Written question asked by Baroness Beckett (Labour), in the House of Commons. It was due for an answer on Friday, 22 March 1996. It was answered by Lord Lang of Monkton (Conservative) on Friday, 22 March 1996 on behalf of the Department of Trade and Industry.

Dept of Trade and Industry

Question: What is his Department's estimate of the effect on the number of people in employment if the Social Chapter and minimum wage were introduced; and if he will place in the Library the information upon which his estimates are based. - Inc fig and ref to "Estimating the Effect of a National Minimum Wage" - Feb 1990 (in Lib).

Answer: Mrs. Beckett: To ask the President of the Board of Trade what is his Department's estimate of the effect on the number of people in employment if the social chapter and minimum wage were introduced; and if he will place in the Library the information upon which his estimates are based.[22080] Mr. Lang: The social chapter would damage the United Kingdom's competitiveness and destroy jobs, but without knowing how many directives and their terms will be adopted under the social chapter it is not possible to estimate how many jobs will be affected. A national minimum wage would also destroy jobs. My officials estimate that its introduction at £4 per hour would destroy 1 million jobs, assuming a half restoration of differentials. A note placed in the Library of the House on 2 February 1990, entitled "Estimating the Effect of a National Minimum Wage", provides a detailed explanation of the methods used and the steps in the calculations.

Secondary information