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Nanoscience and Nanotechnologies Report
The Secretary of State for Trade and Industry (Ms Patricia Hewitt): The Government's response to the Royal Society and Royal Academy of Engineering report: "Nanoscience and nanotechnologies: opportunities and uncertainties", has been published today.
The report was commissioned by Lord Sainsbury in June 2003 to: summarise current scientific knowledge on nanotechnology; identify applications of nanotechnology, both current and potential, with indications of when they might be developed; identify what environmental, health and safety, ethical and societal implications or uncertainties may arise from the use of the technology, both now and in the future; and identify areas where additional regulation should be considered. The report was published in July 2004 and has 21 recommendations to the Government.
Our response sets out the Government's agenda on nanotechnologies to ensure that the Government have clear policies and regulation, informed by good research, in place to ensure the responsible development of nanotechnologies in the UK.
a review of current safety regulations to make sure that safeguards for workers' health and the environment are robust;
a new cross-Government group to co-ordinate all aspects of research into nanoscience to underpin safety assessments;
a consultation with industry and the EU on how companies could disclose their safety testing methods and label consumer products; and
the Government will facilitate a dialogue with the science community and the public to explore both aspirations and concerns around the development of nanotechnologies.
Our programme will be reviewed by the Council for Science and Technology after two and five years (i.e. 2007, 2010).
The Prime Minister, the House of Commons Select Committee on Science and Technology and the House of Lords Select Committee on Science and Technology will be sent copies of this report, and I have placed copies in the Libraries of both Houses. An electronic version of the report has been placed on the Office of Science and Technology website: http://www.ost.gov.uk/policy/issues/index.htm
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Low Pay Commission
The Secretary of State for Trade and Industry (Ms Patricia Hewitt): Last summer the Government asked the Low Pay Commission to produce their next report on the national minimum wage by the end of February 2005. We asked the commission to monitor and evaluate the impact of the minimum wage and make recommendations on the need for any change.
The Government are today publishing the commission's 2005 report and I would like to take this opportunity to thank the chair of the commission, Adair Turner, and its other members for their work on this very important issue.
The main recommendations put forward by the commission concern the rates of the minimum wage.
The commission has first recommended increasing the adult rate of the minimum wage from the present £4.85 to £5.05 in October 2005, and to £5.35 in October 2006, subject to confirmation by the commission in February 2006, to check that the macroeconomic conditions continue to make it appropriate, and in light of the implementation of forthcoming age discrimination legislation.
The commission has recommended increasing the development rate from the present £4.10 to £4.25 in October 2005 and £4.45 in October 2006. And it has also recommended that the Government should invite the commission to review the operation of the 16–17 year old rate and to report in 2006, with recommendations for any subsequent increases.
The commission's evidence confirms that the minimum wage has been a success. The economy has continued to generate new jobs, including in the main low-paying sectors. Around 1 million workers have benefited from the minimum wage each year since its introduction, with around two-thirds of the beneficiaries being women.
The Government agree with the broad approach that the commission continues to adopt; namely that the minimum wage should be increased in order to help the low paid, while taking care not to damage their
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employment prospects. We are therefore pleased to accept the recommended rate increases for 2005 and provisionally to accept the increase in the adult rate for 2006 subject, as the commission proposes, to their further advice in early 2006. We also accept the commission's recommendation that they should review the operation of the 16–17 year old rate and report on this in February 2006.
The commission has also recommended that we should move 21 year old workers onto the adult rate. The economic evidence on this point remains mixed. While the employment prospects for 21 year olds has improved in recent years, it remains behind that of 22 year olds and not much better than that of 20 year olds. We therefore intend to make no change in 2005 but to look carefully at this issue in the future.
The final key commission recommendation is that we should introduce interest charges on arrears of underpayment of the minimum wage and impose financial penalties for seriously non-compliant employers. The great majority of employers are either compliant or pay minimum wage arrears without the need for any formal enforcement action. However the Government understand the underlying point that the commission are making, about the need to tackle seriously non-compliant employers more effectively. We are already considering a number of options for improving enforcement and intend to make a statement on this in early summer. We will consider the point about interest charges in this context.
I would also like to take this opportunity to announce that the Government have decided not to pursue employers where workers are paid below the minimum wage in some pay periods, but above the minimum wage overall. Such action will enable us to concentrate our resources on employers deliberately seeking to pay workers below the minimum wage.
I have placed copies of this statement, the report from the Low Pay Commission, the Government's individual response to the commission's recommendations and our draft regulatory impact assessment in the Libraries of both Houses.