[Mr Joe Benton in the Chair]

– in Westminster Hall at 3:55 pm on 15 December 2011.

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Where do we go from here? We simply listen to the workers themselves. It is no use saying that these are hoary old arguments of a decade ago. They are old arguments, because no one listened then about the appalling management that was going on. There have been 40 consultants crawling over the business during the past few years. We think that anything between £5 million and £15 million has been used to employ consultants to come up with ideas, but no one has

listened to the workers. Phil Davies and Les Woodward have done a fantastic job on behalf of the GMB, as has Jennie Formby on behalf of Unite. They have worked with Remploy workers to bring forward their alternative strategy, which identified a range of issues that Members have raised this afternoon: cut management costs, increase localised marketing, end centralisation, get consultants off people’s backs and let Remploy members make their companies as profitable as they possibly can. That is all they are asking for; it is called worker involvement and worker control. The Government say they may look at mutualisation and co-operatives. I quite like the idea of a co-operative approach, but I do not want it to be used as an excuse for cutting people adrift from public subsidy or the commitment of existing European legislation to encourage public procurement.

My hon. Friend the Member for Swansea West (Geraint Davies) has demonstrated what can be done at local level by touring public agencies and ensuring that contracts are won. It is that simple; it is about listening to Remploy workers, and not patronising them but working with them and getting off their backs.

I am fearful. This debate is not about the theories behind integration and separation; it is a fight for 54 factories that are about to close unless we have a change of attitude from the Government. The Government response to the Sayce report was to go at that report, which effectively means cutting those factories adrift, and if they cannot stand on their own two feet, they wither on the vine. That is the reality of this debate.

I conclude with a quote from a Remploy worker—such quotes are moving statements from people and human lives that have been put at risk. Kevin Davies has cerebral palsy and has worked at a production plant in Baglan for 21 years. He says:

“I have a role to play and I enjoy being here…I am working with nice people and there is an end product to my work. It has given me a quality of life and independence…Without Remploy I would be stuck in the house. Without it, where would I be?”

He would be unemployed and stuck at home like many of our constituents who are experiencing unemployment as a result of the redundancies so far. This is a fight for those factories, and if the workers want to fight with whatever means possible—industrial action; occupation—and we cannot persuade the Government to reconsider, I will be joining them.

Photo of Jim Dobbin Jim Dobbin Labour, Heywood and Middleton 4:01, 15 December 2011

I will begin by agreeing with my right hon. Friend Paul Goggins: we are not against change or improvement, but we are against destruction, which is the big danger in this case.

On 1 December, I visited the Remploy e-cycle factory based at the Heywood distribution park, to which it moved from Radcliffe in Bury a couple of years ago. I was invited to celebrate the international day of disabled people and disabled workers and to present certificates to some long-serving employees. I was presented with a baton by the staff, which states:

“Help relay the message. Thousands of disabled people across the country are aiming high, achieving more and fulfilling their ambitions!”

That is the logo on the baton, which I intend to present to my hon. Friend Dame Anne Begg who is present in the Chamber today.

That was my second visit to the factory and it was intended to mark the achievements of disabled people in my constituency. The aim was to raise awareness about disability and to promote the fundamental rights of disabled people, so that they can be fully integrated into mainstream workplaces. That must happen, however, only when they feel ready for such as move and through their own choice.

There are 386 Remploy employees working in different factories in the north-west, and they do a fantastic job. The Heywood factory in my constituency repairs, cleans and recycles computers and laptops. E-cycle works closely with some Departments—I think that the Department for Work and Pensions is its largest customer, but there are others—and also with Manchester city council and Bury council, as well as a number of major private sector companies to which it provides electronic waste solutions and IT recycling. May I suggest to the Minister that more Departments provide work for and become customers of Remploy? Such a move would both support the system and be cost-effective.

When my right hon. Friend Mr Hain was Secretary of State for Work and Pensions in 2007, he initiated the modernisation programme, which we are not against, as I have said, and he provided £555 million to sustain it. When the present Government came to power, they invited the chief executive of Radar, Liz Sayce, to assess the situation. I have great respect for Radar and have worked with it on many issues. In this instance, however, I am concerned about the proposals to make the system more independent from the Government. That is similar to what is happening in the public sector across the board and seems to illustrate what the Government are planning in public sector service provision. The trade unions are unhappy with the Sayce report. They see it as a break-up of Remploy that could mean wholesale devastation in the system.

The Disability Alliance supports the Sayce report, which it sees as a way to introduce and integrate skilled disabled people into the workplace and the community, and I accept that. My experience of visiting a local factory, however, demonstrated to me that the present system offers a comfort zone to some vulnerable individuals and groups and that those people work confidently and feel comfortable in such a system. My local factory provides a highly-skilled service and runs a complex system. E-cycling is difficult. Cleaning laptops and refurbishing computers for industry, not only for the UK but for export, is a complex matter.

In my view, the changes envisaged by Sayce are premature and wrong, and they are happening when, as hon. Members have said, unemployment is increasing. Unemployment among disabled people is also rising, and now is the time for consolidation and support for the existing system, albeit an improved existing system.

The Remploy system need strengthening, and as I have already said, it would be good if more Departments, public sector organisations and local authorities put work the way of Remploy. It is important to retain the dignity of every Remploy employee, and to continue supporting them in the workplace. Unemployment is at its highest level for many years, and Remploy factories are threatened with closure at this sensitive time.

I have a personal interest in disability as I have two grandsons who are wheelchair bound. I want a system that will be there to support them when they reach working age and help them through life—that is not asking an awful lot.

I will conclude by stressing that the high level of support among Members who have Remploy factories in their constituencies and want to see Remploy remain sustainable has been illustrated by some of the strongly worded early-day motions that have been placed in the Table Office over the past few months. I think that Remploy management and the trade unions should be better consulted on the entire issue, because we are about to lose a very worthwhile service.

Photo of Geraint Davies Geraint Davies Parliamentary Assembly of the Council of Europe (Substitute Member) 4:08, 15 December 2011

I will be brief because other hon. Members wish to speak. I have already said that active intervention locally can make a difference, and in my discussions with the Driver and Vehicle Licensing Agency, the university and the health authority, we transformed the sales of the Swansea factory, quadrupled turnover and increased gross margins by tenfold. That is a case for more localised management and sales support and for removing the cap on overall marketing expenditure, which is less than 1% of turnover. All marketing literature must be checked by civil servants who have no idea about local needs.

My second point is about subsidies. The Sayce report states that the average subsidy is £23,000, but averages can be misleading. We all know that the cost of someone being unemployed is normally about £10,000 in benefits and lost tax. In the case of many of the people who work for Remploy, it would be much more because of the health on-costs. That needs to be properly evaluated financially.

Remploy works across a diverse range of markets. There is a case for focusing on whether there are greater growth opportunities and for examining the different business cases, rather than saying that it is a case of either closing all the factories or keeping them all and having no change. I do not think that anyone is arguing for no change.

There is a case for focusing on people with severe disabilities. Obviously, those with particularly severe disabilities need particular subsidies and support if they have virtually no chance of securing other forms of employment. There is a case for considering specific labour markets. In areas with very high unemployment, it is clear that those people will not get a job. There is a case for considering public procurement, as has been said.

