Leaving the EU: State Aid, Public Ownership and Workers’ Rights

David Linden Excerpts

Tuesday 11th December 2018 Westminster Hall

[David Linden (Glasgow East) (SNP)]

It is, as always, a great pleasure to see you in the Chair for this afternoon’s proceedings, Mr Hollobone.

I warmly congratulate the hon. Member for Crewe and Nantwich (Laura Smith) on securing this debate. In some respects it is timely, because the actions of the Prime Minister yesterday have perhaps moved us a little closer to a no-deal scenario, which would be catastrophic for jobs and our communities, although my argument is that that is not a new phenomenon.

The British Government have left key Scottish industries without support for decades, and are now set to subject our firms to a Tory Brexit race to the bottom. Communities in Scotland, whether those of Linwood, Ravenscraig or Methel, know fine well that British Governments simply cannot be trusted to protect jobs and people’s livelihoods. I welcome the opportunity to shine a bright light on the stark contrast between the privatisation-obsessed British Government and a Scottish Government who believe in a thriving, healthy public sector. Westminster, not the EU, sold off our public services.

Thanks to the Scottish National party, Scottish Water, the island ferries and our NHS have all remained in public hands. In sharp contrast to the increasing health privatisation by Westminster Governments, the SNP Scottish Government have kept, and will always keep, Scotland’s NHS in public hands. Unlike water suppliers elsewhere in the UK, Scottish Water has remained a statutory corporation that provides water and sewerage services across Scotland, and it is accountable to the public through the Scottish Government.

Caledonian MacBrayne is the major operator of passenger and vehicle ferry services between the mainland of Scotland and the 22 major islands of Scotland’s west coast. Glasgow Prestwick airport is also operated on a commercial basis, at arm’s length from the Scottish Government, in compliance with European Union state aid rules, and Highlands and Islands Airports Ltd is a public corporation wholly owned by the Scottish Ministers, which operates 11 Scottish airports that are vital to the social and economic welfare of the areas that they serve—some of the most fragile communities in our country. The reality, however, is that they are loss making and supported by subsidies from the Scottish Government.

The Scottish Government are also pressing ahead with plans for a national investment bank and a public energy company, supporting our position as a leading EU mixed economy. Last September, the First Minster announced plans to establish a Scottish investment bank, and we may hear more about that later this week. On a personal level, as someone who wants to see much more state ownership, I am genuinely delighted that the Scottish Government are on track to deliver their ambition of a public energy company by the end of the Parliament in 2021. Even better, there will be a public sector bid to run the railways in Scotland—long overdue, in my view. In Scotland, we have a good story to tell about our commitment to workers’ rights, protecting jobs and putting more services in public hands.

I now turn to the real threats to workers’ rights as a result of our exit from the European Union. History shows us that the EU has forced successive Westminster Governments to improve workers’ rights. Such rights must not be put at risk by a Tory Brexit race to the bottom. It is important that we reflect on them and take stock of just how much EU membership has improved workers’ rights. For example, the EU’s working time regulations were introduced in the UK in 1998, meaning that employees cannot be forced to work more than an average of 48 hours a week and should get a rest time of at least 11 consecutive hours. Equal pay between men and women has been enshrined in EU law since 1957, and the 1992 EU pregnant workers directive guarantees women a minimum of 14 weeks’ maternity leave.

Make no mistake: leaving the European Union and allowing the British Government to take charge of those rights is a deeply retrograde step that will lead to a bonfire of workers’ rights. That is why, even at this late stage, I appeal to Members on the Conservative and Labour Benches to join us to end the Brexit chaos. If they do not, or will not, they should not be surprised when Scotland unhooks the tow bar and takes us on a different path of independence.

--- Later in debate ---

[Chris Stephens (Glasgow South West) (SNP)]

It is a pleasure to see you in the Chair, Mr Hollobone. As you can hear, I am going to battle through my speech this afternoon. My hon. Friend the Member for Glasgow East (David Linden) has called me a “wee sowl”—all I can say is that interventions will be very much encouraged during my remarks. First, I thank the hon. Member for Crewe and Nantwich (Laura Smith) for securing this debate, which is timely, given the game playing that we have seen over the past couple of days by the Government.

Yesterday I was expecting to address the House on the deal, but we found out that the debate was cancelled. Another reason why the debate is timely is that yesterday I was going to make the argument I made during the EU referendum campaign—to remain and reform. I understand the Lexit argument that the EU can be seen as a capitalist club, but my view was then, and is now, that the answer to neo-liberalism is not to leave for more neo-liberalism and deregulation. I fear that that is happening and very much regret that successive UK Governments, but particularly Conservative ones, have had a disgraceful record on applying for EU social funds. It is worth reflecting on that.

The hon. Member for Barnsley East (Stephanie Peacock), my friend and trade union comrade, made a point about people in lower income brackets—the same ones who would have benefited if former UK Governments had taken a more proactive approach on EU social funds. I am thinking particularly of the one for food poverty. However, the UK Government did not apply, so France and Germany got €450 million from the EU to help with food poverty, and because the UK did not apply it got the same amount of money as Malta, which was €12 million. Like many others who have spoken, I have a concern that we could end up with the UK leaving the EU and signing trade deals that would make the Transatlantic Trade and Investment Partnership look moderate.

The debate is timely also in relation to the current Government’s direction of travel on public sector delivery and the management of the economy. Already, Carillion, which was providing public sector services, has collapsed. I have previously warned here, and in written questions, about issues with Interserve, which looks like being the next Carillion.

