Liz Truss MP

Norfolk FSB chairman welcomes Elizabeth Truss’ call to rebuild the economy the German way

Monday, February 20, 2012
2:19 PM

A local Federation of Small Businesses chairman has welcomed a call by a group of MPs to exempt small businesses from dismissal rules.

The Free Enterprise Group, led by South-West Norfolk MP Elizabeth Truss, is urging Chancellor George Osborne to follow Germany’s example in giving small businesses more freedom with its labour.

In a paper called “A decade of gains - Learning lessons from Germany”, Ms Truss argues that Britain has much to learn from Germany, especially on jobs and skills and that Germany now has the lowest rate of unemployment in Europe with youth unemployment at 8pc, down from 16pc in 2005.

Mid-Norfolk chairman of the Federation of Small Businesses Martin Lake said: “If we are to avoid the kind of economic disaster that is befalling Greece (and may well spread further) I think it is absolutely key that micro businesses here in the UK are enabled to employ the best person for the job, without the fear of legal challenge. There is simply not the capacity within micro businesses to “carry” a poor performer, or to fight an unfair dismissal case which I know puts a lot of micro business owners off hiring people in the first place.

“If Britain is to be Great again it must produce products or services at a quality for which people are prepared to pay, other-wise watch happens in Greece and brace yourself.”

As well as changing the rules on dismissal, Ms Truss praises a German system which created new and more flexible contracts called “minijobs” and “midijobs” in Germany in 2003. The report said that minijob-holders were paid a maximum of €400 a month. Instead of cumbersome tax and social security contributions, employers pay a flat rate of 30pc tax to a single body. For private households this is 12pc. Meanwhile midijobs give a flexible salary of between €400 and €800 with varying levels of contribution.

Because there is no limit on the number of hours a minijobber can work, a single point of contact and a single flat-rate payment, employers find it easy to administer.

7 comments

A far simpler way to cut unemployment might be to employ British youngsters instead of the 2 million eastern Europeans we currently have on these shores.

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Norfolk and Good

Tuesday, February 21, 2012
We have a far better system here already borrowed from the Americans, it's called intern-ships, where you engage a young person to work on zero salary and meagre expenses, unlimited hours with the promise to employ them at a later date on a work contract indefinitely, usually subsidised by their parents or other relatives. This ploy is being used by countless small firms such as Accountants, Solicitors, MPs and other unscrupulous individuals and organisations.

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Peter Wilmot

Tuesday, February 21, 2012
The Greek's downfall was cooked books with a burdening workforce employed by the state, with retiring at 40 odd and expecting the good the times to last forever.The Germans, are like a well oiled machine and have held onto many of the heavy industries that we discarded.Not forgetting that (as already mentioned) vast amounts of cash was embezzled by German industrialists during their Nazi stint, corporate guilt has never been a problem for the fatherland.

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nrg

Tuesday, February 21, 2012
The Germans get their industrialist to pay taxes as well, and they are paying minimal wages as much as they do here, so lets dispend with cheap nazi slurs. Ms. Truss efforts will come to nothing if she does not heed the other German message, i.e give innovative small businesses loans, directly, bypass the banks if you have to, because otherwise this clarion call will fall on deaf ears.

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ingo wagenknecht

Monday, February 20, 2012
Nice catchy title for the paper. The long winter nights must zip by in the Truss household. Meanwhile, back in the real world, is there anyone who could live on the low levels of pay reported? Not without the ability to claim on expenses for as much as possible I wouldn't think.

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kiwidog

Monday, February 20, 2012
If they were to say black is white, she would probably write a paper on it agreeing with every word. These groups are known for not having an original thought and living off the thoughts of others.

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"V"

Monday, February 20, 2012
The Germans were, of course, experts in using slave labour, so I hardly think they qualify as a good example. The talk about Greece is mere nonsense, as anyone who reads the papers or listens to the news could tell Mr. Lake. I seem to recall that we were promised before the last General Election that we would be able to take steps to remove useless MPs. Now THAT would be a very useful "rule on dismissal".

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T Doff

Monday, February 20, 2012