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unemployment is well below the levels prevailing when they were last fought at the general election. Indeed, unemployment in those 46 seats as a whole has fallen by more than 60,000, or over 25 per cent., since the last election, which is a bigger fall than the 23 per cent. fall in the country as a whole.Mrs. Maureen Hicks (Wolverhampton, North-East) : My seat was one of those highlighted by the hon. Member for Sedgefield (Mr. Blair). Does my right hon. and learned Friend agree that, although the hon. Member for Sedgefield gloats over unemployment and rubs his hands with glee every time someone is made unemployed, we heard little from him in the days when so many new jobs were being created in my constituency in the west midlands? Where was he when the local Labour authority opposed employment training in Wolverhampton and turned down £700,000 from the Government? Does my right hon. and learned Friend agree that he is a total sham and a lot of hot air?
Mr. Howard : My hon. Friend is absolutely right. She was also right to describe the hon. Gentleman as gloating. His speech was one long gloat about those figures.
In the most marginal Conservative seat in England, which is represented by my hon. Friend the Member for York (Mr. Gregory), unemployment is more than a third below its June 1987 level. In the most marginal Conservative seat in Scotland, which is represented by my right hon. Friend the Member for Ayr (Mr. Younger), unemployment is more than 36 per cent. below its level at that time. In the most marginal Conservative seat in Wales, which is represented by my hon. Friend, the Member for Delyn (Mr. Raffan), unemployment is barely half the level it was when he was elected. Even in the hon. Gentleman's constituency of Sedgefield, unemployment is more than 37 per cent. lower than it was at the time of the last election in June 1987.
Mr. Alex Salmond (Banff and Buchan) : The Minister mentioned events north of the border. Does he recall that, when the vice-chairman of the Conservative party in Scotland came up with the idea for Scottish Enterprise, the training investment organisation, he said that its purpose was to eliminate unemployment in Scotland? When will that target be met?
Mr. Howard : It will be met and, in time, that is exactly what we shall achieve. We are pursuing policies that will bring down unemployment in Scotland to levels that have not been seen for many a day.
The way in which the hon. Member for Sedgefield has been using the unemployment statistics is another vivid example of the Labour party's approach to politics, which was described by my hon. Friend the Minister for Health in her memorable phrase as "scaring, not caring". That sums up the Labour party's approach. Its very purpose is to foment alarm and despondency. It is an approach of which it should be thoroughly ashamed.
Mr. Tam Dalyell (Linlithgow) : As the Under-Secretary of State for Scotland is present, will he give an undertaking that the Department will look carefully at the adult basic education units in Bathgate and throughout rate-capped Lothian region which are faced with closure ? If those units are closed, how can people expect any kind of employment in the labour market ? Will the Scottish Office give an undertaking to look at that serious matter ?
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Mr. Howard : My hon. Friend the Under- Secretary of State for Scotland is present and has heard the hon. Gentleman's question. I am sure that he will look at that matter.Mr. Dalyell : I want an undertaking.
Mr. Howard : I have answered the hon. Gentleman's question. The hon. Member for Sedgefield is fond of alleging that we are complacent about rising unemployment, but that is wholly untrue. Nor are we negative and alarmist like the Labour party. Unlike Labour Members, we do not spend our time fostering fear but get on with the job of providing practical help to the unemployed. The Govenment are providing more practical help than has ever been available before to help unemployed people back to work. The hon. Gentleman seemed to think that there was little point in providing skilled assistance to the unemployed to help them find jobs. He thought that that subject was fit for mockery.
Every month, the employment service finds jobs for over 100,000 unemployed people. For the present financial year, I have set it a testing target--to find 1.3 million jobs for unemployed people, 5,000 jobs every working day.
More than half of those who become unemployed leave unemployment within three months. In recent months we have stepped up our efforts to help the unemployed to higher levels than ever before.
Mr. Blair : Will the Minister at least admit that funding for training the unemployed has been reduced as we said? How does he justify that at a time of rising unemployment?
Mr. Howard : The hon. Gentleman knows the position, which has been explained to him time after time. When we looked at the studies and surveys on those matters which were carried out last autumn, we decided that it was right to adjust the balance of help provided to the unemployed. That is why we increased provision through the employment service and increased the number of places in job clubs and through the job interview guarantee scheme. When we saw that unemployment was rising in February this year, I announced an extra £120 million for employment training, specifically to meet that changed situation.
