Public Holidays on Religious Occasions

Justin Madders Excerpts

Monday 29th October 2018 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Mrs Main. I congratulate the hon. Member for Linlithgow and East Falkirk (Martyn Day) on his extremely informative introduction to the debate on behalf of the about 60,000 people who have signed the two petitions that we are considering. He and other hon. Members made powerful cases for the changes that we are discussing. He articulated well, as other Members did, the broader point that we have far fewer public holidays than our counterparts in the European Union, and those of us who live in England and Wales have, sadly, even fewer than those who live in other parts of the United Kingdom.

The hon. Gentleman was right to say that the Government get many requests—perhaps the Minister will tell us exactly how many she gets—for holidays, for all manner of occasions; that probably happens very regularly. His observation that the dates of all the festivals that we are talking about change from year to year was important in terms of the challenges that that presents as regards additional planning. It is a practical reason why, if the Government were minded to accede to the request, it would probably take considerable consultation and discussion to facilitate it.

I was disturbed to hear the hon. Gentleman’s comments about how many people in surveys feel that we are becoming a less tolerant society. All hon. Members present will have been disturbed to hear that. I think that it is a much wider issue than the question of public holidays that we are considering today.

The hon. Gentleman was right to point out that some employers require people to work on bank holidays and to take time off on another occasion. In that regard, as other hon. Members have mentioned, we should pay tribute to those people in the public sector who keep the country going on such occasions—for example, those who work in the NHS, the police, the emergency services and the utilities, those who work as care workers, and those who work in many other organisations that provide a service that cannot simply shut down for public holidays. We should recognise that that is an important part of this discussion.

The hon. Gentleman mentioned, as did other hon. Members, that there is a lack of awareness among employers about the meaning and importance of some religious holidays. I hope the Minister will comment on how we can spread information and best practice, so that people do not feel inhibited from requesting particular days off.

The hon. Member for Harrow East (Bob Blackman) made a strong case—as he did in his contribution to the House in 2014, which I read in preparation for this debate—in terms of productivity. I found it quite interesting, and I will return to it later. He also discussed, as did a number of other Members, the fact that public holidays are not fixed in the way that we might assume they are. Easter, for example, moves from year to year, although it does fall on the weekends, which makes it slightly easier to plan for in advance, as there is an established pattern.

There is merit in the hon. Gentleman’s suggestion that employers could have some flexibility to cater for different religious holidays. That is something that the Government could encourage public sector employers to look at, without the need for any legislative changes.

It was a pleasure, as always, to hear from my hon. Friend the Member for Harrow West (Gareth Thomas). He clearly stated his support for more public holidays. He was sceptical about the arguments about financial costs, which I will return to later. I agree that it should not be beyond the wit of most employers to grant holidays for staff to be able to observe religious festivals—after all, a full-time employee in this country is entitled to 28 days a year, which is over two days a month. That should be enough latitude for most employers to be able to deal with any requests.

I thank my hon. Friend for enlightening me on the background to some of these religious occasions and their significance. He spoke about personal days in the United States—an interesting example that I am not aware of, but I will look into it. However, we already have 28 days allocated to employees, which I think ought to be more than sufficient to cope with the kind of issues we are discussing.

This is the first debate I have responded to as the interim shadow Minister, and I welcome the opportunity it gives me to reflect on the huge contribution made to this country by people of the Hindu, Muslim and Sikh faiths, and also the many other religions that contribute to the diversity and economic wellbeing of our country. However, we cannot accept the contribution of these extremely important communities without recognising, as we do in this House, the festivals of Eid al-Fitr, Eid al-Adha, Diwali and Dussehra. We also recognise that they are an important and integral part of each of those communities’ faiths.

I have had the pleasure—as I am sure many hon. Members have—of joining Muslim friends at an Eid al-Fitr, which is also known as the feast of fast breaking. It is not only a spiritual time, but one of community and celebration. It brings people together in my own community in very important ways for cohesion and tolerance. Anyone who has had the pleasure of being involved in or invited to a Diwali celebration knows that it is a fantastic occasion. As my hon. Friend the Member for Harrow West said, it symbolises the victory over evil and the victory of light over darkness, which has parallels with many other religions.

While Muslims and Hindus represent the largest religious groupings in this country after Christians, there are many other faiths, some of which we have mentioned today—for example, Buddhism and Judaism. Those communities’ faiths are just as important to them as those of any other religious group are to its members, and it is important for those faiths to have the same opportunities to participate in ceremonies of significance for them. I appreciate that their numbers as a proportion of the population as a whole are smaller, but that does not make their faith any less important.

That raises the question of whether there should be any threshold for official recognition of public holidays for religious festivals. When one considers that one in four people does not subscribe to any faith at all—they are by far the biggest group in this country after Christians—arguments on the basis of numbers begin to look slightly less robust.

Therefore, a better approach is to ensure that all employers, including those who run business models that do not consider the people who work for them to be employees, recognise the importance of faith and religious festivals, and are as flexible as they can be, to accommodate the beliefs of their employees. Happy workers, respected workers and valued workers are, I hope, productive workers, so there is a clear benefit to the employers and the wider economy in recognising and respecting the importance of these festivals when decisions are made about annual leave.

It is not just about time off for religious holidays. There are also periods of fasting during daylight hours, or required prayers at certain times of day, which are just as important as annual festivals. That opens up a series of very complex issues, for which it is not practical to legislate in each and every instance. As the hon. Member for Strangford (Jim Shannon) said, the onus is on employers to do what they can to facilitate people observing their particular religions. It is useful to remind ourselves that discrimination against individuals on the grounds of religion or belief is unlawful. The official ACAS advice sums up the situation well:

“Many religions have specific days or periods throughout the year that involve additional religious observances for followers. The nature, duration and requirements vary depending upon the holy day or religious festival, and can also vary depending on the personal religious beliefs of an individual. It is useful for both employees and employers to give thought to any impact this may have in the workplace, as simple and well-planned arrangements can help manage everyone's expectations.”

It is about being considerate, communicating and, on occasion, compromising. Our workplaces should be places of tolerance. The hon. Member for Linlithgow and East Falkirk said that people have reported that they felt that it was risky to ask their employers for time off—a very sad state of affairs.

The main thrust of the e-petition is the case for public holidays for specific religious festivals and, although I am not persuaded—for reasons that I have given—that additional public holidays should be attached to particular religious occasions, I am convinced that, overall, there is a case for a greater number of public holidays than we currently enjoy. As we have heard, at present we have the lowest number of bank holidays in the EU, where the overall average is 12, while further afield, Japan has 16 days and India has 18. Even within the UK, England and Wales do slightly worse than Scotland and Northern Ireland.

As I am sure hon. Members know, Labour’s manifesto made clear that St George’s day, which is England’s national day as well as Shakespeare’s birthday, would be made a public holiday, along with St David’s day, St Andrew’s day and St Patrick’s day. We believe that those holidays will give workers a chance to spend time with their families and friends in their communities, as well as the opportunity to celebrate the national cultures of our proud nations.

As other hon. Members have mentioned, the counter-argument is that bank holidays cost the economy, but I think it is extremely difficult to pinpoint the exact economic impact. For example, the Department for Digital, Culture, Media and Sport estimated that the impact of the diamond jubilee on GDP would be somewhere between a gain of £1.1 billion and a loss of £3.6 billion. For just one day in the calendar to produce such a wide range in estimated economic impact shows how difficult it is to put a precise figure on this.

