HC Deb 14 July 1955 vol 543 cc2083-8
8. Mr. Willey

asked the Minister of Labour whether he will make a statement on future policy regarding the Remploy scheme.

23. Mr. H. Butler

asked the Minister of Labour if he is aware of the disquiet with the present basis of Remploy, Limited; and if he will make a statement regarding future policy.

Sir W. Monckton

As the House was informed in February last, the board invited the Organisation and Methods Division of the Treasury to examine the whole organisation of the company. That Report has now been received by the board and is under examination by them. We hope shortly to discuss with the board any questions of policy arising from this survey.

I have also to inform the House that Sir Robert Burrows, who has been chairman of Remploy, Limited, for the last six years, and to whom I and my predecessors owe a great debt of gratitude for his fine work on behalf of the severely disabled, has long been pressing to be released from this onerous post and I have now had to accede to his request. I recently appointed Mr. A. T. S. Zealley, lately director of Imperial Chemical Industries, to the board of Remploy with a view to his replacing Sir Robert Burrows.

Mr. Zealley will, however, not be able to take on the chairmanship until some time next year, and the vice-chairman, Sir Brunel Cohen, has agreed to take over the chairmanship in the meantime, Mr. Zealley succeeding him as vice-chairman. I should like to express my gratitude to Sir Brunel for taking on this additional heavy burden in the cause of the severely disabled whom he has championed so ably throughout his life.

I hope to announce the appointment of additional members to the board in the near future.

Mr. Willey

Is the right hon. and learned Gentleman aware that in all parts of the House we join with him in the appreciation he has expressed of the retiring chairman and in his welcome to the new chairman? Will the Minister ensure that Remploy not only pursues efficiency in the light of the Report that it has received, but also seeks to establish itself as a really worth-while social service?

Sir W. Monckton

I am very grateful to the hon. Member for the way in which he put that supplementary question. It is my wish and intention to do my best to carry out that end.

14. Mr. Willey

asked the Minister of Labour the number of disabled persons employed at Remploy factories on 1st January, 1955, and on the latest available date.

Sir W. Monckton

The number of severely disabled persons employed in Remploy factories at 4th January, 1955, was 6,540 and at 21st June, 1955, 6,196.

Mr. Willey

Will the right hon. and learned Gentleman watch the figures carefully and do what he can to help Remploy to see that the trend is reversed, and resist the pressure that obviously comes from the Treasury?

Sir W. Monckton

There is only one satisfactory feature about the change, and that is that the number of unemployed persons in both Sections I and II is steadily going down.

15. Mr. Collins

asked the Minister of Labour if he is aware that large contracts are offered on occasions to Remploy at prices which are insufficient to cover the cost of materials and trade union rates of wages; and what instructions his Department has given to Remploy in the matter.

Sir W. Monckton

I assume the hon. Member is referring to Government contracts, and as I told my hon. Friend the Member for Tynemouth (Dame Irene Ward) on 24th March, 1955, I am aware that prices for these contracts are severely competitive. I understand, however, that the prices quoted are those at which outside trading concerns are prepared to undertake the work, and I therefore assume that they cover at least the cost of the materials and labour charges. It is entirely a matter for Remploy to decide what contracts they shall accept.

Mr. Collins

Will the right hon. and learned Gentleman inquire into this matter again? He is quite right in saying that I referred to Government Departments. May I suggest that if he inquires again he will find that very often the fixing of the price comes from a tender from Her Majesty's Prison and has no relation at all to wages and material and that very often the price does not cover wages? Is the Minister aware that that is most reprehensible? Is he aware that it has a very adverse effect on Remploy and similar institutions if at any time they are to be judged by economic considerations and not as a social service?

Sir W. Monckton

So far as I am aware, there are no such cases. I shall be glad to look into any case which the hon. Member submits to me.

Mr. Mikardo

Is the Minister aware that the prices of some Government contracts, notably those for the packaging of small parts, are quite generous when put out to private firms? Why is it that Remploy always seems to be offered the thin jobs and not the fat jobs by Government Departments?

Sir W. Monckton

I was not aware of that. If the hon. Member will give me particulars, I will certainly look into them. I want to help Remploy.