Mr. Blair : Will the Secretary of State admit, plainly so that it will appear on the record, that he has cut funding for training the unemployed as was said?
Mr. Howard : I have explained to the hon. Gentleman exactly what we have done. I have told him that, unless and until he can persuade the shadow Chief Secretary to the Treasury to endorse his spending proposals, nothing that he says on this matter carries the slightest conviction.
Sir Norman Fowler (Sutton Coldfield) : Would not the hon. Gentleman's point carry much more credibility, had the Labour party not campaigned against the introduction of employment training, which is the biggest training programme for long-term unemployed people, and, initially, against the training and enterprise councils?
Mr. Howard : My right hon. Friend, who introduced employment training in the teeth of sustained opposition from the Labour party, is absolutely right. It lies ill in the mouth of the Labour party to criticise that programme.
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Mr. Paul Flynn (Newport, West) : Does the Secretary of State realise that one of the main employers in my constituency is the Central Statistical Office, which collects Government statistics? It is so concerned about the constant manipulations and fiddles in Government statistics that the figures that we have been given today are meaningless and no comparisons are being made. Does the Secretary of State recall telling me a month ago that 700,000 people are counted twice in the employment statistics--he has said that again tonight--because they are doing more than one job?
Mr. Howard : If the Central Statistical Office lies in the hon. Gentleman's constituency, he should know that the comparisons that we make are entirely consistent. If he has any doubts about that, I suggest that he asks his constituents who work in the Central Statistical Office because he will then see that that is entirely true.
Mr. Ron Leighton (Newham, North-East) rose --
Mr. Howard : I shall give way to the Chairman of the Select Committee, but then I must get on.
Mr. Leighton : We are trying to get the facts straight on the funding for employment training. Does the Secretary of State agree that during the last autumn review the TEC chairmen asked that the funding for ET should remain the same, but that there was a cut of £365 million, of which the Secretary of State has restored £120 million--one third of the original cut? The TEC chairmen are asking for the other two thirds to be put back. Since then, unemployment has risen for 14 consecutive months and the Secretary of State has not put back a single penny piece. Are not those the facts?
Mr. Howard : Naturally, the TEC chairmen asked for more money then and I dare say that they will ask for more money again. Does the hon. Gentleman know of anyone who is in charge of a budget who does not want to see it made bigger and does not ask for more money? Of course, that is what the TEC chairmen want, but they have been told in the past and will be told again that they will have the resources they need to do the job that they have been set.
Mr. Alun Michael (Cardiff, South and Penarth) : Will the Secretary of State give way?
Mr. Howard : No, I cannot give way again. I must press on. I want to tell the House--although I understand why the Labour party are reluctant to listen--about the ways in which we have been helping the unemployed. Job clubs are a highly successful means of helping unemployed people back to work. Some 64 per cent. of unemployed people leaving job clubs go straight into jobs, training or further education. There were no job clubs when the Labour party was in power. Such clubs were introduced by this Government. This year, we are providing an extra 100,000 places in job clubs and the new job interview guarantee scheme, which is a new project that we have piloted in inner cities. It brings together people without jobs and employers with vacancies. There was no such scheme when the Labour party was in power.
Restart interviews were scoffed at by the hon. Member for Sedgefield. They were the first systematic means to call in and offer help to the long-term unemployed and were introduced by this Government. There were no restart
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interviews when the Labour party was in power. Now we are also offering restart courses--one-week job preparation courses. The enterprise allowance scheme--the first ever national programme to help unemployed people become self-employed--was introduced by this Government. Already more than half a million new businesses have been founded by the EAS. Now that scheme is run by the training and enterprise councils, which have been given the flexibility to tailor it to meet the needs of different areas. There was no EAS when the Labour party was in power.Employment training--the first ever national programme offering training to the long-term unemployed--was introduced by this Government when my right hon. Friend the Member for Sutton Coldfield (Sir N. Fowler) was Secretary of State for Employment. There was nothing remotely like employment training when the Labour party was in power.
