(11 years, 5 months ago)
Commons ChamberI absolutely agree with my hon. Friend. The devil will be in the detail, but I hope that we can make amends. It is only 10 days or so since we commemorated workers memorial day, when we resolved to remember the dead and fight for the living. The proposed legislation is an important part of that, and I hope that compensation, fairness and justice will be provided.
I agree with my hon. Friend that the issue is of great importance, and it is good to see the Government bringing forward such legislation. Not long ago, I received a letter from AXA trumpeting the work that it and the Association of British Insurers have done. Will my hon. Friend join me in impressing on the Government that the approach of the ABI will be incredibly important, and that the Government must not listen just to the insurers when dealing with this very important issue?
I voted for the income tax changes as a package that took many people on low and medium incomes out of tax altogether as a result of the raising of the tax threshold, and only when I was satisfied that people on very high earnings would pay more net. Yes, they had a reduction last month in their top rate of income tax from 50p to 45p in the pound, but with all the other changes that affect them they will make a bigger total contribution to the economy in tax. The hon. Lady knows what I am going to say next. I was here for all the time of the Labour Government, when for every single month apart from the last few weeks the top rate of tax was 40%—not 50%, not 45%, but 40%. The great socialist regime of Tony Blair and the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown) did not deliver the great socialist nirvana, and that was the time when people in the banks were earning obscene amounts, the likes of which had never been earned before, and they were not dealt with.
On the welfare cuts, the Liberal Democrats argued strongly in the coalition that benefits should not be cut, but that with some inflation-lined exceptions there should be a limited increase this year of 1%. That is what the Government have tried to do. There are exemptions. Changes to housing benefit should not apply to any pensioner householder in the country. Some rates of increase of benefit for people with disabilities are higher than 1% to try to achieve equity. These are all attempts to deal with a welfare bill that is extremely high. It is not pleasant and I do not pretend that it is easy. We would all like to be able to give much more to people who are struggling, and I am very concerned that the bottom 20% should be the priority of this Government in their remaining two years. From the hon. Lady’s Front-Bench colleagues I have heard no answers as to how we pay our bills, deal with the fact that we are paying 120 million quid a day in interest on our debts, sustain the welfare state and encourage people back into work.
The Institute for Fiscal Studies is clear that the lowest 20% of income groups are being hammered by the Government’s various changes. How can the right hon. Gentleman justify disabled people being hit, as they have been, by a combination of the bedroom tax, the council tax localisation scheme, work capability assessments followed by their appeal, and having their benefit cut during that lengthy process?
Order. We are now on 17 minutes. I was working on speeches lasting no longer than 16 minutes per Member.
It is always interesting to listen to the hon. Member for Lichfield (Michael Fabricant). I can only imagine what it would be like if he really disagreed with the Government: the vehemence of his attack would be something to behold. He made some good points about the impact of the HS2 project and the need to speed it up, as did his neighbour the hon. Member for Tamworth (Christopher Pincher). Speeding up the construction would help the economy, and the blight point was also well made. I live very near to the route of HS1, and that will drag on and on. One of the lessons of HS1 that should be applied to HS2 is the need to deal with blight as speedily as possible.
This feels a bit like speaking in an Adjournment debate. Indeed, I have seen more Members present in the Chamber during Adjournment debates. That may be an indication of the thinness of the fare before us, which may be more worthy of an Adjournment debate. Perhaps that says it all.
I want to discuss the way in which the Queen’s Speech will affect my constituents, and mention some of the proposals that it might have contained which would have affected them far more. Before I do so, however, let me say that I heard the right hon. Member for Sutton Coldfield (Mr Mitchell) come out with the usual Government line about politicians racking up debt around the world. He mentioned his business background and referred to the need for not just cost-cutting but top-line investment. However, he conveniently neglected to mention the role of the banks around the world in contributing to the financial crisis, and the fact that they lent money to people who could not repay it.
The business analogy illustrates the importance of investment. Without investment, business cannot succeed. Similarly, it is the Government’s role to invest in economies, because that is what Governments are there for. When things are tough and there is no one else to invest to stimulate the economy, Governments should step in. The Queen’s Speech did refer to the creation of jobs and growth, but there was precious little to back that up and explain how it would happen.
Let me say something about the Government-backed mortgage scheme, which, it is said, is designed to help people to own their own homes. My hon. Friend the Member for Glasgow North (Ann McKechin) accurately described the current state of the housing market and the problems that exist not just in her constituency, but all over the country. She spoke of the lack of affordable housing, social housing to rent, and low-cost housing to part-rent-part-buy or to buy outright. Developers want to build the most expensive housing they can, because, of course, they want to make as much money as possible. It is no coincidence that over the years about 2 million houses have been sold under the right to buy and we have a shortage of about 2 million affordable homes. We unquestionably have a housing shortage, and according to the Homes and Communities Agency, affordable housing starts collapsed by 68% in the financial year 2011-12. We have seen an increase in homelessness and rough-sleeping, which is particularly affecting families and children.
