Select Committee on Business, Enterprise and Regulatory Reform Minutes of Evidence


Examination of Witnesses (Questions 200-219)

RT HON HARRIET HARMAN, QC, MP, MS JANICE SHERSBY AND MS ANN-MARIE FIELD

29 OCTOBER 2007

  Q200  Miss Kirkbride: Out of interest, what occupations would you identify as being the ones which are undervalued in terms of their male comparative roles?

  Ms Harman: I would think caring.

  Q201  Miss Kirkbride: Which should be compared with what traditional male role?

  Ms Harman: If you look across the whole range of people at work in any particular sector where there are men and women working together, occupationally segregated but within the same employer, you will see women who perhaps have the same levels of qualifications but being lower paid, as I say particularly if they are likely to be in caring work. I would say traditionally, and this is just a generalisation, the skills, commitment and experience which people bring to work for caring, whether it is for children or older people, have been undervalued. That has changed quite a lot recently with the focus on the importance of people working with young children, but there is still a backlog.

  Q202  Chairman: Can I ask you about structures because we identify the same factors over and over again of some of the causes for inequality in the workplace, be it on pay or other issues, and the question is how we do something about it. Your own Women and Equality Unit has jumped around from department to department, the Minister for Women jumps around and now I am trying to get my head around the press release on what the Government Equalities Office is and your role within that and, for example, how that ties in with having a Sub-Committee on Equalities chaired by Ed Miliband. What do you see as your role, and do you think you have got the clout and the power to be able to drive the gender equalities issue across departments? We have been slightly confused as to which ministers to invite here. We have tried three different departments and we ended up writing to all of them. Do you have the power to make it happen, and what are the structures which might enable us to get over some of the blockages that we have had in the past?

  Ms Harman: Because the Government is committed to tackling inequality, to tackling discrimination, to tackling child poverty and unfairness, there is an overriding political imperative for whatever machinery we have to work. You can sometimes have the most brilliant machinery and without the political commitment nothing happens, or you can have an asymmetry of approach but it works to deliver. I do think the current structure we have got is disappointing if people do not know who to contact in terms of outside organisations or select committees or parliamentary colleagues. It is a problem if people do not know who to contact, but I hope whatever point people arrive at they meet a willingness within government to take these issues very seriously and take them forward. I regard this as one of the most important things that I am here to do in government.

  Q203  Chairman: I do not think the problem is knowing who to contact, we know that if we want to look at how we deal with segregation or models coming out during schooling we should talk to the schools department, if we want to look at apprenticeships we go somewhere else, so we know that it requires action in every department, that is the whole nature of the issue. The question we would ask is how do we make sure there is sufficient imperative across departments to put it higher up in the agenda. Do you think we have got it right? Is that your job or is your job something different from that? How will the Equalities Office operate in relation to that? Will it be interfering in every different department or will it have a different role?

  Ms Harman: Yes, it certainly will be, and that is a very important part of my job. I do not know whether Janice wants to say something at this point as well about it is actual ways of working.

  Ms Shersby: Of course we have informal ways of working with our colleagues across government, but we do also have, and will have, some more formal structures to take forward our equalities work. Perhaps, in particular, it might be worth mentioning the Equalities Public Service Agreement, which includes an indicator on the gender pay gap. That puts the gender pay gap at the heart of the PSA agreements which will be taken forward over the next three years. For that particular piece of work we will, for example, have a programme board chaired by our Director General which will bring together departments that have agreed to work with us to help us deliver that. On other issues, for example working with colleagues on the Minister for Women's priorities, we have some more informal arrangements at the moment, but those are arrangements we have worked through with those colleagues who are most directly involved in helping us on those priorities and those are very close working relationships.

  Q204  Roger Berry: Secretary of State, the Government's response to the Commission's report last September, the Action Plan, has been criticised by a number of people on the grounds that the response was somewhat short on details. It is true that most of the 40 recommendations were accepted by the Government, but then virtually all of the recommendations had no timescales attached to them at all. The partially accepted ones tended to be ones which involved public spending. For example, the £5 million modernisation fund to support capacity building for equality reps, that was partially accepted. Do you accept that a real action plan has got to have timetables and specific commitments for it to be truly credible? With a bit of hindsight, was not the Government's Action Plan last year a bit vague?

  Ms Harman: The first thing an action plan stands or falls by is the policy objective. I think there was a view which could have been taken that perhaps the policy objective could have been a bit tougher or a bit sharper and could have been more ambitious. I am certainly looking not just at how we are taking forward the existing Action Plan in terms of making sure that it has got timescales, resources behind it, and milestones, but whether or not our response is sufficient to the task that we regard as so important. I am looking afresh at whether or not we have been ambitious enough because I think we probably need to be more ambitious in terms of the pace of change we expect and the amount of commitment we are prepared to give to it across government.

  Q205  Roger Berry: I welcome that reply. That seems to suggest that in terms of the objectives and the strategy, that is reasonably clear, the various components of that, but are you acknowledging that we do need timetables to achieve each of these objectives, there is no point in just saying, "Well, we are going to have a look at this and we might do more here and there", there will be timetables which indicate when certain things will be undertaken and also there has got to be the appropriate funding?

