Member News
Nobody wants to lose their job and when we see the unemployment rates climbing it is important that there is as much support as possible for those made redundant.
Lindsay Hoyle
Lindsay Hoyle (Lab, Chorley) launched the second reading of his private members Bill on March 13 2009.
The Bill would link that cap to average earnings, rather than the retail price index.
Introducing debate on the Bill, Hoyle accused government whips of using "shameful" and "underhand" tactics to try to block the measure.
"I know letters have gone out to certain members asking them to come and speak against the Bill in the name of a whip. I find that quite appalling and quite underhand."
John Bercow (Con, Buckingham) also backed the Bill saying that its modesty was "underlined in triplicate" by the "reasonable" time given for implementation.
For the Conservatives, Jonathan Djanogly, shadow corporate governance minister, said he could not support the Bill as it would be "damaging to our economy, to our companies and also the workers that drive our economy".
He suggested "in diverting money away from the running of businesses," it could " lead to more insolvencies [and] undermine and damage the very workers whom it seeks to protect".
He concluded that "the Bill has scant regard for the economic crisis facing Britain" adding that the Bill was the result of a Labour "internal row … about whether it has been keeping its manifesto pledges".
Lorely Burt (Lib Dem, Solihull) argued that the government had "failed to deliver to the unions the promise that was made out before the general election and specifically in Warwick I".
She supported the Bill making its way to committee, and argued that "the cap has fallen behind average earnings" adding that "at £350 it is now worth only 57 per cent. of what it was in 1999".
She called for either committee stage to amend the Bill or reassurances for the minister.
Business minister Pat McFadden, in a two hour speech opposing the Bill, said that while he had "sympathy" with its intentions, the Bill was "flawed" and costly for employers – already facing pressures during the recession.
Raising the cap on payments could increase the cost of redundancy by approximately £500 million per year, he warned.
McFadden denied that "underhand" tactics were being used against the Bill or that MPs had been encouraged to speak against it.
He cautioned Labour MPs that it would be a "mistake" to judge whether the government was acting in the interests of working people, purely on its response to this Bill.
"I can assure supporters of the Bill that the issues raised are under consideration - although I'm sure you will understand that I cannot today set out what the conclusions are on government discussions about these issues."
Summing up, Hoyle said: "We should give a fair wind to the Bill, as the majority of back-bench MPs support it."
The government lost the vote – with 76 Labour MPs rebelling – by 85 Ayes to 17 Noes.
Progress
House of Commons
First reading: January 21 2009 [HC Bill 12]
Second reading: March 13 2009
Committee stage: no date
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