A proposal that is designed to underwrite mortgages will help the wealthy because it is for new-builds and more expensive housing, but will it help the housing shortage? If it is designed to help the poorest and tackle the shortage of social housing by moving the market further up, is not that use of Government-backed mortgages one of the reasons why we ended up in a financial crisis in the first place? We all remember Northern Rock and 125% mortgages in this country. It is not just me who says this. My hon. Friend the Member for Glasgow North quoted a number of sources, including the Treasury Committee, commenting on the danger of inflating the housing bubble again and the danger of leaving people, at all levels in the housing market, sooner or later unable to pay, with all the consequences of that, which are still going through the financial system now.
Rising prices are another consequence of having a limited supply of housing, which can put housing out of reach for many, or put people into a false, unaffordable state of ownership. On 20 March, The Daily Telegraph said:
“Given the over-dependence of the British economy on the housing market, it is hardly surprising that Mr Osborne has looked in this direction for salvation. But we question whether it is sensible for the state to enter into the mortgage market in this way. It will do nothing to rebalance the economy, and risks stoking another housing bubble. In addition, even though interest rates will probably remain low, it is dangerous to encourage people to buy who might be vulnerable to an increase in lending costs and negative equity.”
As my hon. Friends have said, there is a housing problem and we need to build affordable homes. We must consider the impact building homes would have on the construction sector, the economy and jobs. There is also a lack of investment in the existing stock of empty homes, which the construction industry is keen to see addressed, hence the calls for a cut in VAT on renovation of property to 5%.
The right hon. Member for Ross, Skye and Lochaber (Mr Kennedy) mentioned the International Monetary Fund visit, and IMF chief economist Olivier Blanchard said:
“We said that if things look bad at the beginning of 2013—which they do—then there should be a reassessment of fiscal policy. We still believe that. You have a budget coming in March and we think that would be a good time to take stock and make some adjustments.”
The Budget did not do that. We did not see the kind of moves on housing that I have just described, and we have not seen that in today’s announced measures either.
Sadly, the Chancellor chose to ignore the advice and plough on regardless, and no doubt he will stick to that when he meets the IMF this week. I heard calls for him to ignore any advice from the IMF and to carry on regardless, but for my constituents that would mean more austerity. It would mean more pain for hard-working families, for disabled people and for those desperately trying to find work where only zero-hour or part-time, low-paid jobs are on offer.
There was no vision in today’s announcements for the long-term either. There was no suggestion of how the economy might grow so that public borrowing could finally be reduced, and there was no answer to the question of why the Chancellor said the credit rating was the most important factor on which he should be judged. Many Government Members want deeper spending cuts, but just a few weeks ago thousands of people earning more than £150,000 a year, including many millionaires, were given what their friends in government had promised them, which amounted to £100,000 each year to anyone earning £1 million a year.
At the same time, our constituents paid for that through the bedroom tax and in cuts in support for those in work and those looking for work. While the wealthiest in our society have enjoyed the benefits of a handout from the Chancellor, millions of people are wondering how to pay the bills, put food on the table and heat their homes. It is no surprise that 350,000 people are using food banks, according to the latest figures from the Trussell Trust—and that is before the bedroom tax, the council tax localisation scheme and other attacks on the poorest have really started to bite. At least 30% of those in social housing will be affected by the bedroom tax, and offering discretionary payments is simply not good enough. The housing associations and local authorities in my area have already found that that money does not go anywhere near far enough. People are facing real hardship, and the measure has only just been introduced.
Two of my constituents have told me of their circumstances. A man who has been disabled for 12 years was recently declared fit for work in his work capability assessment, despite having a degenerative disease. He is appealing, but while he does so he loses £25 a week; at the same time, the bedroom tax on his spare room is £14.71 a week and he has to pay £34 in council tax that he has not had to find before, because the council tax benefit is not at the same level it was before last month’s reforms. It all adds up to more than £200 a month for a disabled man who is unable to work and his family. We have heard from other Members about the difficulty disabled people have in finding work—they genuinely want to work, but there are not the jobs for them, and when they go to interview people will not take them on.
The other constituent is a lady who has spina bifida. She passed her work capability assessment, but one question a medically trained member of the Atos staff asked was, “How long have you had this condition?” The idea that someone who is medically trained did not understand what spina bifida was, or its consequences, is deeply troubling for everyone. That sums up some of the problems that people face. My constituent also now has to pay council tax for the first time. She used to work, but when she goes for an interview now people take one look at her and say, “No, I’m sorry, we can’t employ you”, because they assume that it will be difficult for someone with spina bifida to do the work that she has applied for, although she is extremely well qualified. She has no choice but to pay the extra money in council tax, if she can find the money from somewhere. I keep meeting people who have been disadvantaged by the benefit changes. At the same time, we see people at the top doing very nicely out of some of the changes the Government have introduced. Nothing in today’s announcements was encouraging for people looking for work and people who are disabled—people who desperately want to work.