  Ms Harman: Yes.

  Q206  Roger Berry: That was absent last September in the Government's Action Plan, was it not?

  Ms Harman: I do think we could look again at how we give people more of a sense of confidence and certainty of the progress which is going to be made on this. People are entitled to expect that we do not have just commitment but that we have some real timescales against which people can measure progress backed up by resources. Ann-Marie, would you like to add anything on that point?

  Ms Field: One of the main reasons for not having a comprehensive timetable—and I agree, it would be a very useful thing to have just to keep track of things, apart from anything else, over 40 recommendations—was there was such a wide range of issues in there, things like the ten-year childcare strategy and the strategy for the Olympics for 2012. Of course, there are some things we have already achieved, or have already set up, and they were reported in the one-year on report which we did in April this year. For instance, the Equality Part-Time Work Fund is already underway, the projects are underway, and we are already starting to see results from that. We probably do need to set it out as more of a milestones and timetable but I would not want the progress we have made to be ignored as well.

  Ms Harman: Perhaps we can do that by way of an interim situation.

  Q207  Chairman: Was anything extra done as a result of that and the report or, from what Ann-Marie is saying, do you think there was a number of things in train anyway and inevitably that was going to be reflected in both the report and the response? Do you feel action has happened in new areas as a result of their report?

  Ms Harman: As a result of the Women and Work Commission Report?

  Q208  Chairman: Yes.

  Ms Harman: Yes, absolutely. It has brought a focus that there might not have otherwise been, but could we do more, yes, I am sure we could do more. I think we will take that as a suggestion, we should take stock and get back and update on that. Discussions go on all the time. For example, I have just been discussing with David Lammy how things are taken forward within his department and I know you have talked to him. I have just been discussing with John Healey how he takes forward questions of equal pay within local government. Discussions are going on all the time, but I think it is very important that we do be outward facing in our reporting on where we have got to on all of this and, also, keep asking ourselves is it time to up the objectives.

  Q209  Roger Berry: If, for example, we were looking at a local council's Equality Action Plan, we would expect timescales and specific targets. All I am saying is, as politely as I can, if a local authority had produced an action plan response like this with very little in terms of specific commitments to meet specific targets by specific points in time, we would probably say, "It's a bit vague. Go back and try again", and that is what I am politely trying to convey. I think you have accepted that point.

  Ms Harman: We have definitely received that point and we will come back to you with that via the Chairman, perhaps.

  Roger Berry: Thank you.

  Q210  Chairman: We had a number of questions we were going to ask you about legislation, which we will come back to later on. As in Business Questions last week you implied that responses you had received on the consultation paper on the Single Equality Bill had raised issues which were maybe rather more radical than could be embraced in coming forward with an immediate Equality Bill ready for Parliament. It suggested that you were likely to go further than what was in the Discrimination Law Review and, indeed, many of the responses we have received have suggested that the Discrimination Law Review as it stands does not go far enough. Following that response, can you tell us what areas of policy you are reconsidering and whether, indeed, you are planning to go very much further and make many more changes than were suggested in the review?

  Ms Harman: The notion of a Single Equality Bill is basically as its name says, it is a consolidation exercise, a consolidation of lots of different bits which have gone over the latter half of the last century and this century. The initial concept was that it would be a consolidation exercise. If you have had 50 years or so of bits of legislation, it is important that you do pull it all together, so I think consolidation is not an unworthy thing to be doing. The idea that all we can do is consolidate rather than look to make further progress I am certainly questioning and that was certainly questioned in many of the responses we had. Basically people were saying, "Yeah, it's good to consolidate and we're glad to see you're consolidating, but aren't there a few more things that legislation can contribute to in terms of the path towards equality?" Therefore, there are a number of areas where people have made particular representations, and I would say those are to do with equal pay and the frustration that 40 years after the equal pay gap we are not making enough progress on narrowing the equal pay gap and what contribution could legislation make. Secondly, that if there is a public commitment to equality, are we mobilising procurement sufficiently to help us deliver on that objective, and might there be a legislative contribution in terms of public procurement. That is an issue which has been raised. The other has been the question of transparency on pay as to how, at your own workplace or through your trade union, you can combat pay inequality if you cannot see it. There have been a lot of proposals into us about transparency and pay inequality between men and women. There are other areas which have been put forward, but I would say those are the main ones on gender.

  Q211  Chairman: Are they ones you are expecting to make movement on?

  Ms Harman: They are the ones where representations have been made and, as you will know, there are a number of different government departments involved in that and there might be discussions about that going on. I do not want to be cryptic, but I have not got policy agreement which I can put forward to you, otherwise I would.

  Q212  Chairman: We can say that you have indicated these are areas which are being looked at very seriously?

  Ms Harman: If you have got a consultation and the response to the consultation tells you that you could do more than what you were planning to do, the whole point about consultation is to recognise that, and if you see there is a general will to do something and there are good arguments for doing it, you should. That is what has led people to think, is it a bad thing that we are not having a draft Bill, does that represent a weakening of our commitment to equality? Actually, it represents a potential commitment to strengthening it because if we were going to change the policy, we would not be able to draft the Bill in time to have it ready and drafted by February.

