Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2010

Lord Cotter Excerpts

Wednesday 23rd June 2010 Lords Chamber

[Lord Young of Norwood Green]

My Lords, naturally I concur with the Minister’s splendid analysis. She talked about the importance of agency working and flexibility and we do not demur from that. However, in applying the European directive, we need to enhance the rights of agency workers and address past discrepancies. I was also pleased to note that her analysis of the regulatory burden concurred with ours. The previous Government sought not to add to the regulatory burden.

There is no such thing as a perfect piece of legislation. Nevertheless, I agree with the Minister’s analysis that the measure seeks to deal with an area where a large amount of exploitation arises. That is not to say that there are no reputable agencies; there are. Unfortunately, however, young people who wish to embark on a modelling career often pay ridiculous sums of money up front on the promise of employment that never arises.

I understand the concerns expressed by the noble Lord, Lord James, but one hopes that parental responsibility will be exercised where these vulnerable young people are concerned. That area may not be covered by the instrument. I do not know whether that was raised with us beforehand. We were addressing what was commonly observed to be an area of significant exploitation. The statutory instrument addresses that and we welcome the Government’s decision to introduce it.

[Lord Cotter]

I welcome these two statutory instruments, which were laid for good reason. I shall be interested to hear the response to the noble Lord, Lord James. I believe that I have heard him make these comments before. I welcome the fact that the second instrument seeks to protect the workers whom we are discussing and reduces bureaucracy.

I shall make a general comment. Over the lifetime of a Parliament—quite rightly so—Governments make regulations that are opposed and sometimes, as time goes on, they need to be looked at again. That is why from time to time people raise the issue of sunset clauses. In view of the present Government’s strong commitment to reducing bureaucracy, particularly for business, the processes in place—I do not know much about them, although I know about sunset clauses—such as statutory instruments, tend to be reactive, although I am open to be corrected by the Minister. People may have said, “There is a problem with the regulations, so can that be addressed?”. I do not have sufficient knowledge on this. Given that overregulation and defunct regulation are big issues for business and people generally, what proactive ways to address these sorts of problems are there that would greatly cut regulations that, over time, lose their need to be there? I am sorry to impose on the Minister. I wished to make a general point.

[Baroness Wilcox]

My Lords, I hope that the regulations strike a sensible balance between the need to protect workers from unscrupulous practices, the need to maintain a flexible and dynamic labour market and the need to benefit business to ensure that the UK is in the best position possible to recover from a recession.

A number of specific points have been raised. I am, in particular, grateful to the noble Lord, Lord Young, for saying that we are building on his good work. I am glad that that is how he feels, because this truly is based on his previous work. It is nice to be able to take it forward in this way.

I can understand why the noble Lord, Lord Cotter, asked his question. We shall have to do a lot more of this. There will be a lot more statutory instrument work. We will be looking to build sunset clauses into our legislation as we move further along, so that, when things have had their time, we can let them go. I hope that that is how we will proceed in the future.

I am grateful to my noble friend Lord James for raising an important issue, which is of serious concern and on which he has spoken previously. The role of the Employment Agency Standards Inspectorate is to ensure compliance with the conduct regulations and that those who may be vulnerable are not exploited. The inspectors would therefore be interested to receive any further information about cases such as those that he raised. If the information provided suggests in any way that these young people are being mistreated or taken advantage of, the EAS will investigate further and take appropriate action. If the activity is not regulated by the EAS, it will pass on the information and allegations to the appropriate authorities for them to consider. I hope that that will take things forward better for my noble friend. Given his great experience of such gatherings from his work in the racing industry and so on, we hope that he might talk in confidence to these organisations.

Having addressed those points, I repeat my hope that we have agreed that the regulations strike a sensible balance between the need to protect workers from unscrupulous practices, the need to maintain a flexible and dynamic labour market and the need to benefit business to ensure that the UK is in the best position possible to recover from recession. For these reasons, I commend the proposals to the House.