The employment service is now a next steps agency with much greater flexibility and efficiency so that it can offer help to the unemployed more effectively than ever. Yes it is true that it is now providing throughout the country a comprehensive five-point, job-help package to meet the specific needs of unemployed individuals. That includes in-depth advisory interviews for all newly unemployed people and an individual back-to-work plan agreed with each one of them. There was nothing comparable when the Labour party was in power. The resources that have been made available to the employment service have been increased to ensure that it can provide that help effectively and efficiently. This year there will be about 650,000 opportunities, through my Department's programmes, to help unemployed people. No Government have ever done more than this one to help unemployed people back to work. We shall continue to spare no effort to ensure that we give them all the help that they need.
What would be the position on unemployment today if the Labour party was in power? We heard a good deal about economic mismanagement from the hon. Member for Sedgefield. With the benefit of hindsight, I would be the first to admit that interest rates were cut too far in the autumn of 1987 after the stock market crash. That unleashed the inflationary pressures which we are now getting back under control. It is absolutely clear that, if the Labour party had been in office in 1987 and 1988, the unemployment and recession we face today would be far worse. Throughout that autumn and winter, the Labour party called time and time again for still lower interest rates. I am delighted to see that the right hon. and learned Member for Monklands, East (Mr. Smith) is with us this evening. He was confronted with the evidence by Brian Walden on 17 March, who put his own statements back to him, and their effect on him was remarkable. He could not begin to conceal his discomfiture and was reduced to stuttering incoherence. He started grunting like an unhappy Japanese Sumo wrestler. He knew then and he knows now that the policies that he was then advocating would have made matters infinitely worse. The sum total of the Labour party's approach to economic policy is to call for lower interest rates in all circumstances and at all times, regardless of whether that would be the appropriate step to take. The right hon. and learned Gentleman's policy is the policy of the parrot--memorise a phrase and
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repeat it mindlessly and endlessly in all places and at all times, regardless of whether it has the least relevance to the task in hand.So much for the policies that the Labour party would have pursued if it had been in power during the past few years. What of the policies that it now proposes? What would be their effect on unemployment? The effect of the minimum wage policy on jobs would be devastating, and hon. Members do not have to take that from me. The Fabian Society pamphlet said :
"If the national legal minimum wage were a fixed proportion of median earnings, like half"--
that is only the first stage of Labour's policy--
"the restoration of differentials would have to be prevented, otherwise the proportion could not be held. If differentials were restored to any degree" --
as both the pamphlet and trade union leaders made it clear that they would be--
"median earnings would rise and that would necessitate a compensating increase in the national legal minimum wage, setting off more restorations of differentials. An automatic upward chase would have been set in motion with inflationary consequences."
The pamphlet went on to support estimates that up to 880,000 jobs would be destroyed.
The Fabian Society is not alone in saying that. The Financial Times , which the hon. Member for Sedgefield was so happy to call on for support during the Labour party's recent political broadcast, said in an editorial this week :
"Labour's minimum wage would raise unemployment among the unskilled, while doing little to relieve poverty. Moreover, it would reduce the incentive both for workers to train and for employers to train them."
Joe Haines in the Daily Mirror described the minimum wage by saying that it
"won't work and won't help".
The hon. Member for Birkenhead (Mr. Field) said that the unemployment consequences of the minimum wage would be "little short of disastrous."
Ms. Diane Abbott (Hackney, North and Stoke Newington) : There are thousands of women in my constituency who do dirty and degrading jobs for less money at the end of the week than the Secretary of State spends on dinner and who would be interested to hear Conservative Members sneering at the notion that they should earn a living wage. If a national minimum wage is so dreadful, why are we the only country in Europe without it?
Mr. Howard : That is not the case. As to the hon. Lady's constituents, of course they need to be helped. We do so sensibly through family credit, not by introducing a minimum wage which would destroy their jobs.
Even the Sunday People has said of Labour's minimum wage : "it would only cause more unemployment and deny jobs to those who most need them".
