HC Deb 16 May 1966 vol 728 cc891-3
6. Mr. Heffer

asked the Minister of Labour if he will bring in legislation to control the type of contract known as "labour-only" in the building industry; and if he will make a statement.

18. Mrs. Renée Short

asked the Minister of Labour what proposals he has to eliminate the growing problem of labour-only sub-contracting in the construction and civil engineering industries.

Mr. Gunter

I have recently discussed labour-only sub-contracting, with particular reference to construction, with my National Joint Advisory Council, and I shall continue to keep a close watch on the situation. I do not think it would be practicable to deal with this problem by legislation or by Government action.

Mr. Heffer

Would my right hon. Friend think again about the last point in his Answer in relation to legislation, because it is time that some legislation was brought in? These labour-only contracts lead to all sorts of pernicious practices, and it is time that they were stamped out.

Mr. Gunter

I can only repeat that I do not feel that legislation will do what is required. This situation has arisen most sharply because of the shortage of labour, and it is because of that that I doubt very much whether legislation would stamp out the practice.

Mrs. Short

Is my right hon. Friend aware that the payroll tax proposals are encouraging this most undesirable practice? Is he aware that builders are being encouraged to sack their building workers and take them on as labour-only sub-contractors? Is he also aware that if the practice extends any further into civil engineering, public safety may well be at risk because of the lack of supervision under this type of contract? It is time that he took action.

Mr. Gunter

That sounds like my wife! I am fully aware of the allegations that are made about the problems arising from labour-only sub-contracting. I can only repeat that discussions are taking place and will continue to take place with the union leaders and with C.B.I. representatives on this issue.

Mr. Boyd-Carpenter

Is not the hon. Lady right in suggesting that the Selective Employment Tax will very much encourage the spread of this practice?

Mr. Gunter

The right hon. Gentleman will have seen the statement which has been issued by the employers on this matter, and there is no evidence at all that this practice will be increased because of this new tax.