People are not economically inactive on such days. Certain sectors, such as hospitality, retail, leisure and tourism will undoubtedly benefit, and in addition, the Bank of England believes that economic activity is more likely to be delayed than lost. The logical conclusion of accepting the economic loss argument would be that we should have no public holidays at all, but that would ignore the wider benefits of a rested and balanced workforce and the inconvenient fact that we have a lower number of public holidays and lower productivity than most of our major competitors, as most hon. Members have mentioned.

Measured by output per hour, productivity in the UK is 13% below the G7 average, and since 2010 productivity growth in the UK has more or less stalled. As the excellent report by the Institute for Public Policy Research’s Commission on Social Justice made clear, the roots of our productivity crisis lie far deeper than the number of hours a person works in a particular week. As hon. Members have said, if predictions of significant job losses due to automation and artificial intelligence are correct, should we not begin to consider whether that shift in working patterns is an opportunity to enable everyone to have more leisure time?

When the Minister responds, I am sure she will not agree about the merits of increasing the number of bank holidays. Does she have any up-to-date information as to why? What recent and detailed assessment have the Government made of the number of bank holidays in Britain? What assessment has been made about whether holidays are spaced in the most effective way? What is the Government’s latest assessment of the benefits and costs to the UK of any additional bank holidays?

Bank holidays, like all our statutory annual leave, are beneficial only if workers are able to enjoy them. They are normally included as part of a full-time employee’s 28 days annual leave, as guaranteed by the Working Time Regulations 1998, but concern has rightly been raised in some quarters that our impending exit from the European Union could result in a weakening of workers’ rights, particularly given the number of prominent Conservative Members who argued during the referendum campaign that the laws emanating from Europe on annual leave should be scrapped. Even the Secretary of State for Exiting the European Union, the right hon. Member for Esher and Walton (Dominic Raab), said in 2011:

“Britain should secure a total opt-out from the Working Time Directive and scrap the UK Regulations, ensuring that this costly, anti-jobs legislation cannot cause further damage to the economy.”

When the Minister responds, I am sure that she will be keen to put on the record an absolute commitment that the Working Time Regulations 1998, as currently adhered to in this country, will not be scrapped, watered down or altered in any way when we leave the EU; that the full-time entitlement to 28 days paid leave as a minimum will continue; that entitlement to daily and weekly rest breaks will continue; and that holiday entitlement will continue to accrue during maternity, paternity and adoption leave and while a worker is off sick.

Holiday entitlement does not cover the whole UK workforce. People who are self-employed are in a different situation. In principle, they can take leave when they want—

[Mrs Anne Main (in the Chair)]

Order. I have given the hon. Gentleman some latitude, but we are talking about a petition and not general working time directives or other things. He should confine his remarks to the need for the petition to be discussed.

[Justin Madders]

Thank you, Mrs Main.

I was merely explaining that some workers in the gig economy, who are perhaps falsely labelled as self-employed, may not be able to take advantage of holiday entitlements. Has the Minister made an assessment of the number of people denied the right to annual holidays as a result of being incorrectly labelled as self-employed?

In theory, flexibility should mean that there is no issue, but we have heard too many tales of one-sided flexibility. It is important that people of every religion have the right to exercise their religious observance, regardless of their employment status. What steps have been taken to ensure that those employed on zero-hours contracts or in agency work are not subsequently penalised for taking time off to observe religious festivals? With so much work in the gig economy dictated by algorithms on a phone, what steps can the Government take to ensure that no particular religion is disadvantaged by the way those apps operate? That is important, because those apps work only as well as the information that is submitted to them. I am not sure that it is clear that software programmers would think about religious observance when they are working on those apps.

The real problem is enforcement. Rights are only as strong as an individual’s ability to exercise them. To raise concerns about holiday entitlement requires cases to be taken up with an employment tribunal, which until recently attracted a fee imposed by the Government. Even without the fee structure, where cases are complex, like those in the gig economy, representation is often required. Even then, employers can choose not to comply with tribunal decisions. Tomorrow, Uber will go to the Appeal Court to fight a two-year-old ruling that its drivers should be entitled to holiday pay. In those two years, Uber has not paid a penny to the drivers. It is estimated that they are owed about £18,000 each in lost entitlement.

As the Minister knows, where the minimum wage has not been paid, the Department investigates—

[Mrs Anne Main (in the Chair)]

Order. I am struggling to see how that is relevant. The hon. Gentleman is making some interesting remarks, but if he could confine them to the need to have holidays for religious observance, as the petition outlines, I would be grateful. I would like to hear the Minister’s response to that part of the debate.

[Justin Madders]

I would suggest that it is important to look at all forms of workplace structure—

[Mrs Anne Main (in the Chair)]

Order. And, I would suggest, so long as it is in line with the debate that is on the table.

[Justin Madders]

I am coming to a conclusion anyway.

Will the Minister look at occasions where holiday entitlement is not observed? Could the Department adopt a naming and shaming policy, as it has for minimum wage cases?

In conclusion, the debate has reminded us of the need to recognise the importance of respecting and facilitating the opportunity for people of all faiths to observe their religious festivals, but also to think more broadly about the importance of being able to access the right to paid leave.

--- Later in debate ---

[Kelly Tolhurst]

One is enough, but I thank my hon. Friend for his invitation. As he highlighted earlier, many parliamentarians throughout the country will celebrate that day with their constituents, as he will, and they will ensure that they are present at a lot of these events.

As Members will know, the current pattern of bank holidays is well established. There are eight permanent bank and public holidays in England and Wales. Scotland has nine and Northern Ireland has 10. The Banking and Financial Dealings Act 1971 allows for dates to be changed or other holidays to be declared. This allows for holidays to be declared to celebrate special occasions or one-off events.

The Government regularly receive requests for additional bank and public holidays to celebrate a wide variety of occasions. Recent requests have included public holidays to commemorate our armed forces, to mark particular royal events and to celebrate certain sporting successes. We carefully consider every request that we receive.

Although the hon. Member for Linlithgow and East Falkirk has made a powerful case today, the Government do not believe that it is necessary for such extra bank holidays to be declared, for reasons that I will now outline. First, the costs to the economy of introducing new public holidays are considerable. The most recent assessment of an additional holiday for the diamond jubilee, which has been spoken about today, showed a total cost to employers of around £1.2 billion. Depending on the nature of the holiday that is being proposed, costs may be partially offset by increased revenues for businesses in the leisure and tourism sectors, and by a boost in retail spending. However, it is not expected that public holidays for Eid or Diwali would result in an increase in tourism.

Although bank holidays have become widely observed, workers do not have a legal right to take time off for specific bank holidays or to receive extra pay for them; that depends on the terms of their employment agreement and contract. In the UK, full-time workers receive a minimum annual leave entitlement of 28 days. That is a combination of eight days to represent bank holidays and the EU minimum annual leave of 20 days. The extra eight days of leave do not need to be taken on bank holidays themselves, giving workers flexibility. Many employers offer extra leave entitlement on top of the statutory minimum.

It is at the heart of the Government’s quality of work agenda to encourage employers to respond flexibly and sympathetically to any requests for leave, including for religious holidays. The relationship between the worker and the manager is a key aspect of good quality work. Part of a sound relationship is mutual respect and a willingness to accommodate a worker’s religious or cultural commitments.

I will now touch on a few points that the hon. Member for Linlithgow and East Falkirk made. Discrimination in the workplace is not tolerated and is completely unacceptable, so I was very sad to hear about some of the issues that he raised and about some of the feelings that individuals have expressed, which he referred to in his speech.

