Lorely Burt MP

My hon. Friend has already outlined many of the measures that we as a coalition Government are taking to reduce the regulatory burden, but does he agree that a fire-at-will policy might be counter-productive and would not produce the increased productivity and growth that we need so much?

I agree with the Minister on the need for balance, but does he agree that we would create a climate of fear in employees by introducing a fire-at-will option, which will not help productivity or growth, and which could be just plain bonkers?

I agree with the hon. Gentleman that we should give the Green investment bank more powers, and those are coming. However, the Government have made £3 billion available to the bank. How much would his party contribute to a Green investment bank, because it has not been forthcoming on that so far?

Many laws were passed under the previous Government-more than one for every single day they were in government-but what did that achieve? Unless we enact them and then ensure that people adhere to them, they are not worth the paper they are written on.

The Institute for Fiscal Studies confirmed that Labour's plan would necessitate borrowing £201 billion more. What effect would that have on the market, on investment and on growth?

I am sorry, but I cannot give way again.

I think that all hon. Members are looking forward to the Groceries Code Adjudicator Bill, which at last offers some fairness for producers at the mercy of the

powerful supermarkets. Then there is the Green investment bank. It has £3 billion at its disposal for investment, but Liberal Democrats would like it to have greater powers to act like a real bank, investing and borrowing as well as lending, and we are working on that.

All that will be to no avail if we cannot sort out the biggest problem still faced by business today: access to finance. Project Merlin has had some success, with £195 billion lent by banks to business, but we need more. Liberal Democrats will be doing all we can on policies to widen the range of banks and lower the almost insurmountable barriers to entry for new banks. We want to introduce more peer-to-peer lending, such as the funding circle, and would like to examine the feasibility of community banks.

Perhaps the most important piece of legislation of all is one that will stop a repetition of the banking crisis that resulted in the house of cards that the previous Government allowed the finance industry to build tumbling down. The Business Secretary foresaw it all: he warned Labour that light-touch regulation, over-optimistic ratios, complex financial instruments that few could understand, banks that were too big to fail and banks whose casino and retail arms were wedded would bring disaster, but not even he could have imagined the scale of the economic crisis that gripped the UK, America, Europe and large parts of the world and made them much worse off. The crisis is taking longer to sort out than anyone hoped.

We need only look across the continent at Greece, Spain and Italy to see what would have happened had we not gripped the situation there and then. Too far, too fast? It would have been "too little too late" if the Labour party had had its way. We would be paying treble the current interest rates, with much higher unemployment and much higher bond yields, as those countries have today. We are sorting it. The little blue and yellow tractor is taking the strain and pulling us out of the mire that the Labour party helped to create.

There is a lot of due diligence to be done so that we do not waste taxpayers' money.

Opposition Members might agree that we have to be fair to employers and to the work force. Liberal Democrats seek a balance to ensure that staff can achieve their full potential and have a home life as well as a work life. Unlike some in the Chamber, we are not in the pockets of the unions, but seek to work with the unions and with management to achieve fair outcomes and fair rewards. We will extend the right to request flexible working, and entitlement to parental leave will be shared. All parties bemoan the fact that we often lose female talent when the babies come along; now there will be no point in employers discriminating in recruitment against women of child-bearing age. Both men and women will be entitled to parental leave. That is one small step for equality.

However, Liberal Democrats would say that in some areas the pendulum has swung too far in the direction of the employee. Some employees take advantage of and try to play the employment tribunal system, which has become clogged up with cases waiting to be heard, costing time and money and causing stress for all. New legislation will put a greater emphasis on conciliation and give employers longer to give underperforming employees a chance, before the spectre of the unfair dismissal tribunal looms.

Clearing away unnecessary regulation is a big job, and we have already started. We will reform the competition regime by creating a powerful new body to enable the speedier prosecution of anti-competitive behaviour. We are also taking action on executive pay. If there is one thing that really bugs the British worker, it is seeing overpaid executives getting even more for even poorer performance, so we will give shareholders the power to exercise greater control over executive pay through binding votes.

I am slightly confused by the hon. Gentleman's question. Will he repeat it?

I would like to respond to this section of the Queen's Speech on behalf of my Back-Bench Liberal Democrat colleagues.

On the day before the Queen's Speech, when the rose garden became a tractor factory in Essex, the Prime Minister set out the coalition's aims for the coming year. We are certainly not in a rose garden now, either metaphorically or in reality. The tractor symbolised the heavy work that we have done and still need to do to get our country out of the slough of debt that we inherited. It also symbolises the change of emphasis away from the financial sector-although this is still an important part of our economy-towards something that we are very good at, although one feels that the Opposition had to some extent written it off: manufacturing.

In the past two years, the coalition Government have been doing plenty of heavy lifting. We have already put in place many policies designed to help companies to grow. Indeed, our recovery is predicated on growth. We have already established the regional growth fund, created a record number of apprenticeships, cut red tape through the red tape challenge and the one in, one out system of regulation, cut corporation tax and exempted micro-businesses from £350 million-worth of regulation. There is still much to do, though.

To ask the Chancellor of the Exchequer what the monetary value of exports in financial services to other EU countries was in each of the last 15 years; and if he will make a statement.

The hon. Gentleman makes a reasonable point, but given the time scale, the fact that the Government have had to put forward their own consideration and think through implications themselves, and the short and temporary nature of the legislation, a shorter period is not entirely unreasonable.

Liberal Democrats have been banging on about a sunset clause, a phrase that has been dear to us for many years, so can the Minister assure us also that the sunset clause in this Bill will ensure that the legislation is not used as a precedent for future changes to Sunday trading laws, and that proper pre-legislative scrutiny and consultation will take place if the relaxation of such laws is ever considered again?

I am grateful to the Minister for that assurance.

