Public Sector Pensions

Debate between Elfyn Llwyd and Hywel Williams

Thursday 8th December 2011 Commons Chamber

[Hywel Williams]

Thank you, Madam Deputy Speaker.

To summarise our motion, we appreciate the valuable work done by public sector workers and believe that they should receive pensions that are affordable, sustainable and fair. I think that we can have agreement across the House on that. We believe that the Government’s changes are primarily for the purposes of deficit reduction—I do not think we are going to have agreement on that—rather than to secure the long-term sustainability of public sector pensions. These changes are, to our minds, unfair on public sector workers.

We also note that the findings of the National Audit Office for the 2007-08 period show that pensions re-negotiated at that time will generate estimated savings of 14% by 2059-60. The conclusions of the 38th report of the Public Accounts Committee reveal that the cost of public service pensions has reduced substantially because of those changes. We agree with the criticism in both reports of the failure to develop a long-term strategy for the role of pensions in recruitment and retention in the public sector, and we condemn the Government’s threat to cut the devolved Administrations’ budgets if they do not implement the Government’s immediate levy.

[Mr Elfyn Llwyd (Dwyfor Meirionnydd) (PC)]

I am following my hon. Friend’s argument closely and I agree entirely with what he says. Does he agree that there is a link between this drive to the bottom on public sector pay and the Chancellor’s view that we should be looking at regional pay? This flexibility is all about a drive to the bottom, and it is unacceptable out there; people will not have it.

S4C

Debate between Elfyn Llwyd and Hywel Williams

Wednesday 19th October 2011 Westminster Hall

[Hywel Williams]

I agree that the cuts to S4C are probably going to be very deep indeed, and deeper than any reasonable broadcaster might be able to cope with given the long time scales of planning. I was just saying that that is how it appeared to people in Wales, but also to disinterested commentators. It is not just people who are taking particular sides who saw that. I am sure that that was not what the Government intended.

I would like to ask further questions beyond those about consultation, such as how the whole issue was handled. I will give a small example that will be familiar to those who were members of the Public Bodies Bill Committee. The agreement between the Department for Culture, Media and Sport and the BBC was made on 13 September. On the morning of 15 September, the Bill Committee met to discuss S4C. The debate continued from 1 pm onward. The Minister who replied to the debate, the hon. Member for Somerton and Frome (Mr Heath), referred to the BBC agreement in support of his argument. However, that agreement was not published until the afternoon of that day. It was too late to inform members of the Committee for that debate—although not the Report stage or on Third Reading—other than the Minister, of course, who had it in his hand. Was that completely coincidental? Why was the agreement not available on 13 or 14 September, or even on the morning of 15 September?

I raised this matter in a subsequent sitting of the Committee as a point of order, but to no avail. I have to tell the Minister here today that the impression given, rightly or wrongly, was of, at best, sharp practice. Consequently, he should realise that there are people in Wales who are now even more distrustful of the motives and action of the Government, and they will not be reassured by evasions or warm words. In fact, some might conclude that the wisest course of action for the Government would be to backtrack and restore at least part of the funding to S4C, to take S4C out of the Public Bodies Bill and, instead, consult and include any proposals in the forthcoming broadcasting Bill.

Given that they are unlikely to do that, and pressing on with my questions, I want to ask the Minister, and give him time to answer, rather than answer through his unfortunate friend, the hon. Member for Somerton and Frome who had to face the Public Bill Committee. He did his best to answer. I know he did his best to answer. [Interruption.] Perhaps I would not go as far as “brilliant”, but he is a very nice man.

On money, in the amended Public Bodies Bill, there is an undertaking for the Government to provide “sufficient” funding. This is mainly made up of a contribution by the BBC from the licence fee. I understand that that is supposed to be approximately £76 million in 2014-15. Will the Minister tell us what the contribution will be in 2015-16 and 2016-17, and the next two years? It is not clear to me, at least. I have heard two figures mentioned—£74 million, or is it £76 million? We are only talking about a couple of million, and we are used to talking in trillions in this place, but £2 million is a load of money. Will all the BBC money be devoted to production, as we have heard? Must it all be devoted to production? Must it all be spent in the independent sector? Are these not decisions that S4C should be taking independently, rather than being directed?

[Mr Elfyn Llwyd (Dwyfor Meirionnydd) (PC)]

May I just say that I am very pleased that my hon. Friend has been able to secure this debate? I am pleased with the attendance of hon. Members from all parties today, showing the depth of feeling in Wales about this issue. Will he please ask the Minister, if I can ask a question through him, what is the latest on the editorial independence of S4C?

[Hywel Williams]

I certainly will put those questions to the Minister, given that I have been speaking now for some 14 minutes. First, though, there is the question of administration. I understand that administering the channel costs about £20 million. From where is that to be obtained? I understand that the DCMS is to provide £7 million and that £3 million can be obtained from the channel’s commercial activities. What about the other £10 million? Where will that come from?

On management and governance, the point raised by my right hon. Friend is pertinent. We come to the matter of S4C’s independence. Again, the Government have assured us that S4C’s independence will be guaranteed. Will the BBC be appointing people on the operational side, which is my understanding? If that is so, how many people and at what level? What will be their function? Will they be there to look after the BBC’s interests? How can they avoid literally taking the BBC’s side? For example, if S4C decides to bid for a particular sports event that is in competition with the BBC—the Government are in favour of competition, are they not?—where will the loyalties of those BBC appointees lie? Will it be with the channel, or will it be with the BBC? Will they have a veto or a super majority, whatever that might be?