UBERK the Conspiracy may continue

SCOTTISH Ministers are embroiled in a conflict of interest row over the inclusion of controversial taxi firm Uber on a government panel which will consider regulating the company.

The Government announced earlier this year that a team would look at the regulation of firms such as Uber, which has been criticised for the treatment of its drivers, and accommodation provider Airbnb.

However, Uber has been given a seat at the table, and the chair of the panel is employed by an organisation that has done work for the company.

Labour MSP Neil Findlay said: “Increasingly we see the Scottish Government working hand in glove with corporations at the expense of local communities and small businesses. This appears to be a clear conflict of interest.”

According to the Government, the so-called “collaborative economy” connects individuals via online platforms and allows services to be provided “without the need for ownership”.

To this end, a panel was set up to provide “advice and expertise” on the sector and make recommendations to Ministers.

Part of the remit is to ensure that regulation is “fit for purpose” and issues relating to taxation and employment conditions are “understood”.

Panel chair Helen Goulden, who is the executive director of “innovation lab” Nesta, specifically mentioned Uber and Airbnb in her online overview.

The creation of such a panel is believed to be an opportunity to consider the future of companies which, while popular with the public, have generated negative publicity.

Uber, an app-based service that has revolutionised the taxi industry, has been criticised for hiring drivers on a self-employed basis, which means there is no entitlement to holiday pay, pensions or other workers’ rights.

In a landmark decision last year a UK employment court found that Uber drivers are workers, not self-employed contractors. The company appealed the ruling.

However, although there is trade union representation on the panel, the Government is facing heat over why Uber and Airbnb, which have a stake in any changes, have been given places.

It is understood the panel members were chosen by Goulden “in conjunction” with the Government and Cabinet Secretary Keith Brown.

It can also be revealed that a Nesta subsidiary provided consultancy services to Uber for a report last year.

Gary Smith, the Scotland Secretary of the GMB trade union, said: "Whether you call it the precarious, gig or collaborative economy, there's no doubt there is widespread exploitation of workers’ rights in this sector and GMB has been at the forefront of the campaign to tackle it.

“Our concern here is that the Scottish Government is letting the wolves into the sheep pen early in the process. The panel shouldn't be talking about how we 'overcome regulatory, economic and social challenges' – that's worrying rhetoric. The focus should be ensuring the pursuit of economic growth is underpinned by decent rights, terms and conditions for the people who will deliver it.”

A Scottish Government spokesperson said: “There are a wide range of organisations including the STUC and business experts who will bring a global perspective of the sector. The purpose of the panel is to provide advice, expertise and experience for policy development on the collaborative economy and make recommendations to the Scottish Government on how to balance the benefits and challenges that the collaborative economy brings.”

A spokesperson for Nesta referred to the Scottish Government statement, but noted: "Nesta Enterprises Limited, Nesta's wholly-owned trading subsidiary, has previously, on one occasion, provided consultancy services to Uber."

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