Coronavirus Job Retention Scheme

Jim Shannon Excerpts

Thursday 17th September 2020 Commons Chamber

[Patricia Gibson]

The hon. Gentleman makes a fair point, but the whole point is that we do not know. We need to get our economy on an even keel; we need to make sure it is healthier so that then the damage can be assessed—but what a crime it is to throw away viable jobs because we think that some jobs will not be viable. There are potentially millions of jobs that are saveable here, and I think investing in our jobs is a price worth paying in order to save the vast majority, because that is what the experts are telling us.

[Jim Shannon (Strangford) (DUP)]

Will the hon. Lady give way on that point?

[Patricia Gibson]

I will make some progress.

Many businesses are awaiting further lockdown easing before some or all of their staff return to pre-covid working hours. Numerous other viable businesses are simply not in a position to keep staff in their jobs without this crucial support. Indeed, in our own island communities, such as the Isle of Arran in my constituency and the Isle of Cumbrae, there has been even greater disruption with the necessity of capacity restrictions on ferries. With the main tourism season drawing to a close, further support for viable jobs is essential.

Government Members continue to throw their hands in the air and ask, “For how long should support continue?”, to which we on the SNP Benches reply, “For as long as necessary to save tens of thousands of viable jobs, perhaps millions in the longer term.” We say: we want the Chancellor to keep his word when he said he would do “whatever it takes” to save jobs. Let us put to bed this economic illiteracy about what that would cost. The direct cost to the Government of extending furlough would be offset by income tax and national insurance contributions paid on the wages of those remaining on furlough and by savings on unemployment benefits that would not need to be paid. The net cost of extending the furlough scheme across the UK would be around £10 billion, according to the National Institute of Economic and Social Research. We also need to factor in how that would help economic growth and leave public debt slightly lower as a share of GDP than if the scheme were closed down next month, and that is before we factor in the likely significant social cost of not extending the scheme. Without an extension, unemployment is likely to be as high as 10%.

[Patricia Gibson]

I thank the hon. Lady for her point, but again we hear the argument that, because some of these jobs cannot be saved, no jobs should be saved. We say: let us invest in our people and assess the economic damage afterwards. At the moment, when the picture is not clear and the facts are still emerging, and when the extent of the damage is still unknown and the economy is still in a critical condition, we cannot afford to wind the scheme down in October.

[Jim Shannon]

With businesses slowly bringing staff off furlough, does the hon. Lady agree that extending the scheme will allow that slow rollback to continue, rather than having owners make the decision to let go of staff who could be brought back in a month’s time? We are talking about 700,000 people. Another month, or another few, could make all the difference.

--- Later in debate ---

[Jim Shannon (Strangford) (DUP)]

Thank you, Mr Deputy Speaker.

I thank the Minister and the Government for all that they have done through the furlough scheme and the help for businesses, because without that many, many businesses would have failed. I wish to make four quick points. First, the prospect of an estimated 4 million unemployed is, in itself, a reason to pull out all the stops to see employees able to get back on their feet and start back in their paid roles. It is important that provision is made and consideration is given to how that might happen.

My local high street has survived and seems to be getting out the other side of this, but we have tourism in our area—it is a core economic policy for the Ards and North Down Borough Council—-so we need to ensure that that is still there. I ask the Minister seriously to consider the four-day working week as a possibility, looking at the costs and benefits at this time. I implore the Government to look proactively for solutions, such as a four-day week, rather than simply close the scheme.

I would also like to quickly mention the airline and aerospace industry. Furlough is the only way that some of my constituents can pay their bills, and to go from a pilot’s wages to universal credit is just not on. If those people are back in their job in a few months’ time, they will be paying high taxes and national insurance. My final point is about the many businesses slowly bringing staff off furlough. I believe it is important in the short term to ensure that staff are retained on furlough, so that they have those jobs in the long term.