The hon. Gentleman made an interesting point about swapping religious festivals, but, as I outlined earlier, people do not necessarily have to take bank holidays off, so there is flexibility with the annual leave entitlement for people to make use of that time on their own particular religious holidays.

However, the heart of the argument is around making sure that we do all we can, as a Government, to ensure that employers are sympathetic to the needs of their workers. As everyone who has spoken here today has outlined, the key to the success of companies and businesses is the happiness of their employees. As a Government, we will continue to encourage business to respect people’s views and meet their needs.

The hon. Member for Strangford (Jim Shannon) raised the issue of education, which is an important part of this debate. I can only speak about my own experience from when I was at school. Even then, in the ’70s—well, in the ’80s, I should say—[Interruption.] Yes, I was at school in the ’80s. Actually, I benefited at my comprehensive school from a really good religious education, which did not just focus on Christianity; it covered all the other major religions that are present in this country, too. So I found that, both at school and after I left school, I was in an environment that was very multicultural, even in the ’80s, and I believe that I left school with a good understanding of many of the religions that we have spoken about today. Nevertheless, that is something that we must keep abreast of, and I am sure that the Department for Education will welcome the questions that have been put to it today.

I will just mention a couple of points that my hon. Friend the Member for Harrow East made. He is a strong champion for his constituency and it was great to hear him also talking about Jewish holidays and his constituency. He mentioned the need for employers to understand and to be sympathetic to the needs of particular individuals, and we will continue to monitor that.

I thank the hon. Member for Harrow West (Gareth Thomas), who is another strong champion for his constituency, for his contribution. However, even though he was very determined that he wants to increase the number of public holidays, I am yet to be convinced about the type of extension that he suggested. Nevertheless, it was great that he was able to make his point.

Finally, I will touch on the contribution by the hon. Member for Ellesmere Port and Neston. As I have outlined, we receive a lot of requests for different holidays. We have had requests for St George’s day and an “EU independence” day, and very recently there was a request regarding Harry and Meghan’s wedding. I am sure that the requests for new bank holidays will continue as time goes on, and I am also sure that all the constituents out there would always relish the thought of another day off work. The hon. Gentleman also talked about employers’ awareness of religion, and that is key to what I will come on to later.

I noticed that the hon. Gentleman mentioned that bank holidays could be directly relatable to the productivity of employees, and I think that is a theory that might be tested. However, he also mentioned that with our move to new technology, such as artificial intelligence and robots, there will definitely be job losses. The Government are committed to ensuring that we can provide an economy, a workplace and the skills and jobs that will keep people employed. I am not yet convinced that we need to establish more bank holidays on the back of that change, but he probably has a counterargument.

I will make two quick points to address some of the hon. Gentleman’s other comments. First, I understand that he has asked some questions around the assessment of the cost of bank holidays. Since I became the Under-Secretary of State for Business, Energy and Industrial Strategy, I have not done that assessment, but it would be an interesting area to consider. However, I would always argue that the costs that have been established could be, in reality, potentially higher, so it would be interesting to see who was right and who was wrong on that point.

Regarding our leaving Europe, we have been clear on workers’ rights. As we leave Europe, this Government have been clear that we will not make any concessions in relation to the workers’ rights that we already have, and that we want to ensure that our workers’ rights are protected and built upon. I think that the Prime Minister has been very clear on that.

On the hon. Gentleman’s comment about self-employment, and self-employed people not necessarily being able to benefit from bank holidays, the whole essence of being self-employed is around the flexibility of work; self-employed people are not subjected to the same restraints as full-time employees with regard to their holiday entitlement. So, although he makes a point around self-employment, self-employed individuals actually have a lot more flexibility than others do, particularly to enjoy the religious festivals that they may want to observe.

[Justin Madders]

The point about self-employment is that many people are genuinely self-employed, but a group of people, particularly in the gig economy, do not have the same flexibilities. It is the situation of those people that I wanted the Minister to address.

[Kelly Tolhurst]

Flexibility is key for self-employment, but with regard to the group of people he mentions who are working on such contracts, there is a ban on exclusivity and those individuals are still given the opportunity to request the holiday that they are entitled to as flexible workers with accrued holidays.

In our industrial strategy, the Secretary of State for Business, Energy and Industrial Strategy took responsibility for reporting on and improving the quality of work across the UK. That was a key recommendation of the Taylor review of modern employment practices. In his review, Matthew Taylor set out an overarching ambition that all work in the UK economy should be fair and decent, with realistic scope for development and fulfilment, and that is an ambition of this Government. Although being in employment is vital to people’s health and wellbeing, the quality of the work is also a major factor in helping them to remain healthy and fulfilled.

We know that working flexibly helps people to balance their work and personal lives. Certain approaches to flexible working can allow people to build up additional leave entitlements, to use however they choose. Such flexibility is vital in creating an inclusive economy. Employees with 26 weeks’ continuous service already have the right to request flexible working. That accounts for more than 90% of employees, which sends a clear signal that flexible working is a normal practice for anyone in the workplace and not limited to those with caring responsibilities. The Government would like to take that further. We announced earlier this month that we will consider a new duty on employers to advertise all jobs as flexible, turning the tables on flexible working from something an employee might consider requesting into something an employer will consider offering.

Britain is a great place to live. However, we cannot ignore the fact that in too many parts of our country, communities feel divided. The Government are fully committed to the principles of freedom of religion and belief. I am proud that this country has in place some of the strongest protections in the world to allow people to practise their faith or belief. More than that, we understand that faith communities make a valuable contribution to our society by creating strong social networks, supporting vulnerable people, undertaking charitable work and providing education. We continue to support interfaith work as a means of breaking down barriers between communities and building greater trust and understanding.

Since 2011, the Government have funded the Church Urban Fund’s near neighbours programme, which brings people from diverse faiths and backgrounds together to increase trust and understanding. More than 1,600 local community integration projects have been funded, across 40 local authority areas, and more than a million people have benefited. We also fund the work of the Inter Faith Network for the UK, to facilitate dialogue between faith communities and run the annual interfaith week.

Our industrial strategy commits us to doing more to address the under-representation of people from minority ethnic backgrounds in the labour market. That is good for society and good for business. The McGregor-Smith review estimated that equal employment and progression across ethnicities could be worth £24 billion to the UK economy per year. I encourage employers to look at the review. It provides concrete actions that can be taken to identify and tackle any workplace barriers. As an example, it sets out how staff networks can be a forum for the discussion of how a business can take account of holidays or festivals in an equitable way.

On 11 October, Business in the Community published a one-year-on report on progress against the review’s recommendations. Although there were areas of progress, and significant effort from the Government and employers, I was disappointed to see that that was not always reflected in employees’ lived experiences. One in four employees from a minority ethnic background had witnessed or experienced racial harassment or bullying from managers in the previous two years—an appalling statistic. Only 35% of people felt comfortable talking about their religion in their organisation, and only 38% felt comfortable talking about race. We must ensure that workplaces are comfortable places for the discussion of difference, so that everyone can contribute their perspectives and experiences.

The Prime Minister launched the race in the workplace charter on 11 October, through which organisations sign up to five practical calls for action to ensure that they are tackling barriers faced by people from ethnic minorities in the workplace. The charter builds on a number of the recommendations of the McGregor-Smith review, and I encourage employers to sign up to it.

All this afternoon’s contributions have been informative and respectful. It has been a great debate and I thank all the constituency MPs who have spoken. I know that there will be disappointment that the Government have been unable to support the e-petitions for public holidays for Eid and Diwali, but I have welcomed the opportunity to set out our commitment to a fair and flexible workplace for all. Once again, I thank the hon. Member for Linlithgow and East Falkirk for introducing the debate today.