It is also important to consider the specialist opportunities in relation to Remploy. For instance, Swansea Remploy is a specialist provider for young offender institutions in Scotland. It makes furniture that young offenders cannot destroy. They cannot break those things; there are no screws that they can pull out. It also provides furniture for mental institutions so that the residents cannot self-harm. The value is in tailor-made, focused transactions, where delivery is within budget and within the time frame. As I have already mentioned, it is important to ensure that key players and key skills are there to make the factories succeed.

People have mentioned that the factories provide an opportunity for training. Training is vital in manufacturing if we are to get back into growth and stop focusing completely on cuts. Clearly, if we just sell off the factories, we will see a fire sale of capital assets and the loss of the skills for ever. That is not sound financial management.

My basic theme is this. Let us focus on what works and make it work better. Let us accept that people with disabilities of varying sorts need subsidies. No one is saying that they can go off and succeed without any support. Let us use the levers at our disposal to make that work and stop just thinking about how we go about closing down 54 factories and making 2,500 people redundant. Those people are valuable assets in society, in our economy and in our future. Let us keep them doing that.

Photo of Mary Glindon Mary Glindon Labour, North Tyneside 4:12, 15 December 2011

It is an honour to speak under your chairmanship, Mr Benton. I add my congratulations to my right hon. Friend Ann Clwyd on securing this Back-Bench debate, because for many months workers in the 54 Remploy factories across the country have been waiting for the Government’s decision about their jobs. Given the massive unemployment figures announced this week, I can only imagine that the anxiety felt by those workers has been heightened.

I am proud to say that my own union, the GMB, has been supporting the workers at Remploy and last month handed in a 100,000-name petition at 10 Downing street. Quite rightly, it called on the Government to save Remploy. There is clearly a place for trade unionism in modern Britain when workers face such an unfair fight.

I am speaking in the debate because one of the 54 factories, Remploy Newcastle, is in my constituency, at Benton Square industrial estate in Palmersville, and it has been on that site for the past 32 years. There are 57 full-time employees at the site; 55 of them have disabilities. Those workers produce bedroom furniture, bed bases and mattresses, and assemble and pack cable glands for CMP Products—a locally based company. In recent years, the factory has also provided very successful work placements for more than 100 trainees. In total, 90% of the work undertaken at Remploy Newcastle is for north-east companies. That factory is therefore very much part of our local economy.

Given the threat of the workers at Palmersville losing their jobs, through no fault of their own, I am sure that hon. Members will be able to understand why they are frustrated about the unnecessary redecoration of their factory and the change in Remploy colours, which has resulted in all signage and stationery being changed at the cost of thousands of pounds. They know that they have fantastic skills, including in upholstery, joinery and commercial sewing, but those skills are being wasted as they see their work being deliberately dried up. They and their unions are rightly angry that, during the past five years, more than £15 million has been spent across Remploy on consultants.

On behalf of the Remploy workers and the unions that support them, I ask the Minister to continue to fund Remploy, but instead of taking heed of the recommendations in the Sayce report, which makes no case for the future of Remploy, she should consider the alternative strategy set out by the consortium of trade unions. That strategy makes sense. It sets out a complete review of the whole structure of Remploy, which would result in a much more efficient, sustainable organisation.

Does the Minister really want to be responsible for ruining the livelihoods of so many disabled employees? Does she really want to risk her reputation by making her final decision based on the evidence of a report that many consider to be flawed? Does she have the courage to examine a real viable alternative that will not only save jobs, but create a more efficient organisation and support many local economies across the UK? Will she consider the alternative strategy set out by the consortium of trade unions?

Photo of Ian Lucas Ian Lucas Shadow Minister (Foreign and Commonwealth Affairs) 4:16, 15 December 2011

It is a pleasure to take part in the debate. The hon. Members who are here have displayed a great deal of passion. Much of that passion is due to the fact that we have constituents who work in Remploy factories and that those factories are in our constituencies. When there was a proposal to close Wrexham Remploy, which I know very well, in 2007—a similar situation to that described by my right hon. Friend Paul Goggins—I learned how strongly the work force felt about working in a factory with their colleagues in Wrexham. I also discovered how powerful the support in the Wrexham community is for the factory. A local councillor, David Bithell, led a campaign to keep the factory open, and for a number of weeks in Wrexham town centre a great deal of support was expressed from within the community.

Like my right hon. Friend, we took forward a campaign to get more work for the Wrexham factory, which involved more orders for the furniture being manufactured there. I am pleased to say that that approach has borne fruit, and only yesterday Wrexham council made the decision to take forward the purchase of furniture and equipment from the local Remploy factory. I cannot understand for the life of me why that has not been happening for the past 60 years, and it must be the model that we follow in the future. I am very pleased to see the Minister nodding her head in that respect, because the problem with the Sayce report is that it proposes a model that will take that opportunity away.

None of us wants a situation in which people are forced to work in Remploy factories, a situation in which we create ghettos for disabled people. We want choice for those people. My concern about the Sayce report is its implicit and explicit statements that the opportunity to work in individual factories, supported by the local community, will be taken away. There is a very superficial nod in the report to the possibility of individual factories remaining open. The report talks about how local factories will have the opportunity to survive in the private sector. Let me tell the Minister that many businesses are having a great deal of difficulty surviving in the private sector at present. Local Remploy factories are not being given the information to enable them to prepare to build up a meaningful business case for their own future.

I wrote to the Minister when I saw the proposal in the Sayce report and asked her for the details of the income and expenditure for the Wrexham Remploy factory, which is pretty basic in preparing a business plan, but she refused to give that to me. She said:

“Remploy operations continue as normal and it is therefore not appropriate at this stage to make available commercially confidential information on factory operations.”

How on earth can Remploy factories that are facing closure prepare for the future and try to put together meaningful business cases, when the Government, who propose to close them, will not give them the information that they need to take forward business plans? Will the Minister please start to recognise that the people who work in those factories and the communities around those factories feel passionately about them? Will she start to be serious about supporting the factories?

Individuals deserve a choice, but the Sayce report will take that away. The report suggests that there is no future for Remploy factories across Britain, but that is entirely the wrong decision. Will the Minister please ensure that she does not become known as the Minister who destroyed Remploy?

Photo of Nia Griffith Nia Griffith Shadow Minister (Wales) 4:20, 15 December 2011

I congratulate my right hon. Friend Ann Clwyd on forcefully making the case to the Backbench Business Committee to secure this debate. The debate has been extremely well attended, particularly by the Opposition, considering the many other distractions on a Thursday afternoon, including an important by-election.

I pay tribute to my hon. Friend Geraint Davies for his fantastic work with the Fforestfach factory. He brushes over it lightly, but the work of going out to get all the public procurement, simply from a meeting back in March and in just three months over the summer, to change the situation of having virtually nothing in the order books to having those books absolutely full and going out to big purchasers, such as the national health service and the Driver and Vehicle Licensing Agency, to ensure that there is work for that factory, shows what can be done.

I endorse the comments made by my right hon. Friend Paul Goggins, who said that there is no divide between the factories and other schemes to help people get into work, and we need both mechanisms. In theory, nothing stops a worker in a Remploy factory from finding a job elsewhere, but the reality is defined by the shocking unemployment figures—an increase was announced yesterday, and further increases are predicted in the new year. Many Remploy factories are situated in unemployment hot spots. In the constituency of my hon. Friend Chris Bryant, who was present earlier, 20 people are chasing every single vacancy, and I know that many hon. Members have similar situations in their constituencies.

