Trade Union Funding

Debate between Ian Lavery and Fiona Bruce

Wednesday 29th February 2012 Westminster Hall

[Fiona Bruce]

I shall continue, if I may, because I have hardly embarked on my speech and I know that many other hon. Members wish to contribute to the debate.

I have acknowledged the good work that trade unions do. My concerns about union funding and financial support stem from my time as a councillor in Warrington. In 2006, when Labour lost control of the council and a joint Conservative and Liberal administration took over, I was allocated a portfolio with the title “Value for Money”, later augmented to the finance portfolio as a whole. One action that I undertook was to review all the property assets of the council to see where efficiency savings could be made and where, at a time of increasing pressure on our services, better value for money could be delivered for our council tax payers. I am talking about money being allocated to front-line services. We analysed every building and piece of land that the council owned—that had never been done before—and drew up plans to ensure that their use and value was in the best interests of residents. The use of some buildings was increased. For some buildings, joint use was the way forward. Rents were reviewed where appropriate. Some properties were repaired. Others were released for sale, so that the funds on disposal could be utilised more effectively for the benefit of residents.

To my surprise, I discovered that one of the authority’s most prestigious properties, part of a wing of the town hall itself—undoubtedly the most prestigious listed building in the town, in the prime commercial letting area—was occupied rent free, and with services free, by local union representatives, at considerable cost to local council tax payers.

[Ian Lavery (Wansbeck) (Lab)]

Will the hon. Lady give way on that point?

[Fiona Bruce]

No, I shall continue with my speech, if I may. In the interests of transparency, which I mentioned earlier, I would have liked to obtain the definitive figures for that cost, but I was never able to do so. I did, on a number of occasions, ask that use of the asset be reviewed, but I could never get council officers even to consider reviewing the use of that asset in the same way as the use of every other property asset in the town was being reviewed, while all the time local community groups, charities, small business owners and others were seeing their charges for and use of property reviewed. The fact that property used by trade union representatives was exempt from that process struck me as simply unjust.

The value of the use of that asset—prime commercial property—when multiplied over many years, must have amounted to thousands of pounds. That money could have been used to keep down the costs of renting local community halls by youth groups, guides and scouts and mum and tots, and for other front-line services in a town where many residents are by no means affluent. I am sure that few, if any, council tax payers in Warrington knew that their money was being spent in that way, and that had they known and had they realised the amounts involved, they would have been as surprised as I was. It is interesting to note that if I, as Member of Parliament for Congleton, wanted to hold my surgery in the town hall, I would be required to pay a charge.

Therefore, when I heard about the Trade Union Reform Campaign, which was founded to reform the laws and funding arrangements relating to trade unions and so to create a more level playing field, I was pleased to support it and become a council member, together with many other hon. Members who are here today and will speak after me to raise concerns in addition to the one that I have highlighted—the use of council facilities. In supporting the campaign, I am pleased to note that we are in good company. My right hon. Friend the Prime Minister himself is backing the campaign and wrote in November—[Interruption.] He wrote in November to its chairman, my hon. Friend the Member for Cannock Chase (Mr Burley), to whom I pay tribute for standing up and spearheading this campaign. The Prime Minister wrote:

“I am pleased that you have decided to establish the Trade Union Reform Campaign…as I strongly believe the current level of public subsidy to the trade unions cannot be sustained, either morally or economically…at a time when across the private and public sectors people are having to take very difficult decisions in order to save money, it is difficult to justify some people in the public sector being paid not to do the job they are employed for, but instead to undertake full time trade union activities—much of which should be funded by the unions themselves. We need to question why the public is paying for so much, and whether this is sustainable going forward.”

That is what we are doing today. Hard-working taxpayers, particularly in these challenging economic times, deserve to see Government, at local and national level, stewarding people’s money responsibly and doing all that they can to maximise its use, so that as much as possible can go to the front line, for those most in need. I am talking about stewarding people’s money responsibly and ensuring transparency, accountability and fairness.

I do not want to pre-empt what others will say, but I do want to draw attention to the excellent contribution my hon. Friend the Member for Cannock Chase made in his Adjournment debate on 26 October 2011, when he gave many clear examples and staggering figures. He drew the attention of the House to the issue and to the need for reform based on the principle that the activities that people undertake on behalf of trade unions should be funded by those trade unions and not by the taxpayer. Why should taxpayers pay for that work?

People pay council tax to have their bins emptied and their streets cleaned. Councils across the country are making every effort to keep council tax frozen, and the Government are making every effort to pay off Labour’s deficit. At this time, more than ever, it is right that we ask the questions I have posed.

I applaud Swindon council, which has recently taken steps to review the issue. It has removed the shared job of two union representatives as part of a £15 million reduction. Councillors who met to finalise the council’s budget said they should not have to pay their staff to do union work in the current economic climate.

Colleagues who follow me will have many questions for the Minister, but I would be grateful if he would give us guidance on how town halls up and down the country can challenge union representatives’ use of facilities that would be better utilised for the benefit of the community. In the light of the excellent contribution my hon. Friend the Member for Cannock Chase made in his earlier debate, will the Minister also update us on the progress of Government action to deal with the concerns my hon. Friend raised? I had intended to repeat them, but I will not, because so many other Members want to speak.

--- Later in debate ---

[Ian Lavery (Wansbeck) (Lab)]

In the brief time that I have, I want to say that I believe that this is a callous attempt to attack the trade unions and trade union members in the workplace. Many of them are ordinary men and women simply seeking to do a valuable job. My hon. Friend the Member for Blaydon (Mr Anderson) —my very good friend and former mining colleague—said that he is not sure that anyone here has ulterior political motives: I am sorry to disagree, but I believe that that is the case.

[Fiona Bruce]

Will the hon. Gentleman give way?

[Ian Lavery]

I will not give way. It has been mentioned before that we want more transparency. Since the Tory Government took office, they have introduced a certification officer. We now have more legislation than any other democracy in the western world, and our trade unions are more restricted than anywhere else. My view is quite simple—there is a concerted attack on ordinary men and women. However, we should not be surprised. When any Government Member gets up and says, “My auntie used to work here, and my father was a miner”, we know that something is coming in the following sentence: kick the trade unions.

I disagree with several things that have been said. On 30 November, the day of the public sector strikes, the Prime Minister clearly stated in the House that he would review the facility time for trade unions. That was his reaction—to kick the trade unions for daring to have the audacity to speak up for their membership. However, it had been mentioned beforehand.