Oral Answers to Questions

Justin Madders Excerpts

Tuesday 16th October 2018 Commons Chamber

[Mr Gyimah]

I am aware of the ambitions in Torbay and I am encouraged to see the high-level commitment from the Torbay Together partnership. I encourage Torbay Together to continue its engagement with the Heart of the South West local enterprise partnership to ensure that the forthcoming local industrial strategy reflects the potential for the local area, and I commend its strategy.

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

UK shipbuilding is vital to the industrial strategy and our long-term economic success. When he visited Cammell Laird last year, the northern powerhouse Minister—the Under-Secretary of State for Housing, Communities and Local Government, the hon. Member for Rossendale and Darwen (Jake Berry)—said:

“The future of this yard is absolutely crucial to the future of Birkenhead and Liverpool and I will do all I can to support them.”

Since the decision was made last week to cut more than 290 high-skilled jobs—40% of the entire workforce—the silence from the Government has been deafening. What will the Government do to defend jobs in this vital industry?

[Mr Gyimah]

The Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Watford (Richard Harrington), met and spoke to Cammell Laird last night. It has finished one contract and a number of other contracts are on the way. It has also received £150 million for projects that it is engaging in and the Minister will be delighted to meet the hon. Gentleman to update him.

Economic Justice Commission

Justin Madders Excerpts

Tuesday 11th September 2018 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Mr Hollobone. I congratulate my right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne) on securing the debate and on his excellent synopsis of the report, which I hope most Members have read. Mr Hollobone, you will pleased to hear that I will not take my full 10 minutes. I prepared for having rather less time, as I expected there to be an awful lot of interest in the debate, such is the importance of the report. It is sad that so few Members took the opportunity to attend, but I hope this is the start of a dialogue about how we change some of the fundamental injustices in our country.

Like my right hon. Friend, I congratulate the members of the Economic Justice Commission on their hard work in the past two years on a compelling report that deserves the attention of all Members. People in my constituency have experienced not just a stagnation but a marked deterioration in their living standards. Average earnings have fallen in real terms while the price of housing has continued to soar, leaving many in my constituency to see home ownership as an unachievable dream, despite the fact that many pay more in rent every month than they would in mortgage repayments.

Many people who live in insecure and expensive accommodation have equally insecure jobs. As we heard, there has been a significant increase in agency and zero-hours jobs, in under-employment and in bogus self-employment, which is a stain on our society that creates many problems down the line for individuals and, ultimately, the state. Even those in permanent employment do not feel secure, due to the erosion of employment rights. For example, workers can now be sacked without any reason during their first two years in a job.

The UK ranks eighth of 140 countries for labour market flexibility. The report states:

“It is now possible for an employer to take on a worker with almost no attached responsibilities on the employer’s part, or rights for the worker, at all…It is this flexibility that largely explains the simultaneous occurrence of high employment levels and largely stagnant wages.”

It also explains the shocking fact that more people in poverty now live in working households than in non-working households, after housing costs are taken into account. Does the Minister think that state of affairs is something to be proud of, or does she agree that it is unjust and unsustainable?

The workers we have discussed also face the brunt of the coming force of automation. My right hon. Friend mentioned a number of statistics that show how those who earn the least will be hit hardest by automation. I have another for him: workers in jobs paying less than £30,000 are five times more susceptible to having their posts automated than those earning more than £100,000.

The report also sets out clearly the geographic inequalities we face. London is the richest region in northern Europe, but the UK as a whole contains six of the 10 poorest regions in Europe. That shocking imbalance comes as no surprise to those of us who represent parts of the north. We have grown accustomed to infrastructure investment being used to entrench rather than tackle that divide.

Even in a time of economic growth, unemployment has not fallen universally. Since the Prime Minister promised two years ago to tackle the burning injustices in our economy, unemployment in my constituency has increased by almost 50%. If that happened during a time of economic growth, when the hard times come—and they will—we will be even further behind. Of course, that is before we consider the impact Brexit may have on large employers, such as Vauxhall in my constituency. We heard today about the potential impact on the car industry if the Government do not get the right Brexit deal.

It is clear that we cannot go on as we are and that the report’s proposals cannot be ignored, but I wonder whether the Government have the political will to respond positively. It is clear from the report that there is a direct correlation between the decline in collective bargaining and the deterioration in working conditions. The only way to reverse that decline is to strengthen trade unions.

[Liam Byrne]

I did not expect to intervene, but my hon. Friend makes an incredibly important point. The case he makes has been rehearsed by the Opposition for some time, but it has now been endorsed by the International Monetary Fund, which reported over the summer that the dismantling of labour protections accounts for a huge slice of the fall in labour’s share of national income. That is not just our view—it is now the IMF’s view.

[Justin Madders]

I did not think I would quote the IMF today, but my right hon. Friend is absolutely right about the share of income that goes to labour. I found that statistic in the report staggering. It is clear that the direction of travel will only continue downwards. We must find a way of reversing that decline. We like to say in this place that economic growth is the answer to all society’s problems, but that growth has to be shared by everyone, and it clear that that is not happening. If we do not solve that puzzle, we will have failed our constituents.

We must also tackle the myth propagated from time to time that an empowered workforce are a barrier to growth when, in fact, as my right hon. Friend said, all the evidence shows that they are an enabler. Many of the countries that outperform us in productivity have better paid workers and stronger workplace rights. The report states clearly:

“If both productivity and pay are to be increased, power will need to be rebalanced in significant ways from employers to workers. This will require stronger labour market regulation and strengthened trade unions.”

Sadly, the Government seem to spend a disproportionate amount of time looking to stifle and inhibit trade union activity.

There has been a lot of soul searching in the past few years about why people voted as they did in the referendum. I think many of the answers are in this report. I always maintained that the arguments advanced during the campaign about the threats to our economic security from Brexit would never work with people who already did not feel economically secure. As the report makes clear, the issues that have created the rampant inequality that fuels division and discontent in this country can be solved only by a Government who are prepared to tackle the root causes of what is a very lopsided economy. The lessons of the past tell us that things will change only if there is a political will to make that change. We will fail this country if we do not take the lessons in the report seriously.

Oral Answers to Questions

Justin Madders Excerpts

Tuesday 17th July 2018 Commons Chamber

[Claire Perry]

The hon. Lady, as always, makes a powerful point. We are taking action by prosecuting companies that are not paying the national minimum wage and we are ensuring that those basic rights are enforced. We want to get this right because this legislation will have to last not just for six months or a year, but for many years as our economy develops.

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

I am sure that the whole House will join me in wishing my hon. Friend the Member for North West Durham (Laura Pidcock) all the best during her maternity leave. As we know, the Taylor review failed to offer much protection for those in the gig economy who are pregnant. The Government’s earlier Deane review on self-employment made recommendations on equalising maternity allowance, but that was two and a half years ago. Do the Government intend to implement those recommendations?

[Claire Perry]

I welcome the hon. Gentleman to his position. I was around his constituency on Saturday helping to launch the RSS Sir David Attenborough—what a fine place he represents. He is absolutely right to focus on these basic maternity protections. This Government are continuing to improve paternity and maternity rights. We want to get that right and that will be part of our response.

Insecure Work and the Gig Economy

Justin Madders Excerpts

Wednesday 20th June 2018 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Mr McCabe. I congratulate my hon. Friend the Member for Barnsley East (Stephanie Peacock) on securing this important debate and the powerful way in which she introduced the subject.

