§ Mr. MackinlayTo ask the President of the Board of Trade what assessment he has made of the proposal of the hon. Member for Taunton (Mr. Nicholson) in relation to low pay expressed in the debate on the Queen's Speech of 23 October 1996,Official Report, column 87. [16070]
Mr. John M. TaylorThe Government share the view of my hon. Friend the Member for Taunton that statutory pay fixing, such as a national minimum wage, would destroy many thousands of jobs. However, the proposal that low-paying employers could face legal sanctions would also place an unacceptable burden on companies and damage employment. We believe that pay is a matter to be decided by the parties concerned in light of their particular local circumstances. Businesses are best able to judge what they can afford to pay and what rates are needed to recruit, retain and motivate suitably qualified staff.