Trade Union Funding

Huw Irranca-Davies Excerpts

Wednesday 29th February 2012 Westminster Hall

[Mr Burley]

No, I will not.

We, on the Government side of the House, feel that the public have a right to know where their taxes are going. That is why my hon. Friend the Member for Congleton has done such an important job this morning in securing the debate on behalf of hard-pressed British taxpayers.

As my hon. Friend said, there is now widespread public and parliamentary concern about paid time off for trade union activities and duties, an issue that has been acknowledged by the Minister for the Cabinet Office and the Minister for Local Government. They are both looking at reforming that practice, known as public sector facility time.

I understand that the Cabinet Office is about to launch a consultation into the extent—indeed abuse, as pointed out by my hon. Friend the Member for Witham (Priti Patel)—of so-called facility time. I would be grateful to the Minister if he could update us on when the consultation will take place, what its parameters will be, when it will be likely to conclude, and what the recommendations for reform might be.

The issue this morning is one of basic principle: is it appropriate for the taxpayer to subsidise trade unions at all, and if so, to what extent? In the brief time I have this morning, I want to deal with the issue of principle, because as far as I can tell, it has never been properly explained or defended in public.

I listened carefully to the response of the right hon. Member for Wentworth and Dearne (John Healey) to the ten-minute rule Bill tabled by my hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman) on the issue. It was notable that in his response, at no point did the respected former Minister—I am sorry to see that he is no longer in the Chamber—defend or explain the principle of a public subsidy to trade unions. He opened his response by saying:

“This Bill attacks the most basic and most benign feature of trade union work—the day-to-day support for staff at work by their colleagues who are prepared to volunteer as trade union representatives.”—[Official Report, 11 January 2012; Vol. 538, c. 201.]

That rather missed the point, because we have no problem with colleagues who are prepared to volunteer as trade union representatives, just with colleagues who think they should be paid by the taxpayer to be trade union representatives. In fact, if I was a volunteer trade union rep, doing a worthy job for a few hours a week because I believed in helping colleagues, I would be rather annoyed to think that whereas I worked for free, other colleagues felt that they needed to be paid to do it; in fact, some feel that they need to be paid full-time to do it. Where is the fairness in that? Why do some trade union reps need to be paid while others do not?

[Huw Irranca-Davies (Ogmore) (Lab)]

Perhaps I could defend that by pointing to Germany. Not only does Germany have the most productive manufacturing and industrial sector, it has one of the highest levels of public subsidy, recognising that productivity, health and safety and the competitive nature of its industry benefit from having active union-work force engagement. There is the defence. How would the hon. Gentleman respond to that?

[Mr Burley]

I am grateful for the hon. Gentleman’s intervention; at least he has had a go. I find it utterly counter-intuitive to claim that higher public services can somehow be delivered with public sector staff working for the union rather than in their jobs. There may be case studies of union reps doing valuable work, but equally, there are case studies of union reps working against the public interest, as has been exposed by MPs and the media, so I do not think the hon. Gentleman’s point holds.

In the minute that I have left, I want to point out a new statistic. The campaign that we formed, the Trade Union Reform Campaign, has pointed out that the TUC now receives three quarters of its funding from the public purse, runs a surplus of £40 million a year and is sitting on top of £1 billion of assets. The last time public sector organisations operated at that sort of profit was in the ’90s in the privatised utilities, which were struck with a windfall tax by the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown) in ’97. We have to question now whether the trade unions should be subject to a similar windfall tax. They received £113 million last year and £80 million in paid time for staff. As I have said, under the Conservative-led Government, they will still get more than £500 million. It is right that we ask whether that money could be better spent on the front line. That sum buys a hell of a lot of nurses, doctors, teachers and police officers.

It is unfair for taxpayers to shoulder the burden. Trade unions should pay for representation in the public sector themselves, using their subscription income. An hon. Member said that that would somehow end trade unions. It will not; they can clearly afford to represent themselves, as we have seen with the huge sums that Unison has. Taxpayers should no longer be expected to fund the army of trade union representatives.