10 March 2009
Geoffrey Clifton-Brown condemns EU proposals to remove the UK's opt-out of the EU working time directive and highlights the effects this would have for our retained fire fighters.
Mr. Geoffrey Clifton-Brown (Cotswold) (Con): I am grateful to catch your eye, Mr. Deputy Speaker, in this important debate on the European working time directive.
As has been made perfectly clear in a number of contributions, losing our opt-out from the working time directive presents a number of serious problems for the country. As the motion states, the Business Secretary is right to say that we should stand firm in support of the opt-out. It is just a pity that the Government’s leadership has lost control of their MEPs who have forced us into the position where we have to debate the issue today. I ask the Business Secretary in all seriousness: what has happened to the deal brokered in June that we keep our opt-out by accepting the temporary agency workers directive? What on earth has happened to that deal?
There are some 96 fire stations in this country that are staffed by full-time firefighters, and retained firefighters are a vital part of our nation’s fire protection. Indeed, as I witnessed during the summer floods of 2007, the work of firefighters in providing emergency relief to those so badly affected was vital. They are going to face great difficulties if this opt-out is abolished.
The British people have complained for many years about the nanny state. Now we are seeing the damage caused by the super-nanny state emerging from Europe. I sincerely ask the Minister for Employment Relations and Postal Affairs what the point is of the EU’s Small Business Act, which is intended to improve the environment for Europe’s small businesses, when we see this directive filtering through. A number of eminent people have criticised the possible loss of the opt-out, and the CBI deputy director general, John Cridland, has described it as replacing “opportunity with obstruction”. The cost to the UK economy is judged to be between £47 billion and £66 billion by 2020—a terrific sum. A former director general of the CBI—Lord Jones of Birmingham, no less, who is a former Labour Minister—noted in 2006:
That is the kernel of the argument.
A chief executive from a senior FTSE 100 company told me recently that the EU will lose 20 per cent. of its share of world trade in the next 10 years if it continues down the regulatory path that it is on. When we face a record and huge balance of payments deficit, it seems crazy to heap more regulation on more regulation. An agreement to lose our opt out would be an acceptance of that decline. What will that do to the standard of living of our people?
Unfortunately, unemployment in the UK stands at 1.97 million, with the claimant count in January 2009 up 438,000 on the previous year. At the time of a huge spike in unemployment, the Government and the EU are considering abolishing our opt-out. If a man or a woman loses their job, is it not their right that their partner has the opportunity to work overtime as necessary to support them and their family? For those in the manual labour sector or unskilled workers on the minimum wage, the ability to work overtime often affords a reasonable standard of living. For those who remain in employment, it must remain their right to choose how they support themselves and their families.
What of the nation’s businesses? In Britain, we have the work force and the businesses—in particular, the small and medium-sized enterprises—that will be the engine room in pulling us out of this recession. A rigidly enforced 48-hour weekly limit will damage those firms that choose to employ a core of staff whose flexibility allows them to be responsive to fluctuations in their work.
The Minister for Employment Relations and Postal Affairs made a really important remark in a Westminster Hall Adjournment debate on 11 February:
So, if we do not have a worse health and safety record than other countries, why on earth are we considering abolishing the opt-out? He continued, even more importantly:
What on earth is the health and safety problem that we face, which demands that we abolish the opt-out?
The burden of regulation on business is already too high and through losing the opt-out our capacity to outperform our European neighbours will be weakened. Indeed, I would have thought that the EU wanted inter-state competition, rather than wanting to eliminate it. To have to consider complete reform of the structure of employment is the last thing that British businesses need right now, in the middle of the deepest recession in living memory. In this country, 98 per cent. of businesses employ fewer than 20 employees. Unless the Government manage to secure an opt-out for those businesses, they will face huge challenges in implementing the directive, and no doubt an army of Government inspectors enforcing the rules, taking up even more time. No doubt the British public will make their feelings known in the European and general elections.
We need to ensure that the working time opt-out is applied fairly by all and that people are not coerced into signing it. A number of measures have been set down to prevent that. It is also right that we continue to consider ways in which efficiency can be improved in the workplace and address the issues of work-life balance and the long-hours culture. Ultimately, however, legislation that affects our country should be introduced to stop abuse and to protect the health and well-being of all citizens, not to tie the hands of businesses and restrict an individual’s freedom of choice.
Already, since 1997, the Government have introduced at least 18 Acts covering employment matters, along with a staggering 280 statutory instruments relating to employment law. Instead of more red tape, why are we not seeing more positive support for businesses from the Government?
In 2004, the European Union Committee of the House of Lords recommended—this is really important, and I urge the Minister to take account of it—that
We know that this decision is now the subject of conciliation procedures undertaken in Europe in an attempt to broker a deal. I expect that it will go back and forth and then end up with the Commission, where I hope it will stay at least until we have a new Commission. Can the Minister confirm that the Government will at least fight for an opt-out for small businesses in Europe?
Let me end by reminding the Minister that we are in the middle of a recession. What businesses and their workers in this country need is flexibility to enable them to survive the recession, to thrive, and to play their vital part in helping our country to recover from its present situation.
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Mr. Geoffrey Clifton-Brown (Cotswold) (Con): I am grateful to catch your eye, Mr. Deputy Speaker, in this important debate on the European working time directive.
