National Minimum Wage (Amendment) Regulations 2021

Baroness Clark of Kilwinning Excerpts

Monday 1st March 2021 Lords Chamber

[Baroness Clark of Kilwinning (Lab) [V]]

This pandemic has highlighted the very real link between low income and health inequality in a very dramatic way. It is appropriate as part of this debate to put on record the huge concern about the low level of the minimum wage in this country.

The National Minimum Wage Act 1998 was brought in by the 1997 Labour Government. I was a Labour candidate in that general election, in a seat where there were a lot of strong views about the national minimum wage. It was a large rural seat in the south west of Scotland, the seat of Galloway and Upper Nithsdale. Many people were on very low incomes there, particularly rural workers, who were earning perhaps 50p or 75p per hour. That was a very low income even at that time, and definitely not the kind that could lead to people having a living wage if they worked long hours.

In that election, it was repeatedly argued that if we introduced a national minimum wage there would be high unemployment, people would lose their jobs and businesses would go bust. The reality, of course, was very different and that did not happen. That is something we need to be aware of every time we have this debate, because the reality and the backdrop is that people are suffering.

We are seeing big campaigns in the United States at the moment, such as the Fight for $15 campaign, which is trying to get the minimum wage increased to a level people can live on. In this country we have had the McDonald’s campaigns, whereby McDonald’s workers —represented by the Bakers, Food and Allied Workers’ Union—are trying to get £10 per hour and other improvements to their terms and conditions. In Scotland, the GMB trade union is campaigning to get care workers a minimum wage of £15 per hour and is putting pressure on the Scottish Government to deliver that in the upcoming Budget.

I say to the House that this is an issue about justice and economic sense. Frankly, it does not make economic sense to have people on the kinds of poverty wages being discussed this evening. It is also an issue of dignity. It is simply not acceptable if people working full-time are having to rely on state benefits, which they may or may not claim. They simply cannot provide for themselves and their families if the living wage is based on a minimum income of the levels outlined in these regulations. Companies like McDonald’s pay very different rates in different countries, depending on the legal minimums in those countries. In countries such as Denmark, the rates of pay are far higher than in the United States, for example, or indeed the United Kingdom.

What this House needs to be saying is that this is simply not an acceptable level of minimum wage. We need to say this on every occasion when we discuss these issues, because that message needs to get through. Of course, these regulations must go through this evening because £8.91 per hour for someone aged 23 or over is better than the current rate of £8.72, but we should say clearly to the Government that this level of minimum wage does not make economic sense. We know that if you put money into the pockets of the poorest in society, they go out and spend it. We are arguing about issues that have been debated for decades. When we have substantially improved the incomes of the lowest paid, it has been a policy initiative that has made a lot of sense and delivered justice for people who need it.

Green Economic Recovery

Baroness Clark of Kilwinning Excerpts

Monday 14th December 2020 Lords Chamber

[Lord Callanan (Con)]

The Government will publish a heat and buildings strategy in the coming months; this will set out the immediate actions that we will take to reduce emissions from buildings, including deploying energy-efficiency measures and transitioning to low-carbon heating.

[Baroness Clark of Kilwinning (Lab)]

Does the Minister agree that, as we come out of the pandemic, there is a real risk that we will revert to the kinds of economic practices that created the climate crisis in the first place? No economic conditions of an environmental nature seem to have been placed on the money that has been put into the economy during the pandemic, so can he give an assurance that as we approach the COP 26 climate talks in Glasgow next year we will look seriously at how we both address the economic inequalities that have been exposed by this crisis and create a green economy? Does he agree with me that that will require significant shifts in both government policy and investment strategy?

[Lord Callanan (Con)]

The noble Baroness makes some important points, but, of course, all of the 10-point plan was exactly about building a UK that is greener, more prosperous and at the forefront of industries for the future.