Remploy workers find themselves competing with a whole range of people who have been made redundant from public sector jobs and private sector companies that rely on securing sales contracts, which have been drastically cut, with the public sector. Many in the private sector are not surviving the economic disasters that we are encountering at the moment. All those people are looking for jobs, and people from Remploy factories find themselves in a difficult position, particularly if a large number of them are made unemployed at the same time. I am not patronising Remploy workers, because the same would be true if any other factory in my constituency were to close. If a large number of people with similar skills enter the jobs market together, they will have many difficulties in finding employment.

The key is economic growth. We are currently looking for mechanisms to create more jobs in the private sector, but we have seen little in the way of strategy from this Government. We have not seen an upsurge in the private sector, which is not creating jobs in the way it was supposed to. There does not seem to be any Government strategies for doing so. Where we have Remploy factories, infrastructure, machinery, products and some markets, why are we throwing all that away? It is nonsense. Every individual factory needs to be looked at carefully, and strategies need to be developed for each factory to maximise its potential, so that its products can be marketed properly.

Marketing seems to be key. If the marketing strategy is put right, as seems to be the case in Wythenshawe, Aberdeen and Swansea West, the purchases will come in and the order books will fill up. If we can do that, we can make the factories as viable as possible, and we can help to create jobs. If we do not do that, the on-costs and health costs of people being unemployed will be enormous.

We would do a much better job if we made the factories as viable as possible, while keeping the Government support at a sensible pace. We cannot turn the factories around overnight, but we can make them more economically independent and viable over a period. We would always welcome a mix of workers with disabilities and workers who do not have disabilities. That would bring people together, and we would like to see that mix, which is already happening in many factories. We want viable places, and we want the products that are made to be sold.

That brings me on to public procurement. Assembly Members have a policy by which they purchase their furniture from Remploy factories. I have purchased furniture from Remploy factories for my office. We need much greater awareness. My hon. Friend Ian Lucas asked why it has not happened before. Well, it used to happen, when there was a greater coming together of public purchasing. For example, local authorities once purchased everything for their schools together, before they began to have local management of schools and began to buy their own things in different ways. We need to return to the same sort of consortium purchasing, where we look at what is available or to make what is available more obvious. I have learned, even in this afternoon’s debate, of some products I did not know Remploy was involved in producing. There is a lack of awareness, because an awful lot of people just do not know what can be purchased.

Photo of Anne Begg Anne Begg Chair, Work and Pensions Committee, Chair, Work and Pensions Committee

When my Select Committee visited the Neath Port Talbot factory, we discovered that it had had full order books, because it had won a contract for Building Schools for the Future, which was, of course, cancelled by this Government. It was beginning to struggle a bit.

Photo of Nia Griffith Nia Griffith Shadow Minister (Wales)

Absolutely. Remploy factories, just as many other private firms, have suffered considerably in the cuts to the construction programmes and Building

Schools for the Future, which have kept much of the private sector going when the construction sector has been in absolutely dire times since 2008. That is an important point.

We need to look at public procurement policies thoroughly. We must encourage every single sector in public procurement to look at the whole range of products available from Remploy and conduct specific marketing on that. I am absolutely convinced that we can make the factories more viable by doing so.

Currently, we need continued support and an individual assessment of each factory to ensure that everything is being done to make each factory the best and most viable business possible. We also need a determined public procurement policy to save our Remploy factories.

Photo of Lindsay Roy Lindsay Roy Labour, Glenrothes 4:27, 15 December 2011

It is a pleasure to serve under your chairmanship, Mr Benton. I add my congratulations to those who have secured today’s debate.

This is a vital time for those facing threats to their supported employment, and indeed to their welfare, well-being, health and self-esteem. I shall curtail my comments because I endorse many of the points that have been made about procurement and management.

Why on earth should we abandon an existing state-funded model purely for ideological reasons when in many factories real dividends are patently being achieved? With modernisation, a lot more could be achieved. In Leven, Fife, in my constituency, Remploy marine division makes high-quality lifejackets and sells them at home and in international markets. It is highly competitive, and its order book is full. Yes, the company receives a Government subsidy for each employee, but as I said, Remploy is highly competitive. Its employees use their initiative and enterprise, and they are well-trained. Remploy remains in the vanguard in the development of a specialist, niche market. The subsidy is really an investment in people, ensuring meaningful work for disabled people in a sheltered environment. It provides decently paid work for thousands of people up and down the country who would find it immensely challenging to find employment elsewhere.

I wrote to the Minister about the Leven factory and asked what the difference would be between having its 29 employees in supported work and paying them unemployment and disability benefits. I find it incredible that she could not tell me. To proceed to factory closure without doing comprehensive homework is, at best, cavalier and I suggest that it is, to a degree, irresponsible, even in relation to that small factory.

The closure of a factory in an area where there is 18% unemployment would not only devastate a viable business but an integrated and mutually supportive community. Let us make no mistake: although the factory requires Government investment in people and in the narrowest definition it may not be financially profitable, in the widest terms its dividends to the community make it a profit-making enterprise. That is the case with many other Remploy factories too.

This Government say that they believe in choice, and the importance of choice is substantiated by a very articulate young man who works at Remploy in Leven. I make no apology for quoting from a letter that he sent to me and indeed to the Minister:

“Work is seen as being hugely positive for a person, for their social status, their relationships - both in professional and personal terms - and their health and well-being, and also their monetary income. My engagement at Remploy was a deliberate choice - there were other options open to me. My experience at Remploy has facilitated independent living - and I have gained at Remploy things that cannot be bought with wages - but rather earned through my daily relationships at work. I refer to dignity, self-belief, respect, routine and structure - and the qualities that engender self-reliance and unique identity - an identity that is not defined by my condition. They ingrain me with a sense that I am a fully functioning member of society - and it is this human capacity - and the potential removal of high quality work, for ideological reasons, that lies at the heart of the matter.”

That young man is highly critical of Liz Sayce’s branding of Remploy jobs as non-roles and subsequently non-jobs, and her descriptions of Remploy factories as “ghettos”. I challenge the Minister, following her visits to Leven and elsewhere, to dissociate herself from those alleged remarks.

The Minister’s central theme is that resources should be focused on disabled people themselves, rather than on institutions. “Institutions” can be considered in this context as a pejorative term and the description of Remploy factories as “ghettos” is offensive. Remploy factories, which are work organisations where individuals can grow and flourish, must be part of a mixed model of provision to meet the legitimate needs and aspirations of disabled people in our society.

Finally, given the arguments that have been put forward today, I would like an assurance from the Minister that the current Remploy model, with modernisation, will remain part of any future planning for supported employment. I am sure that the quality of output, the sense of pride in a job well done and the business and community spirit witnessed by the Minister in Leven is replicated in many Remploy factories throughout the country. The existing model, with modernisation, makes perfect sense as an option for supported employment. The way that we treat disabled people is a benchmark of a civilised society. I urge the Minister to treat Remploy employees with the dignity, respect and priority that they so richly deserve. They want to continue playing their part in contributing to the economy and wider society, with all the dividends that that brings. If a disabled community in the Remploy factory in Leven can make high-quality life-saving buoyancy jackets that are competitive internationally, surely it is not beyond the wit of Government not only to keep the factory afloat but to strengthen its business stream and extend a further lifeline to its employees.