Several Opposition colleagues have mentioned the Bill's timing. A private Member's Bill to the effect of this Bill was brought to the House just before Christmas, and the question has been put, "Why not take forward that Bill, rather than the Government imposing their own?" I imagine the answer is that proper reflection on its implications and consultation with all parties would need to take place, and it has. Will the Minister confirm that proper consideration, not any devious motive that Opposition Members might invent, was the reason for this Bill?

I have agreed with everyone who has intervened, which is probably not very politically correct. I completely acknowledge the point that the hon. Gentleman makes, but I think that sensible economic decisions will be made by the larger retailers in non-tourist areas. Indeed, the British Retail Consortium is divided on the issue, and not just along the line dividing large and smaller shops. However, small shops in the tourism areas will reap additional revenue benefits by virtue of where they are located. I do not think that it is all doom and gloom, but I do think that the potential bonanza is likely to be realised only in the main tourist areas.

I do not think that this is the time or the place for reopening the Sunday trading debate. Many small retailers fear that the Bill will pave the way for Sunday trading by the back door without consultation or protection from the groups opposed to widening Sunday trading, such as the Keep Sunday Special campaign. Organisations such as the Association of Convenience Stores and unions representing shop workers, such as the Union of Shop Distributive and Allied Workers, found that the majority of their members were also opposed to the Bill, as has already been mentioned. Of course, there is also the fact that a large proportion of shop workers are women with caring responsibilities, so it would be wrong to make anything other than temporary changes without all those affected having a proper say.

Of course, some people will welcome the opportunity for more hours of work on a Sunday, although we have heard about the USDAW workers and there has been great discussion about how employees can be pressured against their wishes into working on a Sunday. I have sympathy for anyone who is pressured into Sunday working. However, I gently remind the House that for other industries there is no legal opt-out for Sunday working because the needs of their business dictate that some staff must be there on a Sunday. I think that we need to keep a sense of proportion when considering this temporary period.

On the two-months' notice for shop workers, I have concerns that 22 May, the limit on when notice has to be given, is too short a period for shop workers not only to plan for, but to learn about the changes that are coming forward. It represents fewer than three weeks, so can the Minister assure me that workers will be informed in time and that any blank refusal to accede to a legitimate request from an employee will be covered by industrial relations legislation?

I totally agree. I think that many shops outside the tourist areas will elect not to open, because if the trade is predicted not to increase, why would they spread the same volume of revenue over a longer period, thereby incurring larger overheads?

I could not agree more with the hon. Lady; we should be promoting other tourist opportunities in other parts of the country, as I believe we are. I am hopeful that, because we are allowing the extension of Sunday trading to other parts of the country, they might also benefit in some part. As I was saying, the Bill does not spell good news for everyone, particularly in areas to which Olympic and Paralympic tourists will not be flocking. We have heard the argument about small shops and the fear that the window of competitive opportunity will close for the period covered by the Bill.

I want to make a few remarks about this short Bill and seek assurances on behalf of some interested parties about its scope and limits. On the whole, I believe that it makes sense for the tourists who will flock to the UK for the Olympics to be able to spend as much time as they want in shops, and at times that they find convenient. The economy needs it and I believe that we should not hamper the retail sector in taking advantage of it.

I am very supportive of many elements of the Bill, but one aspect that concerns me is the fact that the two-month notice period will mean that shop workers will have only 21 days before 22 May in which to give notice of their wish to opt out. What methods will my right hon. Friend use to ensure that shop workers understand that they must give that notice within the next three weeks?

The point of payday lending is that it should be for a very short period. Such issues arise when there are innumerable roll-overs, as outlined by the hon. Member for Walthamstow (Stella Creasy). What we hope the industry will do and the review will achieve is either to confine roll-overs to a small number or to abolish them altogether, which would address the problem of the £2,000, which no one in this Chamber wants to see.

The hon. Lady talks about the OFT not having the power to suspend, but does she agree that the new powers, which the FCA will have, will make it possible to address that?

I agree entirely, and we already have a provision to enable that to happen.

My hon. Friend said that one building society requires customers to save with it before getting a mortgage there. When I had my first mortgage, more years ago than I care to admit to, that was the norm. People were expected to be a customer of a building society before getting a mortgage from it, which encouraged a way of saving that we seem to have lost in many areas of our society. I support the sentiment behind the new clause, but I do not believe we need it.

New clause 12 calls for a review of prepayment schemes, including an analysis of whether customers should be preferential creditors in the event of insolvency. The Farepak issue, and the tragedy of its customers, is emblazoned on our minds. Victims of other financial schemes such as Equitable Life still write to me virtually every week, but the new clause relates particularly to prepayment. Many structural issues contributed to Farepak's demise and they need to be addressed. Many unsecured creditors suffer when such a company collapses. I am attracted to the idea of giving prepayment scheme customers a form of secured creditor status, as the hon. Member for North Ayrshire and Arran (Katy Clark) suggests. The Minister has advised that such a measure is not appropriate within the remit of the Bill, because a prepayment company is not a financial services company, but perhaps he could advise us on an appropriate route for looking at the proposal in a little more depth.

Amendment 40 is on the total cost of credit. Members on both sides of the House have a great deal of sympathy with it, because it would be an attractive way of controlling the enormous amounts of interest that are being charged. I do not want to go into all payday lending issues-I was reminded the other day that payday lenders constitute only 0.6% of the credit market, even if it is a hugely important part of that market-but the hon. Member for Walthamstow (Stella Creasy), who has spoken on the matter at some length, has pointed out that the market affects some of the most vulnerable people. The Minister has been kind enough to tell us that the report, which is eagerly and anxiously awaited by hon. Members, will come out in the summer. We look forward to the report, and to moving ahead as quickly as possible after it is published.