Remploy (Reserved Contracts)
The final item of business is a members' business debate on motion S2M-1406, in the name of Helen Eadie, on reserved contracts to support Remploy.
Motion debated,
That the Parliament recognises the work of Remploy in Scotland in supporting 700 people with special needs in employment and congratulates the organisation on its training and development programme which has seen the creation of dedicated learning rooms at all 10 of its employment sites, with 275 employees currently undertaking skills training in language and mathematics and a further 135 involved in other learning activity, and a commitment of at least 5 per cent of working time over a year to be dedicated to personal development; notes that this programme has been implemented in just over two years, and believes that the Scottish Executive and all publicly-funded organisations should examine their procurement policies with a view to reserving contracts for supported employment organisations such as those working with Remploy.
Thank you, Presiding Officer, for giving me the chance to lead a members' business debate on the opportunity for public procurement policies to benefit disabled people in Scotland. I remind members of my GMB membership, as set out in the register of members' interests. I welcome the workers and representatives from Remploy who are among the visitors in the public gallery. I also congratulate the Deputy Minister for Enterprise and Lifelong Learning, Allan Wilson, on his new post.
The motion is aimed at opening up procurement policies in Government and other public bodies. We need to provide a vision of what could and should be in place to promote the employment of disabled people in manufacturing and service provision in the United Kingdom. The potential benefit is extensive, given that many UK workstep programme providers not only provide a wide range of manufactured goods, but have moved into the service sector and can provide non-manufacturing services such as closed-circuit television operators, back-office services and canteen and cleaning contracting.
The Remploy interwork service and the managed services division are good examples of how policy can increase the number of people with disabilities who work in managed services organisations by allowing them to compete on a level playing field. Many people have campaigned not simply for a halt in the decline of worker numbers, but for expansion, through growth in the number of factories and the provision of services. That would give the opportunity for far more of the million-plus disabled people in the UK who want to work but who at present remain outside the world of work to enter employment. Given that long-term unemployed disabled people tend to be those with greater disabilities, employment through a route that offers high-quality skills training, support and decent wages is crucial.
Many members will recall the effect of the removal of the priority suppliers scheme in 1994, which resulted in a massive reduction in public contracts for supported employment factories. In Remploy's textiles section, the value of contracts fell from £18 million to £3 million in 18 months, starting in 1995. There is a chronic shortage of good-quality work for supported employment workplaces. Remploy and other supported employers are at present failing to meet the agreed disabled employment figures. Remploy is committed to employing directly 6,000 disabled people under the consortium agreement, but in August this year the figure was 5,100 and falling. Such workplaces need to be able to rely on a regular supply of contracts to allow them the security to plan and develop. I want that trend to be halted and reversed and I see the debate as being our way of sending a message that we are extremely concerned that our Government's negotiators and our members of the European Parliament should take on board our views on the matter.
If Remploy joins the procurement list for public sector orders, the winners will be disabled people, Government and wider society, not just through the social responsibility aspect, but because Remploy will be able to maintain its employment levels and reduce its need for financial support from the Government.
As we know, public procurement policies are heavily regulated by the European Union. I am aware of the on-going deliberations and the revisions that are currently being made in Brussels. I hope that ministers will take our message to the EU, so that we can ensure that disabled people and Remploy can benefit from many of the efforts that we as politicians make.
I would like all publicly funded bodies that are required to follow the procurement process to provide clarification on the legal and structural status of central purchasing bodies, with particular regard to facilitating employment opportunities for disabled people. Given that the purpose of such bodies is to reduce costs through bulk buying and contracting, I am concerned that the proliferation of bigger contracts may encourage contracts to be awarded on the basis of lowest price only, ignoring other best-value principles and commitments, such as community, social, ethical and environmental considerations.
Article 19 of directive 2004/18/EC on procurement states:
"Member States may reserve the right to participate in public contract award procedures to sheltered workshops or provide for such contracts to be performed in the context of sheltered employment programmes where most of the employees concerned are handicapped persons who, by reason of the nature or the seriousness of their disabilities, cannot carry on occupations under normal conditions."
Some believe that there is scope to use article 19 in the deliberations that are taking place in the EU. I believe that it should be clearly applied to all publicly funded bodies, so that contracts are reserved for supported employment workplaces for disabled people. That should be specifically mentioned in the implementing regulations.
Remploy has a proven track record in many areas of manufacturing and services, including the recent introduction of secure recycling of computers for major Government departments, the production of wheelchairs for health authorities, document scanning for public and private organisations and the supply of furniture to educational and Government establishments. Remploy could expand in all those areas in Scotland.