Photo of Anne McGuire Anne McGuire Shadow Minister (Work and Pensions) 4:33, 15 December 2011

Thank you very much, Mr Benton, for calling me to speak. It is a pleasure to respond to this debate on behalf of the Opposition and to serve under your chairmanship. I also particularly want to thank my right hon. Friend Ann Clwyd for leading the debate today, and the Backbench Business Committee for allocating time for it. If there is one thing that all of us have learned over many years, it is that Remploy and its future is of abiding interest to many Members from all parts of the House.

I also want to act slightly at odds with normal parliamentary procedure—since we are not in the main Chamber, I think that I can probably get away with it, subject to your ruling, Mr Benton—by thanking those disabled people from Remploy who have travelled to observe this debate, including members of the trade unions GMB, Unite and Community, who had not been mentioned before in the debate. It is an indication of how the staff at Remploy feel that they have made this journey at this point in the week and at this point in the day to hear this debate. Regardless of the views that have been expressed—there have been some differing views, including some subtly differing views—I hope that those staff will recognise that people in this place take Remploy and the issues affecting disabled people and the future of disabled people very seriously indeed.

I also want to thank my hon. Friends the Members for North Tyneside (Mrs Glindon), for Glenrothes (Lindsay Roy), for Bridgend (Mrs Moon), for Wansbeck (Ian Lavery), for Swansea West (Geraint Davies) for Aberdeen South (Dame Anne Begg), and Stephen Lloyd for their contributions to the debate. I will come back to the points made by the hon. Member for Eastbourne shortly. I am also grateful for the interventions that were made by my right hon. Friend Mr McFadden, and the hon. Members for St Ives (Andrew George) and for Brecon and Radnorshire (Roger Williams). I realise that I have missed out my hon. Friend John McDonnell in my list, but I remember his very powerful contribution to the debate.

For very personal and obvious reasons, I congratulate my right hon. Friend Paul Goggins, because he and I had many a long conversation about the Remploy factory in his constituency and the model that it provided; I will discuss that model later. He illustrated today that, where we can galvanise a community and put in energy and commitment, we can make a Remploy factory work. Indeed, that comment was echoed by my hon. Friends the Members for Llanelli (Nia Griffith) and for Wrexham (Ian Lucas), who highlighted that where local leadership is shown, we can make a difference.

Photo of Paul Goggins Paul Goggins Labour, Wythenshawe and Sale East

I pay tribute to the work that my right hon. Friend did as the Minister with responsibility for disabled people when we were in Government and I thank her for the encouragement that she gave to me in the days when we were trying to establish the support group for the Remploy factory in my constituency; she has just referred to the conversations that we had about that issue. Does she agree that, as one or two Members have already mentioned, a key group in any area is local councillors? Councillors are community champions who provide links to the local authority and, because of their experience, they can also help to scrutinise some of the development proposals. Indeed, will she join me in paying tribute to the councillors in my area and elsewhere who have done that?

Photo of Anne McGuire Anne McGuire Shadow Minister (Work and Pensions)

Yes, indeed. We can also look at some of the more successful examples of supported employment, including factories where disabled people work, that have had unstinting support from local authorities. Not all of those factories are Remploy factories. For example, the Royal Strathclyde Blindcraft Industries factory in Glasgow has had enormous input and support from the local authority. It has supported the factory through thick and thin, and hopefully now through thick again, but obviously business conditions may change.

As I said earlier, I want to refer to the comments of the hon. Member for Eastbourne. I think that everybody who has spoken in the debate accepts—at least, I hope that can be said of everyone—that there is a change in expectation among most disabled people, and certainly among their spokespersons and the organisations that represent them, and that disabled people want to have a range of choice in employment. Disabled people want the same range of choice that non-disabled people have. Government support is crucial in helping to deliver on those aspirations. I say gently to the hon. Gentleman, who I know has a long and honourable history of working in the disability movement, that we cannot deliver on the aspirations for the majority if we trample over the expectations of the few. In many respects, that is the dilemma that we face in discussing the current issue.

I have heard today from many right hon. and hon. Friends and hon. Members about their own experience of the Remploy factory in their own constituencies. I share their admiration for those factories, because there is a Remploy factory in Stirling. I visited it on the international day of disabled people and took the baton from a young man who works there. As has been said of other Remploy factories, that company of people in that factory in Stirling recognise that Remploy is not only about a job but about a wider network of social support, economic support, health support and all the things that disabled people look for. Indeed, Liz Sayce, in her report, recognised the value of the Remploy environment, and I will read an extract from page 96:

“It was clear from this review that the best factories offer job satisfaction, a supportive and accessible environment and a reasonable income for those they employ. The factories have provided employment opportunities – sometimes for many years – to disabled individuals. They have also provided a sense of community for their employees. Some have pioneered learning and development, often led by Union Learner Representatives, through which individuals have (for instance) learnt to read for the first time, or worked towards qualifications. While some sheltered workshop environments pay staff less than the minimum wage, Remploy factories pay above the minimum wage and offer good terms and conditions.”

I am not going to run away from the fact that, like the Minister, I have wrestled with some of the issues about Remploy. I understand the tensions between wanting to open up everything to disabled people and the fact that some disabled people want to make a different choice, and we have to be careful about how we interpret the perceived settled will of disabled people. We also must recognise the legitimacy of a position that is not the mainstream view of the disability movement—to close sheltered factories—which is that factories should be maintained, to give disabled people a choice. That was always the position, and those of us parliamentarians who are veterans of the Remploy modernisation programme will remember that my right hon. Friend Mr Hain made it very clear that there was still a place within our range of opportunities for supported factory employment.

I want to probe the current consultation with a series of questions to the Minister, which I hope she will be able to answer, if not this afternoon, in the very near future. In opposition, the Government supported a five-year modernisation plan, so why did the Minister embark on a review nearly two years before that timetable had been exhausted? I suggest that the five-year plan effectively had only two years to run before there was a general election, so why did the Minister go for the current timetable? With the greatest respect to Liz Sayce, the five-year plan did not come out of a review, in a few short months, but was the result of extensive financial investigations, consultations with the disability lobby before a consultation document was published, and extensive and sometimes very robust discussions with the Remploy board and the trade unions, which some of us here will remember. We felt that there had to be a plan with a time frame that would allow Remploy to turn the business around.

We have heard today that some of the factories are being turned around, that order books are overcrowded and new businesses are coming in. I agree with my right hon. Friend the Member for Wythenshawe and Sale East that there are still some issues about top-heavy management and decentralisation, and we had the five-year time frame so that the issues could be worked through, between the board and the trade unions, with the continued support of Government. I can say this only in the kindest fashion: the current situation has created uncertainty among workers, and indeed among management, about what will happen, and that is stymieing the development of Remploy the business. I have some sympathy with colleagues who suggest that there might be a bit of a withering-on-the-vine strategy behind that.