The world of work is evolving rapidly. The plethora of court cases and the growing uncertainty are a reflection not only of how technology is changing the employment relationship, but of how new and unscrupulous employers are seeing that as an opportunity to loosen the relationship further, usually to the detriment of the worker.

I, too, pay tribute to the GMB, which has pushed back against this wild west frontier approach, but it should not just be down to trade unions to try to make the best of 20th-century laws in the 21st century. Parliament should be setting out a new, comprehensive settlement to take us into the new world. We should do it in a way that ensures dignity, certainty and fairness for those who work in the gig economy. That is why it is completely unacceptable that, weak though it is, there has been no progress on the Taylor review a year after it reported.

I am talking about the 21st century, and I have to say that I was rather amused and disappointed by the comments made by the founder of Pimlico Plumbers.

[Mr Jim Cunningham]

The important thing is that we are now creating a new animal in our economy: the working poor. That is what people tend to miss, and it is happening as a result of the gig economy. We had an incident in Coventry a fortnight ago on a Saturday night between black cab drivers and Uber drivers, and it ended in a certain amount of violence. Surely, things cannot go on like this.

[Justin Madders]

I thank my hon. Friend for that intervention. Whole ways of working are being disrupted in ways that really are undermining the economy. I go back to the Pimlico Plumbers judgment, which found that someone who had worked for the company for six years was entitled to some basic workplace employment rights. The founder of Pimlico Plumbers said:

“We had five judges in the top court in the country and an opportunity to bring our employment law into the 21st century and unfortunately they missed the point.”

I have to say that he has rather missed the point, if he thinks that in the 21st century it is acceptable for someone to work at the same company for six years and not be entitled to any basic workplace protections. That sounds like something out of the 19th century, not the 21st.

I had rather more sympathy with him when he said:

“We can’t get our heads around this word ‘worker’ and what it means.”

I am sympathetic to that, because the truth is that the worker category has always been an unsatisfactory halfway house between employed and self-employed. If we leave aside the question of agency workers, there should be no halfway house—a person is either employed by someone or not. If we can offer a bold and clear legislative framework, with the presumption of employment if someone is carrying out the work personally, we can end the uncertainty and hopefully begin to end the exploitation that we see in the sector.

Those who advocate these new relationships often present them as providing a choice to those who work under them, but it is an utterly false choice. It is a choice that is no choice at all. A choice is ordering food from a menu or choosing to have gammon and deciding whether to have egg or pineapple with it. The choice here is whether someone accepts what is served up or does not eat at all. That is not a real choice. It is a business model and a culture that says people are as disposable as coffee cups. It says, “If we don’t have enough work, tough. If you fall ill, tough.” And, crucially, it says, “If you question our methods or challenge any of our payments, you should not expect to get any more work from us in the future.”

Without job security, people have no security. How can they plan for the future, look to buy a house, have a family, save for retirement or maybe even start their own business if the labour market is so cutthroat, insecure and parasitic that it takes everything that they have got just to keep their head above the water? I think we can do better than that. We need to enter a new world where people are valued as much as the product that they are producing. At the moment, we are in a world where exploitation is all. It has to come to an end.

--- Later in debate ---

[Laura Pidcock]

It is absolutely nonsensical that the state should subsidise inordinate profits on the one hand and very poor pay on the other. The reality of modern work for millions of people, particularly in the north and in places such as North West Durham, is short-termism, insecurity, low pay and fear. Fixed-term contracts, enforced self-employment and agency work signal a move towards a more casualised and fragmented world of work. The use of zero-hours contracts increased rapidly in the wake of the financial crisis, increasing two and a half times between 2012 and 2016. The latest figures available show that that is not abating. We have had an increase from 1.4 million to 1.8 million in just six months.

When Conservative Members celebrate the flexibility—this has been mentioned many times—of zero-hours contracts, they have a romanticised vision of a student who perhaps wants summer work, but the reality is very different. One in three people on a zero-hours contract wants more hours.

[Justin Madders]

Will my hon. Friend give way?

[Laura Pidcock]

I have very little time; I am sorry.

A whole industry has exploded to formalise and professionalise insecurity at work, including through the use and abuse of new technology. It is absolutely right that we view that as the challenge of our generation. How we meet the challenges of technology replacing management structures with apps essentially being the employer is one of the most pressing issues. We need to take robust legislative action against that.

Despite the Government’s shameful resistance to protecting workers, we saw two landmark cases in the gig economy last week. First, a decision by the Supreme Court in favour of Gary Smith against Pimlico Plumbers, as has been mentioned, established that he was a worker and not self-employed. There must be an immediate end to exploitative employment practices. Last Friday, the Independent Workers Union of Great Britain won its right to pursue its case against Deliveroo, and I wish it luck.

I will end by saying that all the evidence shows that the best way to guarantee fair pay and protections at work is by strengthening the voices of workers through our trade unions—I am a member of Unite, so I register that interest—and by enabling the unions to organise and bargain collectively. That is why an incoming Labour Government would bring about a workplace rights revolution and create a new ministry of labour, which is not currently a Department, to give workers and trade unions long overdue rights and protections in law. We will of course repeal the shameless Trade Union Act 2016 and introduce new legislation to roll out sectoral collective bargaining.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Griffiths)]

As always, it is a great honour and pleasure to serve under your chairmanship, Mr McCabe.

It is also a great honour and pleasure to take part in what I think we all agree has been a very important, well-attended and very positive debate about the desire of Members from all parties in this House to protect the most vulnerable workers in our society. I congratulate the hon. Member for Barnsley East (Stephanie Peacock) on securing it and on the magnificent way in which she spoke up for workers in her constituency and across the country.

Employment rights and protections are important for this Government. In fact, the Government have made a commitment to seek to enhance rights and protections in the modern workplace. The gig economy and agency working offer great opportunities and new ways in which to participate in the labour market. For many people, they have transformed their opportunities to work when and how they want, and produced a flexible and dynamic way to work.

[Justin Madders]

Will the Minister give way?

[Andrew Griffiths]

I will give way just once; Members will understand that I am short on time.

[Justin Madders]

It is very generous of the Minister to give way. Obviously, we have heard a lot about flexibility, but if someone is reliant on these employers to give them work, does he think that the landlord will be flexible in getting the rent for that month?

Retail Sector

Justin Madders Excerpts

Wednesday 6th June 2018 Commons Chamber

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

I will aim not to disappoint, Madam Deputy Speaker.

As the name of my constituency suggests, there are two main towns, Ellesmere Port and Neston, both of which have a retail offer that is dramatically less than it was five years ago. However, we still have over 6,000 people employed in the retail industry in the constituency. The reason for that is the very successful Cheshire Oaks centre within our bounds. It was an answer that the local authority came up with in response to the ravages of the 1980s, when we lost so much manufacturing industry and there was a real recognition that we needed to broaden our employment base. The leaders of the council, Fred Venables and Reg Chrimes, both saw this as an opportunity, and it has transformed our area to the extent that we get 9 million or 10 million visitors a year, many from overseas. It is an expanding area, and it would be remiss of me not to mention that that has created a lot of employment in the constituency.

At the same time, however, we have had real challenges in our towns of Ellesmere Port and Neston. They are different in many ways—they have different demographics, transport links and ownership issues—but both have suffered in recent years from the changes in the retail market that we have heard about today. Neston, in particular, has now lost all its banks. That has undoubtedly had an effect on the high street not just for customers, but for other businesses that use local banks. I must say that the banks that have shut down have paid only lip service to improving services. They have made some very bizarre suggestions about people going to banks in other towns to which there are no public transport connections, and they have since talked about shutting down those branches as well.

