Ed Davey
MP for Kingston and Surbiton · Liberal Democrat · United Kingdom
“I associate myself with the Prime Minister’s opening remarks, not least about the 25th anniversary of the horrific terror attacks of 9/11. I welcome the Government finally banning imports from illegal Israeli settlements, something Keir Starmer should have done a long time ago.”
“I thank the Prime Minister for that answer. Britain should be the safest country in the world to have a baby. We will keep raising this issue until it is the safest.”
“No mother should have to give birth in such circumstances. Does the Prime Minister agree that Musgrove Park cannot wait until 2033 for work to start on a new maternity unit? Will he offer a meeting to local MPs, so we can move it forward? And will he make fixing the maternity scandal across our country a top priority of his Government?”
“I hope at that summit the Prime Minister will negotiate a good deal for our country, our economy and our defence, and that means rejoining the single market. North Devon’s maternity unit has been closed for three weeks due to staff shortages, so women now have to travel for up to two hours to give birth.”
“The Prime Minister said yesterday that Brexit ushered in “a decade of low growth and stalled regeneration.” —[ Official Report , 1 September 2026; Vol. 790, c. 27.] He is right. Our economy is stuck in this mess thanks to the Conservatives—and the leader of Reform UK—and their terrible Brexit deal.”
“There are so many more problems in our political system: too much power in the hands of social media barons who interfere in our politics and crypto billionaires who use donations to buy influence; and too little power in the hands of our people.”
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“I am surprised that the hon. Gentleman makes that point because, as I shall go on to set out, a lot of people have contemporaneously spoken out in favour of the Duke of York’s work. That letter did say that “the efforts made by him need to be encouraged—for he does it well.” I am surprised that the hon. Gentleman did not mention that, and I am sure that the vast majority of those who have seen the duke’s work at first hand would echo that sentiment.”
“The duke is not paid for the work that he does in this role. UK Trade & Investment pays for the costs of UK-based and overseas visits undertaken by the duke and his supporting staff, and these visits are undertaken in agreement with UKTI and are in support of UKTI objectives. Let me give an indication of the cost of these visits. In 2008-09, the costs amounted to just over £149,000 and just over £154,000 in 2009-10, and the flights are paid for by the royal travel budget. I believe that these activities represent excellent value for money.”
“It is a special role and it represents a continued interest by the royal family in supporting British business and international trade. Prior to the Duke of York’s appointment, the Duke of Kent was vice-chair of the British Overseas Trade Board from 1976 and latterly vice-chair of British Trade International until April 2001—the Duke of York was appointed in October 2001. So the royal family, in different roles and in different personages, have been fulfilling this type of role for many years. This is not a new thing and successive Governments of different persuasions have found this work to be valuable. Diplomats and business people in our country have valued the contribution made by the royal family in this regard.”
“As I recall it, the hon. Gentleman said that he was objecting to the cost of this post, so I am rebutting his argument, which he was free to make within our Standing Orders, by arguing that the duke’s work provides value for money. I am rebutting that point of substance. Let me now deal with the duke’s appointment to this position. We are sometimes asked: what are the terms of the duke’s employment as special representative for international trade and investment? Does he have a contract? The hon. Gentleman wanted to have a job description and competition for the role. We are also asked who invited the duke to take on this job. In response, I wish to make a number of key points. First, the role is not an appointment within the remit of the civil service commissioners or the Commissioner for Public Appointments.”
“They include financial services, energy, advanced engineering, information and communication technology, life sciences and creative industries. The duke has been visiting many of those priority global markets since 2001 and has developed strong relationships with key opinion formers and decision makers. For example, in 2008-09, His Royal Highness undertook nine overseas visits, visiting 16 countries. These involved 117 business engagements and openings, 27 political engagements and 28 with Heads of State. In 2009-10, His Royal Highness undertook 12 overseas visits, visiting 18 countries. This involved 163 business engagements and openings, 39 of which were political and 18 with Heads of State. This is a record of engagement that this House should recognise.”
“It is not a question of the special representative freelancing: he plans his programmes to operate within a strict framework. The programme is reviewed regularly and is confirmed alongside other overseas visits undertaken by other members of the royal family and by senior politicians such as the Prime Minister, Foreign Secretary and Business Secretary. The duke’s visits focus primarily on those priority markets for the UK where the duke is well placed to make a positive impact. His visit programmes generally include visits to priority markets in the middle east, south-east Asia, China, India, Russia, central Asia and South America, as well as to the US and other developed markets. The visits relate to sectors that are or will be key to the UK’s future export growth.”