The stupidity of the Labour party is that it confuses low-paid jobs with low-income households, but 62 per cent. of those whose pay is in the lowest tenth of earnings are in the richer half of the population. That is why the sensible way of helping those on low incomes is to pay family credit, which is targeted on those in low-paid employment. [Interruption.] We do not flinch from ensuring that the taxpayer helps to look after people on low incomes who need help and it is news to me if the Opposition no longer subscribe to that proposition. We
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believe that that is a more sensible way of achieving our objectives than is destroying hundreds of thousands of jobs. The commitment of the hon. Member for Sedgefield to policies that will destroy jobs would not stop with a minimum wage. He would introduce a new tax on jobs, costing up to 50,000 jobs. He would act immediately to introduce the European Commission's social action programme, which was denounced by every major employers' organisation in Britain because it would add £3.5 billion to their costs and destroy over 100,000 jobs.What about Labour's strikers charter? What about the return of secondary action and the flying picket, the neutering of the ability of the courts to deal with unlawful action, the compulsion on employers to recognise trade unions, and the new guarantee that strikers cannot be dismissed? Is that how the Labour party intends to encourage jobs and the creation of the resources from which it says that it will pay for all its grandiose schemes?
On training, the Opposition would not have made any of the progress which we have made since 1979. Not only would they never have conceived of the range of training measures which we have introduced, but even when these measures were put on a plate right under their noses their reaction was to fight them tooth and nail. They opposed every training initiative from the start. They attacked YTS. Their leader, as shadow Education Secretary, toured the country in the early 1980s denouncing vocational education in general and our TVEI programme in particular as fit only for
"hewers of wood and drawers of water".
The Opposition opposed ET.
Unlike the Opposition, we have taken training seriously. We have increased spending on training two and a half times faster than inflation since 1979. We inherited 6,000 training places for young people from Labour and at present we have 350,000
Government-sponsored training places. That is 60 training places for every one which Labour was able to provide. More than 3 million young people have benefited from youth training and its predecessor since 1983.
We now have in place, with employment training, the biggest training programme for the long-term unemployed in Europe. That increased commitment has been fully matched by British employers, who, in 1986, were spending around £18 billion a year on training. Now they are likely to be spending more than £20 billion a year, and they have done even better than that. Since 1984 the number of employees receiving training from their employers has increased year in year out, and last year it was no less than 85 per cent. greater than it was just six years before. Moreover, we have put in place a national network of training and enterprise councils--the most radical leap forward in employer commitment to training in this century.
Mr. Ray Powell (Ogmore) : The worst measure ever.
Mr. Howard : Perhaps the hon. Gentleman should have a word with his hon. Friend the Member for Sedgefield. The Labour party should make up its mind about its policy towards training and enterprise councils--
Mr. Ray Powell : They are the worst thing ever.
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Mr. Powell : Perhaps the right hon. and learned Gentleman will listen to someone with experience in training. For 12 years I chaired the CATO--community activities and training in Ogmore--organisation in mid- Glamorgan in my constituency. In 1981, 600 people were registered under the community programme as training with the organisation. This year, since the advent of training and enterprise councils, the local TEC has decided to withdraw the contract from CATO, which has had in all 4,000 people training under its auspices, so it has been deprived of a substantial contract. Some 250 places have been lost and 280 have been lost under job training-- directly as a result of community enterprise training in mid-Glamorgan.
Mr. Howard : I am sorry that the hon. Gentleman did not give the House the benefit of his views on TECs in general. Those views are far removed from those of his Front-Bench spokesmen. He will know from the experience that he has recounted that the community programme was not a training programme and he ought to appreciate that no Government owe a duty to any or every training provider. We owe a duty to the people who need help and training. The world that the Opposition occupy is a world in which nothing changes. They believe that a training provider with a contract should always retain it, regardless of whether it is providing what is needed to meet current demands.
Mr. Donald Anderson (Swansea, East) : If the right hon. and learned Gentleman is so keen on meeting the needs of those who need help, does he deny the clear evidence given by my hon. Friend the Member for Sedgefield (Mr. Blair) of the reduction of funds for these TECs ?
Mr. Howard : I have explained the position on funding several times- -the hon. Gentleman could not have been listening. Perhaps he should have a word with the shadow Chief Secretary, with whose remarks on this subject I shall deal in a moment.
Mr. Christopher Gill (Ludlow) : Before my right hon. and learned Friend moves off the subject of TECs, may I tell him that, as an employer of 30 years' standing, I consider that they hold out the best prospect for training for our young people that I have known in my lifetime ?