We have also had transport issues, with real cuts to public bus services in recent times, which makes it difficult for people to get into the town. One particular example is of a shop owner working in Neston who is really concerned about the future of his business because he will not be able to get there if the bus service running from Ellesmere Port to Neston is stopped.

There have been some positives. In the Brook Street area, virtually all the shops were empty, but an organisation called Brightlife, which is funded through the lottery, managed to get a number of charities and good causes into those shops and brought back a bit of life to the area, which has made a real difference. Particularly innovative was the idea of moving the Little Actors into the jobcentre, which was an impressive way of finding a new use for an old building. That is all temporary, however, because it is all based on lottery funding and is not a permanent solution.

In Ellesmere Port, we have a bigger challenge because it is a bigger area to deal with. A lot more retail units are in private ownership, and many of them are too large for what retailers are looking for now. A lot of the big names have gone, and they just have not been replaced. As the hon. Member for Mansfield (Ben Bradley) has said, we need to look at different ways to promote interest in town centre food and leisure and the night-time economy, but the question is: how do we do that? I am concerned that local authorities do not have the capacity they once had to meet those challenges. My local council is looking at the One Public Estate programme, which will bring together different parts of the public sector, which will hopefully consolidate some jobs in the town. However, in terms of ownership, capital and vision, we are some way behind on delivering a new town centre for the future, and the Government’s industrial strategy is lacking in that regard.

If we do not take much more seriously the regeneration of our town centres, the inequalities and imbalance between towns and cities over recent years will continue to accelerate, and the feeling that a lot of people in towns have of not being as important as other parts of the country will continue to solidify.

As has been said, online sales put pressure on the retail sector, and about 21,000 jobs have been lost in the sector already this year. I also think that automation plays a part in that. Personally, I will not use an automated checkout; I think that every time we do that, we push shop people’s jobs a little bit closer to the exit door. I have read that £3 billion a year is being lost to retailers through theft as a result of abuse of those machines, which makes me wonder about the incentive for companies to install them. They cost retailers money, result in job losses and frustrate a lot of consumers. On a number of occasions, I have seen people having to call an assistant to get the machines to work properly. Perhaps it is the fact that the machines cannot join trade unions that makes them so attractive to companies.

Of course, I accept that companies have to do something to streamline their costs, because it is not a level playing field, as we have heard. Online retailers seem to have considerable advantages, not just in the way in which they are able to treat their staff but in how the business rates system works. I agree with the Secretary of State that town centres are an essential part of our character and identity. It is really important that we recognise that and that retail is only a part of it.

Certainly I have shown my commitment to my town centre in Ellesmere Port by placing my office there. The building had not been used for many years, but we got a grant to regenerate it and it is a signal of intent. That also shows that we have to look beyond the traditional retail offer to get life back into our high street. It has been under threat for many years, for myriad reasons. Retailers need to be given a fighting chance, but we cannot ignore the direction of travel in which online sales are leading us. We certainly cannot place all our eggs in the retail basket, so we have to reimagine and revitalise the town centre by offering something different and new to encourage people into it, not just to buy things but to experience things and to get back that sense of community for which I think most people yearn. In order to do that, we need to give local authorities the capacity, resources and authority to deliver, because austerity has put the skids under what they can do.

UK Automotive Industry: Job Losses

Justin Madders Excerpts

Tuesday 22nd May 2018 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Mr Bone. I congratulate my hon. Friend the Member for Warwick and Leamington (Matt Western) on securing the debate. As we have heard from him and other hon. Members, the car industry is of strategic national importance. I am sure the Minister has heard that message loud and clear, so I will take the opportunity to focus on the issues facing the Vauxhall car plant in my constituency, which has lost nearly half its workforce in the past 12 months.

There is virtually no one in Ellesmere Port who does not have some connection with the plant. At its height, it employed about 12,000 people, but sadly, with recent job losses it employs only around a tenth of that number now. It is still a substantial number, however, and it does not take account of the many people employed in the supply chain and associated industries—or of the potential for much greater numbers if we were to increase from single-shift production again. The plant remains a big part of the local economy. Recent job losses there have meant our going against the national trend, with unemployment in the constituency shooting up in the past few months. Every job lost is of course an individual tragedy, but my job now, and the Government’s job, is to make sure that those jobs that remain are protected and built on, because they are exactly the sort of jobs I want to see as a central component of our future: highly skilled permanent jobs in the manufacture of something that is a source of national and local pride.

Whatever our feelings about history and the pride that the plant generates, we cannot expect sentimentality from the new owner, the PSA Group, which has consistently said that each plant will be judged on its efficiency. If there is truly a level playing field, I welcome that. As we have heard, there are many things that we can do with respect to business rates and energy costs, for example, that can help. I know that the Minister has had a quite long list of the things that we would like to happen. However, one factor may make the competition unfair altogether and render all the other good work that is done academic—and that is Brexit. We have a clear message that the current uncertainty is delaying investment decisions by the parent company. Some might say that that is a ready-made excuse not to invest; but I do not want us to be in the business of providing people with excuses. I want us to be in the business of providing people with jobs. It is important to recognise that the automotive sector is one of our most vulnerable sectors, and we need to do everything possible now, as a priority, to safeguard jobs and investment. A bespoke trade deal for the automotive sector should be considered. After all, if it has been looked at for other areas, why not this one?

Vauxhall Motors has enjoyed half a century of production in Ellesmere Port. If that is taken away, a huge chunk of our identity will go with it, but it does not have to be that way. As hon. Members have said, the Government have a big challenge ahead, but I believe there are solutions, and we have heard some of them. On behalf of everyone in the constituency, I express a sincere wish that between us we can all rise to that challenge.

Oral Answers to Questions

Justin Madders Excerpts

Tuesday 1st May 2018 Commons Chamber

[Daniel Zeichner (Cambridge) (Lab)]

4. What progress he has made on implementing the good work plan.

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

5. What progress he has made on implementing the good work plan.

[Frank Field (Birkenhead) (Lab)]

24. What progress his Department has made on implementing the recommendations of the Taylor review of modern working practices.

--- Later in debate ---

[Andrew Griffiths]

Matthew Taylor set out in the good work plan how we can further enhance the protections for workers such as Sheila. There is a huge amount of day-one protections, and we are looking at what we can do with flexible working and zero-hours contracts to give greater certainty and security to workers exactly like Sheila.

[Justin Madders]

The Government response to the Select Committee report on a modern employment framework stated:

“The Government wholeheartedly agrees that strong action should be taken against employers who repeatedly ignore both their responsibilities and the decisions of employment tribunals.”

Those are fine words, but if they are to be meaningful the Government must back them up with action and put in place rules to prevent or deter repeat offenders from bidding for public sector contracts; will they do that?

[Andrew Griffiths]

The Government recognise that unfortunately some employers continue to offend repeatedly in this way. We are looking at what further measures we can take in the work plan, and more widely in the work of the Department for Business, Energy and Industrial Strategy, to ensure that such repeat offenders are clamped down on.

Sainsbury and Asda Merger

Justin Madders Excerpts

Monday 30th April 2018 Commons Chamber

[Andrew Griffiths]

We have engaged with Sainsbury’s and Asda to urge them to speak to their staff, and we have also engaged very openly and honestly with the trade unions. We want to see proper and early engagement and consultation in this process to ensure that the workforce is protected, but the public assurances that both Sainsbury’s and Asda are giving at present are that all the stores, and all the jobs in the stores, will be protected.