Given the Minister’s intention to embark on this course of action, what action did she take to involve the board of Remploy and its trade unions in discussions about the issues identified in the Sayce report? What recognition did she give to the trade union analysis of the current operation of Remploy’s enterprises and the questions it raised about the company’s business practices? Did she take any opportunity to discuss some of the issues with the unions? I am not talking about post-consultation discussion, after the paper was published, but about developing the consultation in line with the people who have a strong input into the process. There is a feeling that the consultation is flawed, not least because the Minister perhaps did not appreciate all the implications of the phrase on page 18:

“Government is minded to accept the recommendations of the Sayce Review”.

I do not understand how someone can put out a consultation and then say what they are minded to do before the results have come in.

When the modernisation statement was made to this House on 29 November 2007, the now Minister of State, Department for Work and Pensions, Chris Grayling made the following commitment:

“Let me assure Remploy and its employees that the next Conservative Government will continue the process of identifying additional potential procurement opportunities for them and the public sector work force.”—[Hansard, 29 November 2007; Vol. 468, c. 451.]

What efforts have the Minister and her ministerial colleague made to fulfil that promise? What discussions has she had with the major procurement Departments, including the Home Office and the Ministry of Defence? Has she looked to ensure that her own Department has considered even more ways in which it could open up procurement opportunities for a business in which it has a significant investment? What discussions has she had with colleagues in the Department for Communities and Local Government to encourage local authorities to consider opening up opportunities for individual local factories? What efforts has she made to encourage her colleagues to identify procurement opportunities under article 19? If she is still “minded” after the consultation process closes, what responsibilities will the Government have towards Remploy?

Why is the current pension scheme issue raised in the consultation? Currently the DWP guarantees the company pension scheme, but would it still exist? How would it be managed, and would the DWP have a role in that management? Is the pension fund currently in surplus or deficit, and by how much? If it is in shortfall, what measures will be taken to deal with that? It looks as though the Minister has the figures to hand, but if she does not I would be pleased if she could advise us after the debate. What range of companies does she have in mind that might wish to buy all or some of the Remploy factories? Has she, or have her officials, had any communication with any such interested parties?

The Minister indicates in her consultation that staff might wish to consider acquiring the enterprise businesses, and that they could do so. The consultation also indicates that expert advice would be there to assist, but would any provision be made for a front-loaded capital investment on the part of Government? Would the DWP consider a legacy to those factories, given the deep and extended relationship between Government and Remploy? Those are all unanswered questions in a consultation.

Photo of Ian Lucas Ian Lucas Shadow Minister (Foreign and Commonwealth Affairs)

My right hon. Friend is making a powerful case. Does she agree that one great weakness of the Sayce report is its complete lack of detail about what alternative model for going forward would be available to individual plants and factories? We are in a state of uncertainty about those individual plants, and they have no real knowledge of what is proposed for their future if the proposals go ahead.

Photo of Anne McGuire Anne McGuire Shadow Minister (Work and Pensions)

My hon. Friend is correct. I do not blame Liz Sayce for that, as her report dealt with principles and the direction of travel, but we can criticise the consultation for lacking fundamental details on some of the questions affecting the disabled people who currently work for Remploy.

If the businesses are to be transferred, what provision will be made to safeguard terms and conditions? Will they be guaranteed under the Transfer of Undertakings (Protection of Employment) Regulations 2006, or will people be sacked and rehired under inferior terms and conditions? Liz Sayce complimented Remploy on delivering good terms and conditions for its workers, but again, the consultation says nothing about that.

The consultation mentions a comprehensive package of support, which is one of the Sayce recommendations. What does the Minister have in mind? What kind of support will it be? How will it be delivered, and by whom? Has she factored the costs of that support into her budget for the winding-up of Remploy? What assessment has she made of the costs involved in selling off the factories and winding up Remploy enterprises, including all the calculations relating to redundancy payments, liabilities and creditors, a point made by my hon. Friend the Member for Glenrothes? How do they relate to the current budget, and how much money will actually be transferred to other Government support programmes after all those issues are taken into account?

Photo of Anne Begg Anne Begg Chair, Work and Pensions Committee, Chair, Work and Pensions Committee

On the Government’s Work programme and their desire to get more disabled people into work, without the factories, there will be fewer opportunities for work experience to give people the skills, expertise and background that will allow them into open employment. We cannot do away with the factories if we are serious about getting people with severe disabilities into open employment. The only employers likely to be able to give them that experience are those such as Remploy factories.

Photo of Anne McGuire Anne McGuire Shadow Minister (Work and Pensions)

My hon. Friend makes an important point that has been echoed by other colleagues in this debate. The Remploy factories have changed how they operate, including working with local special needs schools. They open up opportunities. She will know that they are not a destination but a stepping stone to the world of work. Disabled people can work in a range of industries and with a range of skills. I support the opening up of opportunities, with the support of trade unions, workers and management, as part of modernisation. At a factory in Causewayhead in my constituency last week, I was told how many people were coming to the factory through the training annexe. Training opportunities were being opened up to a range of disabled and non-disabled people. She makes a good point.

I have left one important issue until the end. Why has the Minister decided effectively to renege on a deal made with people who decided to stay with Remploy under the modernisation programme? I refer her to page 19 of the consultation document, which says:

“The implication of the recommendations in the Sayce Report is that, if accepted”— she has already said that she is minded to accept them—

“Remploy in its current form would not exist…The Government will therefore not be able to give undertakings that staff”, who are covered by protection of their working conditions, salaries and pensions,

“will not be made compulsorily redundant as a result of such changes, including the modernisation group.”

Modernisation came about as the result of protracted and difficult discussions. I will be disappointed if the Minister and her Government run away from the decisions and agreements made and accepted by her party when they were in opposition to maintain terms and conditions even for those who chose not to or were not in a position to move into other full-time employment. That was our deal with people who had given a lifetime of service to Remploy. Frankly, if my interpretation of her consultation document is accurate, I am disappointed.

The Minister cannot distance herself from the economic situation in which we find ourselves, a situation underlined by yesterday’s unemployment figures. Does she accept that even if she is minded to make that decision, making it in the current economic environment looks almost like abandoning her duty of care to the disabled employees who have given many years of service to the company that she effectively owns?

The Minister cannot hide behind the views of the disability lobby to justify her actions. Indeed, one leading disability organisation, Scope, while accepting the principle of closure, says on page 101 of the Sayce review:

“However, given the harsh economic climate, we recognise the need for transitional protection for the 3,000 employees currently located in the Remploy factories and suggest that full closure is deferred until the employment environment has recovered.”

Even one of the organisations supporting the direction of travel says that now is the wrong time to make that decision.

During the past two hours or so, the Minister has heard the passion and commitment expressed by hon. Members from all parties. I hope that she will seriously consider those points of view. I hope that her phrase that the Government are “minded to accept” was an unfortunate slip of the pen and that her mind is still open. Not only do disabled people fear unemployment, they experience fear every day due to negative media headlines about disabled people and their lives in the community. I think that she is an honourable lady, and I hope that as a result of this debate, she will take away some of the points made and see that there is a flexibility of approach and that nobody is tied to a model of Remploy that is stuck in the past. We want a network of supported factories in local communities and linking into local networks that deliver good-quality jobs and experiences for many young people for many years to come.