We have heard about the attacks on the people in most need, but a number of colleagues have also mentioned the necessity of support for business. Where is the support for manufacturing to help our flatlining economy and our businesses and to create the full-time, well-paid jobs that people need? Why was there not an announcement about a national investment bank and the regional banks to go alongside it—the kind of support that is needed, which we could have done with desperately many years ago?
Some measures have helped the economy in my constituency. When the Government took office in 2010, however, they scrapped Building Schools for the Future, and that had a profound effect up and down the country. With school building programmes not going ahead, the construction industry and the economy as a whole were hugely affected. One school in my constituency, Aintree Davenhill, was in the primary capital programme. The children at that school used to have lessons in disused aircraft hangars made of corrugated iron. As one can imagine, it was boiling hot in summer and freezing cold in winter, and it certainly was not an ideal teaching and learning environment. The previous Government had approved funding, but whereas phase 1—the infants part of the school—had been completed, phase 2 had not been. When the current Government came into office, they stopped the funding for phase 2. Fortunately, Sefton council, which had sufficient capital in reserve for a primary school, stepped in to fund the rest of the project. I was lucky enough to go to the opening two weeks ago of the brand new school, which is a fantastic tribute to everybody who has worked on the project.
Investment in a primary school, however, makes only a very small contribution to the economy. Much more investment was needed, because the construction industry has wound down, hundreds of thousands of construction workers have been laid off, and businesses have closed. It will take time for any announcements now about construction to build the industry back up.
Another project that I am pleased to see in my constituency is the building of the Thornton relief road. It is a £30 million project. It was first proposed in 1934, and I have mentioned it many times in this Chamber since being elected. The building of the road was finally achieved by a combination of Government and local government funding, but it should have been approved three years ago. The previous Government had given the green light to the scheme, but it was also cancelled, and three years of lack of investment and economic stimulus resulted, as with the cancellation of the Building Schools for the Future programme.
We need urgency from the Government, and we did not see that today. The hon. Member for Lichfield mentioned the High Speed 2 project, and he is right that it will make a huge contribution to the economy, but if it is delayed for many years, we will not see the economic benefits now when they are most needed.
I forgot to mention that the Birmingham Chamber of Commerce Group has said that one good thing that can come out of HS2 is the construction of lines and carriages, providing that that work goes to British companies. I will be asking the Department for Transport to ensure that it does.
I am grateful to the hon. Gentleman for mentioning the importance of using British manufacturing companies for projects in this country. I will mention Bombardier, and the cancellation of the project at the Derby works—a project that went to Siemens—as an example of where our policy was wrong. We must get that sort of thing right—
I am glad that that the hon. Gentleman is nodding. German contracts are let to German companies—there are ways of writing contracts that favour them, and this country must get better at that in relation to our companies.
I mentioned the construction sector and two projects in my constituency. This country should ensure that the supply chain supports local subcontractors and local labour, and that should be written into contracts far more often.
I am glad to see the Minister nod in agreement to that point. This is about supporting the local economy, which can happen only if we prioritise using local subcontractors and their staff. There are always ways of doing that.
I have made the point about the importance of investment in the economy. There was not enough in the measures announced in the Queen’s Speech—frankly, there was precious little—to support the economy and to get the growth we need. Ultimately, to get the deficit down, we must have growth. We must have the investment now; it will not wait. We have had three years of delay. We need immediate investment in construction, in housing and in the kind of projects that we have been discussing in the past hour or so. It is also important that we consider the measures that my right hon. Friend the Leader of the Opposition and the shadow Chancellor, my right hon. Friend the Member for Morley and Outwood (Ed Balls), are proposing on VAT and support for small business.
I will make a final plug for small business. I ran a small business for 15 years and many small businesses in my constituency—not only in construction, but throughout the economy—need growth and the support of Government investment to succeed. Small businesses will create the jobs; they will be the key drivers of the economic recovery that we desperately need. It is no good lending going just to the medium-sized and large companies that are already financially successful and have lots of money in reserve. There must be proper support for the smallest of businesses, and I urge the Government to take that point on board as well as the other points that I have made about investing in the economy.
Yes, indeed. They say in the south-west that if one can see across the valley, it is about to rain, and if one cannot see across the valley, it is raining already.
Having expressed those reservations about HS2, I welcome almost everything else within the Gracious Speech. My principal point is about the draft care and support Bill. To see that Bill finally being introduced in this Session of Parliament is very welcome. I remember well the shock and horror of many of my former patients when they realised that if they had assets above the threshold of £23,250, they would receive absolutely no support with their care needs. We know that one in 10 families face losing more than £100,000 of their income just to care for a relative, and that very many people end up having to sell their homes to pay for their care needs. So, such a massive increase in the asset threshold and a cap on lifetime costs is very welcome, particularly because those measures will encourage people to come forward at an earlier stage to seek the help that they need. In turn, that will help to reduce unnecessary admissions as well as helping people to remain as independent as possible for as long as possible.