Travel Agents

Baroness Clark of Kilwinning Excerpts

Monday 23rd November 2020 Lords Chamber

Asked by

[Baroness Clark of Kilwinning]

To ask Her Majesty’s Government what assessment they have made of the future of high street travel agents; and what plans they have to appoint a Minister to be responsible for the travel sector.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

My Lords, we are regularly assessing Covid-19’s impact on tourism businesses. We recognise that these are extremely challenging conditions for those in the sector. High street travel agents have, of course, been able to access the Government’s comprehensive economic support package. While we have no current plans to appoint a new Minister for the travel sector, a cross-government global travel task force has been established to consider what steps the Government can take to enable a recovery of international travel.

[Baroness Clark of Kilwinning (Lab) [V]]

I declare an interest as a member of the TSSA parliamentary group. In the summer, nine out of 10 holidays were either cancelled or changed. ABTA said in August that 90,000 people’s jobs were either at risk or had already been lost. That figure increased to 164,000 people by the end of October. Will the Government look at a specific strategy for this sector and specific support? The TSSA and many businesses are asking for one Minister to have specific responsibility to put forward a strategy for this area because responsibilities lie across a number of departments—some are with the Department for Transport, some with other departments, and some fall between. Is this not something that the Government could look at and perhaps discuss with industry and the trade unions?

[Lord Callanan (Con)]

We have many consultations with the industry and we have put in place a strong package of financial support that businesses in the sector can access, including government-backed loans, various grant schemes and the extended furlough and self-employed support schemes.

United Kingdom Internal Market Bill

Baroness Clark of Kilwinning Excerpts

Report stage & Report: 2nd sitting (Hansard) & Report: 2nd sitting (Hansard): House of Lords
Monday 23rd November 2020 Lords Chamber

Amendment 20 is interesting, and some noble Lords clearly support it. It strings it out a bit too much for me; if I were the Secretary of State, I would think to myself, “My goodness, I’m never going to get on with this job.” Someone will find a way around it. The tightness of what my noble friend on the Front Bench is proposing is its attraction. It is short, tight and attractive. I will certainly support my noble friend.

[Baroness Clark of Kilwinning (Lab)]

My Lords, I support Amendment 15 and the other amendments which would require the UK Government to obtain consent from the devolved institutions.

The big political issue from a Scottish perspective in what we are debating is whether this legislation takes back powers that currently reside with the Scottish Parliament to the UK Parliament without consent. It seems accepted by all involved in this debate that that could be the case; I believe that is what my noble friend Lord Hain was saying, and what the Minister clarified on the first day of Report. Any further information or response the Government could give to clarify that point would be greatly helpful, in terms of the political problems from a Scottish perspective regarding this legislation. There can always be situations where it would be completely appropriate for UK legislation to be enacted covering currently devolved areas, with the consent of all parties involved, but that is not the issue we are debating here.

The suggestion of the noble Lord, Lord Empey, of a more detailed framework for consultation was incredibly useful, for all the reasons that have been outlined by noble Lords. As I understand it, the current legislation has no arbitration or other process that would deal with disputes. The genuine belief, which has been confirmed around this House, is that, as currently drafted, this Bill undermines the devolution settlements because it potentially involves areas where the Scottish Parliament currently has competence. There could be situations such as that outlined by my noble friend Lord Hain: for example, the Scottish Parliament currently has the ability to regulate for all goods in Scotland, but this legislation would mean it could regulate only for goods made in Scotland or those imported from abroad, and not those from other parts of the United Kingdom.

If that is not how this Bill, if it becomes an Act, would work in practice, or if it is impossible that that set of circumstances could come about, the Government need to be up front about that and make commitments and guarantees, given the political debate around this legislation. As I said on the previous occasion I spoke on this Bill, the concern in Scotland is that it could lead to a race to the bottom on standards and would enable a situation where the Scottish Parliament cannot legislate on matters that it could at the moment.

The concern is that the Government are effectively seeking, in certain circumstances, to take powers back from the Scottish Parliament. The backdrop is that all parties in Scotland, with the exception of the Conservative Party, have been asking and campaigning for greater powers for the Scottish Parliament, particularly financial powers, for many years. We have had rising support for independence, which gained momentum during the independence referendum in 2014, and a Brexit which is unpopular in Scotland, where there is a high level of awareness that 62% of the people voted remain. I therefore ask the Government to take all that into account.