We are also in the ludicrous position where the current Government are considering privatising veterans’ services. This must be one of few nations that would even consider that. We know the current Government’s approach to workers’ rights because of—to correct my friends in the Labour party—the “anti-trade union” Act, which is what we should call the Trade Union Act 2016.

The Government, following the passage of the 2016 Act, were forced to consider e-balloting, but almost three years down the line they have done nothing to help with e-balloting for industrial action ballots. That is relevant to the present debate because if the EU referendum had been conducted according to the same rules as a trade union industrial action ballot, it would not have been possible to prosecute Brexit. The result would have failed to comply with the 40% rule that the Government insist on applying to trade unions in industrial action ballots. I shall take a sip of water now, Mr Hollobone —if no one is keen to intervene on me.

As my hon. Friend the Member for Glasgow East has said, over the past few decades Westminster Governments have left key Scottish industries, and industries across the UK, without support. There is now a real fear that we face a Tory Brexit race to the bottom. In decades when Thatcherism, it has been said,

“swept like a wrecking ball through the mines, the steel industry, the car factories, shipbuilding and engineering and oversaw the demise of the communities which had built their livelihoods around them”

it was the Conservative Government who referred to miners as “the enemy within”. It was often felt that the same sentiment was directed towards many working communities. That Government’s attitude to many of those communities can be summed up by the classic Proclaimers song “Letter from America”:

“Bathgate no more

Linwood no more

Methil no more

Irvine no more”.

Let us not forget that the period from 1981 to 1983 was the worst recession since the 1930s, destroying one fifth of the industrial base and doubling unemployment. That was before war was declared on the miners. The Linwood car plant in Renfrewshire closed in 1981 with the loss of 4,800 jobs. Plessey Electronics in Bathgate closed in 1982. Leyland’s lorry factory in Bathgate closed in 1986 with 1,800 jobs lost. Ravenscraig steelworks closed in 1992 with the loss of 1,200 jobs. Various Clyde shipyards wound down or closed, including Scott Lithgow in Greenock in 1988.

[David Linden]

Will my hon. Friend give way?

[Chris Stephens]

I am relieved to find that someone wants to intervene on me.

[David Linden]

I am grateful to that wee sowl my hon. Friend; my question is in 22 parts so he may as well take a seat, to quote “The West Wing”.

In all seriousness, my hon. Friend is rightly listing the communities decimated by the horrific economic policy of the Thatcher Government. Does he understand that there is a clear correlation between many of the communities he named and voting yes to independence in 2014? They realised that the only way they could get fairness in a rejuvenated local economy would be through their own Government having the power to act.

[Chris Stephens]

As someone representing the constituency with the second highest individual number of yes voters in the 2014 referendum, I think my hon. Friend is right. The reason why the issue is important is that European Governments supported their steel industries against cheap imports. They supported their industrial base at a time when the UK did not. There are fears at the moment, with the current Government refusing to match Scottish Government funding for the Tayside deal to support Michelin workers who face job losses. It just goes to show that the “nasty party” tag is still alive and well.

The Scottish Government have had to intervene to help commercial shipbuilding on the Clyde, finding a new buyer for the Ferguson shipyard, and they have also intervened in relation to securing a new owner for the steelworks. For the first time, following a campaign and the amendment of the law, the Scottish Government have secured the power to allow a public-sector bid for a rail franchise in Scotland. It was Westminster that sold off public services, not the European Union, as my hon. Friend the Member for Glasgow East described very well. It is the Scottish Government who are pressing ahead with plans for a national investment bank and public energy company.

Workers’ rights are a passion of mine. I was a trade union activist before I arrived in this place. It was the European Union that forced successive Westminster Governments to improve workers’ rights. The pregnant workers directive of 1992 guaranteed women a minimum of 14 weeks’ maternity leave, and that forced the then Labour Government to go further.

The European Court of Justice made it clear that any discrimination against a woman because of pregnancy or maternity leave is sexism and should be treated as such. It was EU law that provided that parents must be allowed 18 weeks’ unpaid leave from work to look after a child. The equal treatment directive led to UK law banning discrimination on the grounds of age, religion or sexual orientation. Indeed, that directive is helping many women, particularly in the public services, to make equal pay claims. I am grateful for that, and should declare that I am currently an equal pay claimant against my former employer—but I shall move swiftly on.

EU rules adopted in 2008 provide that temporary workers must be treated equally with directly employed staff, which includes the giving of access to the same amenities and collective services. We know from research that 41 of the 65 new health and safety regulations introduced in the UK since 1997 have come from the European Union. The Scottish National party takes the issue of tackling exploitative working practices extremely seriously, and we oppose the “anti-trade union” Act 2016.

My hon. Friend the Member for Glasgow East is campaigning for the UK Government to stop discriminating against young people and ensure they get a real living wage. My hon. Friend the Member for Glasgow South (Stewart Malcolm McDonald) is promoting the Unpaid Trial Work Periods (Prohibition) Bill, and I recommend the well-crafted and beautifully written Workers (Definition and Rights) Bill that seeks to simplify the status of workers in law and eliminate zero-hours contracts. I thank everyone who has contributed to this debate. SNP Members oppose neo-liberalism. We do not see Brexit as a way to enhance neo-liberalism, and if it turns out to be it will be a disaster for this country—it will be a disaster for the United Kingdom.