National Minimum Wage (Enforcement Notices) Bill 2002/03

Speech by Lead Liberal Democrat Spokesperson in the House of Commons - Dr Vincent Cable, MP delivered to House of Commons on Tue 11th Feb 2003

Private Members Bill (House of Lords) presented by Lord Sainsbury of Turville

Lead Liberal Democrat Spokesperson in the House of Commons - Dr Vincent Cable, MP

Lead Liberal Democrat Spokesperson in the House of Lords - Lord Razzall

(NB. Information on the stages a bill goes through to become an act of Parliament is available by following this link. Unless otherwise indicated a stage of the Bill is in the House of Commons.)

Lords Report stage 10.07.03- 17.07.03.

Lords Committee stage (clause by clause scrutiny of the Bill with the opportunity for amendments) - 02.06.03-24.06.03.

Second Reading (a substantial debate on the whole Bill) 11.02.03

Dr Vincent Cable led for the Liberal Democrats in this debate. He said, "Although you have just reminded us, Mr. Deputy Speaker, that this is not a general debate on the minimum wage, it is probably fair to respond to the Minister's introductory comments, in which he rightly and fairly observed that the minimum wage legislation has been a success story. One of the reasons for that is that employers as well as employees have bought into it and accepted it."

"That is, at least in part, because of the way in which the system has operated. Effectively, we have had a relatively successful, growing economy and a tightening labour market. The minimum wage has increased the supply of workers because a lot of people at the bottom end of the pay scale now feel that it is more attractive to work than to remain on benefits. Employers have benefited from the system because there is more labour, workers have benefited because they are better paid and the Government have benefited because there are fewer benefit payments. Thus a triple gain has been made as a result of the way in which the minimum wage system has operated."

"What has yet to be demonstrated is that that system works equally well when there is a downturn in the economy. There may be questions about the effect of such a downturn on the demand for labour. Whether the system works well in those circumstances will partly depend on whether the generally successful system of setting the minimum wage at an economically sensible level continues. The Low Pay Commission's determination of that level in accordance with economic conditions seems to be a key element in the formula."

"The Conservative spokesman mentioned the question that I now want to ask: why are we back here with this legislation? I was not involved in discussion of the original legislation, but it seems obvious with hindsight that somebody should have asked about retrospective payment and questioned why it was not covered. I am not pointing fingers at anybody. Clearly, nobody in the House of Commons or the other place picked up on the problem, nor did Government draftsmen and administrators, but I am still baffled about why the provision slipped through. It may have done so because of a lack of scrutiny, as the Conservative spokesman suggested. There may also have been a particularly quirky ruling by a judge. If that is the case, it might have been more appropriate to have an appeal process than to introduce fresh legislation."

First Reading (Presentation of the Bill) 30.01.03

Make provision enabling an enforcement notice under section 19 of the National Minimum Wage Act 1998 to impose a requirement under subsection (2) of that section in relation to a person, whether or not a requirement under subsection (1) of that section is, or may be, imposed in relation to that or any other person.

House of Lords Third Reading and Debate on Amendments 30.01.03

Lord Razzall led the Liberal Democrats in this debate. He said, "My Lords, as the Minister is aware, I had concerns about the amendment tabled by the noble Baroness in Committee. I was concerned about the points that the Minister raised and that we should not be seen to take away rights from employees or ex-employees that they would otherwise have. In the light of the helpful assurances given by the Minister, I too am happy to support the amendment."

House of Lords Report Stage - 23.01.03

Lord Razzall led the Liberal Democrats in this debate. He expressed concerns regarding the proposed amendment. He said, "I am not sure that it is a sound thesis on which she [Baroness, Lady Miller of Hendon] bases the amendment. Why should an individual holding a number of payslips and who has become aware for the first time that he or she has been underpaid, be artificially restricted in the remedies available to him or her? Why should they be so restricted?

"Secondly, as a former lawyer I am always extremely dubious of legislation attempting arbitrarily to interfere with limitation periods. I do not wish to anticipate what the Minister has to say, but I believe that the Bill should remain as drafted on this point and that it should not artificially attempt to interfere with the limitation period."

House of Lords Committee Stage (clause by clause scrutiny of the Bill with the opportunity for amendments) 09.01.03

Clauses 1 and 2 agreed to. Bill reported without amendment.

House of Lords Second Reading (a substantial debate on the whole Bill) 10.12.02

House of Lords First Reading (Presentation of the Bill) 21.11.02

Make provision enabling an enforcement notice under section 19 of the National Minimum Wage Act 1998 to impose a requirement under subsection (2) of that section in relation to a person, whether or not a requirement under subsection (1) of that section is, or may be, imposed in relation to that or any other person.

Provisional Liberal Democrat Response

"My Lords, it will come as no surprise to the Minister that we on these Benches entirely support this short Bill… and hope that it will proceed through the House without any difficulty" - Lord Razzall, Liberal Democrat Spokesperson for the Department of Trade and Industry, speaking in the House of Lords Second Reading Debate

Applicability

England, Wales, Scotland and Northern Ireland