[Lord Morrow (DUP) [V]]

My Lords, I will be very brief. I am concerned about Amendments 14 and 15, which both clearly state that:

“Before making regulations under subsection (7) the Secretary of State must”


consult

“the Scottish Ministers, the Welsh Ministers and the Department for the Economy”.

I asked myself why it is specifically the Department for the Economy in Northern Ireland but not in Wales or Scotland. Can the Minister clarify in winding up why it is specifically the Department for the Economy? The distinction is made in a couple of other parts of the Bill. Surely it is clear, given that the grounds for discrimination cover areas such as animal health and biosecurity, that the Department of Agriculture, Environment and Rural Affairs would have a deep interest in any changes. Thus the restriction to consult only the Department for the Economy is a bit difficult to understand.

I strongly contend that Northern Ireland should be treated in exactly the same way as other regions of the United Kingdom. Would the Minister be good enough to clarify in winding up on this group why it specifically states only the Department for the Economy, and not the Northern Ireland Assembly or other ministries? I will leave it at that.

United Kingdom Internal Market Bill

Baroness Clark of Kilwinning Excerpts

Report stage & Report stage (Hansard): House of Lords & Report: 1st sitting & Report: 1st sitting: House of Lords
Wednesday 18th November 2020 Lords Chamber

[Baroness Clark of Kilwinning (Lab)]

I speak in favour of the amendments, particularly Amendment 10, and the principle that any changes to the devolution settlement should not be made without the consent of the devolved institutions themselves and that the UK exiting the EU should not be the basis on which it is determined whether a matter is reserved. I argue that this is not the time or the circumstances in which we should be considering taking powers away from devolved institutions and overriding their wishes.

The devolved institutions were not created equal to Westminster in the devolution settlement. It has been suggested on a number of occasions today that there should be that equality, and many Peers have spoken about the need for that relationship of equals. I believe that that is the direction in which we need to be going and today’s debate again highlights that that is definitely the kind of constitutional arrangement that people in Scotland are asking for, irrespective of where they stand on the independence issue.

The examples given in today’s debate in relation to Wales being able to legislate on the use of single-use plastic are good at showing why this legislation is unhelpful. It has been confirmed by the Government in documents that Wales’s plans to bring forward proposals to ban all nine types of single-use plastics referred to in the EU directive would not be possible if this Bill were to become law.

This Bill would affect the ability of the devolved institutions to regulate any goods because they would require goods manufactured in that particular country to comply in certain ways that would only be relevant for goods made in that country. Goods made in Scotland could be regulated by the Scottish Government and required to comply with regulations, but goods brought in from other countries in the UK would not be required to do so.

I listened with great interest to the noble Baroness, Lady Noakes, and I fully understand the principles that she was outlining, but that horse has bolted and that is not where we are in the 21st century in the United Kingdom. We have to recognise the very different political cultures that exist within the different nations that make up the UK, and it is in that context that we have to look at this legislation.

Will the Minister consider the specific example about public procurement regulations raised by UNISON? Would the rules on public procurement, which have been devolved to Scotland since 1998, be protected if this legislation were enacted? For social, employment and other reasons, procurement legislation introduced in the Scottish Parliament under Labour and the Liberal Democrats, as well as under the Scottish National Party, is different from that south of the border. There is a different culture in Scotland. Can the Minister outline whether those regulations would be impacted by this legislation? This is just one example of the many areas of legislation where a huge amount of work has taken place since devolution and which could be affected by the Bill. I understand that the Minister is here to represent the Government, although he will have his own views.

These proposals are cavalier and irresponsible. I ask the Government to look at these amendments and think again. This is not just about trade. It is about the way in which we in the four nations of this country relate to each other. If we do not have the support of the devolved institutions for this approach, I respectfully suggest that this is the wrong way forward.

[Baroness Northover (LD) [V]]

My Lords, I support Amendment 10 and other amendments in this group. Powerful arguments have been made this afternoon about devolution. Common frameworks must continue to allow divergences within the devolved Administrations and between them and England. The Bill must not undermine this. The amendment relating to that, in the name of the noble and learned Lord, Lord Hope, was passed overwhelmingly.