Of course, the Bill will introduce support and proper assessments for carers, not only for adult and elderly carers but for child carers, who suffer and are robbed of so much of their youth as a result of their caring responsibilities. I am looking forward to seeing the detail in the Bill, and I very much enjoyed being part of the Joint Committee on the draft Bill that made recommendations to the Government; I hope that many of those recommendations will be included in the Bill when it is placed before Parliament.
I also particularly welcome the fact that there will be compensation for the victims of mesothelioma who cannot trace an employer and for those whose employer has gone out of business, or who do not have any insurance. It is particularly cruel that they receive no access to any compensation, despite mesothelioma being almost entirely attributable to asbestos exposure. But, and this is a big but, how ironic that while providing fairness and support for one type of lung cancer we are failing in this Queen’s Speech to address preventing a far more common type of lung cancer—failing to address how we are going to stop the next generation of smokers coming on stream. We should bear in mind that every year 200,000 children take up smoking. Those children will be at risk of going on to face a lifetime of problems. We know that 100,000 people a year at least are dying as a result of smoking-related problems. The failure to take forward plain packaging is a huge missed opportunity.
I want to clarify one thing: there is nothing plain about so-called plain packaging. I would encourage everyone to google what plain packaging looks like. Plain packaging sets out very clearly what is involved. It sets out the disease and suffering that people will face if they do not address their smoking. My experience as a doctor was not so much that people feared the thought of death, but that they most feared the process of dying. The process of dying from many smoking-related illnesses is hideous. We are not just talking about lung cancer. We are talking about, for many people, the years spent in a kind of living death, tied to an oxygen cylinder, suffering from end-stage chronic obstructive pulmonary disease and many other conditions; or the suffering that comes from needlessly losing a leg from arterial disease. Smoking is a leading cause of blindness. There are many effects of smoking—all entirely preventable. So-called plain packs spell that out graphically, and to anyone who hands around such a pack, it is quite beyond a simple public health message. It is a very graphic message.
I welcome what the hon. Lady says about plain packaging. In the Committee stage of the Children and Families Bill, I and a number of Members tabled an amendment about banning smoking in cars with children present. I wonder whether she would agree that we hope that the Government will bring back their own version of that amendment in good time.
I thank the hon. Gentleman for his intervention. Indeed, this is about protecting children, and that is what we should focus on. It is not about introducing a nanny state. The so-called plain packs would not necessarily change the habits of a committed lifetime smoker, but they are aimed predominantly at deterring the next generation. I feel this is a missed opportunity, and I very much hope that as further evidence emerges from Australia, the Government will reconsider their position and send a very sensible public health message.
Many Members have commented that the Gracious Speech is not just about setting out what legislation will be introduced; it is about sending a message on the direction of travel. My very clear view is that Government’s core business does include public health. Members know that I feel strongly about minimum pricing for alcohol. I am not trying to be the nation’s supernanny here— I enjoy a drink myself. This is about trying to get rid of ultra-cheap alcohol.
In my part of the country, we have shops that sell white cider with a maximum price. They are not allowed to sell it for over 23p a unit. I am afraid that is causing carnage. We have recently seen deaths of rough sleepers in my community, and rough sleeping is very closely associated with dependency. We know that as people start to lose control of their drinking, they start to target cheaper and cheaper alcohol. We know that the heaviest drinkers spend 40% less per unit on their alcohol. Just as with the smoking issue, this is not necessarily about saying that it is always possible to save everyone who has become a dependent drinker. We know that 40% of dependent drinkers will, whatever happens, be unable to control their drinking and will lose their life as a result of their dependency. It is about trying to help those who are starting to lose control of their drinking. It is about helping those who are right at the beginning of the journey, who may have developed a harmful pattern of binge-drinking.
The argument goes beyond the public health message and towards what alcohol dependency is doing to our communities. We know, for example, that there are 705,000 children in this country living with a dependent drinker—not just a hazardous drinker or a harmful drinker, but somebody who is dependent on alcohol. We also know that in 40% of child protection cases, alcohol is a key part of the problem. We know that nearly half of all violent crime is partly attributable to alcohol, as I know from my experience of seeing victims of crime and domestic violence. We know that a huge number of those who are victims of domestic violence report that alcohol directly caused or significantly worsened that violence.
We know that about a third of people feel that their town centres have become no-go areas to them at the weekend, and we know that all of us are paying for that. It costs us a staggering amount—about £21 billion a year just within our health service. I welcome the suggestion from the Secretary of State for Health that members of the Front-Bench team should spend time on work experience, and I suggest that suitable work experience for all members of the Front-Bench team would be a Friday night in casualty. If they really want to see what is causing delays in casualty departments at the weekend, they need look no further. Perhaps they would like to go out with the special constables in my area, who tell me that all their time at the weekend is spent dealing with alcohol-related crime and violence.
