Regional Pay Debate

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Department: Cabinet Office
Wednesday 20th June 2012

(12 years, 6 months ago)

Commons Chamber
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Alison Seabeck Portrait Alison Seabeck
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Indeed; I shall touch on that point briefly later.

More than 18,000 people in Plymouth work in the public sector. In my constituency, a massive 25% of the working population do so—one in four people—and to dampen pay rates could be devastating. The Government’s suggestion that it is easy to compare private sector and public sector jobs is absolute nonsense. In the south-west, large swathes of people work in the hospitality and agriculture sectors, earning very low wages. There is no simple read-across, and I would ask the Government to consider that fact carefully.

Mel Stride Portrait Mel Stride (Central Devon) (Con)
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Will the hon. Lady give way?

Alison Seabeck Portrait Alison Seabeck
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No, I am afraid that I cannot. Perhaps one of the hon. Gentleman’s colleagues will allow him to intervene on them later.

In his autumn statement, the Chancellor talked about private sector pay being set in accordance with local labour markets. That is not true. As my hon. Friend the Member for Birmingham, Ladywood (Shabana Mahmood) has just pointed out, some of the most successful companies in the country, including large retailers, banks and telecoms companies, use similar national pay structures.

There is genuine concern among businesses in my constituency that any decision to cap or lower public sector pay will lead to problems for them, in that there will be less demand for their goods and services as families pull in their horns.

--- Later in debate ---
Mel Stride Portrait Mel Stride
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Will the hon. Lady give way?

Margaret Curran Portrait Margaret Curran
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I do not have time.

As has been pointed out in the debate, the Government have not produced a shred of evidence that a pay bargaining free-for-all would increase the number of private sector jobs, deliver more vibrant local economies or open up access to jobs or opportunities. In fact, the chief economist of the Welsh Government recently demonstrated that age and gender can be as significant factors as local geography, and that if we were to address regional pay differences, we would need to introduce disproportionate changes and reduce the pay of low-paid women. So much for the Tories embracing gender equality!

Perhaps we can hope that the Government will listen to the sensible calls that have been made on this, so that the U-turn on regional pay that has been hinted at becomes a reality. Perhaps the absence of the two Lib Dem Cabinet Ministers augurs well in that regard. The last thing we need in these very difficult times is to drive down wages even further based on the age-old fallacy that the public and private sectors are always to be in competition with each other.

The hon. Member for Cannock Chase (Mr Burley) implied that public sector workers do not have real jobs. That tells us all we need to know about Tory attitudes to police officers and teachers. I call on the Minister to dissociate herself from those comments.

The Opposition motion should be supported by all Members who do not want to exacerbate the north-south divide, who want to ensure that we maintain fairness in public sector pay, and who want to stand up for the interests of working people from Cardiff to Newcastle to Dundee. They should challenge this Government and support the Opposition motion.