HL Deb 17 May 2000 vol 613 cc282-4

2.56 p.m.

Lord Northbourne

asked Her Majesty's Government:

Whether they will consider requiring all public limited companies to make, in their annual report, a statement about their policy in relation to employees who have caring responsibilities for children.

Lord McIntosh of Haringey

My Lords, the Government have no plans at present to introduce such a requirement.

Lord Northbourne

My Lords, I am grateful to the noble Lord, up to a point, for that reply. Does he agree that in this context it is important that employers should be brought to think about this problem in the same way as they are asked in their annual report to think about the environmental and equal opportunities responsibilities of their companies? Does he agree that in the past three or four decades British business and industry have benefited enormously from a major influx of working mothers? Is it too much to ask that boards of directors should be asked to spend perhaps two or three minutes once a year pondering whether they are exercising their responsibilities appropriately in regard to their employees who have children—not only because of their social responsibility in the matter but because those children are the workforce of tomorrow?

Lord McIntosh of Haringey

My Lords, my Answer was of course accurate, but I apologise for it appearing to be negative. The noble Lord is right: we want people to have caring responsibilities as well as being employees. My noble friend Lady Jay rightly said last week that women do not want to have to choose between being successful mothers or successful employees. It is not that we are against boards of directors considering these matters, but it is not for the Government now to intervene when we have a company law review which is proposing that firms, in their operating and financial review, should give an account of the company's key relationships with employees. This should include employment policies and practices, including disability policies, non-discrimination policies, employee involvement policies, compliance with international labour conventions and anti-discrimination law. There is much there worth considering, but it should be done in the context of the company law review.

Lord Trefgarne

My Lords, is there no end to the list of absurd propositions for directors of major companies? Would it not be better to reduce the list of things to which they have to adhere?

Lord McIntosh of Haringey

My Lords, if the noble Lord cares to look at the consultative document published by the Company Law Review last month, which I hasten to say is an independent document and not one published by the Government, he will find that most of it concerns improved financial reporting. I hope he will agree that that is entirely appropriate. In addition, it makes suggestions which, although they may be a slight burden on directors, certainly should be of great assistance to investors, shareholders and employees in understanding what trust they can put in the activities of the company.

Baroness Sharp of Guildford

My Lords, is the Minister aware that there is now considerable empirical evidence to suggest that shorter working hours and higher productivity go together? Is he further aware that a number of leading British companies, including Glaxo Wellcome and BT, are now encouraging their managers not to stay at work for long hours, to take their full leave entitlement and to spend more time with their families? Is he therefore certain that the Government are right to be quite so reluctant to implement the full spirit of the working time directive?

Lord McIntosh of Haringey

My Lords, I do not think that the Government are reluctant. I was answering a Question about what should be said by plcs. I should add that plcs employ only just over one-third of the workforce in this country. However, the noble Baroness is entirely right. That is why the speech of my noble friend Lady Jay was made at the launch of a government review considering issues surrounding maternity pay and parental leave. Indeed, that is why in the past week we have had the Work/Life Balance initiative and the Work/Life Balance Week, which I hope the noble Baroness supports.

Lord Alton of Liverpool

My Lords, does the Minister agree that the introduction of Sunday trading, with over 1.5 million more people now being required to work on Sundays, bringing the total number to 9 million people working on Sundays each week, has had a disastrous effect on family life because it has prevented families from having time together? Does he particularly agree with some of the arguments currently being advanced by Ms Cherie Booth QC in regard to the time parents should be able to have off from work?

Lord McIntosh of Haringey

My Lords, the case in which Ms Cherie Booth appeared yesterday is still sub judice so I am not in a position to comment on that. The noble Lord raised the issue of Sunday trading. He will recall that at the time of the passage of Sunday trading legislation very considerable protection was included for those employees who did not wish to work on Sundays. Against that one has to balance the fact that shopping and other family activities on Sundays are important additions to the cementing of family relationships.

Baroness Miller of Hendon

My Lords, will the Minister accept from me that we feel that he has perhaps been working just too hard, which has caused a strain on his voice? I am very sorry that he has to deal with all of these matters. We offer our great sympathy.

Does the noble Lord agree that if the Government were to accept the suggestion set out in the Question the floodgates would be opened and a precedent would be set? It might be legally necessary to put all kinds of other statements in the annual report—I have in mind sexual orientation, race, gender and so on—whereas the prime reason for the annual report is to discuss the financial health of the company and the behaviour of the directors.

Lord McIntosh of Haringey

My Lords, the reason for my strained voice is a good deal less dramatic than that. I think that I have just caught a cold from my baby granddaughter. As to the wider issue, the Company Law Review from which I quoted will come to a conclusion some time next year. It will be open for consultation and the Government will consider their response. The Government are constantly aware of the necessity to avoid unnecessary burdens on business. At the same time, I stick to my answer to the noble Lord, Lord Trefgarne. There is great value in having company reports which reflect to employees, shareholders and potential investors the true state of health of the company in its widest sense.