The final point that I would like to make about the subject is that it is an important cause of health inequality. To all those who say that minimum pricing penalises the poor, I would say that it is the poor who are suffering the most as a result of ultra-cheap alcohol. There are many reasons why we need to address the problem. If alcohol harmed only the individual who was drinking, that would be purely a matter of personal choice, but the wider harm is caused by the ripples that spread out from the individual who is losing control of their drinking, affecting those closest to them, their wider family and their community. So there are good reasons for saying that this is fundamental and core Government business.
I feel very disappointed that such a well-evidenced measure has been dropped from the agenda. It is not good enough to say, “We have not made a decision.” Continually kicking a ball down the road can, in effect, be the same thing as dropping it altogether. I hope that alcohol-related measures come back as “any other business” within the legislative programme.
I call on the Government particularly to look at the emerging evidence from Canada. Apart from the myth from the alcohol industry that such measures would make alcohol unaffordable, which is not the case, other myths are perpetuated. We need to challenge those. What we have seen clearly from states in Canada that have introduced a floor price is that following a 10% rise in the floor price there is a 32% reduction in deaths directly caused by alcohol. That is important evidence. There has also been a decrease in alcohol-related hospital admissions. Let us look at the evidence and have evidence-based policy, rather than listening to the power of lobbyists. It is vital that we look at the power of the alcohol lobby and the way that that operates at the heart of Government. I would like to see a register of lobbyists. I would like to see transparency about who is calling the shots when it comes to forming policy.
I sometimes get a little flack for using social media—surely not, Members might think—but if we look at the Chamber now, which of course is where Members of Parliament should be, we might consider that Twitter can reach parts that other tools cannot. In particular, if we look at the tools that others use, and at the power of the lobbying industry, we will see that MPs need to use every tool at their disposal to fight for the causes they believe in. Public health is fundamental to why I applied to be in this place in the first place, and it is fundamentally Government business. We should look at the evidence.
(11 years, 10 months ago)
Commons ChamberMy hon. Friend is absolutely right to point to the need for organisations to make complaints about poor procurement practice. That is why we have provided a right to challenge such practice through the mystery shopper service and I confirm that today we are publishing the next batch of its results, which I think my hon. Friend will find very interesting indeed, and we shall continue doing so.
The Federation of Small Businesses told me yesterday that most of its members had given up trying to do business with Departments. According to the Government’s figures, public sector procurement from small businesses has fallen in most Departments since the election. Why has that happened?
I am afraid the hon. Gentleman is rather mixed up. As I mentioned in my answer, spend with SMEs is rising and we are on track for that 25% target. I am also conscious that the chairman of the FSB said this year that
“central government has raised its game…But more must be done”.
The question is: why did the previous Government do so little?
(11 years, 11 months ago)
Commons ChamberI thank my hon. Friend for his remarks. He makes a good point. Given what we have done in the UK, such as abolishing or merging about 200 quangos and cutting central Government Departments’ own spending by about 30% in some cases, there is clearly room in the EU—not just in the Commission but in the other institutions—to find proper savings in cost and bureaucracy. We should continue pushing at that. The seven-year multi-annual financial framework provides the one moment when we really have the opportunity to drive home the advantage and make those cuts.
One more time, then: does the Prime Minister agree with those in his party who want a referendum, or does he agree with those in his party who do not want a referendum?
(11 years, 11 months ago)
Commons ChamberI entirely acknowledge her key role in this matter and am particularly troubled to hear of her ill health. As I have said, I will do everything I can to take this process forward as quickly as possible, but I have to consult properly. There are a number of things that I simply cannot short-cut. I am endeavouring to do it as fast as possible and, as I said a moment ago, I hope that I can stick to the timetable that I have identified.
I know that the families will welcome what the Attorney-General has said about making an application in December and I thank him for that. Anne Williams is seriously ill and all she wants is official recognition of why her son died. I know that the Attorney-General understands that, but could I urge him to do all he can to grant her wish before it is too late?
I fully understand the hon. Gentleman’s point, but he must also appreciate that my application is to quash the existing inquest verdict and, if that happens, for the court to order a fresh inquest or inquests. Once I have carried out my task of presenting the case to the court, my function will be at an end and I obviously cannot predict the time it would then take for the fresh inquests to take place. I have no doubt that, if the original inquest verdicts are quashed, it would be greatly in the public interest for the matter to move forward as quickly as possible, although, as I have told the House before, some criminal investigations might affect the time scale.
(12 years, 1 month ago)
Commons ChamberI certainly join the hon. Gentleman in praising Ken Sutton and the team who helped to put the report together. They have done an outstanding job in my view, and I think the way the report was released to the families first was absolutely right.
