I welcome the general intention of the Bill to support small businesses, but I worry that it does not go far enough. In Northern Ireland, small businesses form the heart and the backbone of our local economy, and they have faced an extremely challenging economic environment over the past six years. I agree with those right hon. and hon. Members who have said that the unwillingness of banks to lend to individuals has resulted in many of those people’s businesses going to the wall. I recall hearing about conversations between a bank and a local farmer who lost his business, and between a bank and a local shop owner who sadly
had to close his business. In both cases, this was a result of the banks’ unwillingness to show a level of mercy and compassion.
I hope that the measures in the Bill will go some way towards helping businesses to compete and grow and, in doing so, to create jobs. I know that the Federation of Small Businesses is encouraged by the measures to strengthen the prompt payment code and to force larger businesses to publish their payment terms. Today, however, I would like to take this opportunity to focus on another element of the legislation: the issue of zero-hours contracts contained in part 11 of the Bill.
The Bill at least acknowledges that the wide-scale use of zero-hours contracts can present a problem, but I fear that it will do little to seriously reform the practice. It is predominant in the lower-skilled sectors of the economy and in manual work, but just yesterday I heard reports of a university lecturer post being advertised on a zero-hours basis. The practice has become more and more common, and it represents a gradual erosion of the important connection—and the concept of a fair settlement—between an employer and an employee.
This is not some abstract problem on the fringes of the economy; it is becoming increasingly prevalent. Last year’s excellent “Channel 4 News” report on care home staff showed the reality for people on such contracts. My hon. Friend the Member for Sefton Central (Bill Esterson) has already referred to this issue. Those people have no economic power; they live day to day with little ability to manage their own finances or plan for the future. They have their hours texted to them, often with little notice, and they have no flexibility or rights. They have little possibility of negotiating any form of pay rise because they have minimal employment rights and there is always someone else ready to do their job.