Anas Sarwar
Main Page: Anas Sarwar (Labour - Glasgow Central)(11 years, 10 months ago)
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Kwasi Kwarteng
No, I have given way once, and I need to proceed. The notion that one can improve outcomes simply by passing laws about the level of pay is false. The one way—
Kwasi Kwarteng
The reason wages have gone up over the past 50 years is economic growth; that is what has driven the rise in real wages, not laws passed by Governments, the minimum wage or anything like that. The one way to secure economic growth is to create a situation in which businesses can thrive. I would like to see lower taxes and more people taken out of taxation—the Government have successfully done that—so that they can spend more of their own money. I would also like the burdens placed on employers through national insurance to be reduced. Such measures will be far more effective in driving up our workers’ standards of living than Westminster or Whitehall imposing a living wage right through the country.
I am pleased that my hon. Friend the Member for Christchurch mentioned that there was some regional variation between London and the rest of the country. In the debates about the minimum wage, it was seen as a national minimum wage that did not recognise any variation in the cost of living between London and rural Scotland.
Anas Sarwar
Just to clarify, the hon. Gentleman’s argument is exactly the same argument that was made against the minimum wage in 1997. Does he support the minimum wage?
Kwasi Kwarteng
I support it now, because it is a fact of life. To address the hon. Gentleman’s comment directly, the minimum wage is not set at a level that is damaging to business. It is set at a reasonable level, although I am not saying that it is the best level. I want people to earn more—of course I want them to be more affluent—but the way to achieve greater prosperity is to allow businesses to do well, to flourish and to employ people, and that will not happen as a result of the state demanding a certain level of wages. We have been there: in the ’70s, we had national incomes policy and price policy, but that all failed—it was a complete disaster. It is baffling, in 2013, that we are hearing the same old socialist arguments for Government intervention and control.
I appreciate that many others want to speak, so I will finish on this point.