The hon. Gentleman mentioned that he was leader of Sheffield city council at the time, and it is greatly to his credit that, like others, he revealed all his papers, public and private, to the report. This is not a public inquiry or a coroner’s report. The inquiry is a proper trawl though all the relevant documentation in order to draw conclusions. There may be lessons that we can learn for other cases. Because everything is revealed, a report of this nature could be the right way to get to the truth, rather than a public inquiry.
One of those who died was 18-year-old Christopher Devonside. Christopher’s father, Barry, will welcome what the Prime Minister had to say about a potential new inquest, because that is something he and his family have called for, along with many others.
I add my voice to those who have already mentioned accountability and potential criminal proceedings. As a result of what we have heard today, and what is no doubt detailed in the report, Barry and many other families will think such proceedings entirely appropriate.
The hon. Gentleman is right to raise the issue of accountability, and there are processes through which that is meant to happen. In this case, the chief constable of South Yorkshire offered his resignation right at the beginning, but it was not accepted by the South Yorkshire police authority. We must think through how we can hold public authorities to account and the processes by which that happens. Even 23 years on, it is completely open for the authorities to look at the new evidence and to draw the conclusions they choose.
(12 years, 4 months ago)
Commons ChamberThey may well have national negotiations. If the hon. Gentleman had listened, he would have heard me say that our proposals do not involve a change to national pay bargaining mechanisms. Actually, though, plenty of companies have preferential pay rates in different parts of the country, as might well make sense in some circumstances. But he clearly did not listen to what I said earlier.
Pay decisions in the civil service, below the senior civil service, are delegated to individual Departments, so it is for each Department to consider the case as it applies to its own work force.
It has occurred to me that Conservative Members were against the national minimum wage when it was introduced. Will the Minister confirm beyond doubt that this is not the thin end of the wedge and that there will not be any attempt to undermine the national minimum wage through regional pay?
Most business people I know want to pay well because they know that if they look after their staff, their staff will do a good job and help their businesses to thrive. If we apply the same principle to the public sector, paying people well and treating them well are both critical factors in delivering good public services, but undercutting pay, making it easier to fire people, and cutting 40,000 public sector jobs in the north-west are all decisions that sap morale and make people more fearful, making it less likely that services will be delivered well. It is also less likely that people will spend money when they are fearful, and that will harm the private sector businesses whose customers work in the public sector.
Many of my constituents work in the public sector and would like to know why regional pay is being proposed. For staff and their families in the north-west of England, regional pay would most likely mean that they would be paid less than colleagues elsewhere. There would be several consequences of such a change, and I shall explore some of the concerns about a move to local and regional pay.
The likelihood is that we would see regional inequalities made worse. Where unemployment is already high and where the recession has hit communities hardest, the introduction of regional pay would make matters worse. Lower pay in the poorest areas is what regional pay means, and the consequences are that the best performing staff would be able to earn more elsewhere. That means that it would be harder to recruit and to retain staff where they are most needed, unless the Minister wants to tell us that regional pay means higher pay in poorer areas. I do not think that is what we heard earlier.
Lower pay means less money going into the economy, again where it is most needed. Less money from lower pay means less money being spent in local businesses already struggling under the pressure of being in deprived areas suffering from a Downing street-made recession.
Labour-led Redcar and Cleveland was one of the councils that failed to implement the April 2011 pay rise for low-paid workers, meaning that their workers are now paid less than those in other localities. Did the hon. Gentleman’s council implement the pay rise? What does he think about councils that did not?
The hon. Gentleman represents a Government who have cut the funds to councils in the north of England more than ever in history. Those cuts were front-loaded and we still have not seen the end of them, so he is not in any position to tell people on the Opposition Benches about the way that councils operate.
My hon. Friend the Member for Sedgefield (Phil Wilson) made the point that public sector jobs help to create private sector jobs. Indeed, there is research suggesting that every pound spent on public sector pay generates up to £1.50 elsewhere in the economy. When we consider the implications of regional pay, I start to see it as yet another way for the Government to make matters worse, not better, in the areas that need the most help. It will encourage staff, when choosing where to work, to go to the better-off areas and spend their money in places that have fared rather better in the recession.
I am sure Ministers take an evidence-based approach to their policies, so where is the evidence that a more fragmented system would be more efficient? A national negotiating system means a structured set of negotiations and a co-ordinated approach across regions. What, I wonder, is the analysis by Treasury Ministers of the cost of multiple pay review bodies at a local level? I wonder whether Ministers had made those calculations before they made their commitment in the autumn statement. It seems to me that we would see a complex and bureaucratic process for setting local pay that would take time and resources away from delivering vital public services.