Photo of Maria Miller Maria Miller The Parliamentary Under-Secretary of State for Work and Pensions 4:58, 15 December 2011

It is a great pleasure to serve under your chairmanship, Mr Benton, and under that of Mr Havard, who is no longer in his seat. I congratulate Ann Clwyd on securing this debate and right hon. and hon. Members on making a strong case on their constituents’ behalf for the importance of providing the appropriate support for disabled people to get into employment. I, too, note that many people in this room today other than right hon. and hon. Members have an interest in that.

It is also important to note how much time hon. Members have taken to come talk to me. My hon. Friend Stephen Lloyd, Geraint Davies and the right hon. Members for Wythenshawe and Sale East (Paul Goggins) and for Cynon Valley have all taken a great deal of their own time to ensure that they put their views in a measured and sensible manner, and I thank them all.

It was interesting to follow Mrs McGuire, who speaks for the Opposition. Having been in my place, she is right to say that we face a dilemma. She stated that she understands the tensions. I have no doubt that she does, having done this job before me, but what was not clear is exactly what the Opposition’s position is. She might feel that she has made her position clear, but it was not clear to me.

Photo of Anne McGuire Anne McGuire Shadow Minister (Work and Pensions)

I have made it clear that we expected the five-year plan that was in place to run its course. The problem is that it is the Minister who has to wrestle with the decisions, but I have made our position very clear.

Photo of Maria Miller Maria Miller The Parliamentary Under-Secretary of State for Work and Pensions

The right hon. Lady and I are, therefore, absolutely at one. This Government have made it clear that, despite the very difficult financial situation that we have inherited, we will continue to support the modernisation plan. We are in year four of that plan, and it is absolutely right that we should plan for the future. It would be wrong and a dereliction of our duties not to look to the future, particularly given the fact that the modernisation plan has, it pains me to say, struggled to be achieved.

The right hon. Lady and others have asked a lot of detailed questions. I want to answer as many of them as I can, so I hope that hon. Members will forgive me if I keep interventions to a minimum. The first was the right hon. Lady’s question about whether we support the modernisation plan. The answer is absolutely. We are in year four of it. There is great concern about the failure to meet its targets, but we are continuing to make sure that the money is available and that we put in the required effort to see the plan continue.

I discussed both the modernisation plan and the Sayce report with the trade unions and the Remploy board at a recent meeting in Leicester, and my officials will have further meetings with the unions in, I think, the second week of January. The right hon. Lady should be reassured that we are trying to do the same thing as the previous Administration, which is to take something that was created in 1946 to rehabilitate ex-service personnel after the second world war and try to find a sensible and constructive way forward in these difficult times.

The right hon. Lady also talked about a number of issues in relation to terms and conditions for those in the Remploy plan who took redundancy. I am sure that she already knows this, but I wish to clarify that those terms and conditions were for the period of the plan.

The world has changed immeasurably over the 65 years since Remploy was established. Our responsibility as constituency Members of Parliament, Ministers and Opposition Members is to make sure that we look forward to the future and make sure that we have the right support available for disabled people to be able to reach their full potential in life. That is our responsibility and our Government’s focus.

In Britain, our manufacturing industry faces increasingly competitive markets from overseas. The overall development of Remploy over the years has not been focused on the business environment in which it operates. That is a plain fact. Some sectors, such as the automotive sector and CCTV, have been able to develop offerings of higher value-added products and services, but they are the exception, not the rule. The vast majority of the network continues to produce products that, as a nation, we are more used to seeing imported from overseas and, indeed, at lower costs.

Fifty-five per cent. of disabled people in this country work in offices, shops and public services, and—my hon. Friend the Member for Eastbourne has talked eloquently about this—increasingly want to be involved in all aspects of employment and be part of a national work force. When I talk to employers such as BT, Royal Mail and B&Q, I start to feel heartened about a change in attitude among employers towards employing disabled people. That is only a start, and there is still a great deal more to be done. I do not underestimate the challenges that we all face to overturn entrenched attitudes.

Photo of Jim Dobbin Jim Dobbin Labour, Heywood and Middleton

It just so happens that, before I came to this debate, I attended a reception held by the Council for Disabled Children in the Jubilee Room next door. A young man spoke to me about the situation, and I told him about this debate. He told me that he had just lost his job. I asked him why, to which he replied, “Because I am disabled.” I asked him how he was disabled, and he said that he was deaf. He has tried and tried to get re-employed, but he has failed.

Photo of Maria Miller Maria Miller The Parliamentary Under-Secretary of State for Work and Pensions

I thank the hon. Gentleman for his intervention. The answer is that there is a great deal of legislation that would support that young man. I hope that the hon. Gentleman’s advice to him was to seek legal redress, although the particular instances of the circumstances would need to be taken into consideration. Our responsibility is to plan for the future and for young men like that who want to be able to work in the same jobs as their peer group in a class, and to make sure that they have the ability to do that, not only through legislation, but through the attitudes of their employers.

Procurement has been mentioned a number of times. Indeed, the right hon. Member for Cynon Valley raised the issue right at the beginning of the debate. It has been suggested that an increase in procurement sales, particularly from local authorities, would resolve Remploy’s current problems. In its briefing for this debate, the GMB initially chose to criticise the support provided by local authorities for Remploy, but, for the record, I want to thank local authorities for their support for Remploy. Ian Lucas has talked about his local authority’s work in that regard. Moreover, the local authorities in Blaenau Gwent, Swansea, Merthyr Tydfil and Newcastle already support Remploy. Indeed, my own county council in Hampshire also supports Remploy and is very proud to do so. It is important that we do not underestimate the existing support. We are most grateful and thankful for it.

Photo of Ian Lucas Ian Lucas Shadow Minister (Foreign and Commonwealth Affairs)

Local authorities cannot support Remploy if Remploy is not there.

Photo of Maria Miller Maria Miller The Parliamentary Under-Secretary of State for Work and Pensions

The hon. Gentleman will know that the consultation talks about freeing Remploy from the control of Government and making sure that successful organisations can continue to thrive.

To return to the specific point that Members have addressed at great length, there are examples of local authorities and Remploy working together, but the problems in the factories will not be addressed by that alone. Article 19, to which Members have referred, is clearly a way to help public bodies use supported businesses, but it does not address the issue of value of money that procurement officers always need to consider, nor does it guarantee that Remploy will be given work in competition with other supported businesses.

The issues currently faced by Remploy factories are not new, and concern over the increasing cost, low productivity and sustainable jobs for disabled people has been an issue since the 1990s. The operating loss for the factories has increased into tens of millions of pounds, and the steps taken under the modernisation plan, which was rightly introduced by the previous

Administration, including closing and merging 29 sites, has simply not addressed the fundamental weakness in the business model.

The right hon. Member for Cynon Valley mentioned my comment that I was minded to accept the consultation’s proposals. I want to make it clear that I have not yet made a final decision about the consultation, but I am persuaded that there is a need for change and that the Sayce review suggests a persuasive model for such change.

Photo of Gemma Doyle Gemma Doyle Shadow Minister (Defence)

Is the Minister aware—I believe that she is—of the Blindcraft factory in Glasgow, which is a very successful supported employment workplace? Will she acknowledge that it is the business plan, not the business model, that is failing, as the management themselves acknowledged to her and me earlier this year?

