National Minimum Wage Debate

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Department: Department for Education

National Minimum Wage

Andy McDonald Excerpts
Wednesday 15th October 2014

(9 years, 6 months ago)

Commons Chamber
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Russell Brown Portrait Mr Brown
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I recognise that finances are under pressure, but I would say the same to the hon. Lady as I said to the hon. Member for South Derbyshire. The situation is not the same across the entire country. Youth unemployment in my area sits at some 5.3% whereas the Scottish average is 4.8% and the UK average is 3.8%, as there are so few job opportunities. When young academically inclined people in my area manage to get off to college or university, 90% never come back because the quality jobs that the hon. Member for South Derbyshire has spoken about are simply not there. It is a rural economy—tourism is the other major employer—but the growing job market is in the care sector as people come to the area to retire. We have a vastly different economy to other places, although similar economies exist.

I want to move on to the issue of the national minimum wage. I said in an intervention on my hon. Friend the Member for Streatham (Mr Umunna), the shadow Secretary of State, that I served on the Committee for the National Minimum Wage Bill. As I said at the time, the only other person who served on the Committee who was in the Chamber at the time at which I made the intervention was Mr Speaker. There were some long nights. Indeed, I remember two particularly lengthy sittings: one that started at 4.30 on a Tuesday afternoon and ended at 1 o’clock the following afternoon, and another that started at 4.30 on a Thursday afternoon and finished at 6.30 the following morning. But it was really worth it. I remember campaigning in Lockerbie when the figure of £3.60 an hour was announced, and one guy I met on the doorstep asked, “Is this figure of £3.60 right?” I said yes and asked whether it would affect him. “Of course it will,” he said. He was working the best part of 50 hours a week in the forests—heavy, dirty and dangerous work—but taking home only about £112 a week.

Andy McDonald Portrait Andy McDonald (Middlesbrough) (Lab)
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I just want to congratulate my hon. Friend on the work he did to introduce the national minimum wage, because I remember that there were adverts in my local press for security guards, and they read, “£1 an hour. Bring your own dog.”

Russell Brown Portrait Mr Brown
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I thank my hon. Friend. Yes, we have moved on, but the fear among Opposition Members is that we are starting to slip back. In those days it was women, in particular, who were having to hold down two or three jobs in order to make ends meet. I see the same thing returning but, more worryingly, it is not only women, but men who are having to hold down two or three jobs.

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Anne Main Portrait Mrs Main
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I am in favour of any schemes that ensure that if young people want to come and work in this place, they can afford to do so. They should not have to subsidise themselves in order to be able to get here and find out what it is like to work in politics.

Andy McDonald Portrait Andy McDonald
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Will the hon. Lady give way?

Anne Main Portrait Mrs Main
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Briefly, because I have a few more comments to make.

Andy McDonald Portrait Andy McDonald
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Is the hon. Lady not aware of the Conservative party auctioning internships to serve with J. P. Morgan? How does that sort of attitude, whereby people are purchasing places with companies like that, fit in?

Anne Main Portrait Mrs Main
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I think I have made myself very clear. I have never had an intern work for me whom I have not paid, and I will not do so. Sometimes I am constrained as to the numbers of staff I can have, and I budget accordingly. Unless the hon. Gentleman condemns any Labour Member who does not do the same, I am not interested in auctioning internships. I believe I have made it very clear that young people should be paid if they work for Members of the House of Commons.

I should like to turn to zero-hours contracts. Other Members have said that zero-hours contracts should be abolished because they are awful and appalling, and are sometimes not proper jobs. There are examples of all those things, but, as I said in an intervention, let us be aware that zero-hours contracts do not always provide a dreadful solution. They sometimes provide a very necessary solution for bank nurses, supply teachers, and other people filling gaps where suddenly there arises a vacancy. I speak as someone who has been in that situation myself. When my husband died and I was a single parent, I was glad to work as a supply teacher so that I could work around the needs of my young children—for example, sometimes they were ill and could not go to school. Opposition Members condemn all zero-hours contracts, but if we were to get rid of them, our health and education services, to name but two, would probably grind to a halt within a few days or weeks. It is very necessary to have contracts that give flexibility in the delivery of these services.

The most crucial thing that will come out of this Opposition day debate is the fact that Labour has declared that it does not have a promise or a guarantee of a greater than £8 an hour minimum wage but a flexible target of £8 an hour that can be abandoned at any moment. I hope that the electorate out there will take note of that when its leaflets come through their doors.