Budget Resolutions and Economic Situation

Valerie Vaz Excerpts

Thursday 24th June 2010 Commons Chamber

[Valerie Vaz (Walsall South) (Lab)]

It is a pleasure to follow the hon. Member for Hexham (Guy Opperman). He does his family proud. They will be very proud of him and the speech that he made today. It is also a pleasure to listen to all those who made their maiden speeches. They will do their constituents proud.

Thank you, Mr. Deputy Speaker, for allowing me to speak in the Budget debate. There was an audible gasp around the country, and that was just from the parents whose children had finished their GCSEs, and that includes my own daughter Liberty, my nephew Luke and 630,000 other 15 and 16-year-olds. They have worked hard and given up many activities, so that when August comes no one can say that they did not work hard and that exams are getting easier. When they end up here, as some of them will do, I hope that they will not condemn us by saying that we just taught them how not to pass exams and did not give them a decent education. We should acknowledge the efforts of their teachers, too. My husband Paul is waiting for an Ofsted inspection, so there is another major event in the family. I was pleased to invite his school, St Mary’s Roman Catholic primary, to the House. They came on Monday, and were greeted by their MP, the hon. Member for Brentford and Isleworth (Mary Macleod).

The Secretary of State for Education could learn something from those young people. He seems to misunderstand the word “free”. He wants people to set up free schools, but they are not free; the money is coming from the public sector and coming from taxpayers so that some people can say, “We’re setting up vanity schooling;” and that is just what it is.

Much has been said about public sector workers, and it is here that I have to declare an interest because I have friends and former colleagues who work in the public sector. I know how hard they work. They work beyond their contractual hours, and when there is a recruitment freeze, they pick up the slack and carry out the work created by the vacancies. They went into the public sector because they wanted to serve the public, and their only perk was a decent pension. They have never had a large wage compared with those in the private sector. They are the people who serve the House, who turn policy into legislation and who defend the Government. Instead of being accountable to members of the public, they seem to be accountable to accountants. They know where the budget can be trimmed. Every single minute of their working day is accounted for.

Public sector workers work beyond the call of duty just to ensure that the wheels of this country turn. They always act in the public interest and are committed and loyal to this country. I note that the Government want to hear from them about how to make cuts, but that old cliché of turkeys voting for Christmas comes to mind, because no one will say, “Here, have my job. Take this as a cut.” The Government should carry out a skills and policy audit of each Department, because that way they can decide their policies and priorities. I note from the Chancellor of the Exchequer’s speech that he has asked Will Hutton to look at plans for fairer pay throughout the public sector, and I ask the right hon. Gentleman to extend that remit to those private companies that received public money in the bail-out.

Will Hutton said himself in an article in The Observer that even John Lewis, the founder of the department store, thought it extraordinary that a chief executive should receive almost 20 times’ the pay of other workers. President Obama’s pay tsar is doing exactly the same in the United States, and Will Hutton’s remit should be used to renegotiate the payouts and compensation made to those who have received exceptional taxpayer assistance.

Much has been said about the private sector mopping up after the public sector, but the reality is there to be seen in my constituency. On Saturday I met a delegation of workers from Maple Leaf Bakery in Raleigh street. They told me how they are under pressure to sign a new contract at different hourly rates. If they do not, and even if they put in a letter of protest, they will be sacked, so they either accept the new rate or go. The rate has been reduced from £8.48 an hour to £6.88. Those people make our daily bread. I met them, and some have been at the factory for more than 37 years, so they have the skills. If there had not been a minimum wage, who knows what their pay would be? ACAS has been involved, and all that the workers want to do is work. They have a way forward and have suggested a team to look at ways of reducing waste, upgrading the plant and cutting the number of managers. Its parent company in Canada is making a loss, but the company in my constituency makes a profit. My hon. Friend the Member for Bolsover (Mr Skinner), commonly known as the beast of Bolsover, is sadly not in the Chamber, but he described the events of the economic meltdown as an “economic tsunami”. I could not put it any other way.

People forget that when the Prime Minister attends the G20 summit at the weekend, he takes with him the legacy of my right hon. Friends the Members for Kirkcaldy and Cowdenbeath (Mr Brown) and for Edinburgh South West (Mr Darling), who did not blink in the face of the huge financial pressures and meltdown but steered the ship of state into safer waters. That is the true legacy of the past 13 years.