If regional pay is introduced, it will mean lower pay in the north-west. In answer to the hon. Member for Redcar (Ian Swales), 40,000 jobs have already gone in the north-west as a result of cuts in the public sector. The north-west has seen twice the national average in cuts in jobs in the public sector, and any measure that cuts pay in the north-west will depress the economy and hit the living standards not just of the staff who lose pay but of the businesses that rely on them and of the people who work in those businesses too.
Lower pay for poorer regions will make it harder to attract the best staff and to keep them. It will mean less money for the staff and their families in already poor areas, and it will take more money out of the hardest hit local economies. As we have seen, the increased bureaucracy will mean higher costs.
The Government point to a gap between public and private sector pay, but the reality is that cutting public sector pay will make it easier for private sector employers, too, to cut pay in order to maintain the differential. In fact, the removal of money from the economy would put pressure on some private employers to do just that because of the depressing effect it would have on the economy. The Government say they want to rebalance the economy. If pay is cut in the poorest parts of the country for lower-paid and part-time public sector workers, many of whom have already lost their tax credits, the economy will be rebalanced all right, but not in a good way. It will be rebalanced so that it is further away from a fair and equal distribution than ever.
The Government should have nothing to do with regional pay. They should continue to work with the staff who do a good job serving our communities up and down the country. They should support those staff to ensure that they can continue to deliver excellent services, not undermine them by sapping their morale with such crazy suggestions.
If I tried to answer that question, I suspect that I would soon end up outside the scope of the debate. It is particularly important to note that we need to consider the evidence, which the Chancellor has asked for by asking the pay review bodies to consider the question. That evidence would come into the answer to the hon. Gentleman’s question.
I will not give way. The hon. Gentleman should rest his foot, as I had to myself several months ago. I wish him well and a speedy recovery.
It is somewhat troubling that shadow Ministers have not been able to explain whether they think it is good for small businesses in their constituency that the public sector pays 7.5% more overall than the private sector. They have not been able to explain, as I have mentioned, why they favour regionalising benefits and not pay. Perhaps they will surprise us all and stand firm against attempts to appease the unions, wait for the pay review bodies’ reports and take a mature decision based on the evidence available. That is what this Government will do. We do not seek to cave in to those who have given around £15 million to the Labour party in recent times.
The introduction of local and market-facing pay could help poorer regions, which I know Members on both sides of the House would welcome. It could do that by providing more public sector jobs for the same level of investment and by helping the local private sector to become more competitive and to expand. Tonight’s debate should not be about regional pay, about ending national pay bargaining or about cutting anybody’s pay. The Government recognise that public sector pay is a complex issue that varies significantly between public sector work forces.
(12 years, 7 months ago)
Commons ChamberAccess to the policy unit goes to the heart of this cash-for-access scandal. The Budget took from pensioners to give to millionaires, and this weekend’s revelations show that millionaires were paying to change Government policy for personal gain. So can the Minister tell us which millionaires paid for meetings with the Prime Minister and then benefited from last week’s Budget?
(12 years, 9 months ago)
Commons ChamberWe have a very strong view in this country that we should keep our own currency, but that does not let us off the need for fiscal discipline, proper monetary policy and keeping inflation under control. It is not a free lunch or a free ride. We have to take tough decisions, but clearly we have to show some respect for the 17 eurozone countries that want to make the euro work. It is no good wishing away what is there. The responsible thing to do is not to stand in their way when they are trying to put out the fire in their own house, but to ensure that they do so in a way that does not threaten our national interests. That is exactly what I have done.
I still do not know whether the Prime Minister thinks that he did not sign a treaty or just an agreement. Is not his real failure his commitment to austerity and his lack of a plan for jobs and growth either in the EU or in the UK?
In Europe, we have a plan for jobs and growth, which is called completing the single market. The question that the hon. Gentleman and his leader have to answer is about the new treaty being proposed, which 25 countries are going to sign and Britain is not. [Interruption.] I do not care how bad the lasagne is, at some stage the shadow Chancellor and the Leader of the Opposition are going to have to make up their minds. Are they for it, are they against it, or are they weak and indecisive and cannot make up their minds?
(12 years, 9 months ago)
Commons ChamberMy hon. Friend makes her case eloquently, and she is a great champion of ensuring that members of the public in her constituency and elsewhere are on the register. We need to support that sentiment, and only we in the Chamber can do so.
We do that partly through the activities of the Political and Constitutional Reform Committee, which I am fortunate to chair. It is an active Committee, and some of its members are in the Chamber: my hon. Friend the Member for Edinburgh East (Sheila Gilmore) and the hon. Member for Burton (Andrew Griffiths). I pay tribute to the hon. Member for Epping Forest (Mrs Laing), who spoke on behalf of the Committee when I was absent due to ill health when this matter was last debated.
We have worked together, and we have worked with the Government, to try to make the proposal better. Given the exchanges that have taken place, the House is in severe danger of doing the job that members of the public elected it to do. The Government have submitted a pre-legislative proposal to the Select Committee, which is how things should happen. The Select Committee responded with non-partisan efforts to determine a better Bill and to make better proposals, some of which have already been heard by the Government. Today, we are having a measured debate. There may not be a great drama if we tend to agree on a number of the issues, but that is what the House should do when proposed legislation is introduced, so that we end up with better legislation.
