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National Minimum Wage
21. Mr. Pound: To ask the Secretary of State for Trade and Industry what assessment he has made of the impact of the national minimum wage since its introduction. [82381]
Mr. Ian McCartney: It is early days; the national minimum wage has been in operation for only 5 weeks. However, recent independent research shows not only that most employers (almost 90 per cent.) support the principle of the minimum wage but that 40 per cent. had adjusted their pay structures prior to its introduction. There is no evidence of higher costs feeding into higher prices and there were few signs of any demand for the restoration of pay differentials. There was little evidence of significant job losses; in fact, staff levels among smaller firms have increased by 11 per cent. over the past year--staff turnover had fallen in traditionally low paying industries.
Mr. Love: To ask the Secretary of State for Trade and Industry what assessment he has made of the effect of the national minimum wage since its introduction. [82361]
Mr. Ian McCartney: The national minimum wage, since its introduction in April, has benefited some two million of the lowest paid workers in the country, and their families. The principle of a minimum wage is supported by the vast majority of companies in this country.
The Inland Revenue are enforcing the national minimum wage, and they supply my Department with data on all matters relating to compliance on a regular basis. Early indications are that awareness of the law is high, and so is compliance. Only in relatively few cases have we had reports of deliberate underpayment. These are being actively pursued.
Mr. Rammell:
To ask the Secretary of State for Trade and Industry if he will make a statement on the impact of the national minimum wage. [82384]
Mr. Ian McCartney:
The Government asked the Low Pay Commission to monitor and evaluate the introduction and impact of the national minimum wage with particular reference to the effects on pay, employment and competitiveness. The Commission has been asked to report its findings by December.
Mr. Sheerman:
To ask the Secretary of State for Trade and Industry what estimate he has made of the number of people who have benefited from the introduction of the national minimum wage. [82357]
Mr. Ian McCartney:
The Government estimate that nearly 2 million workers have benefited from the introduction of the national minimum wage. Recent research commissioned by Reed Personnel Services shows that almost 9 out of 10 companies surveyed support the minimum wage in principle and that 4 out of 10 had already adjusted their pay scales ahead of the introduction of the minimum wage on 1 April.
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Adjusted data from official statistics, available in October, will give some indication of the extent of the shift in workers' earnings resulting from the national minimum wage.
Fiona Mactaggart:
To ask the Secretary of State for Trade and Industry what representations he has received on the implementation of the national minimum wage. [82372]
Mr. Ian McCartney:
The Department has received a number of representations about the implementation of the national minimum wage legislation. In addition, the Inland Revenue, which is enforcing the minimum wage, has received some 500 reports of underpayment of the minimum wage and is approaching employers to resolve the complaints.
22. Mr. Bob Russell:
To ask the Secretary of State for Trade and Industry how much was spent on overseas trade fairs to promote British exports in each of the last three financial years for which figures are available. [82382]
Mr. Byers:
My Department spent £20.2 million in 1996-97, £20.5 million in 1997-98 and £18.6 million in 1998-99, including the Commercial Excellence scheme, on overseas trade fairs to promote British exports.
24. Mr. Wyatt:
To ask the Secretary of State for Trade and Industry what steps he is taking to ensure that small businesses have access to finance for development. [82385]
Mr. Wills:
The Government are concerned to ensure that small businesses have access to sources of finance which are appropriate to their needs. The private sector is primarily responsible for designing and delivering finance products to small business and successfully meets their needs in the vast majority of cases. I am aware, however, that some small businesses have faced difficulties in raising the right finance. In particular, there can be problems in securing debt finance where a business has no track record or available security and in raising venture capital in small amounts. We therefore announced, in the Competitiveness White Paper (Cmd 4176), the creation of the Enterprise Fund. As well as continuing to fund the Small Firms Loan Guarantee Scheme, this Fund will also act to stimulate the availability of venture capital for smaller, growing businesses.
In addition, we are working with the key players in the informal investment or "business angel" markets to stimulate the availability of venture capital from individual investors.
25. Mr. Breed:
To ask the Secretary of State for Trade and Industry when he expects to announce his decision on Milk Marque following the Monopolies and Mergers Commission report. [82386]
Mr. Byers:
I am aware that many members and their constituents in the dairy industry have a keen interest in the Monopolies and Mergers Commission report on the supply in Great Britain of raw cows' milk. I will publish it as soon as is practicable.
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26. Mr. Gapes:
To ask the Secretary of State for Trade and Industry what assessment he has made of the number of people who have become entitled to annual leave as a result of the working time directive. [82387]
Mr. Ian McCartney:
At the time of the Regulations coming into force on 1 October 1998 it was anticipated that 2.5m workers would benefit from the entitlement to paid annual leave. A Regulatory Impact Assessment on the costs and benefits resulting from the implementation of the Working Time Regulations was made, a copy of which is held in the Library of the House.
27. Mr. Bill O'Brien:
To ask the Secretary of State for Trade and Industry what recent measures his Department is taking to support British companies in respect of export promotion; and if he will make a statement. [82389]
Mr. Byers:
My right hon Friend the Foreign Secretary announced on 12 March 1999, Official Report, columns 399-400, the Government's response to the Cabinet Secretary's Review of Export Promotion, the core of which is that all trade promotion and development activities of the DTI and FCO should be unified in a new joint operation, British Trade International, with a single Chief Executive. The organisation will give Britain a sharper edge in export markets. Once implemented, the provisions of the Review will allow us to provide a more coherent service which is readily accessible to UK businesses wherever they are located. Copies of the report have been placed in the libraries of the House.
28. Mr. Gordon Prentice:
To ask the Secretary of State for Trade and Industry what conditions he attached to the launch aid awarded to Rolls-Royce to help with the development of the Trent engine. [82391]
Mr. Battle:
When I announced the public-private partnership with Rolls-Royce on 12 November 1997, Official Report, columns 626-27, providing for up to £200 million of public investment in further development of the Trent aeroengine, my Department had signed a detailed contract with Rolls-Royce plc in relation to this partnership. The main conditions contained were that the company should continue its successful development of the Trent aeroengines involved, and that this should secure considerable benefit for the company, its suppliers and the wider economy.
29. Ms Moran:
To ask the Secretary of State for Trade and Industry if he will make a statement on the outcome of the latest consultations with industry on E-commerce. [82393]
Mr. Wills:
I am pleased to say that we have received over 240 responses to Building Confidence in Electronic Commerce--A Consultation Document. I have arranged for a list of respondents--except those who asked for their response to be kept confidential--to be placed in the House of Commons Library. The responses are currently
6 May 1999 : Column: 441
being carefully analysed. A summary will be published in due course. The Electronic Commerce Bill will be introduced into Parliament later this session.
30. Mr. Geraint Davies:
To ask the Secretary of State for Trade and Industry what steps he is taking to advise business of the opportunities and implications of the Employment Relations Bill. [82394]
Mr. Ian McCartney:
My right hon. Friend the Secretary of State, other ministerial colleagues and I speak frequently to a wide range of audiences about the advantages of the partnership approach embodied in the Employment Relations Bill. Information about the progress of the Bill is on the DTI website. We will publish full guidance for all concerned before the Bill's provisions come into force.
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