National Minimum Wage (Workplace Internships) Bill — House of Commons, 2016-11-04
Topic: Labor
Peter Heaton-Jones (Conservative, Centre-right): Yes, but in the context of my hon. Friend’s Bill we are discussing whether or not the national minimum wage should be applied to internships. My argument is that, if it is, there will suddenly be a contraction—a fairly major contraction—in the number of internships offered by SMEs, which make up the bulk of employers in my constituency and in many others. My point is specifically about employers’ ability to offer internships and the opportunities that will be available. We do not want to choke off opportunities. Yes, some internships are offered by big corporations and big employers who can afford the cost, but many more internships are short term—perhaps for only a few weeks or even a few days—and in small and medium-sized businesses. That will absolutely be the case in my constituency. These small businesses take on interns almost out of a sense of duty to their local community. I fear that if we mandate the extension of the national minimum wage to internships, the number of opportunities available to young people and the work experience opportunities offered to my constituents will sadly and inevitably decrease. As I say, that is an unintended consequence of the Bill In my view, allowance should also be made for a short internship that does not mandate any remuneration. Long-term internships are good, and there are many professions in which they happen. Short internships, though, sometimes literally of a few days, are far more numerous and are more often offered by small businesses. That is the case in my North Devon constituency, where the overwhelming majority of internships will be very short—only a few days or perhaps a couple of weeks. Very few SMEs in North Devon will have the capacity to offer a longer internship, and they would be further prevented from doing so if they were mandated to pay the national minimum wage Many people, particularly young people, in my constituency are offered internships because of the employer’s desire to help the individual to get on rather than to use their labour. As I say, it is almost a community scheme, and in a place such as North Devon it operates in a way that is very healthy for society and for that sort of community where we sometimes feel that we are a long way from everywhere else—albeit that we in North Devon are, I like to think, our very own small economic powerhouse This contrasts starkly with longer-term internships that are often found in many professions that are prevalent in big cities. Of course, if someone in my constituency wants to take up one of these internships, it will come at a greater cost, not least because of the travelling costs from North Devon to one of the big cities. I fear that the Bill does not distinguish between the short-term internships offered by small companies and the longer-term internships in large cities, where the costs for the individual will be higher, but the large corporation will be better able to pay the national minimum wage. I fear that an effect of the Bill might mean many of the short-term internships currently offered by small businesses in my constituency will not be offered in future, thus reducing the available opportunities to my constituents. That is not something I want to see, and I am sure it is not something that my hon. Friend wants to see either, but I fear that, should the Bill proceed, it might be one of the unintended consequences.