Budget Resolutions and Economic Situation
Debate between Roberta Blackman-Woods and Phil Wilson(12 years, 9 months ago)
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Phil Wilson (Sedgefield) (Lab)
This is a landmark Budget, because it has redefined the meaning of complacency. The Budget speech, in essence, was nothing more than a review of the previous week’s press, rather than a strategy for growth, although we did learn one thing: the Conservative party is a one-region party, not a one-nation party. The Lib Dems—I notice none of them is here at the moment—have followed such a crooked path since the general election that I am surprised they can now lie straight in bed.
Transport is a very important issue in Sedgefield. In the south-east corner of the constituency, Durham Tees Valley airport is doing its best to continue to serve the Tees valley, even though it has faced difficult times recently. I am pleased that the Minister responsible for aviation has agreed to meet MPs from the area to discuss the airport’s future, and I will be pleased to hear the Government’s plans for expanding runway capacity in the south-east, which would greatly help regional airports.
The Hitachi train building facility is due to start construction in my constituency at the back end of this year or the beginning of next year, and I hope that one day in years to come it will compare with Nissan for the number of private sector jobs it creates. I would like to record once again my thanks to the people of Newton Aycliffe, Sedgefield and the north-east who campaigned to ensure that this Government went ahead with the Labour Government’s plans for investing in new rolling stock to guarantee the Hitachi investment.
Beside the concerns about the future of the airport, the other great concern is the state of public transport in County Durham, especially local bus services. The lack of a credible bus service in the area, which has been restricted because of the cuts in central Government grant, is counter-productive. The local Jobcentre Plus has informed me that it knows that poor transport in the area is making it difficult for people to get to work, and it is such a problem that it is thinking about buying bicycles so that people can make the journey to work. At present, nine jobseekers in Sedgefield are chasing every vacancy, and there are fewer public sector workers in Sedgefield than in the Prime Minister’s constituency.
Although the north-east has the highest proportion of public sector workers of any region in England—just under 26%—private sector jobs increased in the north-east between 2003 and 2008 by 9.2%, while public sector employment grew by 4.1%. In other words, private sector employment in the region was accelerating faster than public sector employment was before the international financial crisis. Therefore, public sector jobs were not crowding out private sector jobs.
As in other parts of the country, in the north-east 40% of households with dual incomes include someone who works in the public sector. The loss of significant public sector jobs and a public sector pay freeze can only exacerbate the loss of spending power in the region if those factors are joined by the localisation of public sector pay. I believe that the move in the direction of localised public sector pay is driven by ideology, rather than economic facts. It belies the fact that we can have national pay bargaining and still have flexibility within pay structures without hitting regions such as the north-east.
Concern about the localisation of public sector pay is not restricted to people in the public sector and trade unionists. The chairman of the Leighton Group, a technology company in the north-east, Mr Paul Callaghan, has warned:
“I’m very concerned about the negative impact on the North East economy of regional pay rates. Clearly we do not have regional pricing on gas, electricity, petrol and most other goods, so freezing of regional public sector pay must reduce demand for local goods and services, further dampening an already depressed economy. I have seen no credible research to show that this move will have anything but a negative impact on both the region’s private and public sector.”
Roberta Blackman-Woods (City of Durham) (Lab)
Does my hon. Friend agree that taking £78 million out of the economy in a time of recession, which is what the TUC estimates regional pay would mean for the north east, is simply economic madness?
Phil Wilson
As I have said, I think that it is ideologically driven. The facts of the matter have been thought through, so my hon. Friend is quite right.
The previous Government turned their back on the wholesale devolution of pay determination at local level in 2003. A Treasury guidance note published in the autumn of 2003 stated:
“At the extreme, local pay in theory could mean devolved pay...to local bodies. In practice, extremely devolved arrangements are not desirable. There are risks of workers being treated differently for no good reason. There could be dangers of leapfrogging and parts of the public sector competing against each other for the best staff.”
Community Cohesion
Debate between Roberta Blackman-Woods and Phil Wilson(13 years, 10 months ago)
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Phil Wilson
We would have done two things. First, we would have made sure that, as far as possible, we did not damage front-line services. Secondly, we would not have raised expectations, as I believe this Government are doing by saying that they will create a big society while at the same time undermining that big society by slashing and burning all the grants and facilities that provide for the third sector. We would not have done that.
We also need the Government to consider what they can do other than providing for charities and the third sector, because the big society involves more than doing just that. For example, one of the issues in my constituency is that some private landlords are neglecting the properties that they own. Those properties were owned by the National Coal Board many years ago. They were then sold off, and people bought them to get on to the property ladder, before selling them on. Private landlords came in and bought them. Now we have a problem, and I believe that, if we are not careful, whole centres of communities will be sucked out and the community spirit will be sucked out too by the behaviour of some of those landlords.
Labour introduced selective licensing schemes, which I am pleased to say the Government have allowed to continue. However, we were also going to introduce a national register for private landlords, which would have meant that you had to register in communities such as mine before you could go on to rent out properties. The Government are not introducing that register. I know that private landlords are not necessarily the Minister’s responsibility, but he has responsibility for the big society. He needs to discuss this issue of private landlords with the Department for Communities and Local Government, because it is ripping the soul out of some of our local communities and needs to be sorted out.
Roberta Blackman-Woods (City of Durham) (Lab)
I totally endorse the point that my hon. Friend is making about the lack of registration of landlords and what I think is a lack of consideration by this Government of the need for communities to know who landlords are, so that if problems with rented properties emerge, they can be tackled at local level.
Phil Wilson
My hon. Friend and I worked together a lot on this issue with Durham county council. Many of those private landlords are absentee landlords, and a lot of them live abroad, so what do they care about what is happening in the villages of Sedgefield or elsewhere in the country? It is an issue that needs to be tackled nationally and, if need be, internationally, too. I say that because if you are not careful what you will have in these areas is not a big society but a non-society, because the community spirit will be taken out of them.
If we really want a big society to flourish, and if we are “all in this together”, we must look internationally to secure a future for our communities that is protected from unstable international financial systems. We need a big society that is not underpinned by abolishing the future jobs fund or the education maintenance allowance, and by the Prime Minister basically reneging on his pledge to send back to the drawing board any Minister who came up with a proposal that affected the front line.
Finally, I want to leave you with this example of the kind of society—