Oral Answers to Questions

Debate between Chloe Smith and Helen Goodman

Wednesday 19th December 2018 Commons Chamber

[The Parliamentary Secretary, Cabinet Office (Chloe Smith)]

The British public deserve to have confidence in our democracy. A diverse range of local authorities have confirmed that they will be taking part in voter ID and postal vote pilots for the 2019 local elections. The pilots will provide further insights into ensuring the security of the voting process.

[Helen Goodman]

I am grateful for that answer. Bishop Auckland has the lowest rate of passport ownership in the entire country. Does not the Minister understand that expensive forms of voter ID will exclude thousands of people from exercising their democratic right to vote?

[Chloe Smith]

Yes, I do; the design of the pilots acknowledges that and makes sure that a free-of-charge alternative will be available.

Regional Pay (Public Sector)

Debate between Chloe Smith and Helen Goodman

Tuesday 10th January 2012 Westminster Hall

[Miss Smith]

It is perfectly possible to think that something is a good idea and then to ask experts how it could happen.

[Helen Goodman]

Does the Minister therefore accept that all that has happened is that the Chancellor has asked how the idea could be implemented and how it would work and that no consideration is being given to the proposal’s overall economic impact?

[Miss Smith]

The best possibility of dealing with the overall economic impact will be when facts and data have been received. That is the point of the process that the Chancellor has laid out.

To move on to the content that we need to get through, hon. Members should be in no doubt about how important the public sector is and about the fact that the Government share that view and the desire for all parts of the economy to do well in the coming years. However, fiscal consolidation is a vital precondition for growth and part of the sustainable foundation that will let all sectors and all parts of industry do well and do what they need to. It is also part of achieving even growth across the country. It is right that public sector pay restraint should play a part in that fiscal consolidation. Public servants do a crucial job in delivering the high-quality services that we all look for, and it is right that we continue to offer the kind of rewards that attract the most skilled people to the public sector. However, it is incontrovertible that public sector wages on average continue to compare extremely generously to those of private sector workers. The Institute of Fiscal Studies, which has already featured in the debate, suggested that there is on average a 7.5% premium to working in the public sector over comparable jobs in the private sector. That makes a strong case for public sector pay bill restraint.

I want to discuss the rationale for the policy suggestion that has been made and the Chancellor’s effort to seek views on how it can be carried out. We must ensure that public sector pay is set at the right level for each labour market in the long term. I want to make it clear again that the proposals are not about generating savings, but about supporting economic growth by ensuring that wages are set at the level in individual localities. Indeed, a significant reason for the disparity between public and private sector pay is due, as I have mentioned, to the difference between pay that is set locally and pay that is set nationally. Typically, private sector pay is more subject to the rates paid by local competitors, the local cost of living and perhaps, in some cases, local turnover rates. However, public sector pay is usually set on a one-size-fits-all basis nationally. Accordingly, public sector workers can often be paid more than private sector workers in similar jobs in the same area. That has potentially damaging consequences for the economy. For example, private sector businesses, perhaps such as the one that my hon. Friend the Member for Montgomeryshire once ran, which are looking for staff to help them to set up or grow, need to compete with much higher public sector wages in the same area. That is the ultimate crowding-out argument within the debate.

I want to refer briefly to the system of zonal pay in the Courts Service, which has been mentioned. It demonstrates that it is possible for pay to be responsive to local labour markets within a national bargaining framework. Of course, those zones did not simply conform to regional boundaries, but took into account the local economy by, for example, putting Norwich, Exeter and Newcastle in the same zone. The debate has a misnomer at its heart. In the autumn statement, the Chancellor announced local pay, not regional pay, so we are not talking about something that might take effect at the level of Wales. We are talking about something that may, depending on what the experts say, happen at a lower level.