HC Deb 02 March 1992 vol 205 cc7-8
8. Mr. Squire

To ask the Secretary of State for Social Security how many more people would be liable for payment of employees' national insurance contributions if the atypical work directive were adopted.

Mr. Jack

We estimate that a further 1,750,000 people would have to pay national insurance contributions if the directive were adopted.

Mr. Squire

I thank my right hon. Friend for that answer. Will he confirm that the directive, which is strongly supported by the Labour party, would discriminate heavily against part-time workers, especially women who are trying to combine a job with family responsibilities? Is this yet another instance of the anti-choice nature of the Labour party which, in the guise of new-found moderation, seeks to deny that which is currently available?

Mr. Jack

Again, the Opposition seem to be confused on the issue. They seem to have signed up to the work directive from which the measure comes. As my hon. Friend says, the proposal would bring another 1,750,000 people into the position that he describes. My hon. Friend is right. Many people take a part-time or lower-paid job because it suits their circumstances and is a good choice for them. Those people benefit from the fact that they do not have to make national insurance contributions. Again, the Opposition are recommending a "take" society.

Mr. Frank Field

Will the Minister confirm that even if the work directive came into force, the Government could still levy national insurance at a zero rating of 1 per cent. instead of the full rate? Would not many of those workers prefer that option, with all the benefits that would come from it, rather than the scare stories that the Government are putting over in this pre-election period?

Mr. Jack

I know that the hon. Gentleman is assiduous about detail, and I recommend that he reads article 2 of the directive. It is not disputed by any member of the European Community that if that part of the directive were to be implemented everybody would have to pay for the associated benefits. I refer the hon. Gentleman to his hon. Friend the Member for Derby, South (Mrs. Beckett) who, if I have understood her words, made it clear that she did not think that it was a very good idea for people below the lower earnings limit to pay small amounts of national insurance. The hon. Gentleman should look at the detail.

Mr. Ian Taylor

Does my hon. Friend agree that the directive would force employers to pay national insurance for employees who were below the lower earnings limit and that, effectively, that would be a tax on businesses that wish to employ part-time workers? Given that we wish to give British industry the flexibility to employ part-time workers, is not this another effort by Labour to hit the people who most want to seek jobs?

Mr. Jack

My hon. Friend has put his finger on an interesting point. The measure, coupled to Labour's proposal for a minimum wage, is a straightforward attack on jobs. The receipts received by us on the consultation document about the directive show that the Contract Cleaning and Maintenance Association claims that some 40 per cent. of those employed in its industry would be sacked in the first year. That is the kind of enlightened policy to which the Opposition are signing up.