“My hon. and learned Friend is absolutely right and I can certainly agree with that. It is also worth pointing out that the Duke of York not only helps UKTI and its related activities but assists in the objectives of other Departments, such as the Foreign and Commonwealth Office and the Department of Energy and Climate Change, when he is asked to do so. The duke’s programme of visits is agreed by the Royal Visits Committee. A great deal of discussion and planning go into deciding where His Royal Highness should visit and UKTI works with the duke’s private office to develop a programme of visits that complement the work and support the objectives of UKTI and make best use of the duke’s time to support the strategic aims and goals of Her Majesty’s Government.”
“His timing is particularly inappropriate, coming as it does four days after the royal wedding, when I believe the whole country showed the support that they give to the royal family and all its members. I am proud to be here to support the role of His Royal Highness. Question put and agreed to.”
“I disagree. I have provided evidence rather than innuendo to show that the Duke of York is undertaking a very valuable role. Let us remember why the Duke of York does this role: because it is in Britain’s interests. It is in the interests of firms, their employees and our economy. The previous Government recognised that and so do we. We have inherited a sick economy where the prospects of growth funded by the public sector or by consumers are very limited, to say the least, after the poor management of the economy by Labour over 13 years. If we are to grow, there are only two sources of growth: trade and investment. Having someone with experience and clout as the UK’s special representative for international trade and investment is something that we throw away at our peril. I do not know what has motivated the hon. Gentleman.”
“Last month I met the Minister with responsibility for civil society, the Parliamentary Secretary, Cabinet Office, my hon. Friend the Member for Ruislip, Northwood and Pinner (Mr Hurd), and other Ministers with an interest in advice services to co-ordinate our national efforts. The Department for Business, Innovation and Skills has already agreed to protect the core funding for the umbrella organisations Citizens Advice and Citizens Advice Scotland.”
“The hon. Lady will know that local citizens advice bureaux are funded by local authorities and that the Government have called on local authorities to play their part, as the national Government are playing their part, and to pass on funding to CAB services. Those services are very important and are valued, and we are looking to all local authorities to play their part.”
“I am very surprised that the hon. Lady did not mention the £27 million that the Government announced last month for face-to-face debt advice. That has been strongly welcomed by citizens advice bureaux across the country, and I would have thought that she would have given us credit.”
“As I said in my initial response, we are working across government with other Ministers to make sure that we co-ordinate national efforts. We will soon respond to the call for evidence on personal consumer credit and personal insolvency, which will deal with issues such as debt advice.”
“I, personally, have not had any recent discussions with my international counterparts on the matter, but the Government are committed to greater transparency through corporate reporting. Internationally, the Treasury is leading the Government’s efforts with the Organisation for Economic Co-operation and Development’s task force on tax and development, which is exploring the issues of country-by-country reporting on tax and profits.”
“I think that the Government—both my right hon. Friend the Secretary of State and the Chancellor—actually have a very good record on the issue. We are contributing to the OECD taskforce, because it is about ensuring not just that UK companies report their profits as they need to, but that we improve corporate performance throughout the world.”
“That was a very good attempt by the hon. Lady, who is obviously trying to champion her constituency, and that is exactly right, but I am sure she will attend the next Treasury questions.”
“I have had no such discussions in the context of the G20. However, in January, I met Professor Ruggie, the UN special representative on business and human rights. The Government welcome the guiding principles developed by Professor Ruggie and will work to build consensus for their adoption.”
“The hon. Lady was not listening to the answer that I gave a few moments ago to her colleague, the hon. Member for Glasgow East (Margaret Curran). The Government are working hard with the OECD taskforce on tax and development, because we want greater transparency in the reporting of profits and tax.”
“The groceries code adjudicator Bill is being drafted. I had hoped to publish it before Easter, but now I expect that publication will happen soon after Easter.”
“When we publish the Bill, the hon. Gentleman will see that we wish to have a reserve power for the adjudicator on penalties, but there is also a real case to be made for the adverse publicity that large supermarkets would face if they breached the groceries supply code of practice.”
“I may have to refer the hon. Gentleman to Ministers in the Department for Environment, Food and Rural Affairs, who are obviously responsible for agriculture. We should be clear that the groceries code adjudicator will not be a price regulator—that has never been proposed. It will be there to enforce the groceries supply code of practice. That is very important, because it is in the interests not just of the producers and farmers who supply the large supermarkets but of consumers.”
“The hon. Lady is right to raise this matter. She will know from her time working in the citizens advice bureau in her area how significant this matter is. Some debt advice agencies out there—frankly—do not act in an acceptable way. We are considering this issue under the consumer credit and personal insolvency review, and will make an announcement after the Easter recess.”