16. Mr. Collins

asked the Minister of Labour the number of Section II disabled persons who are registered at the Kings-land Road, Shoredith, Employment Exchange; and how many of these are at present being trained and employed, respectively, by Remploy.

Sir W. Monckton

On 7th July, 1955, six disabled persons, classified as being unlikely to obtain employment except under sheltered conditions (Section II) were registered as unemployed at the Shoreditch Employment Exchange. At the present time one severely disabled person previously registered at this office is employed by Remploy.

Mr. Collins

Can the Minister say whether he contemplates setting up another Remploy factory anywhere in East or North-East London so that collectively there is an opportunity for the civilian disabled people to become occupied?

Sir W. Monckton

I do not contemplate that at the moment. None of the people so registered is considered suitable for Remploy employment.

17. Mr. Collins

asked the Minister of Labour what proportion the cost of selling bears to the total annual value of the sales of Remploy.

Sir W. Monckton

Remploy, Limited, estimate that for the year ended 31st March, 1955, their selling costs represented about 11 per cent. of the total sales of the company.

Mr. Collins

Does not the Minister regard this as somewhat high, bearing in mind that large parts of the Remploy turnover are, as he says, from Government Departments, where selling costs ought to be very low indeed? Will the Minister refer the matter to the attention of the new chairman for investigation?

Sir W. Monckton

That, of course, is one of the matters which will have been looked into and referred to in the report, but I will certainly bring it to the attention of the new vice-chairman and chairman.

19. Mr. Mikardo

asked the Minister of Labour how many persons are registered at the Reading Employment Exchange as disabled under Section II; how many of these are at present being trained or employed by Remploy; and what steps he proposes to take to deal with the remainder.

Sir W. Monckton

Fourteen persons classified as being unlikely to obtain employment except under sheltered conditions, Section II, are registered as unemployed at Reading Employment Exchange. There is no Remploy factory at Reading, but the employment exchange considers severely disabled persons for submission to all suitable vacancies as they arise. Since February, 1955, the exchange has placed seven severely disable persons in ordinary employment.

20. Mr. Mikardo

asked the Minister of Labour to what extent, and by how many employees, he expects the work of Remploy to diminish in the coming year.

Sir W. Monckton

Since the beginning of the financial year, the number of disabled workers employed by Remploy has fallen from 6,370 to 6,196 through non-replacement of wastage. I do not intend that the number of workers should fall below 6,000 during the current year.

Mr. Mikardo

Is the right hon. and learned Gentleman aware that Members in all parts of the House share the desire he has expressed to do his best for Remploy and will give him all the support they can if he will stand up to the Treasury, which is obviously cutting down on this job?

Sir W. Monckton

I shall always be glad of any support in any hard cause.

21. Mr. Mikardo

asked the Minister of Labour what proportion of the sales of Remploy is represented by general and administrative overheads and by factory overheads, respectively; and what he estimates these proportion would be if the sales were increased by 50 per cent.

Sir W. Monckton

It is estimated that general and administrative overheads, including sales distribution overheads account for about 20 per cent. and factory overheads, including carriage and depreciation for about 45 per cent. of the total sales figure. No reliable estimate can be given of changes in these proportions as the result of an increase of 50 per cent. in sales.

Mr. Mikardo

Is it not, however, clear that there would be some substantial reduction, and would not the best way to deal with these high overheads, which are limiting the development of Remploy sales, be to seek to create a greater turnover, even if that means putting in some more money for the work in progress and for stocks?

Sir W. Monckton

Sales show a substantial increase, and Government Departments account for about one-third of the total sales, but overheads during the period of the increase decreased from 76.9 per cent. to 72 per cent. of the sales figure and the loss per man has not declined. That is a matter into which this report inquires and in which I hope the board will take an interest.

Mr. E. Johnson

Can my right hon. Friend give us any idea as to how that overhead figure compares with the normal average in industry?

Sir W. Monckton

I could no doubt get that information if my hon. Friend wants it, but one has to remember this that those responsible for running Remploy are bound to deal with some 90 factories employing between them 6,000 people, which makes a great difference.