As has been made perfectly clear in a number of contributions, losing our opt-out from the working time directive presents a number of serious problems for the country. As the motion states, the Business Secretary is right to say that we should stand firm in support of the opt-out. It is just a pity that the Government’s leadership has lost control of their MEPs who have forced us into the position where we have to debate the issue today. I ask the Business Secretary in all seriousness: what has happened to the deal brokered in June that we keep our opt-out by accepting the temporary agency workers directive? What on earth has happened to that deal?
There are some 96 fire stations in this country that are staffed by full-time firefighters, and retained firefighters are a vital part of our nation’s fire protection. Indeed, as I witnessed during the summer floods of 2007, the work of firefighters in providing emergency relief to those so badly affected was vital. They are going to face great difficulties if this opt-out is abolished.
The British people have complained for many years about the nanny state. Now we are seeing the damage caused by the super-nanny state emerging from Europe. I sincerely ask the Minister for Employment Relations and Postal Affairs what the point is of the EU’s Small Business Act, which is intended to improve the environment for Europe’s small businesses, when we see this directive filtering through. A number of eminent people have criticised the possible loss of the opt-out, and the CBI deputy director general, John Cridland, has described it as replacing “opportunity with obstruction”. The cost to the UK economy is judged to be between £47 billion and £66 billion by 2020—a terrific sum. A former director general of the CBI—Lord Jones of Birmingham, no less, who is a former Labour Minister—noted in 2006:
“The choice is simple: flexibility or stagnation. Faced with the meteoric rise of China and India, Europe has to decide between a responsive and flexible labour market or an oversupplied and restrictive one.”
That is the kernel of the argument.
A chief executive from a senior FTSE 100 company told me recently that the EU will lose 20 per cent. of its share of world trade in the next 10 years if it continues down the regulatory path that it is on. When we face a record and huge balance of payments deficit, it seems crazy to heap more regulation on more regulation. An agreement to lose our opt out would be an acceptance of that decline. What will that do to the standard of living of our people?
Unfortunately, unemployment in the UK stands at 1.97 million, with the claimant count in January 2009 up 438,000 on the previous year. At the time of a huge spike in unemployment, the Government and the EU are considering abolishing our opt-out. If a man or a woman loses their job, is it not their right that their partner has the opportunity to work overtime as necessary to support them and their family? For those in the manual labour sector or unskilled workers on the minimum wage, the ability to work overtime often affords a reasonable standard of living. For those who remain in employment, it must remain their right to choose how they support themselves and their families.
What of the nation’s businesses? In Britain, we have the work force and the businesses—in particular, the small and medium-sized enterprises—that will be the engine room in pulling us out of this recession. A rigidly enforced 48-hour weekly limit will damage those firms that choose to employ a core of staff whose flexibility allows them to be responsive to fluctuations in their work.
The Minister for Employment Relations and Postal Affairs made a really important remark in a Westminster Hall Adjournment debate on 11 February:
“Some 3 million workers in the UK regularly work more than 48 hours a week, and we do not have a worse health and safety record than other countries.”
So, if we do not have a worse health and safety record than other countries, why on earth are we considering abolishing the opt-out? He continued, even more importantly:
“In fact, the UK has the lowest rate of work-related fatal injuries and the third-lowest rate of non-fatal injuries, according to recent surveys of EU member states.”—[ Official Report, 11 February 2009; Vol. 487, c. 432WH.]
What on earth is the health and safety problem that we face, which demands that we abolish the opt-out?
The burden of regulation on business is already too high and through losing the opt-out our capacity to outperform our European neighbours will be weakened. Indeed, I would have thought that the EU wanted inter-state competition, rather than wanting to eliminate it. To have to consider complete reform of the structure of employment is the last thing that British businesses need right now, in the middle of the deepest recession in living memory. In this country, 98 per cent. of businesses employ fewer than 20 employees. Unless the Government manage to secure an opt-out for those businesses, they will face huge challenges in implementing the directive, and no doubt an army of Government inspectors enforcing the rules, taking up even more time. No doubt the British public will make their feelings known in the European and general elections.
We need to ensure that the working time opt-out is applied fairly by all and that people are not coerced into signing it. A number of measures have been set down to prevent that. It is also right that we continue to consider ways in which efficiency can be improved in the workplace and address the issues of work-life balance and the long-hours culture. Ultimately, however, legislation that affects our country should be introduced to stop abuse and to protect the health and well-being of all citizens, not to tie the hands of businesses and restrict an individual’s freedom of choice.
Already, since 1997, the Government have introduced at least 18 Acts covering employment matters, along with a staggering 280 statutory instruments relating to employment law. Instead of more red tape, why are we not seeing more positive support for businesses from the Government?
In 2004, the European Union Committee of the House of Lords recommended—this is really important, and I urge the Minister to take account of it—that
“organisations employing fewer than 20 employees might be exempted from the requirements of the Directive so long as their employees themselves have the right to opt-in to a maximum 48 hour working week if they wish to do so.”
We know that this decision is now the subject of conciliation procedures undertaken in Europe in an attempt to broker a deal. I expect that it will go back and forth and then end up with the Commission, where I hope it will stay at least until we have a new Commission. Can the Minister confirm that the Government will at least fight for an opt-out for small businesses in Europe?
Let me end by reminding the Minister that we are in the middle of a recession. What businesses and their workers in this country need is flexibility to enable them to survive the recession, to thrive, and to play their vital part in helping our country to recover from its present situation.
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