Sunderland

Justin Madders Excerpts

Monday 31st October 2016 Commons Chamber

[Greg Clark]

I have had the pleasure of meeting the First Minister at least twice since I took up this job. What I have said to her, personally and directly, is that, as we develop our industrial strategy, Scotland will have a big place in that. Of course it is important that all parts of the United Kingdom need to benefit from our industrial success in the future. The hon. Gentleman may know that, in terms of the city deals that have been negotiated between the UK Government, the Scottish Government and the various councils, we have, and I personally have—I think he would acknowledge this—a track record in making those discussions work.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

I certainly welcome the news, and I am sure that the thousands of people who work at the Vauxhall car plant in my constituency would be equally delighted if a similar announcement could be made in due course. When the Secretary of State addressed the Chamber, he referred to different strategies for different industries, but does he also accept that, within the UK automotive sector, there are different challenges from plant to plant, and that a more specific approach may be needed from time to time? Will he agree to engage in an intimate dialogue with General Motors, as he has with Nissan?

[Greg Clark]

I am not sure I would describe the dialogue as intimate, but it was constructive at any rate. Of course I make that commitment to the hon. Gentleman.

Fourth Industrial Revolution

Justin Madders Excerpts

Thursday 8th September 2016 Commons Chamber

[Justin Madders (Ellesmere Port and Neston) (Lab)]

I congratulate the hon. Member for Havant (Mr Mak) and my hon. Friend the Member for Hove (Peter Kyle) on securing an important debate that has been very informative so far. I hope that it is a subject to which we will return many times in the future.

Before I talk a little about the future, I want to talk a little about the past. The title of this debate, the “Fourth Industrial Revolution”, evokes images of previous industrial revolutions, and of course the first, which began—whereabouts exactly has been the subject of some debate today. It has been romanticised. We should not forget the child labour, the decline in life expectancy, the exploitation and the unsafe practices that were all huge features of the early years of the industrial revolution. I am not suggesting for a minute that we are going to return to the days of the poorhouse, but history should act as a warning that change of the magnitude we saw in the first industrial revolution is not all positive, and we should be considering now how best to mitigate the negative impacts that a fourth industrial revolution may bring.

For as long as there have been technological innovations to ease the burden of physical labour, there have been dire warnings about the impact on jobs. Although the short-term impact of early automation was severe enough to lead to the Luddite riots of the early 1800s, in the main the dire predictions of what people such as John Maynard Keynes termed “technological unemployment” have proved to be unfounded. In the long run, technological innovation has always delivered more employment opportunities to the economy than it has taken away, but these processes have created winners as well as losers in the short term.

I for one am not prepared to take a chance that things will sort themselves out in 30 or 40 years. Unlike previous waves of industrial progress, this new wave of automation threatens jobs across the entire spectrum at a pace that is unprecedented and may well be impossible to keep up with. Studies by analysts such as Deloitte have predicted that 2.1 million jobs in wholesale and retail have a high chance of being automated in the next 20 years, and another 1.5 million jobs could be replaced in transport and storage in the same period. These sectors have seen considerable growth in the past few decades, but that now looks as though it could be dramatically reversed.

These predictions refer to the next 20 years, but change in some sectors will happen more quickly. For some, it has started already. There are plenty of examples, as we have heard in the debate today. We have also heard about trials by companies where the movement of all goods in a warehouse is performed by robots. We hear of driverless cars and of drones making deliveries, and in supermarkets the number of automated checkouts continues to increase.

[Tom Tugendhat]

The hon. Gentleman’s points are well made, but does he recognise that automation has lowered costs, which for so many of our constituents has been a blessing? The cost of television sets, food and any number of items in the home has dropped dramatically, meaning that people can enjoy so many more benefits of modern living than would have been possible even 50 years ago.

[Justin Madders]

Of course automation has increased people’s ability to purchase high-spec goods and has led to higher living standards and greater comfort, but we have to remember that to buy those goods, people need an income. That is where my concerns lie.

Not only are jobs at risk in retail and logistics, but the professions are in trouble as well. A raft of new legal tools has been launched which automate functions that were once the preserve of clerks and paralegals. Further analysis by Deloitte has shown that the UK has already lost 31,000 jobs in the legal sector to automation, with a further 114,000 jobs set to go in the next 20 years. One futurist predicts that accountancy and law will go from being respectable, well-paid professions to barely existing in a generation. Although many will no doubt view a reduction in the number of lawyers as a good thing, it is difficult to see how there will be anything other than a loss of skilled professional jobs over the coming decades, which will limit opportunity for future generations.

This is in line with some economists’ predictions of an increasing polarisation in the job market, with the gap between high-skilled and high-wage jobs and everyone else continuing to grow. This is a trend that we are already seeing, and it is likely to accelerate as a result of automation and the development of artificial intelligence. Now that we have a pretty good idea of what is coming down the track, it is time for an honest appraisal of whether enough new opportunities can be created to bridge what could be a gaping chasm in the job market, and how we prepare our children for what will be a markedly different economy from that of today.

These are questions that need to be answered sooner rather than later if we are to avoid unemployment rates that would make the 1980s seem like a golden age. I am sure some will say that that is a rather dramatic statement, but I fear that unless we start to ask ourselves some fundamental questions about how we organise our society, we risk the creation of an unbalanced and unsustainable economy where the majority will face a struggle just to survive, and the insecurity that many feel today will become chronic.

The rise in zero-hours contracts, which we have heard about again today, is another example of the increasing casualisation and disposability of the workforce. What about pensions? How will people save for their old age if the insecurity of their whole working life is such that they cannot be sure they will earn enough to put food on the table each week? Not having the certainty or sufficiency of income to enable people to plan for the future is only storing up problems for us all in the long term. I agree with my hon. Friend the Member for Stoke-on-Trent North (Ruth Smeeth) who said that there need to be clear regional strategies for investment if we are not to risk an unequal distribution of revolution and investment in our industries.

There are many ways these challenges could be tackled. In many ways, the availability of technology has already allowed us to change the way we work. We have seen a seeping of family life into work activity—the blurring of the lines between home and work life has already occurred. That could be a positive development, allowing people to work more flexibly, although there is a tendency at the moment for it to become a more convenient way of extending the working week. We are also going to see an increase in the flexibility of employment arrangements, as well as flexibility in the way we actually work. That will not necessarily be a good thing; it can lead to more exploitation, and I want this place to be challenging that exploitation now, rather than years down the line. A good start would be for the Government to start looking at implementing the Deane review on self-employment.

There are many ways we can look at this issue. A universal income has been talked about. We can reduce the number of working hours. We can change the way we view the world of work. This should be seen as a great opportunity to liberate people from their workplaces. Doing more of the same is not the way ahead for this country. I know that politicians tend to think in terms of four and five-year cycles, but if we can look beyond that, articulate a vision of what a fair and prosperous society would look like and then actually deliver that, we will have shown leadership that our country will benefit from for decades come.