Oral Answers to Questions

Diana Johnson Excerpts

Thursday 11th September 2014 Commons Chamber

[Greg Clark]

I will indeed. Along with my hon. Friend the Life Sciences Minister I was with the chancellor of the university of Manchester yesterday. I congratulate the vice-chancellor, Nancy Rothwell, and all responsible on securing a huge coup for this country. Having a Nobel prize-winning piece of research located for the future in the UK and in the north-west is a cause for great celebration.

[Diana Johnson (Kingston upon Hull North) (Lab)]

7. What steps the Government are taking to ensure the value of the minimum wage keeps pace with inflation and encourage firms to pay a living wage.

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

Since 2010, the national minimum wage has increased faster than average earnings. From 1 October, the adult rate will rise above inflation to £6.50, giving more than 1 million workers the biggest cash increase in their take-home pay since 2008. Last year, I asked the Low Pay Commission to look at the conditions needed for faster increases. It concluded that we are in a new phase of year on year, faster real increases in the national minimum wage.

[Diana Johnson]

Since 2010 there have been only three prosecutions for breaches of the national minimum wage law. If the Secretary of State agrees, as I think he will, that more needs to be done to enforce the minimum wage, why in January did Liberal Democrat Members vote down Labour’s proposals for tougher enforcement, including additional powers for local authorities to take enforcement action?

[Vince Cable]

Both sides of the coalition will be introducing and supporting tougher enforcement measures in the small business Bill. The hon. Lady will already know that, adding to the enforcement regime we inherited, we have introduced not just the naming and shaming procedure but the prospect of significantly tougher penalties and much larger fines.

--- Later in debate ---

[Vince Cable]

Indeed, and the world competitiveness report acknowledged that Britain ranked number four in the world in overall attractiveness in labour markets. My hon. Friend is right that the reforms we have introduced are certainly one factor in that we have had a growth of 2 million in private sector jobs since May 2010. One factor that has not been noted, and certainly has not been noted by Opposition Members, is the very large number of cases now being dealt with by ACAS that would otherwise have gone through an expensive and frustrating legal procedure.

[Diana Johnson (Kingston upon Hull North) (Lab)]

T2. In asking my question, I want to make it clear that I want the Scots to remain our countrymen and women and not to become our competitors. The Government set up the UK Green Investment Bank in 2012 to boost investment in green technology and enterprise across the United Kingdom. With Hull and the Humber area emerging as a major UK centre for green energy and renewables, we would have extended a very warm welcome to having the bank in Hull. However, as we all know, its main headquarters is in Edinburgh, so can the Secretary of State just confirm that the UK Green Investment Bank can only be located within the United Kingdom?

[Vince Cable]

I think we all share the views that have been expressed across the House: that the United Kingdom is better together for a whole variety of reasons. The green investment bank is functioning very successfully with its current headquarters and operations. I think it has disbursed approaching £1 billion in a wide variety of projects from offshore wind to street lighting systems in Glasgow. It is a very successful initiative of this Government and I trust it will remain so.