Regional Pay

Debate between Aidan Burley and Jessica Morden

Wednesday 20th June 2012 Commons Chamber

[Jessica Morden (Newport East) (Lab)]

In the short time available, I want to talk about regional pay in Wales and my constituency.

Over recent weeks, we have been led to believe that the coalition is cooling on the idea of regional pay and that we might be heading for another U-turn. I hope so, but I welcome the chance to reiterate just how unfair, divisive and damaging such proposals would be for constituencies such as mine. If there is to be a change of heart, the message clearly has not got through to the Wales Office, which this morning mounted a valiant defence of regional pay in the Welsh Grand Committee, although the Secretary of State for Wales told us off for calling it regional pay; she said we should call it “local market-facing pay”—she had obviously read the crib sheet. Having listened to the Minister’s definition, which was as clear as mud, I am none the wiser.

Whatever it is called, it is fair to assume that it would not be good news for public sector workers. The direction of travel is clearly downwards. The First Minister for Wales, Carwyn Jones, was spot on when he said it was code for cutting pay in Wales. Wales has 399,000 public sector employees, but the Secretary of State admitted this morning that she would not be fighting their corner on this issue, despite the fact that her party opposes it in the Welsh Assembly—in fact, all parties in the Welsh Assembly are united in opposition to it.

Let us not forget that these are nurses, teachers and police officers who already face two years of pay freezes and job cuts and who will have to endure a further pay cut of 1%, not to mention the Government’s pension reforms.

[Mr Burley]

rose—

[Jessica Morden]

We are pushed for time, and if I give way, I will prevent someone else from getting in, so I will kindly say no.

We have had 9,000 public sector job cuts in Wales, and there are 39,000 more to come, according to the TUC. The stock argument for the Government’s proposal is that it would allow the private sector to grow by enabling it to compete with the public sector for staff. This is clearly nonsense in constituencies such as mine, where any move on regional pay would hurt the economy, including the private sector.