Regional Pay

Mike Freer Excerpts

Wednesday 20th June 2012 Commons Chamber

[Rachel Reeves]

I am sure that the 11,500 public sector workers in the hon. Lady’s constituency will know that she is sticking up for them.

[Mike Freer (Finchley and Golders Green) (Con)]

If the Opposition are so vehemently opposed to regional pay, will the hon. Lady be instructing Labour London MPs to give up their London weighting?

[Rachel Reeves]

I will come to the regional flexibility that is already in the system in inner and outer London for teachers and those in the health service. The point is that it is not necessary to dismantle the national system in this way to get the flexibility that we need.

We can imagine the impact that these changes might have on regional economies. If the north-east had a further year’s pay freeze imposed on it next year and the 1% increase that the Chancellor has announced was concentrated in more favoured areas, it would deprive the region’s economy of £78 million a year. If the same happened in other regions, Wales would lose £97 million a year, Yorkshire and the Humber £130 million, the south-west £140 million, as I said before, and Scotland £162 million.

Does the Minister really think that this policy will contribute to economic rebalancing? Is it really the best that the Government can come up with? Their only policy for jobs is to make it easier to fire people and their only policy for the regions is to cut the pay of public sector workers. It is no wonder that we are back in recession. It would be laughable if it was not so depressing.

There is no credible evidence to support the claim that the difficulties faced by the private sector are the result of national pay frameworks in the public sector.

--- Later in debate ---

[Margaret Curran]

While we are on the subject of party leaders, perhaps the hon. Lady, who is a member of the SNP, will tell us why the First Minister of Scotland is very clear about the levels of corporation tax that will be paid in Scotland and what banks will pay, but never seems to be able to tell us what the level of public pay in Scotland will be. Is it not time that the SNP was clear about that?

The debate has also featured the now predictable undermining of Government policy by the Liberal Democrats—or so it would seem from the outside. We must ask ourselves exactly what is going on in this Government. We have omnishambles and U-turns, splits in briefings, and the announcement of a policy one day only for it to be questioned minutes later. The shadow Chief Secretary to the Treasury and I both have the pleasure of shadowing Liberal Democrat Ministers, both of them Scottish at that, but where are they today?

I have been in the House for only a short time, but I have learnt one thing. When the Minister for the Cabinet Office and Paymaster General is at the Dispatch Box, it is a clear sign that the Government are in trouble , so we have to ask ourselves why the Lib Dems are not prepared to do their job by coming to the Chamber and defending this Government—are they off the hook just because they are Lib Dems?

[Mike Freer]

Will the hon. Lady give way?

[Margaret Curran]

I do not have time.

To be fair, the disagreements over the Government’s approach are not just between Lib Dems and Tories; there are also differences within the Tory party itself, as was made clear by the hon. Member for Hexham (Guy Opperman), in what was a powerful and sincere contribution.

In a recent vote in the Welsh Assembly, the Tories voted against regional pay and pointed out the damage they thought it would do in Wales. Tory Finance spokesperson Paul Davies stated:

“As a group, we have not seen any evidence at all of the benefits of introducing a regional pay system in the United Kingdom.”

In the now-infamous Budget, the Chancellor clearly signalled support for the break-up of the national pay negotiating machinery. Have we now reached a stage where the Chancellor of the Exchequer cannot command support among the Tories in the Chamber, or, indeed, the country?

As we have heard in this debate, there are grave concerns about the real purpose behind the Chancellor’s comments. As many Members have said, it appears that the Government wish to deliver a cut in the cost of public sector employment on the dubious premise that it will produce a private sector recovery and economic growth throughout the UK.