My hon. Friend is making a good speech and an important contribution to the debate. Will he comment on the concerns, particularly in urban areas, about the change to individual registration without safeguards? Those of us who represent such areas will have far more people to represent, often with far greater problems.
My hon. Friend, as always, is well ahead of me, and I shall come on to those points.
Something that unites everyone in the House is the feeling that individual voter registration is right. We have heard concern from Members from all parts of the House that unless the measure is implemented effectively we could snatch defeat from the jaws of victory. I do not think that anyone wants that to happen. Listening to us in the House and making sure that this is done properly will ensure that the measure—what the Electoral Commission called the “biggest change” in the franchise since the introduction of universal suffrage—is implemented effectively so that everyone can benefit, rather than partially or going off at half-cock and getting it all wrong.
Our anxiety in the Select Committee fell into several parts. The blockbuster came when we heard from the Electoral Commission and the Association of Electoral Administrators about the fact that if we did not do this right, not only might 10,000 people on average in every constituency not appear on the register, as only 90% of people would register, but that that figure could drop by a third, making the situation even worse, perhaps going down to 60%. That was a shock to the Select Committee and to members of all parties represented on it. I know that that is not the Minister’s intention, and that he will keep listening to ensure that as many people as possible are on the register.
Our anxieties—I shall put them to the Minister again—covered a number of areas. First, I pay tribute to him and to his colleagues for listening to what we had to say on the opt-out: the tick box saying “Don’t bother me any more. I don’t want to be registered. Leave me alone.” The fact that the Government listened to those representations very early bodes well for future amendments.
Secondly, on the issue of registration and whether non-registration should be an offence, I ask the Government to think again. We heard what my hon. Friend the Member for Vale of Clwyd (Chris Ruane) said about the evidence from Rhyl. He made a compelling case that there may well be a better way to deal with the matter. Perhaps it is not by means of a £1,000 fine or by taking up half the space of the form with bold red capitals, but maybe it is. I ask the Government to take the matter away and think again. There are people who need a little encouragement, a little nudge to register, and across the House we should consider the best way to do that.
My third point concerns the full household canvass. I do not know whether the Minister said anything about that, but I hope he is keeping an open mind as the process develops. One of the particular concerns of the Committee were the areas that already have high rates of under-registration. We need to consider whether there is something we can do across the board or in those specific circumstances to ensure that something is done in areas that are brought to our attention as having a large unregistered population. I hope the Minister will look at that.
Another point that came up repeatedly was the funding of electoral registration officers. I will not get into the subject of local government expenditure and reductions, but we cannot put a price on democracy. If additional resources are needed or existing resources ought to be ring-fenced, we would all commend the Government for thinking further about that. I say no more than that. I do not offer a magic solution. I do not propose any more than was suggested in Committee, but I hope that electoral registration and returning officers locally are given the sort of support that will enable thousands and possibly hundreds of thousands of people to participate in our democracy, as is their right.
I guess colleagues have very much in mind yet another redistribution of parliamentary seats and boundary changes. If there is a catastrophic fall in the numbers of people on the registers, all of us, regardless of party, nation or region within the United Kingdom, will again face the merry-go-round of boundary redistribution. All I will say to the Minister is that if this debate is an exemplar of the way we can conduct our business in the House and reach as close to consensus as we can, perhaps the way in which previous Bills have been dealt with is an example of how not to do it. Let us not inadvertently have a rerun of the boundary changes under which we are all labouring now, with the accidental reduction of a register causing yet another boundary change. I hope that lesson can be learned, otherwise Members in the House will be representing numbers rather than places and people.
Finally, I commend the Government and my Front-Bench team for the way we have managed through the parliamentary process—of course there have been the ding-dongs, the public exchange of insults and so on—to make a better proposal than we started with. I hope very much that the Government, who have listened, will continue to listen and that we will have a piece of legislation that we can be proud of and that introduces individual voter registration in a way that we would all want.
(12 years, 10 months ago)
Commons Chamber1. What discussions he has had on the definition of lobbying.
The hon. Gentleman will know that we plan to bring forward our proposals for consultation in the new year, and this will no doubt be one of the subjects on which we will seek and receive views.
Does the Minister agree that businesses in this country should be lobbying the Government to go back to the negotiating table in Europe to get what is best for British business, jobs and living standards?
That was a very contrived question. Our proposals on lobbying are very sound. On the European question, I think that the general public agree with what my right hon. Friend the Prime Minister did. There is no conflict between standing up for Britain and ensuring that we are involved in every meeting in Europe and fighting for British interests. We saw the outcome of that in yesterday’s excellent statement on the Fisheries Council.