I pay tribute to and thank Remploy for its groundbreaking approach to work force development. It guarantees every member of its work force 5 per cent personal development time per year. Only two years into the project, it has already seen major benefits in terms of productivity and attendance. Its aim is to engage 100 per cent of the work force in personal development. Whether in relation to skills for life or graduate training, the benefits of the scheme have already far outweighed the monetary investment that was required.
Dunfermline East, the constituency that I have the great honour to represent, has in Cowdenbeath one of Remploy's Scottish factories. I am keen to add my support to the excellent work that it does. Remploy is a forward-looking organisation that should be encouraged to build on its success to date.
When I was first elected in 1999, I was asked whether I would help to establish in the Scottish Parliament a friends of Remploy network, as exists at Westminster, which would include MSPs, businesses and workers. I felt privileged to be asked to undertake that assignment, which I made my priority commitment. I knew that it was the right thing to do and, along with others, I wanted very much to help to provide opportunities for disabled people.
The product of that partnership is the opportunity for major businesses from throughout Scotland to network at the next friends of Remploy event, which is taking place in the Scottish Parliament on 24 November and which I shall have the great honour to host. Remploy will showcase its product range and its success in creating jobs for disabled people with other employers and it will provide an insight into its successful learning culture.
I hope that ministers will pledge to do what they can to help Remploy to compete for business in the public sector. I hope that our new Deputy Minister for Enterprise and Lifelong Learning will agree to meet me and representatives of Remploy so that we can discuss further how that might be done.
I congratulate Helen Eadie on securing a debate on such an extremely important subject. I remind everybody that, following the European year of the disabled, the Equal Opportunities Committee is conducting a major inquiry in which we are focusing on access to work, education, and leisure and arts. Many fundamental issues to do with the barriers that a vast number of people with disabilities face every day have already been raised. Among the biggest barriers are our attitudes and the lack of understanding and awareness that many of us have of the valuable contribution that people with disabilities can make to the economy and to the life of their community.
Through my work on equal opportunities, I am becoming more aware of how important language is and I must take issue with the use of the term "special needs" in the motion. We all have different needs at different levels. In a socially just society, those needs would be met and would not be stigmatised as special.
We are hearing about the need for choice in accessing meaningful jobs that are valued and rewarded accordingly. Poverty blights the lives of many people in Scotland. If poverty is compounded by disability, one can appreciate the barriers that some people face. Disabled people are twice as likely to be unemployed as non-disabled people are. Employment plays a vital part in redressing the balance.
Those barriers must be broken down. Employers require good advice and support and better knowledge of the financial packages that are available through schemes such as access to work to encourage them to provide opportunities and choice for people with disabilities. The sheltered workshop concept has a part to play and it is important that a strong statement of support is provided to ensure procurement of the goods that are being made. However, it might serve the wider interests of people with a range of disabilities if the Executive were to send a much stronger message that, as part of the contractual obligation in public procurement, there must be disability equality training for all staff.
People with disabilities are people first and foremost; their disability is secondary. If we can change attitudes to that extent, we will be well on our way to achieving a socially just and inclusive society.
I congratulate Helen Eadie on securing the debate, on the excellent speech that she gave, into which I know that she put her heart and soul, and on all the hard work that she has done on behalf of Remploy and other organisations.
I also congratulate her on the final clause in her motion, which states that
"the Scottish Executive and all publicly-funded organisations should examine their procurement policies with a view to reserving contracts for supported employment organisations such as those working with Remploy."
That is one of the most important parts of the motion. If we could get the Executive to make progress on that, it would go some way towards rewarding all the hard work that Remploy and other organisations have been doing. I hope that the minister will be able to give us some encouragement on that in his summing up.
Like Shiona Baird, I am a member of the Equal Opportunities Committee. In the evidence that we have taken, we have heard about the difficulties that people with disabilities face, not just in securing a job or education but in securing a normal life within society. I thoroughly agree with what Shiona Baird said about employees and the general public. She also mentioned attitudes, which were one of the main issues that I raised with the people who gave evidence to our committee. It was a consistent theme in the evidence that we took that overturning attitudes towards disabled people would be one of the most difficult hurdles that we would encounter. We must work towards that goal, because people are people, regardless of whether they have disabilities.
Someone who gave evidence to the committee said that even disabled people themselves sometimes have the attitude that they are disabled and are not deserving of a decent education or a decent job. We must put forward a positive message. That is why I congratulate Remploy on the highly positive message that it puts forward and the hard work that it does. Remploy helps people, regardless of their disability, by giving them a forward-thinking attitude towards their life, their education and their employment. It has worked hard at that.