Photo of Maria Miller Maria Miller The Parliamentary Under-Secretary of State for Work and Pensions

I thank the hon. Lady for her intervention. We have met on several occasions to discuss the issue. There are examples of areas where there can be success. Indeed, the hon. Member for Swansea West has walked the talk and made sure that the procurement issue has been uppermost in his local authority’s mind, and he has been very successful in that regard. There are opportunities for success, but the problem is that that success is not across the board.

I have already confirmed that the amount of money going into specialist disability employment is not the issue, because we have protected that pot of money. This is about ensuring that that money works hardest for disabled people. This is not about reducing funding; it is about using the money most effectively in whatever way that comes about. We have to consider those alternatives.

I have met Remploy trade union representatives on a number of occasions to discuss the matter. I have visited factories and listened to the views of employees, and I attended one of the consultation events in Reading in September. Let me restate that the Government’s commitment is to the five-year modernisation plan introduced in 2008. We are now in year four of that and those targets are not being met.

Last week, Remploy published independently audited annual reports and financial statements for 2010-11, which revealed that the Department for Work and Pensions spent £68.3 million supporting 2,200 disabled people in Remploy enterprise businesses at an annual cost of £25,000 per person. That is £5 million more than in 2009-10 and is more than 20% of the total budget available to help disabled people into work through the specialist employment budgets. We have to take a long hard look at the situation.

Photo of Geraint Davies Geraint Davies Parliamentary Assembly of the Council of Europe (Substitute Member)

Does the Minister accept that there is a case for some job subsidy, even if it is as low as the amount that that person would otherwise be paid for unemployment benefit and health on-costs, or is she going to stick to her guns and say that there should be no subsidy and we should therefore make a loss to the Exchequer?

Photo of Maria Miller Maria Miller The Parliamentary Under-Secretary of State for Work and Pensions

The hon. Gentleman asks a very detailed question. He knows that we have not yet made the decision about the way forward. A significant amount of money is available to support disabled people. My hon.

Friend the Member for Eastbourne talked about the Access to Work programme, which he rightly said is exceptionally effective. The Sayce report clearly says that if decisions are made about the prioritisation of the available money, more money—significant amounts of money—could be yielded to support Access to Work. That could well be the sort of support that the hon. Gentleman’s constituents in Swansea West would want.

Photo of Maria Miller Maria Miller The Parliamentary Under-Secretary of State for Work and Pensions

Will the hon. Gentleman forgive me if I make some progress? He and others have raised a lot of points, and I want to be able to deal with them.

The chairman’s annual report confirms that, last year, on average, half Remploy’s factory employees had little or no work to do and that the operating results for the factories have been significantly out of line with the modernisation plan. The perception that Remploy has turned work away is, I am afraid, simply unfounded. Some bids have been unsuccessful because they do not have the required capability or capacity in the factories, and sometimes Remploy has been outbid on price.

The right hon. Member for Cynon Valley talked about the order books being strong. The simple truth is that, even at full capacity, the factories are still making large losses, which demonstrates that the business model is wrong. That is why I asked Liz Sayce to review not only Remploy, but the specialist disability employment programmes that we have available.

The annual report also confirmed that Remploy employment services have been able to secure 20,000 job outcomes in the past year at a one-off unit cost of £3,300 per job. We should absolutely applaud that. Remploy employment services have been making great headway for many thousands of disabled people. I should like that to be recognised in this debate.

My hon. Friend the Member for Eastbourne talked about alternative support for disabled people, particularly Access to Work. I absolutely understand his support for that programme, which has great potential if we have the funding available to support it. We should all be pleased that there are opportunities in all our constituencies for Remploy employment services to help disabled people into employment through the work that it does with organisations such as Asda, BT, Marks and Spencer, Sainsbury’s, Tesco, McDonald’s, the Royal Mail and the NHS. That has been its achievement over the past 12 months; indeed, results of a similar magnitude are predicted for the next 12 months.

I shall talk briefly about some of the specific points raised by hon. Members. Mrs Glindon asked whether I would consider the consortium of trade unions plan. Absolutely. I will look at all the plans that have been put to us. I am particularly interested in the trade unions’ approach. The Secretary of State and I have made it very clear that we would be delighted for the trade unions to propose ways that they want to work with us to free the factories from Government control and to ensure that they can have a successful future. We will always be open to thoughts being given to us on that front.

Ian Lavery talked about the involvement of the workers in the Ashington factory in his constituency. It is absolutely to be commended that the workers in that factory are involved in building a success of the business. There are 27 people in the Ashington factory, but I remind him that there are more than 10,000 disabled people in his constituency. I want to ensure that more of those people get the sort of support that they need, so that we can ensure that they are not only in employment, but reaching their potential in life.

The right hon. Member for Wythenshawe and Sale East raised a number of incredibly important points. He and I have had long and, for me, useful discussions about his experience in this area. His main point was the importance of ensuring more local control and autonomy for the factories. He is very much echoing the Sayce review in saying that, if we are to drive effectiveness and have a successful network of factories in the future, it might be useful to consider enabling people such as the manager whom he talked about to have more autonomy. Again, there are 19 people at the factory in his constituency, where more than 15,000 disabled people live. I want to ensure that more help is available for them to be able to succeed in their lives and secure jobs that they can do.

Nick Smith talked about the fact that it pays to care. Again, he and I are as one on that. He talked about the importance of ensuring that people who are subject to changes in their jobs are looked after. For the record, some 1,809 redundancies were put in place by the previous administration. The figures seem to have got jumbled up over time, so I thought it would be useful for hon. Members to have the facts. Some 1,611 of those people were disabled. Indeed, when we consider the facts and figures, we can see that just under 40% of those individuals took early retirement. Some 252 people took modernisation terms and continue to be in employment elsewhere. Of those people who took the support on offer, some 70% found work. The problem was that not enough people took that offer of support. That is the learning from the previous modernisation plans that were put in place.

John McDonnell was very critical of the previous administration in his comments. I would not be so critical. I think that they were trying to do the right thing.

Photo of John Martin McDonnell John Martin McDonnell Labour, Hayes and Harlington

Will the Minister be clear about the future before she finishes? She says that she accepts the Sayce report. The Sayce report says that Remploy enterprises will be given six months to prepare a business plan and then 24 months to implement it, by which time all subsidy will be withdrawn. So there will be no subsidy within two years of the implementation of a business plan. Is that what the Government are saying?

Photo of Maria Miller Maria Miller The Parliamentary Under-Secretary of State for Work and Pensions

No, that is not what the Government are saying. The Government are still consulting on the Sayce review, as the hon. Gentleman will be aware. I have said that we are minded to accept these things, and as we move forward, we might or might not accept proposals in that report. We may accept them piecemeal or in their entirety. That is yet to be decided, so he will have to bear with me—as I am sure that he is willing to do—for a little while longer, so that we go through the proper processes with all these things.

The hon. Member for Swansea West—I see that he is not in his place—talked about there perhaps being problems with recruitment. Yes, indeed, because of the austerity that we are under at the moment, controls on new Government recruitment are in place. Owing to its non-departmental public body status, Remploy is covered by those controls, but I absolutely assure hon. Members in the Chamber today that since the austerity measures came into force, Remploy has successfully applied for exemptions through this process, where requests have been approved, to ensure that we can continue commercial operations. There are absolute safeguards in place to ensure that the business can continue in the way that it needs to.

