Employment in Wales

Mark Tami Excerpts

Tuesday 27th January 2015 Westminster Hall

[Chris Ruane]

The hon. Gentleman may have a point, as the Government have cut back the number of members of the armed forces dramatically; but I see a closure as a closure.

Last Thursday, I met Jane Hutt, the brilliant Welsh Finance Minister who is masterminding much of the investment that I have mentioned. We met at Rhyl high school, which as I said is undergoing a £25 million rebuild. The contractors, Willmott Dixon, said that 60% of the investment will be spent within a 30-mile radius of Rhyl. The jobs, training and growth from that investment will be multiplied many times over because of local procurement. The Labour Welsh Government are playing a vital role in ensuring that my constituency is able to withstand the ravages of Tory cuts.

In Vale of Clwyd and, indeed, in the neighbouring constituency Clwyd West—it is interesting that the right hon. Member for Clwyd West (Mr Jones) is not here today—there is a huge percentage of public sector workers; 37% of the workers in those two constituencies work in the public sector. What will happen when we have these huge cuts? We know what has happened in the past. In the early 1980s, Shotton steelworks closed, and 7,000 jobs were lost in one day—the biggest lay-off in British industrial history—with no help or intervention from the Tories.

[Mark Tami (Alyn and Deeside) (Lab)]

I am sorry to intervene on my hon. Friend when he is making that important point, but may I just correct him? Over 8,000 jobs were lost on that day, and the area still shows the effects of that devastating loss of jobs—still the largest single loss of jobs at a single plant on a single day in the UK.

[Chris Ruane]

I thank my hon. Friend for that, and I accept his correction.

The Government in the 1980s gave no support. There was no compassion and no thought. Areas were almost punished for being Labour. I have repeatedly asked Tory Ministers, from the Chancellor to the Secretary of State for Wales, what measures are in place to help the rebalancing between the public and private sectors in areas with large numbers of public sector workers. In one constituency, which is, I think, in Edinburgh, 78% of the workers are in the public sector, but there is no help from this cold-hearted Conservative Government.

Finally, I turn to Europe. Shotton was rescued by the rise of Airbus. The factory has 7,000 workers and 600 apprentices, and there are 70,000 jobs in the supply chain—it is one of the biggest factories in western Europe. This is a joint European venture, which includes Spain, Germany and France; it is a living example of how co-operation is better than confrontation. However, those jobs will go if we pull out of Europe, as Tory Back Benchers—I am sure there are a few out there now—want us to. There would be massive job losses at not just Airbus, but Toyota and other foreign inward investment businesses, which have said they will leave Britain if it pulls out of the EU.

In St Asaph, in my constituency, work is being done on the Extremely Large Telescope—a £2 billion project to put the biggest telescope the world has ever seen in the Atacama desert in Chile. The lenses alone will be £200 million. I hope they will be made in my constituency, but there is no chance that that will happen, with the high-tech, highly skilled jobs that the project would bring, if we pull out of the EU.

[Mark Tami]

My hon. Friend is correct about Airbus. Does he agree that such companies have choices? They do not have to invest in the UK. Airbus is an example of a good partnership, but, equally, the factories in Germany, France and Spain want the wing work we have in this country, and further investment in the Broughton plant would be in doubt if we were outside Europe.

[Chris Ruane]

Absolutely. The Conservative element of the Government thinks we can pull out of Europe, where we do about 40% of our trade, and stick two fingers up to it, and that everything will be the same afterwards—that that trade and co-operation will carry on. That will not be the case. Europe will punish us. It does not want us to pull out; it wants us to be included. We are 60 million people out of 6 billion—1% of the world’s population. If we pull away from Europe, our voice will be miniscule. We are part of the biggest trading bloc in the world’s history.

--- Later in debate ---

[Guto Bebb]

No, I do not think I will—I shall retaliate in kind. The hon. Gentleman had his opportunity.

[Mark Tami]

Will the hon. Gentleman give way to me?

[Guto Bebb]

Of course.

[Mark Tami]

Does the hon. Gentleman not agree that, even if we do accept that more jobs are coming in, we are also losing jobs? A few days ago, we had the announcement that 120 jobs were going at the Shotton paper mill. Although I welcome all jobs, replacing those quality, highly skilled jobs with minimum wage jobs is not the same thing.

[Guto Bebb]

I accept entirely that we would be disappointed to see job losses in any part of Wales. I know full well how the north Wales economy works, and a number of people who work in the hon. Gentleman’s constituency live in mine. People travel to work down the A55 corridor, whether that is from east to west or west to east. Even though the road makes that difficult, I often meet people who work in Chester or in Alyn and Deeside when I am out canvassing. I accept that any job lost is a concern, but it is important to remember that although the Labour party has been highlighting the doom and gloom, and saying that Wales will never recover from public sector job cuts, the number of jobs created in the private sector in Wales has far exceeded the number lost in the public sector.

In that respect, we need to respond to the slur made by the hon. Member for Vale of Clwyd regarding Government Members’ attitude towards public sector workers. I have never heard a Government Member criticise anybody who works in the public sector. The one simple point we have made is that we need to have fairness between those who work in the public sector and the majority—even in Wales—who work in the private sector. Do public sector workers have gold-plated pensions? No, they do not in terms of what they get out of their pensions, but in comparison with the situation for somebody in my constituency who is self-employed, “gold-plated” is a fair description. The changes the Government have brought in simply move the balance of pension contributions slightly from the taxpayer to the recipients of the significant pensions in the public sector. The Government’s changes on pensions are to be applauded because they have ensured that we retain a degree of support for those who opt to serve in the public sector, and that support is well beyond what is available to those who work in the private sector.

The hon. Gentleman should remember a simple point: even on trade union figures, the average public sector pension is about £8,000, and that is equivalent to a pension pot of roughly £120,000. If Labour Members do care about people in Wales, they should be aware that the average pension pot for somebody in the private sector in Wales is £30,000. Even the trade union figures still imply that people in the public sector have a fund that is four times more than that of somebody in the private sector, but I see no concern among Labour Members about the situation faced by the vast majority of Welsh workers.

It is important to highlight that Labour Members have said time and time again that there is concern about youth unemployment. What we have seen, however, is that there is a difference between what happens when Labour is in power and what Labour thinks happens when it is in power. In my constituency, for example, youth unemployment has fallen by almost 50% since 2010. That fantastic achievement is the result of this Government’s attitude that people are better off in work than not working. Under the previous Government, youth unemployment went up and the benefits system picked up the strain. Nobody who is young should be on benefits; they should be able to be trained and to get work, and that is exactly what we are seeing in Aberconwy as a result of the Government’s changes.