Regional Pay

Debate between Aidan Burley and Baroness Primarolo

Wednesday 20th June 2012 Commons Chamber

[Mr Burley]

I am sure we will hear from my hon. Friend in due course, and I will let him make his own arguments, but in the very short time I have left I want to focus on the principle behind this debate, which is whether there are different costs of living in different parts of the country and, if so, whether that should be reflected in state pay. The simple answer to both those questions is yes.

Someone commented in response to the ConservativeHome article to which I have referred:

“Perhaps an experiment over a 2 year period to prove Regional Salaries are such a great idea? Begin with MPs and their staff. No doubt they will jump at the chance to lead by example?”

I propose to do exactly that. I have to hand the Independent Parliamentary Standards Authority bandings for accommodation expenditure—the amount that can be claimed by MPs to live in their constituency. Guess what? Yes, they vary by constituency. As MP for Cannock Chase I could claim £10,950 a year to pay my rent and bills, if I were to claim expenses for living locally, which I do not. The Member for Cambridge can claim £15,150—nearly 50% more than I can claim. The Members for North Somerset and North West Hampshire can claim £13,750, whereas the Member of North Swindon can claim just £12,350. So there we have it: there is regional variation in what MPs can claim to live, based on the cost of living in their area. If it is good enough for MPs, why should it not be reflected in the pay packets of other public sector workers?

Let us examine the arrangements for employing our staff. If I employ a senior caseworker in the London area, I have to pay him £23,000 to £31,000. If I employ him in my constituency, I have to pay him only £19,000 to £28,000. A senior parliamentary assistant can be paid up to £42,000 in London, whereas they can start on just £30,000 in my constituency. So the answer to the blogger is that MPs and their staff are already subject to regional variations in pay and allowances, and are living proof of the established principle of regional pay born out of different regional costs of living.

Let us put it the other way round: if the Opposition truly believe in national pay bargaining and public sector salaries being set nationally, will they intervene on me now to say that my staff in London should have their salaries reduced to match those of my staff in Cannock? Or should I be able to claim as much to live in a house in Cannock as to live a house in Cambridge? Of course not. Today’s debate is about whether public sector pay should be relative to private sector wages, and the simple truth is that it must.

The shadow Chief Secretary to the Treasury has said that regional pay will

“prove costly to the public purse and exacerbate regional inequalities”.

On the contrary, crowding out the private sector in the regions of our country is what will exacerbate regional inequalities, and setting a higher than locally appropriate wage bill means that public sector money is not allocated as effectively as it could be within local areas. I noted that she did not reply to the quote in my intervention, so I will repeat it to her now. Unison has said in its location-based pay differentiation paper of September 2011 that

“location-based pay systems offer increased flexibility and a systematic approach to addressing recruitment and retention issues at a local level.”

Government Members agree with Unison in that analysis, and I shall be interested to hear whether any Labour Members, many of whom will doubtless be taking donations from Unison to their constituency Labour parties, also do.

The Government are right to look at more local, market-facing pay and to end the anomaly of national pay bargaining—

[Madam Deputy Speaker (Dawn Primarolo)]

Order. I call Russell Brown.

Trade Union Officials (Public Funding)

Debate between Aidan Burley and Baroness Primarolo

Wednesday 26th October 2011 Commons Chamber

[Mr Burley]

I will make a little progress.

In the six months to March, the unions had enough money to give almost £5 million of donations to the Labour party, while paying their leaders up to £145,000 a year, which is what the National Union of Rail, Maritime and Transport Workers boss, Bob Crow, receives. In fact, 38 trade union general secretaries and chief executives receive remuneration of more than £100,000. To name but one, the former joint general secretary of Unite, Derek Simpson, received more than £500,000, including severance pay of £310,000. That is in addition to the fact that the trade unions get £18.3 million—[Interruption.]

[Madam Deputy Speaker (Dawn Primarolo)]

Order. Although Members on both sides of the House clearly have strong views on this subject, I remind them that this Adjournment debate is being televised. The behaviour of Members does not always reflect well on them. The hon. Member who has secured this Adjournment debate is entitled to be heard.

[Mr Burley]

Thank you, Madam Deputy Speaker. I hope that all Members will agree that I am trying to be quite generous in taking interventions, but I have only 15 minutes in which to speak.

In addition to what I said earlier, the trade unions currently get £18.3 million in direct payments from the taxpayer every year through the union modernisation fund and the union learning fund, so they have nearly £20 million in their bank accounts before we factor in any time off at the taxpayer’s expense. Surely they can cover their costs with a £20 million annual grant plus all their subs.

--- Later in debate ---

[Madam Deputy Speaker (Dawn Primarolo)]

Mr Wharton, I am sure that everybody is aware of what interests they should be declaring when they participate in any debate. That applies to an Adjournment debate, which is normally the property of the Member who has secured it.

[Mr Burley]

I have forgotten part of the point that the hon. Member for Sedgefield (Phil Wilson) made, but I simply say that the unions are entitled to do what they like, and I am sure a lot of what he did was very good work. My point is that they should do it on their own time and it should be paid for by themselves, not by the taxpayer.