“My hon. Friend is exactly right, so I hope he welcomes the statement that I have made today on this very issue. Following a consultation launched by the previous Government, we have concluded that action needs to be taken on phoenix companies when assets are sold to connected parties without open marketing. Our proposals, which are in the statement, include insolvency practitioners giving three days’ notice to all creditors before the sale, which we think will be valuable.”
“The hon. Gentleman will know that the OFT is an independent body, and I am sure that he would not want the Government to breach the law by intervening in that way. However, I am sure that the OFT has heard his question.”
“I have some concerns about the way in which the previous Government implemented right-to-request legislation. They took a prescriptive approach, and some employers find it rather regulatory and over the top. However, the Government are committed to right-to-request legislation. We will consult on it in due course. As I made clear in a written statement—”
“Many Members spoke of legislation and non-legislation, and it is important that we realise the power of the nudge—the power of the non-legislative approach. That is one reason why I was keen to publish what has been called the employers charter. It sets out what employers can do under current legislation, and gives examples of the sort of conversation that employers are allowed to have with their employees—for example, about maternity leave and workers’ plans. It is important that we change some people’s perceptions about employers. Actually, employers have rights if they behave reasonably, and they can therefore work productively with their employees. Right-to-request legislation, which was mentioned today, is a sort of nudge. It is about enabling employers and employees to have a conversation about flexible working.”
“Secondly, she made the important point that men need to listen to women in this debate. One of my favourite books when reading on the subject at university was a book about men and women in conversation called “You just don’t understand me” by Deborah Tannen, a socio-linguist. Listening to each other, particularly across sectors, is most important. We need to understand each other. It is not only about listening in this debate, as we try to improve business and Government performance on the matter, but about putting that message across in the workplace, with employers and employees listening to each other and having grown-up, adult conversations. Indeed, many of the concerns that lie behind what was said this morning can be addressed in a way that does not require legislation or regulation. My hon. Friend spoke well and to the point.”
“She was right to say that the studies cited in Lord Davies of Abersoch’s report and elsewhere are unequivocal on the subject. The evidence is unambiguous that having more women on boards improves corporate performance. The debate focused on the leadership of women on boards, following Lord Davies’ report. It was good to see such widespread welcome for his report. We also heard about practical support for women and families in the workplace and about supporting women entrepreneurs. I shall try to cover all those aspects. Before doing so, however, I make two further comments on my hon. Friend’s speech. First, my hon. Friend reminded us of the Prime Minister’s aspiration for a third of Ministers to be female by 2015. Her speech may be an early suggestion that she is heading for promotion.”
“This has been an excellent debate, and I congratulate my hon. Friend the Member for Maidstone and The Weald (Mrs Grant) on securing it. We heard some powerful speeches, in which Members showed their experience and knowledge of the matter. One of the key things mentioned by my hon. Friend, which was picked up by others, is that it is not only about equality but about business performance. I shall stress that aspect because I believe that the issue is about growth. We have the Chancellor’s Budget tomorrow. I believe that the Budget and other such measures are aimed at improving corporate performance and thus the performance of the wider economy. My hon. Friend spoke of the extra benefits and skills that women bring to the boards of our great companies—their attitude to risk, how they manage employees and how they think about customers.”
“In a moment, but first I want to reply to my hon. Friend. The hon. Lady may want to intervene if she does not like my answer. When we consult on extending the right-to-request legislation to all employees, we will also consult on whether there should be an exemption for micro-businesses. That may be appropriate because conversations are more easily had in small businesses. As my hon. Friend the Member for Skipton and Ripon (Julian Smith) said, by and large smaller firms are better at having such conversations than larger companies. We will listen to people when we consult; the hon. Lady may believe too much of what she reads in the papers.”
“We want them to work better together to ensure that we have more family-friendly workplaces, but that it does not come at a cost for employers. It has been an excellent debate. I pay tribute to my hon. Friend the Member for Maidstone and The Weald. I believe that the House could play a critical role. I do not know whether we could go for the Select Committee option put forward by my hon. Friend the Member for Skipton and Ripon, but I am sure that he will want to raise the matter with the Leader of the House. It certainly received support this morning.”
“I am proud to say that, in the spending review, the Government did not merely maintain spending on that but increased the opportunity for child care, particularly for the young of deprived families. Our commitment in that area is strong. That brings me to the debate about maternity leave, paternity leave and parental leave. We will be consulting on that later this year. We already have a lot of legislation on the matter, but it does not work terribly well. It is inflexible, gender-biased and it does not work with the grain of many companies. Our consultation paper will take forward the coalition agreement, and I believe that we can achieve a win-win by making things more flexible for employees and employers.”
