APPSBG: Public Hearing

Freelancing took a step towards gaining the recognition and understanding it deserves as a vital part of the UK economy when it was the subject of a special evidence gathering hearing by the All Party Parliamentary Small Business Group (June 12, 2003).

The meeting held in one of the House of Commons Committee rooms was part of a consultation process where MPs and Peers invited freelancers to contribute their opinions and experiences of freelancers through a unique online pilot trial as well as face-to-face.

UKTECH has been actively promoting this exercise in order to promote a better understanding of the benefits of freelancers. Our view has been that by raising the awareness of this sector, it will lead to an improved perception of the opportunities and benefits freelancers bring for themselves, their clients and the UK economy – and, as a result, lead to and the members of its network have been.

Members of the UKTECH network joined other freelancers in contributing their thoughts on the Group’s website. UKTECH and those who contributed on line were specifically thanked for the role they played in the consultation.

The two hour session was chaired by Conservative MP Mark Prisk, who was a freelancer before joining Parliament. Also paying close attention to the evidence was Chairman of the Group, Kerry Pollard MP; Chairman of the Genesis Initiative, Lord Randall; and a number of MPs from all Parties who came in for periods ranging from a few minutes to get a flavour of the proceedings to those, like Hemel Hempstead MP Tony McWalter who stayed there for the full session.

The evidence will now be collated, together with the submissions online, and a report will be produced by the end of July. It is the first time that such a political Group has carried out such research into freelancers and it is hoped that the report will be a valuable reference document and play a crucial role in improving the understanding of freelancers among those who walk the ‘corridors of power’.

Although this is a long process, the stone has landed in the pool and we’ll watch for the ripples spreading out.

Copy of Agenda and briefing document handed to MPs and public at Public Hearing on Freelancers

Freelancer Public Hearing

AGENDA

16.00 – 18.00, Wednesday June 11th 2003, Committee Room 19, House of Commons.

Chair: Mark Prisk MP

Introduction 16:00 to 16:05

• The importance of freelancers – Mark Prisk's personal experience
  
• The previous seminar held with UKTECH identified issues
  
• The on-line consultation and pilot trial to help freelancers without representation
  
• Rules of the consultation

Importance of Freelancers: 16:05 to 16:15

• Andy White – How freelancers make a difference – (3-5 minutes)
  
• Q and A for 5 minutes

Freelancing Opportunities: 16:15 to 16:45

• Barry Roback JSA Accountants (3-5 minutes)
  
• Ian Posner (3-5 minutes)
  
• Dr Jonathan Pearson (3-5 minutes)
  
• Q and A for 15 minutes.

The threats Freelancers face: 16:45 to 17:25

• Kevin Miller: Section 660 and IR35 (3-5 minutes)
  
• Philip Ross: IR35 and Outsourcing: (3-5 minutes)
  
• Simon Griffiths – Preferred Supplier Agreements (3-5 minutes)
  
• John Toner - Freelancer journalist – IPR issues (3-5 minutes)
  
• Q and A for 20 minutes.

General Question and Answer Session: 17:25 to 17:55

Closing Remarks: Mark Prisk 1755 to 1800

Background

Perhaps an indication of how misunderstood the freelancer is, can be gleaned from the definition of the word in no less a respected tome than the Oxford dictionary.

Freelancer: (n) (a person) working for various employers rather than permanently employed by one.

Ask any freelancer and they will tell you that at the core of their motivation is that they are not working for employers.

A freelancer differs from an employee – or indeed a ‘temp’ in that they seek the freedom to be their own boss; to run their own business; to take responsibility for selling their knowledge and skills.

They seek the opportunity to succeed and the right to fail as business men and women of the 21st century.

The freelancer – particularly in the knowledge-based sector – is flexible, dynamic and integral to the success not only of his own small business, the larger clients he provides services for, and the economy at large to which he makes a significant contribution.

Freelancing is the flexible, entrepreneurial way forward for the UK’s economy.

Freelancers are often misunderstood or misrepresented. As such, they are stifled by bureaucracy and uncertainty as they get caught up by laws and taxes which were never intended in theory to snare their entrepreneurial spirit, but which in practice make them unable to fulfil their potential.

The European leaders at the Lisbon summit recognised the importance of a knowledge-based economy as key to our future economic prosperity. In order to serve a dynamic knowledge-based economy, you need dynamic knowledge-based businesses. The small business community, particularly the freelancer, is integral to this objective.

Political inquiry

The All Party Parliamentary Small Business Group (APPSBG) and the Genesis Initiative, the umbrella project for small businesses have decided that freelancers are the subject of its next major report.

It is the first time that any political group has looked closely at this subject and it is expected that the findings will set the future agenda for freelancers in the UK.

Another significant step forward in this report is the manner in which it is being conducted. In keeping with the knowledge-based businesses of the future, this is the first time the consultation is being carried out directly with freelancers, online as well as the more traditional method of giving physical evidence.

Consultation

The All Party Parliamentary Small Business Group carried out a web based consultation on their website. The consultation ran for three weeks and encompassed all the major issues facing freelancers.

The first stage the APPSBG took was to identify the key issues relating to freelancing. UKTECH helped out the group by inviting members of its network and other interested parties and stakeholders to contribute. Over 50 comments were received and the key issues were identified.

The APPSBG asked that evidence be submitted on-line and concentrate on actual case studies involving freelancers who were able to share their experiences.

