HC Deb 20 November 1997 vol 301 cc440-1
6. Mr. Fabricant:

What consideration she has given to setting separate minimum pay rates for different regions of the United Kingdom; and if she will make a statement. [15394]

Mr. Ian McCartney

The Government intend to introduce a single national rate.

Mr. Fabricant

The Minister will be aware from his Department's figures that, if the minimum rate is not set quite low, as it is in the United States, it will cause wholesale unemployment, so does he agree with the recent recommendations of the Minister without Portfolio to the Chancellor of the Exchequer that there should be wholesale exemptions, by both industry and class of worker—or does he disagree?

Mr. McCartney

What a brass neck—a Conservative Member coming here and being an apologist for low pay. In the hon. Gentleman's constituency, 5,000 families earn so little that they have to rely on in-work benefits, and 100,000 people in the west midlands earn less than £2.50 a hour. We won the last general election on the principle of a national minimum wage, no separate sector rates and no derogations for companies. It will be a national minimum wage. Within 90 days of taking office, the Government created the Low Pay Commission and soon we shall publish the Bill implementing the national minimum wage. It is a priority policy on which we are proud to have fought the election.

Mr. Alan W. Williams

May I ask Ministers not to have any exemptions from the minimum wage? My constituency in Wales, north-east England and Northern Ireland have the lowest-paid workers—we are at the bottom of the pay league. The minimum wage will do a power of good to thousands of my constituents. We want a minimum wage with no exemptions, because exemptions create just loopholes for big and small business.

Mr. McCartney

My hon. Friend is absolutely right and that is why we fought and won the general election on a policy of a national minimum wage. There will be no sectoral, regional or company derogations and it will be available from day one of employment. There will be a national minimum wage in this country. It is a priority policy of which the Labour Government can be proud. The 18 years of Tory government led to the largest differentiation between low-paid workers and those at the top. The Conservative party is the party of the few and we are the party of the many.

Mr. Fallon

In that same letter to the Chancellor, the Deputy Prime Minister wanted to exempt seamen, the Minister of Agriculture, Fisheries and Food wanted to exempt some fishermen and the Minister without Portfolio wanted variations by region, by size of business and by sector. Why does the hon. Gentleman think that a national minimum wage is workable when the rest of the Government do not? What is the point of setting up the Low Pay Commission when Ministers are secretly deciding those exemptions behind its back?

Mr. McCartney

Tory Members cannot accept that they lost a general election on this issue. The position is clear. There will be a national minimum wage with no regional, no sectoral and no company derogations and it will be available to workers from day one of employment. We established the Low Pay Commission within 90 days of taking office. It is independent and is responsible for giving advice to the Government about the starting rate of the minimum wage. We await its report, which we have asked it to produce by the end of May 1998. As a consequence of that, this country will have a national minimum wage. Only Tory Members still oppose a minimum wage. The Conservative party was the party of the fat cats. The Conservative Government drove down wages. We won the general election on the clear and simple premise that there would be a national minimum wage.

Mr. Pike

Does my hon. Friend agree that thousands of people in Burnley and east Lancashire who are on low pay or poverty pay will welcome what he has said and the fact that, for the first time for many years, they will get a fair day's pay for a fair day's work?

Mr. McCartney

My hon. Friend is correct. This is one of the most popular policies promoted by the Labour Government. That is why Tory Members are isolated. A large proportion of business in Britain now supports, in principle, the concept of a national minimum wage. Businesses throughout Britain are flooding the Low Pay Commission with evidence in support of a national minimum wage. The only people in Britain who are still apologists for poverty pay are Tory Members. I repeat that that is why they are in opposition and we are in government.