Burdens on Business

Part of the debate – in the House of Commons at 9:29 pm on 1 December 1997.

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Photo of Michael Fallon Michael Fallon Shadow Spokesperson (Trade and Industry), Shadow Spokesperson (Treasury) 9:29, 1 December 1997

I shall not give way, because there is very little time.

A week ago, the Prime Minister prayed in aid the minimum wage in the United States of America. In the USA, however, small firms are exempted. Firms with a turnover of less than $500,000 are exempted. Seasonal workers are exempted. A catalogue of other workers are also exempted. After the National Minimum Wage Bill, there will be further legislation on compulsory union recognition, on the right to statutory interests and on strikers' rights, as my hon. Friend the Member for Buckingham reminded us.

The biggest and heaviest burden of all comes in the form of the social chapter. It is proposed that we should have European works councils which are expensive, bureaucratic and unnecessary. They are welcomed by one trade union leader, who said: It is tempting to see European works councils as a threat to trade union organisation. But that would be a recipe for inactivity. Our objective should be to do what the German trade unions do and take over these works councils in multinational companies. That was Mr. Dromey just two years ago.

That directive is followed by the parental leave directive. The Department of Trade and Industry estimates the cost of the directive at £200 million a year for British business. That is a burden on business. There is also the part-time and temporary workers directive which gives new statutory and contractual rights to part-time workers. There is the sex discrimination and—