Steve McCabe
Main Page: Steve McCabe (Labour - Birmingham, Selly Oak)
Barbara Keeley
Indeed, a quarter of those who experience in-work poverty are employed by the public sector. In addition, the average public sector pension, at £4,200, is very far from the gold-plated pension that people talk about. Our proposals would introduce greater transparency and help the objective of curbing excessive pay at the top of the scale, because it will be harder for a highly paid council chief executive to defend his or her pay if the public can see what that council pays its lowest-paid members of staff.
The Opposition believe that as well as an approach on top and low pay, we need a fair and consistent approach to transparency in local authority pay. As my hon. Friend the Member for Birmingham, Erdington (Jack Dromey) said in Committee, Will Hutton’s report puts paid to the myths. Public sector employees earn only £1 of every £100 earned by the top 1%, or to put it another way, out of every £100 that is earned by the top 1%, only £1 is earned in the public sector. Therefore, the perception that the public sector is awash with fat cats is a myth, and it does not help when DCLG Ministers spend their time building that myth as a way of dealing with top pay.
The Hutton report confirms that increases in executive pay have been a private sector phenomenon. That is why tackling excess pay should happen not just in the public sector. We should also focus on pay in the private sector when money is paid from the public purse—that is the test. Staff on outsourced local government contracts tend to be concentrated in low-wage sectors such as cleaning, catering, low-skilled manual work and care work. One key question for hon. Members is this: do we want cleaners, care workers and teaching assistants to earn a living wage? The Opposition believe that they should earn such a wage. We therefore hope that Ministers and Government Members agree that the implementation of a senior pay policy in local government would be a double standard if the same logic is not applied to contractors, not least because the local government procurement market is valued at £38 billion.
Will Hutton said in his report that
“it is important that the Fair Pay Code and as far as possible the other recommendations of this Review are extended into the public services industry.”
I hope that Ministers—I welcome the Secretary of State to the Chamber—support Hutton’s proposals to extend pay transparency to those private sector contractors who are paid out of the public purse. Implementation of our proposals would help to ensure that executive pay does not spiral up, that low pay is challenged, and that people can be confident that their local council is spending their money fairly and wisely.
Finally, I support amendments 39 to 41, which are in my name and those of my hon. Friends the Members for Plymouth, Moor View (Alison Seabeck) and for Birmingham, Erdington. The proposals would remove the power of the Secretary of State, who has just joined us in the Chamber, to direct or order the imposition of shadow mayors. That is one of the most controversial measures in the Bill, and it represents the Government at their most centralising. The Government want to order a local authority to cease its existing form of governance and begin to operate a mayor and cabinet executive. Ministers spent months denying that they intended to try to impose shadow mayors.
I remind the Secretary of State that he gave the following answer to my hon. Friend the Member for Kingston upon Hull North (Diana Johnson) on 21 October 2010:
“She seems to be suggesting that we would somehow impose mayors on those 12 cities, but of course we will not-that is completely out of the question. The proposals will be subject to referendums. Once we know the views of the people in those 12 cities, we will move on to the election of a mayor if people vote for that.”—[Official Report, 21 October 2010; Vol. 516, c. 1117.]
[Interruption.] I am getting some confusing signals from Government Members. On the same day, to be clear about the Secretary of State’s intentions, my hon. Friend the Member for North Tyneside (Mrs Glindon) asked him again whether it was his intention to turn council leaders into mayors before holding a referendum. He stood at the Dispatch Box and referred my hon. Friend back to the earlier question:
“I ruled out the possibility that we would be imposing mayors. This will be subject to a referendum.”—[Official Report, 21 October 2010; Vol. 516, c. 1125.]
He was absolutely clear. However, the proposal in the Bill directly contradicts what the Secretary of State said on that occasion and on other occasions. It is further proof of a Government who say one thing and do another, and it raises further questions about whether what they say can be trusted at all.
Since the debate began on the proposal to impose mayors on 12 of our largest cities, opposition has bubbled up and developed all over the place. Indeed, the day after the Localism Bill was announced, the leader of Bradford council, Councillor Ian Greenwood, told the Bradford Telegraph and Argus newspaper that he was uncomfortable with being given an office to which he had not been elected. In that article, he said:
“My view is this is not the right thing for Bradford… I am uncomfortable about being given an office I wasn’t elected to. I don’t feel it’s the right thing to do. Leadership is not about dictating, it’s about taking people with you”.
Steve McCabe (Birmingham, Selly Oak) (Lab)
Does my hon. Friend accept that we need a clear line on this? The Secretary of State’s apparent proposal for Birmingham would mean that the person who lost the election this May and will lose it again next May will be imposed on the people of Birmingham, irrespective of how they vote. Surely there is nothing democratic about that.
Barbara Keeley
No, there is absolutely not. I thank my hon. Friend for making that point.
Hon. Members will be interested to know the extent to which there is all-party opposition to these proposals in Bradford. The Conservative group leader on Bradford council also argued against the imposition of a shadow mayor in that city. In the same article, Councillor Anne Hawkesworth said:
“My colleagues and I are not supportive of elected mayors… We do not think that the proposals are suited to the needs of…Bradford.”
Last week, the same issue was reported on again, when the hon. Member for Bradford East (Mr Ward) said:
“My view is that it should be for the councils to decide if they want to go down the referendum route. The referendum shouldn’t be imposed.”
The Opposition agree. Shadow mayors and referendums on having a mayor should not be imposed. In Bradford at least, it seems, there is Labour, Liberal Democrat and Conservative opposition to the Government’s proposals. However, there has also been opposition in other councils, including Leeds city council.