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

We know in takeovers and mergers of this nature that, as sure as night follows day, it is the workers who end up paying for the efficiency savings that have been set out. I have to say that, given the number of assurances the Minister has talked about today, I think attacks on terms and conditions are almost inevitable. When that happens in two years’ time, what will the Minister do?

[Andrew Griffiths]

The rules under which we operate in relation to mergers and takeovers were established in the Enterprise Act 2002 under a Labour Government. They have worked well and allowed businesses to grow, develop and merge to the benefit of both shareholders and the employers. The Department is, of course, closely following what is going on, but decisions in relation to this merger are for the CMA.

Vauxhall Factory, Ellesmere Port

Justin Madders Excerpts

Tuesday 20th March 2018 Westminster Hall

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

I beg to move,

That this House has considered the future of the Vauxhall factory in Ellesmere Port.

It is a pleasure to serve under your chairmanship, Mr Rosindell. When I am at home in my constituency, I get up to go to work and I head off in my Astra, of course. I go past many houses where Vauxhall employees and pensioners live, and many houses where the family and friends of people who work at Vauxhall live—and that is before I get to the end of my street. At the end of the street, I drive past a newsagent that relies on trade from Vauxhall employees, like many other local businesses. As hon. Members will understand from what I am saying, Ellesmere Port is synonymous with Vauxhall Motors.

The first Vauxhall Viva rolled off the production line in 1964. As the plant grew, so did the town. There is virtually nobody who lives in Ellesmere Port who does not have some connection with the plant. At its height, it employed around 12,000 people. Sadly, with recent job losses, the number is about a tenth of that today, but it is still substantial. We also have to take into account the fact that for every person employed at the plant, three other people are employed in the local economy. There is also the potential for greater numbers should we increase from single-shift production again in the future.

Vauxhall remains a big part of the local economy. We should build our future success on such jobs: highly skilled, permanent jobs that manufacture something of national and local pride. Vauxhall’s advertising material makes much of the significance of its being a UK manufacturer, but this is about more than being a UK manufacturer, or a key part of the local economy.

[John Spellar (Warley) (Lab)]

My hon. Friend is right to stress that Vauxhall is a UK manufacturer. Is it not absurd, and frankly disgraceful, that so many public bodies—including police forces—buy vehicles from abroad? Some use Astras, but many others buy from companies that do not even have a presence in the UK. Should we not take that issue on?

[Justin Madders]

My right hon. Friend is absolutely right. We have had debates about that before. He reminds me of the time when we talked about the police in France using Citroëns and Renaults; the police in Germany using Mercedes and BMWs; and the police in Spain using SEAT vehicles. As a nation and as an economy, we should do much more to take advantage of our procurement power.

[Ms Angela Eagle (Wallasey) (Lab)]

I congratulate my hon. Friend on securing this important debate. Does he recognise that my constituency contains Vauxhall workers as well? Their economic future is reliant on the Government’s decisions in the Brexit negotiations, particularly given that they have decided to leave the single market, which puts those jobs at risk.

--- Later in debate ---

[Justin Madders]

My hon. Friend is absolutely right that the footprint is much wider than Ellesmere Port—it goes into north Wales, and hon. Friends from that part of the world are present. Brexit is key to the plant’s future, and I will go on to address that shortly.

It is not just about economic impact. The plant is a big part of the town’s local identity. From the 30 kids’ football teams that play under the name “Vauxhall’s”, to the sports and social club that has had huge investment in new 3G pitches and the kids at school who see working at the plant as part of their family tradition, it is a major part of our community, and we do not want to lose it.

The plant has regular fights for survival. Every five years or so, when the next model is being discussed, plants across Europe are effectively pitted against one another to bid for the next job. In the past, the productivity and co-operation of the local workforce, combined with the tremendous leadership of Unite the Union, of which I am a member, in its work with management, have put us in the best possible position to secure future work. That partnership is an exemplar of how to conduct employee relations for the benefit of everyone.

[Ian C. Lucas (Wrexham) (Lab)]

My hon. Friend is making a powerful case. Is that partnership of unions, employers and Government working together not the reason why the UK has been effective in beating off competition from mainland Europe to secure jobs in the past? That is what we need to do in the future.

[Justin Madders]

My hon. Friend is absolutely right. Initiatives such as the Automotive Council have seen the UK car industry go from strength to strength. As we know, however, every time a model comes up for renewal, it gets a little harder, the demands are greater and the workforce have to sacrifice a little more. It is a challenge we have always been equal to in the past, but the convergence of factors undoubtedly makes securing the next model our biggest challenge yet.

The latest edition of the Astra became European car of the year in 2016. It enjoyed great success, particularly in the sports tourer model, which led to 80% of the vehicles built in Ellesmere Port being exported to Europe. Despite that, in recent months, tastes have changed and there has been a dramatic slowdown in sales for that type of vehicle.

[Mike Amesbury (Weaver Vale) (Lab)]

Does my hon. Friend agree that our Vauxhall plants, including Ellesmere Port, are among the most productive in the PSA Group family?

[Justin Madders]

Yes, I would like to say that they are, but we are now being judged by a new benchmark. I will go into some detail about how things are being counted against the workforce’s excellent productivity.

The cuts in sales have led to cuts in the workforce, with 400 jobs going in October and another 250 earlier this year. In the past, a downturn has led to agreements between the unions and management about reduced hours to protect jobs, but the new owner, the PSA Group, has shown a different approach. That must act as a warning that we cannot expect any sentimentality from it, and that, as it has said consistently from the day it took over, plants will be judged on their efficiency.

History tells us that the local unions and management are well capable of meeting that challenge, but numerous factors are at play that will impede their ability to do that. It is our job—not just the job of the Opposition, but of the Government—to help them to overcome those obstacles in a highly competitive market.

Let us start with the big challenge: Brexit. Uncertainty across a sector can have a real impact on investment decisions. As we know, investment decisions in the automotive sector are traditionally made three to five years in advance, so decisions about investment in the post-Brexit world will begin to be made shortly.

In that respect, the timing could not be worse, as the current model in production in Ellesmere Port is due to be discontinued around the same time, in 2021. The chief executive of the PSA Group recently said:

“We cannot invest in a world of uncertainty.”

Some might say that is an excuse. Some might call it a distraction. I do not mind what it is called, as long as we do not ignore it.

After the Prime Minister’s Mansion House speech, the PSA Group and other manufacturers in the sector made similar points about the lack of the clarity, so I asked her to provide certainty by confirming that the trading arrangements in the automotive sector will be no less favourable than they are now. I am sorry to say that her answer did not give any clarity and there was certainly no unequivocal guarantee.

[Frank Field (Birkenhead) (Lab)]

Might I put on record what we have spoken about in private, that we should go to see the Secretary of State for Exiting the European Union and push for a sectional deal, particularly for Vauxhall and other companies producing cars and vans in this country? A second stage could be that we get unions and management in France and Germany to effectively lobby their Governments.

[Justin Madders]

My right hon. Friend is absolutely right to say that the sector is too important to be left on its own. It directly or indirectly employs around 800,000 people and generates almost 10% of the country’s manufacturing output. Half of all the UK’s car production is exported to the EU, and that figure goes up to between 70% and 80% for the Vauxhall plant in my constituency.

