HC Deb 01 August 1978 vol 955 cc246-9
13. Mr. Ioan Evans

asked the Secretary of State for Employment what assessment he has made of the effects of recent employment protection legislation on recruitment by small firms.

16. Mr. Noble

asked the Secretary of State for Employment what assessment he has made of the effects of recent employment protection legislation on recruitment by small firms.

19. Mr. Litterick

asked the Secretary of State for Employment if he will make a statement on the effect of the Employment Protection Act on the level of employment, and particularly as it affects, or does not affect, small firms.

22. Mr. Madden

asked the Secretary of State for Employment what assessment he has made of the effects of recent employment protection legislation on recruitment by small firms.

Mr. Booth

The recent report by the Policy Studies Institute "The impact of Employment Protection Laws" indicated that, in general, employment protection legislation is not having a significant effect on recruitment. That report coveted establishments with between 50 and 5,000 employees in manufacturing industry. The effect of the legislation on smaller independent firms in the sample was not significantly different from that on larger firms. Research has also been commissioned to examine in particular the effects of employment legislation on firms with fewer than 50 employees.

Several Hon. Members

rose—

Mr. Speaker

Order. I shall call first those whose Questions are being answered.

Mr. Evans

Does my right hon. Friend agree that the information which he has now given answers completely the misleading propaganda put out by the Tory Party and that this Government have in fact done a tremendous amount to help small firms? Will he refer to the fact that there has been a small firms employment subsidy which has helped small firms to retain existing labour and has not hampered them as the Tory Party has suggested?

Mr. Booth

The small firms employment subsidy is to direct aid to small firms which take on additional labour. The size of the qualifying firm has been increased to 200, applying right across development areas and the special partnership areas. As to the effect of the legislation, those who would try to erect a myth to suggest that this legislation deters employers from taking on additional employees are doing a grave disservice to the efforts that are being made by people to solve problems of unemployment.

Mr. Noble

Does my right hon. Friend agree that pseudo political organisations such as NAFF and crypto trade unions such as the National Federation for the Self-Employed have tried to do a great deal of damage to legitimate employment protection legislation through their activities in the small business sector? What plans does my right hon. Friend have to ensure that trade unionists are informed of this through trade union branches and trades councils?

Mr. Booth

I hope that trade union branches and trades councils will he among the first to examine the report I have published of the survey made of these firms. When it is available, the special inquiry that is being conducted by Opinion Research Centre as a first step will be followed by a study in depth of individual cases of effect in small firms. I hope that until that is studied people will refrain from taking actions which clearly will militate against the best interests of people now seeking employment.

Mr. Litterick

In the light of the answer that the Secretary of State has now given the House, does he not agree that it would be greatly to the advantage of the Labour Party if the Conservative Party persisted in its opposition to the provisions of the Employment Protection Act, in that it would confirm, yet again, the general impression in the country that the Tories are opposed to all progressive protective legislation for working people?

Mr. Booth

I trust that my hon. Friend will agree that it is significant that, although members of the Opposition decry the effects of the Employment Protection Act in general, they have yet to put proposals in particular as to what parts of the Act they would repeal if they ever got the opportunity to do so.

Several Hon. Members

rose—

Mr. Speaker

Order. I propose to exercise my discretion. I intend to call the hon. Member for Sowerby (Mr. Madden) and two Opposition Members before we go on to Prime Minister's Questions.

Mr. Madden

Does not the Secretary of State agree that certain Tory politicians and Tory front organisations have caused needless anxiety and confusion among small businesses, particularly about employment legislation? Will he ensure that the facts are sent to Saatchi and Saatchi so that there can be no excuses should that firm get its future advertisements wrong?

Mr. Booth

I can give the assurance that the facts will be sent to Saatchi and Saatchi, but I cannot assure the House, in so far as that firm acts as agent for the Conservative Party, that those facts would ever be reflected in its advertising.

Mr. Tim Renton

Will the Secretary of State get some personal experience before the next General Election and find time to visit, with me, small firms in my constituency to hear directly front them the extent to which recent employment protection legislation is stopping them from taking on more workers?

Mr. Booth

I am concerned about employment prospects in small firms in whatever constituency they happen to be situated. It is those in development areas and inner city partnership areas that have been particularly aided by measures put forward by my Department. I hope that they would be among the first to acknowledge that in doing what we have done to assist them we have not only brought about an improvement in the employment situation in their areas but have helped a number of small businesses to grow in circumstances in which they could not otherwise have done so.

Mr. Prior

Is the right hon. Gentleman aware that if his party had paid more attention to the creation of real jobs in society over the past four years the Government would not be so worried now about the excellent advertisements by Saatchi and Saatchi which seems to sting them into rather guilty laughter?

Mr. Booth

At least those jobs in the small firms which have been aided by the small firms employment subsidies are what I would regard as real jobs. I doubt whether some of the jobs of those photographed in the Saatchi and Saatchi advertisements are any more real.

Several Hon. Members

rose—

Mr. Speaker

Order. I propose to continue Prime Minister's Questions until 3.32 p.m.