At Second Reading the noble and learned Lord, Lord Judge, introduced his regret amendment by expressing shock at the Government’s plans to break international law. At the end of the debate he concluded that, stunned as he had been by these proposals, he had perhaps overlooked the extent to which the Bill also undermined devolution.

In this group we flag up some of the areas in which the devolved Administrations currently have flexibility. The Bill could prevent this, as my noble friend Lady Bowles and others have pointed out. As the noble Lord, Lord Anderson, said, these differences exist in the EU, even with its powerful single market. I am not sure how deliberate the removal of the existing flexibilities has been, or whether this simply reflects that devolution is not in this Government’s DNA.

I agree with what has been said about the environment. I want, briefly, to flag up public health, as did the noble Lord, Lord Young of Cookham. In the middle of a pandemic, this Bill potentially undermines our ability to move forward in this area. We see variations in public health which may well have played a part in encouraging the devolved Administrations to take more ambitious actions. The rates of alcohol-related deaths are more than 60% higher in the most deprived areas than in the least deprived. The highest rates of smoking are consistently found among the most disadvantaged. Scotland has the highest rate of alcohol-related deaths in the United Kingdom. Its Government have introduced a range of policies to address this. The Welsh Government have said that they will do more to extend non-smoking areas. This is also welcome.

These amendments seek to ensure that, when one devolved Administration move ahead of another, they can do so. We hope that they may be able to pull the others along with them. Undermining devolution is clearly one of the fundamental problems with this Bill.

United Kingdom Internal Market Bill

Baroness Clark of Kilwinning Excerpts

2nd reading & 2nd reading (Hansard): House of Lords
Monday 19th October 2020 Lords Chamber

[Baroness Clark of Kilwinning (Lab)]

I am pleased to join others in welcoming the noble Baroness, Lady Hayman of Ullock, whom I have known for a number of years, and the noble Lord, Lord Sarfraz, whom I met this evening, on their maiden speeches. I hope they enjoy their time in this place.

We have had a number of powerful speeches focusing on various technical features of the devolution aspects of this legislation, but I am not going to focus on specific provisions on whether it will still be possible for the devolved institutions to regulate on issues such as single-use plastic, or indeed on the state aid provisions. I am going to focus on the politics of the situation, and I do that as a former Labour MP in Scotland and as someone who was heavily involved in the independence issue in the lead-up to the 2014 referendum. The constitutional debate in Scotland completely dominated Scottish politics, both during the lead-up to that two-and-a-half-year-long referendum and increasingly as the referendum went on. Indeed, the issue has not gone away, and it is still centre stage in Scottish politics.

As the House is aware, the Scottish Parliament voted 90 to 28 against giving legislative consent to this Bill, and it was suggested earlier on that that was the SNP. I want to make it absolutely clear to this House that the only Members of the Scottish Parliament who voted in favour of giving legislative consent were the Conservative Members. Every other political party and every other MSP voted against giving legislative consent.

The Government will no doubt say again when they sum up—as they did at the beginning of this debate—that further powers are being devolved as part of the changes taking place, and that some of the powers coming back from Europe will be devolved to the devolved institutions. I respectfully say that that is not really the point; the issue is that certain powers are being eroded without consent, and certain powers of the devolved institutions are being eroded when the direction of travel should be transferring powers to those institutions. I was really interested in listening to the speech of the noble and learned Lord, Lord Hope of Craighead, who considered whether it was a power grab or not.

It is absolutely clear that in Scotland in particular—and I will focus on Scotland, because that is my background—there is a genuine view that this legislation undermines the devolution settlement. The backdrop is that, since the 1950s, a significant divergence has taken place in the political views and voting of people in Scotland from those south of the border. To put it simply, Scotland has tended to vote for social democratic-type politics, while nationally we have had few Labour Governments elected in that period. Those political differences, and the differences in voting habits, have had a major impact in Scotland over many decades. It has thrust the constitutional debate into the centre stage of Scottish politics. Most people in Scotland simply believe that decisions affecting Scottish people should be made in Scotland, and they do not think it is fair if they get policies they feel they have not voted for.

It is often said that it was Margaret Thatcher’s Government who delivered devolution. The behaviour of this Government is again having a big impact on the constitutional debate, so I very much hope that they think again.