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Regional Pay

Thank you, Mr Deputy Speaker, for that generous offer.

We have heard from Government Members that, on the one hand, we introduced regional pay, yet on the other hand that we have a one-size-fits-all system, making

it either one or the other. As far as I am concerned, this is not about public sector versus private sector; it is about what is fair for people in whatever sector they happen to work in. Let us think about the situation in County Durham. Unemployment in Sedgefield has risen by nearly 25% in the last year, and the number of people out of work for more than six months has risen by 100%. Moreover, 120,000 households in County Durham will be hit by benefit changes which will take £151 million from the local economy. The average wage is £418 a week, which is well below the national average. Regional pay will not benefit local businesses, because there will no longer be any drive for people to buy anything that is manufactured or created in the area. As for the idea that there are no national pay schemes in the private sector, Tesco has one and so has Nissan. They will not be looking only at local pay rates; they will be looking at the sector in other parts of the country as well, and also at skills.

I believe that this proposal is ideologically driven, and that it makes no economic sense whatsoever. I agree with the hon. Member for Hexham (Guy Opperman). Early-day motion 55, which I sponsored, was signed by Members on both sides of the House, and it is clear that there is a great deal of cross-party opposition to the measure. I strongly urge the Government to withdraw it and to think about what is fair to not just the public sector but the private sector, because this measure will damage both sectors if it goes ahead.

6.41 pm