[Matt Western (Warwick and Leamington) (Lab)]

I concur with my right hon. Friend the Member for Birkenhead (Frank Field). Does my hon. Friend agree that the statement made by the CEO of the PSA Group, Carlos Tavares, is a canary in the mine? It is the first warning about Brexit and the serious impact it will have on our economy.

[Justin Madders]

That is certainly a huge concern locally. We do not want to get into a game of pointing fingers; we want action, certainty and investment in the plant, but it will be a challenge. A report by the Business, Energy and Industrial Strategy Committee recently concluded that

“leaving the EU without a deal would undoubtedly be hugely damaging to the UK automotive sector, more so than to other European countries… Overall, no-one has argued there are advantages to be gained from Brexit for the automotive industry for the foreseeable future.”

Now that we are leaving the EU, it is important to recognise that there is no upside for one of our most vulnerable and important sectors. We must do everything possible to safeguard jobs and investment, because history shows us that once manufacturing jobs are lost, they very rarely come back.

So far, the Government’s response has been denial. We need them to work tirelessly to reassure major international companies that their future competitiveness will not be fatally undermined by tariffs or regulatory divergence, and that they can invest with confidence. I want us to get into a position in which Brexit cannot be used as an excuse not to invest in UK manufacturing. A clear and unequivocal commitment to a customs union would help, so that the many parts that travel back and forth across the continent can do so without impediment and without the final product becoming uncompetitive. The Society of Motor Manufacturers and Traders has estimated that failure to properly cater for such issues in the negotiations could result in an increase of more than £1,500 in the average cost of a vehicle. What business can absorb that without a massive impact?

There is a school of thought that says that some sort of customs union will prevent us from striking up trade deals on our own, but as the BEIS Committee said, the reality is that there are no advantages for the automotive sector from Brexit. If asked to choose between preserving trade with up to 80% of existing customers or knowingly jeopardising existing trade in exchange for the chance of some new business with unspecified countries at an unspecified future time, I believe most people would go for the former and protect existing jobs.

All I have seen from Cabinet Ministers who have been pressed on the issue is bluffing, complacency and dangerous fantasies about a green and pleasant land. The automotive industry will survive and flourish only if we protect it now. I do not expect the Minister’s reply to provide the laser-like clarity that has been missing so far, so I will focus instead on matters that are wholly within the Government’s gift, that are not down to negotiations, that can make a real difference now, and that would still be key to securing the plant’s future even if a new model were announced tomorrow.

The first such matter is business rates, which can have a deterrent effect on investment and can mean that efficiencies have to be sought in alternative areas. Some 60% of the total property tax bill of the former Opel group came from the UK, even though the UK accounted for only 8% of the group’s total footprint. In Germany, significant rate reductions are provided to large companies that are intensive energy users.

[Alison McGovern (Wirral South) (Lab)]

rose—

--- Later in debate ---

[Justin Madders]

My hon. Friend is absolutely right. The motor industry has been pressing on the business rates issue for several years, and it pressed again this year; I know that hon. Members with an interest in the subject have pressed on it, too. The case argues itself. An EY study has demonstrated that de-rating certain types of plant and machinery, not just in the automotive sector but across manufacturing, could stimulate additional investment of more than £8.7 billion and support an additional 33,000 jobs per annum. That is something we can do, and the argument for doing it is clear.

Let me give another example that relates to Brexit. If Vauxhall invested in solar panels on the site in the attempt to save on energy costs, it would attract a higher business rate. That does not seem in tune with much of what the Government are trying to achieve. Vauxhall has learned that its energy costs per MWh are twice those of plants in France. That has a massive impact on the competitiveness of the vehicles that it manufactures. I am grateful to the council and the local enterprise partnership for their work to address the issue by helping to source a local low-carbon supply for the plant. That will inevitably require some infrastructure investment, so I urge the Minister to keep in close contact with the LEP to ensure that everything possible is done to facilitate the proposal.

The final piece of the jigsaw is about taking a challenging part of the current set-up and reusing it to enhance the site’s overall viability. A good deal of land on site is surplus to requirements; as the number of people employed there has shrunk, so has the need for the land that the plant sits on. At the moment, only about a quarter of the Astra’s parts are sourced from the UK supply chain, and there has long been an ambition to increase that substantially. Given the uncertainties over future customs arrangements, the opportunity to utilise spare land to help local automotive suppliers to base themselves closer to the manufacturing site has many benefits. It will reduce transportation costs, improve productivity by providing more certainty about delivery, and benefit the wider community and environment by reducing lorry miles and thus emissions. Most of all, it will be a bulwark against a disadvantageous future customs arrangement.

[David Hanson (Delyn) (Lab)]

My hon. Friend will know that approximately 400 people from north Wales work at the plant. I urge him, along with the Minister, to contact the National Assembly for Wales. The Welsh Assembly Government, in co-operation with the UK Government, can help with infrastructure and with many of the issues that he raises.

[Justin Madders]

I thank my right hon. Friend for his intervention. He and I work with many other hon. Members in the all-party group on Mersey Dee North Wales. We recognise the symbiotic relationship in the north-west between Cheshire, Wirral and north Wales, and the interchange of people who move between those areas’ economies. I will certainly work with him and his Welsh Assembly colleagues on the matter.

Reshoring the supply chain is a clear element of the Government’s industrial strategy, although so far I have seen no financial or practical steps taken to deliver it. We need the Government to designate the area around the plant as a local enterprise zone to incentivise suppliers to relocate there. That would benefit the local supply chain, boost the local economy, provide more jobs and raise productivity. It would be a tremendous vote of confidence in the plant, so I urge the Minister to come back with a positive response as soon as possible. It would not only help Vauxhall, but help to improve the competitiveness of other motor manufacturers in the region.

The Vauxhall plants in Luton and in Ellesmere Port are among the most productive in the PSA family, and some of the most popular vehicles in the country are made there. We know that we are in a time of uncertainty and enormous challenge, but I do not see decline and closure as inevitable. We need to build on the positives. There can be no doubt that the ability to say that it supports British manufacturing boosts the company’s sales. Nor can there can be any doubt that the local management and workforce are committed to delivering the best. That commitment must be matched by the Government, ideally in the ways I have set out today, so that the owners are in no doubt that this is a community and a country that they want to invest in. When I go home, I want to be able to tell my friends and neighbours that Parliament is united and determined to give them all the backing they need to enjoy another half-century of production at Vauxhall Motors.

--- Later in debate ---

[Justin Madders]

rose—

[Richard Harrington]

I will not take the intervention, but only because of the time; under normal circumstances, I would be happy to take it. I do not want to annoy Mr Rosindell on this subject, and I am determined to do as much as I can. We as a Government are certainly determined to ensure that the UK continues to be one of the most competitive locations in the world for automotive and other advanced manufacturing.

Our vision is of a UK that is a

“champion of free trade based on high standards”,

not on low standards, and we hope that global Britain will forge

“a bold and comprehensive economic partnership with our neighbours in the EU, and reaches out beyond to foster trade”,

which I hope will help Ellesmere Port.

The right hon. Member for Delyn (David Hanson) said that we should be involved with the Welsh Assembly and others; I am very happy to meet Welsh Assembly Members. I have heard very good reports about the local enterprise partnership and it seems a very sensible idea to work with it. I would be happy to include the Welsh Assembly within any discussions on this matter.

To conclude, we are absolutely committed to a successful Vauxhall, so that it remains and thrives in the UK, both at Ellesmere Port and at the company’s plant in Luton. We have made our strong commitment absolutely clear to the company and it has full access to the support available through our industrial strategy. We want Vauxhall to be successful and—