HC Deb 18 February 1993 vol 219 cc339-40W
Mrs. Dunwoody

To ask the Secretary of State for Employment what percentage of firms inspected by wages councils in 1990–91 were prosecuted for illegal rates of pay.

Mr. Michael Forsyth

In 1990–91, the time and wage records of 33,032 employers' establishments were inspected by wages inspectors. The great majority were found to be complying with the law. Of the firms prosecuted, four were prosecuted for failing to pay not less than the statutory minimum remuneration required by wages orders.

Dr. Lynne Jones

To ask the Secretary of State for Employment, pursuant to her answer to the hon. Member for Eltham (Mr. Bottomley) on 4 November,Official Report, columns 298–99, which of the studies listed she assesses as showing a positive link between the existence of statutory minimum pay rates and the loss of or failure to create jobs.

Mr. Michael Forsyth

The main studies in the United Kingdom which provide supporting evidence are as follows:

  • —Her Majesty's Treasury, (1985). "The relationship between employment and wages". London: HMSO.
  • —Wells, W. (1983). "The relative pay and employment of young people", Department of Employment research paper No. 42.
  • —Bazen, S. (1990). "On the employment effects of introducing a National Minimum Wage in the UK", British Journal of Industrial Relations, 1990.
  • —Dennison, S. R. and Forrest, D. (1984). "Low pay or no pay; a review of the theory and practice of minimum wage laws" Institute of Economic Affairs, Hobart Paper No. 101.
  • —Gregg, P. (1992). "National minimum wage", in the National Institute Economic Review, February 1992.
  • —Minford, P. (1989). "The effects in the UK of EEC wage proposals in the social charter", in the Liverpool Quarterly Economic Bulletin, December 1989.
  • —UBS Phillips and Drew (1991). Economic Briefing, June 1991.
  • —Kaufman, R. (1989): "The effects on statutory minimum rates of pay on employment in Great Britain", Economic Journal, December 1989.
  • —Morgan, P. Paterson, D. and Barrie, R. (1986). "Wage floors in the clothing industry 1950–81", Department of Employment research paper No. 52.
  • —Neuburger, H. (1984). "From the dole queue to the sweatshop", London: Low Pay Unit.

There are also other studies in the United Kingdom which contain some supporting evidence, though the results are less clear cut. They include:

  • —Canning, D. and Tarling, R. (1985). "A report on the Department of Employment's study 'Wages floors in the clothing industry 1950–1981'", Department of Applied Economics, Cambridge, 1985.
  • —Craig, C. and Wilkinson, F. (1986). "Pay and employment in four retail trades", Department of Employment research paper No. 51.
  • —Lund, P. Morris, T. Temple, J. Watson, J. (1982). "Wages and employment in agriculture 1960–1980", GES working paper No. 52.