Helen Eadie spoke about Remploy's work on developing skills. It is fantastic that it has training programmes in which it works with trade unions to get people through the learning process. It is not as if the trainers are put on board just to talk to the employees; they talk them through the skill training and learning and are always at the end of a phone or on the shop floor to answer any questions. That is excellent; there are not many employment agencies, even those that do not deal with disabilities, that provide such services.
Employment gives disabled people the scope to go out into the world and say, "I am somebody. I am not disabled, because I am a person in my own right. I may have something different about me, but I am still a person and deserve the best chance and opportunities that I can possibly get." Remploy gives such people new skills and value through their training. We have heard about the washing machines and fridges that Remploy repairs, for example, but its work is much more than that, because it gives disabled people the opportunity to get up every morning, do a full day's work and feel good about themselves. We sometimes take that for granted, but the people whom Remploy supports think that it is fantastic. We must thank Remploy and similar organisations for doing that.
Helen Eadie mentioned employee development time—I think that 5 per cent of the working time is devoted to employee development—and the learning centres that Remploy has in every centre. How many workplaces can say that they have learning centres? Perhaps even the Parliament does not have a learning centre for our employees to further their careers, so in some ways Remploy is much more advanced than some other employers.
I congratulate Helen Eadie on her speech and I congratulate Remploy most of all. I ask the Executive to take on board the last clause of the motion, which calls for it to examine its procurement policy. That is important. If the minister says that the Executive will examine its procurement policy, the people from Remploy will go home happier. Helen Eadie will too, but I know that she will still fight on for the rights of the employers and employees in Remploy.
I congratulate Helen Eadie on securing the debate on a subject that is dear to her heart. I was pleased to hear about her initiative of hosting the friends of Remploy event, which is a marvellous idea, and I look forward to hearing more about that in future.
It is nice to have the Deputy Minister for Enterprise and Lifelong Learning with us. He is earning his salary at the dispatch box this afternoon.
As Helen Eadie explained, Remploy is the United Kingdom's leading supplier of employment opportunities for disabled people. In Scotland, it is leading the way in supporting disabled people in employment by employing them at one of its 10 sites in Scotland or supporting their employment in other organisations and at other venues.
Remploy started with the noble and worthwhile aim of helping ex-servicemen who were disabled after injury in the second world war to gain useful employment, but it is still extremely important 60 years on. Remploy states that it is
"working towards a society where equality of opportunity and the chance to live a full and independent life is available to all, regardless of any disability an individual may have."
Remploy wants individuals to be able to get on with their lives without being held back by their disabilities and I am sure that we all fully support that objective.
I agree with the essence of Helen Eadie's motion, which calls for the Scottish Executive to examine its procurement policies and decide whether it is worth while reserving contracts for supported employment organisations that work with Remploy and similar groups.
Remploy is successful on the business front. Despite some continuing difficulties in UK manufacturing, its sales have grown by 4 per cent over the past year. Although Remploy is not involved in manufacturing alone, it is an important part of what the organisation does, and that growth is a tremendous achievement, especially because the figures for Scottish manufacturing that the Executive released today were not good. They showed that sales of Scottish-manufactured exports decreased by 8.2 per cent over the year to 2004 quarter 2. Against that background, the fact that Remploy is increasing its sales shows what a valuable organisation it is.
Helen Eadie's interesting proposal that the Scottish Executive should examine its procurement policies bears further consideration. We need to weigh up various interests, such as those of Remploy's employees, of the company itself and of the taxpayer, because we have to have best value where public money is involved. It is important to note that Remploy's work is not only about winning contracts but about offering work that is worth while for disabled people. Most disabled people do not want to be seen as being given some sort of preferred status; they want to compete with others on a level playing field, which is important for their self-respect. However, if we find that current procurement requirements in the Executive are hindering the employment of organisations such as Remploy and the people who work for them, that is uncompetitive and it is quite right that we should do what we can to assist.
Helen Eadie pointed out that many of the procurement rules are now set by the EU. We could have another debate about EU directives and our influence over them, and it could go on for a very long time, but I am sure that we do not want to go down that road this evening. Helen is absolutely right to point out that aspect, however, and I am sure that, in its dealings with the EU and in its consideration of EU directives being implemented into Scots law, the Executive will bear that in mind.
Remploy's training facilities and programmes are excellent, as Sandra White mentioned. I would be keen to hear the Executive's view of Remploy's work in providing training. We know that many of Scotland's colleges provide excellent courses and facilities for disabled users. I would be interested to hear about the collaboration between colleges and Remploy and I am keen to know what the Executive can do to encourage that.
