Jobs and Work

Debate between William Bain and Steve Reed

Wednesday 11th June 2014 Commons Chamber

[Mr William Bain (Glasgow North East) (Lab)]

Like many right hon. and hon. Members, I have been troubled, particularly in the past few months, by the growing disconnect between the politics in this House or the constitutional politics of the referendum in Scotland and the real-life experiences of our constituents. With wage growth yet to take hold in any sustained way after the longest period of falling real wages in our history, and with productivity remaining weak and investment low, it is no wonder that claims made by Ministers in this House about a recovery for all count for so little with real Britain.

This Queen’s Speech was this Government’s last opportunity to deal with the huge underlying problems in our society that mean, as the Minister without Portfolio, the right hon. and learned Member for Rushcliffe (Mr Clarke), admitted in a rare bout of candour from this Government, that ordinary people are not experiencing any kind of recovery in their living standards. The failure of this Government over the four Queen’s Speeches of this Parliament will make even worse the sense of alienation that people feel in communities up and down this country.

However, my discussions with 2,500 constituents on the doorstep in the past month have shown me that people have not given up. Civil society is helping to fill the yawning gaps that this Government are leaving—for example, with the explosion in the use of food banks. They need and deserve a Government who are listening, have a plan for change and are in touch with their lives.

Just as it was Labour in opposition in 1945, 1964, 1974 and 1997 that offered hope that Britain could be better, so it falls to Labour Members now to speak up for the millions of ordinary people who yearn for change and yearn for them to be their voice. In this debate, let us be the voice for the 1.4 million people in this country, including the 120,000 in Scotland, who work part time but need full-time work because of declining wages. Let us be the voice for the tens of thousands of young people suffering for years on end from mass unemployment whom I have encountered in my constituency in the past few months. Let us be the voice for the low-paid and low-skilled workers who need a workplace skills revolution to boost their wages now and to secure greater prospects for the future. Let us be the voice for the 5 million people in this country who go to work and do the right thing, but take home less than the living wage—working longer and longer hours, but finding less and less to show for it.

[Mr Steve Reed]

My hon. Friend makes a very important point about the living wage. Will he join me in congratulating the six boroughs in London—all of them Labour—that are already living wage employers, and in welcoming Croydon’s intention to join them, now that Croydon also has a Labour council?

[Mr Bain]

I am most happy to congratulate Labour borough councils up and down the country on those efforts. That shows what Labour can do when it has power. It also shows the difference between the values of Labour and the Scottish National party at Holyrood, which had the opportunity to extend the living wage several weeks ago, but failed resoundingly in that task.

With three in 10 of my constituents who are in work taking home less than the living wage, a Queen’s Speech for the many would have changed the remit of the Low Pay Commission to raise the minimum wage in line with trends in average wages for the next five years.

A Queen’s Speech for the many would have begun the task of reorganising the banks to ensure that they serve ordinary people and businesses, not the other way around. There should be new challenger banks to introduce more competition in the retail banking sector; new regional banks to support SME lending, as the Sparkassen have done for decades in Germany; a national investment bank, modelled on the successes in Germany, France, the United States and South Korea; and an unshackled green investment bank that is able to drive investment in the renewables sector, with the potential to create tens of thousands of skilled jobs in our economy.

To secure fairness for the disadvantaged, there should have been a Bill to raise the taxes on bank bonuses to help pay for a jobs guarantee for long-term unemployed young people and other jobless people, who are crying out for the opportunity to work and who have been let down so badly by this Government and their Work programme. Perhaps when the Prime Minister was trying to rock the boat with Chancellor Merkel and the Swedish and Dutch Prime Ministers over the EU the other day, he should have taken a steer from them about how jobs guarantee policies in Sweden have benefited employers, given opportunities to young people and helped the public finances.

With 1.4 million people in insecure jobs with no guaranteed hours, a Queen’s Speech for the many would have offered the right to defined working hours after a short period in a job. People in Glasgow have told me about the uncertainty that a lack of guaranteed hours is causing them—uncertainty in their family finances, uncertainty over whether they can pay the bills and uncertainty in planning for a decent future.

Given the increasingly skewed jobs market and the lack of skilled service, construction and manufacturing jobs, a Queen’s Speech for the many would have contained measures to boost exports, which remain desperately weak, and to boost investment by businesses, particularly in research and development.

For a stronger recovery that reaches every part of these islands, we need a Queen’s Speech that expands opportunity, boosts incomes and cuts inequality. We need a fresh start and a new Government to replace this tired and clapped-out coalition—a Labour Government for the many, by the many and of the many.