“Member for Llanelli (Nia Griffith) asked whether the Government were taking forward measures in the Equality Act 2010, but she may have missed the fact that most of its provisions were brought into force on 1 October 2010. We have concerns about one or two areas, particularly to do with section 78, which provides for mandatory reporting on gender equality, and we are working with business to see whether we can take a voluntary approach, which we think is right. While we engage with business on that matter and try for a voluntary approach, we will not commence, amend or repeal section 78. Another matter raised by the hon. Lady was that child care is inadequate and often unaffordable.”
“Other questions raised this morning relate to the wider debate, particularly on how to take forward Lord Davies’ report. That report focuses not only on Government but on companies, their chairmen and chief executives and on the head-hunting industry. However, it recommends how the Government should ask quoted companies to report on their performance on this matter. We will be publishing proposals on improving narrative reporting following our consultation—the document was published in July 2010—and that issue will be included. I assure hon. Members that the Government strongly welcome the report, which paves the way to massive improvements in this important matter, on which the previous Government did little. The hon.”
“The hon. Lady anticipates our consultation document. I believe that we will get the balance right, and better than the previous Government did; their approach was over-prescriptive. Indeed, that points out one of the differences between the two parties. I regret to say that for the vast majority of this debate, the hon. Lady was the only Labour Member here, but the Labour Government seemed often to think that the only way to secure progress in this area was through regulation and legislation. Sometimes that is needed, but it is often not necessary. For example, the employee engagement taskforce led by David MacLeod and Nita Clarke, which is business-led and is trying to promote best practice in employee engagement, and the employers charter that I mentioned earlier both take a non-legislative approach, and that can have a big impact.”
“The Government should not promote a particular approach but should ensure that they have the right enforcement mechanisms in place.”
“An individual worker can also pursue a claim for employment rights through an employment tribunal or an enforcement body, as appropriate. Of course, there is guidance on employment status in relation to tax on the website of Her Majesty’s Revenue and Customs, and guidance on employment rights on the direct.gov and Business Link websites. The direct.gov website includes pen pictures of key groups, to help people understand their own status. We have also made information and guidance available through the ACAS helpline. I believe that greater awareness of obligations, penalties and rights for both workers and employers is the best mechanism to avoid abuse, along with an effective enforcement regime. I think the hon. Gentleman will agree that it is for businesses to decide the most appropriate arrangements for engaging workers.”
“The terms and conditions of any employment should reflect the reality of the employment relationship. The true economic activity undertaken by an individual should determine how they are taxed. Those who are working under employment terms should be taxed as such. That ensures that people receive the appropriate employment rights and contributory benefit entitlements, and that they pay the right tax and national insurance. It is not a matter of making a choice about someone’s employment status; their status should reflect the reality of the relationship between the parties. Employers should be aware that anyone who incorrectly treats a worker as self-employed is liable for that worker’s tax and national insurance contributions, and may be liable to penalties.”
“I thank the hon. Member for Streatham (Mr Umunna) for raising this important issue. Like him, I think it is important that we debate this matter, so I congratulate him on securing the debate. I make it clear to the hon. Gentleman and to the House at the outset that the Government do not condone false or bogus self-employment. If an individual is wrongly categorised as self-employed when they are a worker or an employee, it has implications for the individual, the employer and the Exchequer, as the hon. Gentleman explained. As self-employed people effectively pay a lower rate of tax and national insurance, and because engagers pay no employers’ national insurance, there will always be those who try to present an employment relationship as self-employment.”
“Since April 2010, nine individuals have been prohibited from doing so, and more cases are in the pipeline. The regulatory framework, therefore, is active and working, and it is bringing bad employers to book.”
“As an indication of that, I can tell him that in 2009-10, HMRC identified more than £4.4 million in arrears for more than 19,000 workers. It is making full use of new penalty powers to fine businesses that are in breach of the regulations. In the first 10 months of this financial year, HMRC issued 761 penalty notices, which is an average of 76 each month—HMRC is playing its role. Employers must adhere to the special employment agency regulations enforced by the employment agency standards inspectorate of the Department for Business, Innovation and Skills, which both responds to complaints from agency workers and undertakes proactive, risk-based inspection, increasingly in partnership with HMRC. The agency has powers to prosecute and prohibit individuals from running agencies.”
