Oral Answers to Questions Debate

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Department: HM Treasury

Oral Answers to Questions

Michael Fallon Excerpts
Tuesday 26th June 2012

(12 years, 5 months ago)

Commons Chamber
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Chloe Smith Portrait Miss Smith
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As I have just set out, this is a question at present for the independent pay review bodies, which will report back in July. There is an argument that more local, market-facing pay in the public sector has the potential to support more for the same investment, and to help local businesses become more competitive.

Michael Fallon Portrait Michael Fallon (Sevenoaks) (Con)
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23. How can it be fair for small businesses outside London and the south-east to have to compete for staff paid on national rates working in public offices? Given that the last Government committed us to local pay nearly 10 years ago, and that it already operates in the Courts Service, what is the problem with encouraging other departments to follow suit?

Chloe Smith Portrait Miss Smith
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My hon. Friend makes a valuable point that I am sure the independent pay review bodies will consider. If I were to put a number on the average premium for working in the public sector, I could name 18% in Wales.