HC Deb 11 June 1974 vol 874 cc1397-9
14. Miss Boothroyd

asked the Secretary of State for Employment what advice he has given to metropolitan boroughs regarding the licensing of employment agencies; and whether he will make a statement.

Mr. Harold Walker

My officials wrote to the chief executive officers of licensing authorities designate, including the metropolitan district councils, in England and Wales on 1st February 1974 drawing attention to their forthcoming responsibilities under the Employment Agencies Act 1973 and to the need for some preliminary consideration to be given to the organisation of the task.

My officials have also been in touch with the relevant local authority associations, including the Association of Metropolitan Authorities, on matters which are of particular concern to the licensing authorities designate.

Miss Boothroyd

Is my hon. Friend aware that three employment agencies control over 400 branches throughout the country? Is he further aware of the element of profit made by those branches when industry, both private and public, buys back the skills and talents already developed by taxpayers' money in terms of education and training? Will he instruct local authorities to control the mushrooming of these agencies? Furthermore, will he look to his own Department and consider developments to make it much more attractive as an employment agency?

Mr. Walker

On the latter part of my hon. Friend's supplementary question I hope that the improvements which are now taking place, which I think all hon. Members will have noticed in their constituencies—the creation of jobcentres and so on—will be seen by her as a positive response to that for which she is asking. On the earlier part of my hon. Friend's question, I am sure she will recognise that the Employment Agencies Act is a significant step forward in what has been for many years an unregulated field. She is absolutely right when she talks about a mushrooming of these agencies. Hence the importance of the Act and the urgent need to produce the regulations for which the Act provides. I hope that within a very short time we shall be sending out draft regulations for consultation to interested bodies such as the CBI, the TUC and others.

Mr. Kenneth Lewis

Is the hon. Gentleman aware—I am sure he is—that when the Employment Agencies Bill was going through the House and when it eventually became an Act it was obvious that the private employment agencies were very glad to have the Act on the statute book, and that there has all along been full co-operation from them? As the hon. Gentleman has said that draft regulations will soon be sent to interested bodies, can he give a date when the regulations might be functioning?

Mr. Walker

I agree with the hon. Gentleman that the Act was warmly welcomed by the more reputable agencies, the highly-respected and long-established agencies, because of their concern about some of the apparent malpractices that were growing up among certain agencies. On the latter part of the question, the draft regulations are now on my desk. I am hoping to clear them by this afternoon and, therefore, to have them available for the consultative process very quickly indeed.