Wages Inspectorate (Hansard, 14 March 1989)

§ 7. Mrs. Golding
To ask the Secretary of State for Employment how many workplaces were visited and how many of them were found to be illegally underpaying for the latest available year by the wages inspectorate divisions covering the west midlands.

§ Mr. Cope
The inspectorate targets its visits towards establishments most likely to be in breach. In 1988 in midlands division, which covers both east and west midlands, 2,609 establishments were visited and 747 were found to be paying below the statutory minimum in some respect.

§ Mrs. Golding
According to the Government's statistics, there was only one prosecution in the midlands in 1988. Given that during the 10 years of this Government more than 89,000 establishments have been found to be paying illegally low wages, why have there been only 51 prosecutions? Why are the Government so little interested in the low paid?

§ Mr. Cope
The hon. Lady's figure for prosecutions is right. In fact, the ratio of prosecutions to underpaying employers is higher now than under the Labour Government. Prosecutions are not the only way in which to achieve the desired aim.

§ Mr. Marlow
Why do we need these secret policemen? What do they do for the buoyancy and competitiveness of our economy?

§ Mr. Cope
Frequent studies have shown in the past that wages councils tend to decrease employment. That is why we are considering whether to continue with them.

§ Mr. Meacher
If the Government believe in law and order, why have fewer than one in 1,000 establishments paying illegally low wages been prosecuted? Is it not ludicrous that, with half the number of wages inspectors, the right hon. Gentleman's Department is sending out postal questionnaires asking employers whether they are committing the criminal offence of paying illegally low wages? Will the Minister confirm that the next step will be to invite employers to write in and announce to the Department that they are committing this criminal offence?

§ Mr. Cope
As it happens, the questionnaire method about which the hon. Gentleman complains was introduced by the Labour Government of which he was a member. We have continued to use it and we have increased the prosecution ratio. There are many more ways than one of securing the objects that we both have in mind. We have reduced the number of inspectors because we have simplified the system.