The right hon. Member for Cynon Valley mentioned expensive consultants. She and I have a joint dread of the idea of having expensive consultants in place. I assure her that since austerity measures have been introduced, Remploy has not used consultants. I cannot speak for the previous Administration, but that is something that we feel very strongly about.

The hon. Member for Wrexham talked about when financial information will be available. As I have already made clear, no decision has been made on the recommendations of the Sayce review to date, so it would not be appropriate or possible for me at this stage to release financial information on a decision that is yet to be taken. We have to ensure that we adhere to the right proprieties. He would expect us to do that as a Government, and I assure him that, as soon as decisions are made, the appropriate information will be forthcoming for anybody who is interested in that detail.

The Remploy pension scheme has been mentioned. To assure individuals who may be concerned about comments that have been made about that, the Government have promised to protect fully the accrued benefits of pension scheme members in the event that the pension scheme were to close following the implementation of the Sayce review recommendations. It is an unfortunate fact that we have identified a £104.6 million deficit in the valuation of the pension scheme, which we inherited. A deficit repayment plan has been put in place, which is important because we want to ensure that both employees and pension scheme trustees are confident in the propriety of the finances of the scheme. Payments of £7.4 million, £25.8 million and £21.5 million have already been made into the scheme, which shows the commitment that this Government have, in tough economic times, to ensuring that we stand by our obligations and our commitments to Remploy staff.

I want to ensure that the right hon. Member for Cynon Valley who secured the debate has a few minutes at the end to sum up.

Photo of Ann Clwyd Ann Clwyd Labour, Cynon Valley

I am very happy to give my time to the Minister, because there are a lot of questions left unanswered. If she would like my extra time, I am very glad to give it to her.

Photo of Maria Miller Maria Miller The Parliamentary Under-Secretary of State for Work and Pensions

That is extremely kind of the right hon. Lady. I have managed to race through most of the issues that I want to cover—I think that I have actually managed to cover almost everything raised by hon. Members.

Photo of Gemma Doyle Gemma Doyle Shadow Minister (Defence)

The Minister is drawing to a conclusion, but I do not think that she has mentioned the issue of bonuses, which we discussed earlier this year. She promised to look at the scandalous practice of management still collecting millions of pounds in bonuses. Has she decided to take action on that?

Photo of Maria Miller Maria Miller The Parliamentary Under-Secretary of State for Work and Pensions

The hon. Lady has raised the issue of bonuses before. I think I can remember either writing to her or perhaps replying in detail. It is vital that any business is run in a proper way. As an incoming Government, 18 months ago we took over a set of commitments that the previous Administration had put in place. That included many things including not only the modernisation plan, but the issue of bonuses for senior managers at Remploy. The performance incentive payments in the annual report—the statement made this year—relate back to 2009-10. The executive directors are contractually entitled to those payments, but, unfortunately, those contracts predate this Administration. The hon. Lady may know that there are legal issues that we have to be aware of. The Department has no power to limit bonuses, but from 2010-11 all Remploy’s executive team and senior managers have agreed to cap their bonuses in line with the senior civil service bonus cap. That was a particular request made by the Secretary of State, so that we can ensure that there is some—[ Interruption . ]

Photo of John Martin McDonnell John Martin McDonnell Labour, Hayes and Harlington

Are they getting a bonus? Even though they are failing, are they getting a bonus?

Photo of Maria Miller Maria Miller The Parliamentary Under-Secretary of State for Work and Pensions

As the hon. Gentleman has just heard me say, his Government put those contracts in place. [ Interruption. ] Sorry, Mr Benton, I was not giving way.

Photo of Joe Benton Joe Benton Labour, Bootle

Order. Either submit an intervention, or allow the Minister to answer.

Photo of Maria Miller Maria Miller The Parliamentary Under-Secretary of State for Work and Pensions

Thank you, Mr Benton. I was in the process of trying to answer that intervention. What is very clear is that there are legal issues. We are contractually obliged to pay those bonuses, and we have been advised that there is no alternative. The hon. Gentleman can take that up with his colleagues.

Photo of Stephen Lloyd Stephen Lloyd Liberal Democrat, Eastbourne

I thank the Minister for giving way. I very deliberately have not intervened, because the previous Chair was very kind and gave me a long time and people were very patient, but I am grinding my teeth a wee bit. Does my hon. Friend agree that this has been going on for years under both Governments and is incredibly intractable, which is why we are still here? The whole issue is a complete red herring. We have absolutely no choice, because we have to implement what the previous Government actually agreed.

Photo of Maria Miller Maria Miller The Parliamentary Under-Secretary of State for Work and Pensions

My hon. Friend is absolutely right that we should not get away from the facts here. Disabled people listening to this debate expect us to show a way forward for the future. All the meetings that I have had with the leading disability organisations on this issue have made it clear that disabled young people, as was said in an earlier intervention, want to ensure that they have sustainable jobs in the future. Those disabled young people want to make sure that they learn the skills that will give them those sustainable jobs into the future, which is my priority. That is where I want to ensure the Government’s funding is being placed. We have made it clear that this money is ring-fenced, so it is secure.

The issue is about getting the best outcomes for disabled people. Some hon. Members questioned whether this was the right way forward. I tell them first, second and third that we will make sure that the priority is the best outcome for disabled people. That is what comes first rather than vested interests or the history, because we have to look at the future.

Photo of Lindsay Roy Lindsay Roy Labour, Glenrothes

Will the Minister distance herself from the comment that Remploy factories were ghettos?

Photo of Maria Miller Maria Miller The Parliamentary Under-Secretary of State for Work and Pensions

The hon. Gentleman is asking me to comment on something that I do not think I would ever say. [ Interruption. ] What I would say is that we have to listen to what disabled people want. Disabled people tell me that they want to live independent lives in communities like everybody else. To be able to do that, they want to have the jobs that everybody else would expect as well.

I fear that I will run out of time if I do not wind up my remarks quickly. In conclusion, getting this right is absolutely crucial for millions of people—millions of our constituents. It is only right that we take the time to consider the consultation representations before making any decisions. I have not yet made a decision about the future, and an announcement will be made as soon as is practically possible. Hon. Members can be sure that I will consider carefully not only the points that have been raised today, but the points that have been raised by hon. Members and right hon. Members in the many meetings that we have had in recent weeks. However, we need to look at the evidence. We need to be driven by that evidence and ensure that we are committed to the best decision for the future of disabled people. I recognise how vital it is to join up with work across Government to improve employment outcomes for disabled people. I have already answered one of the requests in the Sayce report to establish a cross-Government Committee that considers disabled people’s employment.

Photo of Ann Clwyd Ann Clwyd Labour, Cynon Valley

Disabled people want jobs and the jobs are not there. Where are they going to come from?

Photo of Maria Miller Maria Miller The Parliamentary Under-Secretary of State for Work and Pensions

The right hon. Lady makes a timely intervention. She will know that in her constituency 37 people are employed in a Remploy factory, and she has more than 13,000 disabled people in her constituency. My responsibility is to ensure that more of those 13,000 people get the support they need to get into work. We know that there are almost 700 vacancies in Jobcentre Plus in her area, and that Remploy employment services in Merthyr Tydfil has placed 254 disabled people into employment. In the Rhondda, that figure is 163 disabled people into employment; in Bridgend, it is 251.

Sitting adjourned without Question put (Standing Order No. 10(11)).