HC Deb 11 March 1992 vol 205 cc552-3W
11. Mr. Moss

To ask the Secretary of State for Trade and Industry what recent representations he has received from business men about the impact of a minimum wage in other EC countries on British industrial competitiveness.

Mr. Lilley

I am aware of the very widespread concern among business men of the harmful impact a minimum wage in Britain would have on our industrial competitiveness with the consequent loss of output and jobs.

35. Mr. Quentin Davies

To ask the Secretary of State for Trade and Industry what would be the aggregate costs to British industry of introducing a statutory minimum wage of(a) £3, (b) £3.40 and (c) £3.80 an hour assuming the maintenance of constant employment levels.

Mr. Lilley

On the basis of earnings distributions in the April 1991 "New Earnings Survey", the estimated impact cost to British industry of introducing a statutory minimum wage is:

Minimum Wage Increase in Costs
£3.00 per hour Around £1.0 billion a year
£3.40 per hour Around £2.5 billion a year
£3.80 per hour Around £5.0 billion a year

These estimates take no account of attempts to maintain earnings differentials.