Enterprise Bill [Lords]
Debate between Albert Owen and Baroness Hayman of Ullock
Albert Owen (Ynys Môn) (Lab)
I congratulate my hon. Friend the Member for Cardiff West (Kevin Brennan) and the hon. Member for Aldershot (Sir Gerald Howarth) on the eloquent way in which they spoke to new schedule 1. I will not repeat what I said on Second Reading, except to reiterate the point that the people and companies listed in that new schedule are in no way fat cats. I think we need an apology from the Government about that because these are hard-working, ordinary people who have worked in difficult circumstances for many years, and signed up to agreements in good faith with the Government of the day.
I want the Government to honour their promise to safeguard the conditions of service that were agreed between companies and employees over many years, and I will touch on the definition of public sector workers. In no way are the people listed in the schedule public sector workers. Many of them work for private companies. If this cap is imposed on them, it will not benefit the Treasury at all; it will benefit the private companies that have taken on the contract. There will be no great saving, but there will be a breach of trust, and a considerable loss to those individuals who have been given protection.
I know that this Minister listens to reason and I am sure she agrees that many people will be caught unintentionally under the Bill. The protected status goes back to the privatisation of the electricity industry in the 1980s, and regulations were introduced in 1990 to protect many of the categories listed. More than 120 Magnox workers have written to me. As the hon. Member for Aldershot said, they were given protection, with other nuclear industry employees, under schedule 8 to the Energy Act 2004. When the recent pensions Bill was going through Parliament and their conditions were threatened when a vote in the House of Commons took away their protected rights, an amendment in the House of Lords restored that protection. Those protections were given to the workers by Mrs Thatcher and Cecil Parkinson in the 1980s, and they were honoured by other Conservative Ministers.
Sue Hayman
It is also important to point out that the Treasury did not actually allow the employees of those companies to remain in public sector pension schemes when they were privatised, so it is completely inconsistent now to call them in.
Albert Owen
There is huge inconsistency because the workers I am referring to were protected in 2004. They were given that protection in statute. The Government are using a crude analysis by the ONS that these are public sector workers and fat cats, and that they should be treated all the same, but they are breaking their own promises. That is the strong feeling I got in the letters I received from the employees. The safeguards given by previous Governments during privatisation are now being taken away on a whim. I say to Conservative Members that taking away the protected status of these people was not in the Conservative party manifesto. The opposite is the case: it talked about city hall fat cats. Many of us agreed that people should not be rewarded for failure, but the people we are talking about are doing dangerous work now. The measure is due to come in in October, and many private companies are refusing to put through redundancies now. They are holding them back until October so that the workers receive reduced conditions of service. That is wrong.