  Q213  Mrs Curtis-Thomas: You will be aware that the GLA and the ODA have in place some particularly novel contractual requirements with regard to women. These contractual requirements do not only relate to the pay issues around the employment of women but also provide women with an opportunity, in fact, to participate in training programmes, skill development programmes and, also, to procure work. What opportunity do you think there is or what ambition do you have with regard to public departments, with specific reference to the large spending departments, reflecting the good practices that the ODA have in their contracts and their procurement?

  Ms Harman: They have made a very good step forward on that and, as you will know, the Treasury, I think it was, motivated the establishment of the National Employment Panel's Business Commission on Race Equality in the Workplace. They are looking at the role of public procurement in relation to equality in relation to ethnicity, but when they come forward with their findings there is no reason why there should not be a read-across from the proposals they put forward in relation to ethnicity to gender as well.[1] People do find it hard to understand when there is so much power by way of spending, in getting goods and services, that it is not mobilised to the public policy objective. I think that is very important indeed, and I await the National Employment Panel's work which is going to be very important when it comes out. Looking at what has already been done by the ODA and the GLA, I think we have got progress to make on procurement.

  Q214 Mrs Curtis-Thomas: I would have liked a bit more of an assertive response to that which tried to embrace different government departments because the Government is the biggest procurer in the UK today. My experience of procurement, particularly in areas which are male orientated, so where you have very little presence of women, is that there is spectacularly no reference to the inclusion of women or consideration of women within those contracts. The discussions we have had with the ODA have said, "Yes, these requirements are within our contracts but currently they are not weighted when that contract is considered". The duty is there but compliance with the duty is not weighted when it comes to awarding a contract. Half a step forward is better than no step at all, and that is great, but, in fact, with government departments we have not even made half a step forward. That is an explicit requirement to ensure that you have an equal opportunities policy with regard to women, and there is tangible evidence there, is there not, but there is not a duty to recruit women, or people from ethnically diverse backgrounds, explicitly listed within the contract. I would rather hope that as Minister for Women you would be saying to our colleagues across government departments, "I would like to see this put in as a minimum because it is only a half-way step", because once we have made that step we then have to make that a consideration when awarding contracts. Is that something you have possibly considered? If it is not something you have considered this far, is it something you might be persuaded to consider and what sort of evidence do you need in order to do that?

  Ms Harman: Obviously if you do want to make progress you have to use all the levers which are there at your disposal. This is a huge lever which has almost been outside the limits of what it is expected Government ought to be thinking about, that you look not just at the competence of somebody to perform the contract, you look not just at the cost in terms of the price of the contract but you look also at how you can achieve other Government objectives at the same time. This is very much an issue under consideration. Then the question will be, how is this carried out just by action short of legislation and what sort of role would legislation have to play in it? Obviously there are things which can be done without legislation in the public sector if they are not prohibited, but then there are some things which perhaps are prohibited that might need to be made lawful.

  Q215  Mrs Curtis-Thomas: Minister, you will be aware that the Mayor's Bill had within it a specific clause which mandated the Mayor to execute an agenda equality programme. It is actually within that Bill, which is why he has been able to deliver gender equality in his activities. Therefore, I would suggest it has, in fact, provided the outcome which we would all seek and maybe without legislation we will not make a lot of progress with respect to government departments.

  Ms Harman: Sometimes something is expressly prohibited and, therefore, you need legislation to remove the prohibition. Sometimes the law is not clear and, therefore, people who do not want to do anything say it is not okay and you sometimes need a legal change to clarify the situation. Sometimes law is not needed, it is just that people are not doing it. There are three positions on that. Whether or not the Mayor could have done it without that legislative encouragement is an open question. Obviously it makes it clearer that he should, but possibly he could have done it without it anyway.

  Q216  Mrs Curtis-Thomas: Presumably we would be doing it as well under that basis but, of course, we are not and he is.

  Ms Harman: We are not at the moment.

  Q217  Mrs Curtis-Thomas: Perhaps we need that sort of incentive then.

  Ms Harman: I do not think anybody should ever take risks and act outside the law, but sometimes if there is even any possibility at all that something might be subject to legal challenge, however unmeritorious the legal challenge, the sense that, therefore, you fall back in front of it and you cannot therefore do something, there are two ways of dealing with that. One is just going on ahead with it and saying, "See you in court because we think we're right and you're wrong", and the other is to change the law to clarify it.

  Q218  Mrs Curtis-Thomas: Yes, but companies will say, "If you don't legislate, we're not required to do it, and if we do it and our competitors don't, that makes us relatively uncompetitive in comparison with them", and that is why it has not been done.

  Ms Harman: If we are talking about the public sector, the public sector does not—

  Q219  Mrs Curtis-Thomas: We are talking about procurement.

  Ms Harman: Yes, but it is about the public sector procuring—

  Mrs Curtis-Thomas: From the private sector, exactly, and they will say, "If you don't legislate we won't do it because we lose out relative to our competition", and that is why they do not do it. Thank you.



1   Footnote by Witness: NB. The report was published in October 2007. Back


 
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