Papers were drafted and placed on-line and the evidence collected by users registering on the website and then adding their evidence as a comment to each article. The same articles were also placed in separate consultation areas under the control of Tony McWalter MP and Mark Prisk MP. The Novacaster technology used to run the APPSBG website recognised from the post code supplied which constituency the user was in and automatically allowed posting rights in the right constituency.

In total 8 papers (see Appendix 2) were posted and by the 8th June a total of 256 separate pieces of evidence had been received

There were 16,000 online “page views” during the consultation period

A total of 374 individuals had registered during the consultation process and where they had supplied their post code, they represented 128 individual constituencies.

The on-line evidence is to be augmented by a Public Hearing in Committee Room 19 of the House of Commons on 11th June 2003 between 1600 and 1800 hours.

What happens next?

This is the first time freelancers have been the subject of such a detailed political enquiry - and the first time freelancers have been invited to participate in such a manner. After evidence has been collated, conclusions will be drawn and recommendations made.

The report will be made available on or before 29th July 2003

This will prove to be one of the primary reference sources for MPs and Peers and is likely to influence the approach politicians adopt toward freelancers and their importance to the flexible knowledge-based economy.

Appendix 1: The online process

UKTECH utilising Novacaster software have developed a proven methodology of consulting with a ‘constituency’. It provides facilities for decision-makers to interact directly with the people who are affected by those decisions, allowing for a high level of integrity in the process and total transparency.

In the context of the APPSBG it is aimed at enabling the 3.7 million SMEs to connect directly with their MPs and improve the quality of the debate within the UK

Unlike some of the more traditional methods of consultation, this process allows:

• Access: Direct access by the decision-makers to the people ‘on the ground’;
  
• Transparency: It is a totally transparent process as the decision-makers can watch and monitor as the consultation progresses and the participants can see the results of their input;
  
• Low cost, high impact, high speed: the Internet can bring together a large number of people; in a short period of time with low overheads or costs;
  
• Integrity: the participants are – and can be seen to be – ‘real’ people who have genuine concerns or interest in the subject;
  
• Independence: as the formulation of response is coming through a range of people, there is no central point which could have vested interest;
  
• Equality: The flat structure in the consultation process gives equality of opinion;
  
• Opportunity: Low barriers to participation;
  
• Fair: The process can be seen to be ‘fair’ rather than dominated by individuals who possibly have other agendas;
  
• Ego-free: An isolated change of personality ‘at the top’ cannot lead to a reversal in policy or a desire to ‘quietly withdraw’ from earlier positions, as the consultation remains a true and open record of the due process;
  
• Accountability: The participants are commenting in the open so have to be accountable for their own views; the ‘facilitator’ is accountable to the contributors and has to accurately reflect their views when collating or summarising them; the decision-makers have a duty to take a wide range of views into account and will ultimately be accountable to the end-users or participating ‘constituents’ for their decisions.
  
• Targeting: The ‘viral’ nature and the speed of transmission of electronic communications means that those affected are likely to be aware quickly and easily about a consultation process. Equally, there are no restrictions on the number of groups or individuals which can be targeted in this way;
  
• Consistency: The approach and opportunities are consistent throughout without any undue weighting or bias;
  
• Surveys: A consultation can be run in parallel with a survey or poll to ‘reality check’ the findings;
  
• E-enable: This form of consultation fits with the stated aims of politicians and commerce to move to a more e-enabled society;
  
• Follow-up and feedback: The same process can be used to feedback results and information to the participants in the service;
  
• Ownership: through this interactive, involved process, members of the community have ownership of the issues affecting them and a viable way for them to contribute to the decision-making process.

Appendix 2: Summary of papers posted to APPSBG website

Week 1: Freelancer consultation.

Posted on 19th May 2003 | Comments: 72

Evidence from freelancers looking at the contribution made to the UK, their clients and to themselves.

Week 2: Freelancer consultation: SMEs.

Posted on 27th May 2003 | Comments: 12

There are 3.7 Million SMEs in the UK, each one represents an opportunity for Freelancers to provide their specialist experience to help both themselves and the SMEs,

Week 2: Freelancer consultation: Public Sector

Posted on 27th May 2003 | Comments: 9

Expenditure on the Public sector is increasing as well as recognition that freelancers can play an important role in increasing value for money.

Week 2: Freelancer Consultation: Europe; general

Posted on 27th May 2003 | Comments: 6

Europe is expanding and with 27 million SMEs and significant investment in the Public sector, it represents opportunities for UK freelancers to provide their expertise and influence throughout the "single market".

Week 2: European Agenda on Entrepreneurship

Posted on 27th May 2003 | Comments: 4

The European Commission is currently carrying out a consultation exercise:

Questions for the European Agenda on Entrepreneurship

Week 3: Freelancer consultation: Regulations

Posted on 2nd Jun 2003 | Comments: 97

In the last 4 years freelancers have faced a growing number of regulations that they have to deal with, including IR35 and Section 660. In addition regulations such as security clearance can put them at a severe disadvantage compared with larger firms.

Week 3: Freelancer Consultation: Preferred Supplier Agreements

Posted on 2nd Jun 2003 | Comments: 15

Public sector clients and large companies increasingly make use of preferred supplier/framework agreements.

Week 3: Freelancer Consultation: Outsourcing work - Importing people

Posted on 2nd Jun 2003 | Comments: 41

Globalisation and the advent of the internet are leading to a borderless global marketplace. Clients are importing people into the UK to provide resources and/or outsourcing work overseas.

Note comments as of 1700 hours Sunday 8th June 2003