§ 26. Mr. CorbynTo ask the Secretary of State for Trade and Industry what representations he has received concerning the youth rate of the national minimum wage; and if he will make a statement. [61323]
§ Mr. Ian McCartneyThe Government have received a number of representations about the national minimum wage youth rate.
The setting of a different rate for young people reflects the importance we attach to their training, development and education and to helping them to secure jobs. International research shows that where minimum wages have an adverse impact, if falls disproportionately on young people. That is why most countries which have minimum wage legislation have exemptions and lower rates for young people.
§ Mr. WilkinsonTo ask the Secretary of State for Trade and Industry what discussions he has had with the Chancellor of the Exchequer concerning the implications for the competitiveness of British industry of the minimum wage. [61022]
§ Mr. Ian McCartneyThe competitiveness of British industry is regularly discussed during meetings Ministers have with the Chancellor of the Exchequer.
The national minimum wage will help improve relationships at the workplace and produce improvements in work force commitment, morale, and performance. It should contribute to raising industry's competitiveness by reductions in staff turnover and absenteeism. This should result in improved productivity, which will benefit individual companies and the economy as a whole.