The Scottish Executive should examine its procurement policies with the interests of Remploy and similar companies taken into account. We should remember that decisions should be based on whatever is best for individuals. That is the philosophy of Remploy and I whole-heartedly endorse it.
I add my voice to those of Sandra White and Murdo Fraser and pay tribute to Helen Eadie for being such a strong supporter of Remploy. I am happy to be here to respond to her debate. Remploy operates across the UK and receives funding from the Department for Work and Pensions. In many respects, Remploy, like employment policy itself, is a reserved matter. However, the Executive takes a close interest in Remploy's affairs. I am therefore happy to respond to Helen Eadie's request to meet. I would be pleased to do so, in conjunction with Remploy, as soon as diary commitments permit.
I am aware that a range of officials have contact with Remploy staff. It is right that that is so. Remploy has much to teach us and much to challenge us on and we should pay attention to the successful way in which it conducts its business. Let me underline the fact that Remploy, as Murdo Fraser said, is indeed a business, operating in a commercial way and taking commercial decisions. The stable economic environment that we enjoy generally is beneficial for Remploy. Remploy, like every other business in Scotland, has continually to put effort into growing its business and addressing issues of productivity, skills training and so on. It is right that the motion picks up on a key aspect of that: the training and development of the work force as a driver of business growth and success. Members would expect me, as a former trade union official, to say precisely that.
The good news on work force skills is that there is a declining trend in the number of people in work who have a low level of qualifications. However, we need to continue to devote resources in this area, through the work of key bodies such as the enterprise networks, Careers Scotland and learndirect Scotland; through initiatives such as business learning accounts, modern apprenticeships and skillseekers; by no means least through the work of the unions, supported by the Scottish union learning fund; and through our investment in improvements to public service delivery, which affects all those who work in health, education and other public services. We must also continually stress the importance of lifelong learning.
I note that Remploy has built strong relationships with the unions, the GMB and the Graphical, Paper and Media Union—the GPMU—to name but two, to deliver its training and development agenda. That is not just useful, but vital. Unions are able to reach employees in a way that allows them to take up training and development without any baggage. For instance, unions have shown themselves to be very effective in promoting basic literacy and numeracy training in the workplace, something that I know that you yourself have championed, Presiding Officer.
Many others can learn from Remploy about developing a strong partnership with unions for training and development in the workplace. Our aspirations for the work force are for the whole work force, not just some of it, and I am delighted that Remploy is showing the way by investing in those with particular needs because it is right to do so, as Shiona Baird said. It is right for the business, right for the individuals and right for the creation of a society where all can contribute and be valued. I therefore unhesitatingly welcome the motion and the opportunity to acknowledge the important work and success of Remploy.
The motion asks—as did Sandra White and others—whether the Executive and all publicly funded organisations will review their procurement policies with a view to reserving contracts for supported employment organisations, such as those working with Remploy. Current EU rules on public contracts do not provide for schemes under which contracts may be reserved for sheltered employers. However, as Helen Eadie said, a new consolidated public procurement directive that is due to be implemented by January 2006 includes such a provision. I inform Murdo Fraser that the provision is optional for member states, which are not obliged to implement it. That is, perhaps, something that Murdo Fraser welcomes.
Although employment is reserved, procurement is devolved and our intention is to implement the directive separately in Scotland. We will, therefore, be able to determine our own approach to the implementation of the provision on reserving contracts for sheltered employers. We are currently engaged in a public consultation on the directive and have received a number of representations on this subject, particularly from employees of Remploy.
Of course, we take such representations seriously and I am therefore pleased to be able to give an undertaking that we will implement the provision in Scotland, consult Scottish sheltered employers on the terms of its implementation and implement it in a positive manner that will go as far as possible to assist our sheltered employers.
It is important to understand that the new law on public contracts will not allow us to set contracts aside for particular companies or for Scotland or UK-based sheltered employers. It will, however, allow us to introduce schemes under which contracts are reserved for any European company or organisation that meets the definition of a sheltered employer. We hope that, once the directive is implemented—by late 2005 or early 2006 at the latest—the new provision will be useful to Scottish sheltered employers and we will, as the motion asks, encourage public bodies to make full use of it.
I thank Helen Eadie for raising this issue and for giving us an opportunity to recognise the work of Remploy and the many other sheltered employers that are active in Scotland. I hope that the announcement that I have made tonight will be welcomed by those sheltered employers, this chamber and Scotland.
Meeting closed at 17:33.