“Licensing bodies should be considered only when certain conditions are met. There must be evidence that existing regulation is inadequate and evidence of significant abuses of employment rights; confidence that the licensing system would be a proportionate and effective way of tackling the problem; and any scheme must be practical, enforceable and affordable. In that long debate, I set out why the proposals for extending the GLA to the construction industry did not meet any of those key conditions. The hon. Member for Streatham suggested that the employment agency standards inspectorate is not seen as an effective regulator, but I think it does a good job—it is a key part of regulatory safeguards. Employment agencies, as other businesses, must comply with the national minimum wage regulations, which are rigorously enforced by HMRC.”
“As I think he said, in July 2009 the previous Government undertook a consultation, through the Treasury and HMRC, on the problem in the construction sector, to which it is considered particularly relevant. Officials are currently in the process of reporting back to Treasury Ministers, so I do not have an announcement for the hon. Gentleman, but I know that those Ministers are examining the matter. The hon. Gentleman asked whether the Government should extend the Gangmasters Licensing Authority to cover construction. We had a long debate a few months ago on the Gangmasters Licensing (Extension to Construction Industry) Bill, which the hon. Member for Midlothian (Mr Hamilton) promoted as a private Member’s Bill, in which I explained to him that the Government did not think that such an extension was a good idea.”
“A self-employed person must register with the tax authorities, submit an annual tax return and account for their own tax and national insurance payments. The hon. Gentleman will be aware of such requirements from his previous work. Taxation is clearly a matter for the Treasury and HMRC, but as I said earlier, any employer who incorrectly treats a worker as self-employed is liable for their tax and national insurance contributions. If they do not meet those liabilities, they could be subject to penalties. That is the law at the moment, and it is a strong one. I hope that the hon. Gentleman accepts that the Government recognise that false self-employment exists—it is difficult not to do so.”
“They do, however, benefit from key protections such as the right to work in a healthy and safe environment and protection under discrimination legislation. The rights and responsibilities of the self-employed are governed by the terms of their contract with their client or customer. Self-employed people are usually identified by the fact that they are in business for themselves and provide a service to multiple clients. They are generally more independent workers than others, and they have far greater control over how and when to deliver a service and who delivers it. They are usually better able to protect their own commercial interests, although they bear any financial risk from the business that they operate.”
“The legal and institutional features of the UK, including its competitive markets and employment framework, have delivered diversity and dynamism in the labour market, which allows more people to find a job that suits them. That has contributed to the UK having higher employment, at 70.6% of the total working-age population, than most other OECD countries, whose average is 64.8%, and still lower unemployment, at 7.8% compared with an 8.6% OECD average. Like all other forms of employment, self-employment consists of a wide variety of individuals with a range of activities and capacities. The spectrum ranges from individuals working for themselves to people running multinational businesses and employing a substantial number of employees. The self-employed are not generally covered by employment legislation, because they are their own boss.”
“I have to say that people who want to find it can find it very easily, but I think some people may want to avoid finding it. Indeed, that was the message of the hon. Gentleman’s speech. There is great availability of information—I have mentioned a number of websites, but there are other sources of information for people to turn to. I agree with him, however, that raising awareness is important. It is essential that we do not lose sight of the fact that legitimate self-employment is a key part of the UK labour market. I know that the hon. Gentleman does not disagree with that. Nearly 4 million people in the UK are self-employed, which reflects the UK’s tradition of entrepreneurship.”
“Gentleman on raising this issue, and I can assure him that we take it very seriously: the Treasury takes seriously the loss-of-tax issues, on which he rightly focused, and BIS takes seriously the employment rights issues, which is why we are reviewing workplace rights compliance and enforcement arrangements. I know that, with his experience and knowledge, the hon. Gentleman will continue to contribute to this debate. I welcome that, because we have very similar objectives. Question put and agreed to.”
“However, we need to be clear about where they fit in to the overall compliance regime. HMRC status inspectors provide technical support in more complex cases to a larger number of HMRC compliance staff, who are responsible for reviewing whether employers have complied with their tax and national insurance obligations. It is wrong, therefore, to see the status inspectors by themselves. In addition, technical support is available to both HMRC staff and employers via the online tool, the employment status indicator. One needs to see those 39 inspectors in that context. I congratulate the hon.”
“I want to establish what further scope there is to streamline such arrangements and make them more effective. The arrangements for enforcing the national minimum wage and the 48-hour average week are within the scope of the review, along with employment agency regulation and gangmaster licensing. I expect to publish a statement of initial findings and intended next steps later this year in the context of the rolling employment law review that I am co-ordinating on behalf of the Department. The hon. Gentleman asked about the number of inspectors focused on employee status, and referred to a parliamentary answer given by the Exchequer Secretary to the Treasury, my hon. Friend the Member for South West Hertfordshire (Mr Gauke) in which he noted that there were 39 employee status inspectors.”