Mr. Howard : My hon. Friend is entirely right. He is much more in tune with the needs of industry than are Opposition Members. Together with TECs we are putting in place a new framework to increase dramatically the incentives and opportunities available to individuals to train. We are creating the first ever proper national system of vocational qualifications in this country. We are changing the tax system to give individuals a tax incentive to train. We are building on our world lead in developing open and flexible learning. We are pioneering a system of career development loans to provide further help to individuals who wish to pay for their training. The White Paper "Education and Training for the 21st Century" is a revolutionary package of measures for young people. Every young person leaving full-time education at 16 or 17 will have a training credit ; will have access to the unified system of national vocational qualifications ; will be able to have his achievement
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recognised in a way that gives equal esteem to vocational and academic attainment ; will have access to an independent and invigorated further education sector ; and will have a national record of achievement, to set out what he has achieved in school, and to build on as he continues to learn throughout working life. Many of these measures are revolutionary, not just in Britain but in a world context. Training credits are a world first. The reform of vocational qualifications, based on the standards of competence needed for real work in real working situations, is setting an example which other countries want to follow.The Opposition have no credentials whatever to pontificate about training ; their record in Government and in Opposition is one of abysmal failure. It is against that background that we must assess the proposals which they now put forward. Those policies would throw the great progress made since 1979 into complete reverse. Foremost among them is Labour's advocacy of compulsion for the training of young people--of legislating to ban thousands of jobs held by young people. Since Labour also plans to restore benefit entitlement to young people who refuse the offer of a training place, its plans would make it illegal for a young person to take a job without training, but perfectly acceptable for him to choose the dole without training.
That is the programme with which Labour approaches the 1990s. That is the future that it offers our young people. We have abolished the dismal route from school to the dole queue which so many of our young people used to follow. Labour would restore it and encourage people to take it. That is the banner under which the new model Labour party marches into the 1990s. But of course, that is not all. The hon. Member for Sedgefield has promised more money--£900 million of it--on television this morning. The only difficulty is that, every time the hon. Gentleman gets up to promise more money, the shadow Chief Secretary slaps him down and says he cannot have it.
My hon. Friend the Member for Amber Valley (Mr. Oppenheim) referred earlier to the shadow Chief Secretary's appearance on "On the Record". I am sure that all who had the privilege of witnessing that will long treasure the experience-- [Hon. Members :-- "It was brilliant."] The hon. Member for Derby, South (Mrs. Beckett) said : "Only pensions and child benefits are commitments."
She said that Labour must be careful not to confuse commitments which mean something with goals which mean nothing at all. We should understand, she said, that the Labour party could plan to do something and say so publicly, but that that was in no sense an undertaking.
Mr. Roy Hughes : On a point of order, Mr. Deputy Speaker. I am concerned about the time. The Secretary of State has been speaking for half an hour. Is it not about time that he finished?
Mr. Deputy Speaker (Sir Paul Dean) : I must be wholly neutral. Both Front Benches are tarred with the same brush in this regard.
Mr. Howard : I understand why Opposition Members do not want to listen. The hon. Lady said that Labour might hope to do this or have the intention to do that, but that none of those phrases amounted to a commitment. After all that, she said :
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"I want the public to judge us on what we are saying".She talked about Labour's plans for education, health, social security, overseas aid, transport and even for lower taxation, but the hon. Member for Sedgefield should note that she did not once mention training or employment measures, nor did she ever utter the word "priority". I again invite the hon. Gentleman to say exactly where training comes on Labour's list. Is it a commitment or a priority? Is it a priority to which the Opposition are not committed, or a commitment to which they attach no priority?
We may have invented a new game. "Spot the ball" has nothing on "spot the pledge". The rules could be simple. The person who could rank in their correct order Labour's commitments, priorities, undertakings, aims, goals, desires, pledges, promises and objectives would win the prize. We would welcome employees of the Labour party and their families taking part, because they would have no more of a clue than anyone else.
At the next election, the British people will face a clear choice on--the issues of employment and training. It will be a choice between a Government who have created more jobs, more businesses and more wealth than ever before, and an Opposition committed to policies which would destroy millions of jobs, cripple our economy and wreck our future prospects. They will choose between a Government who have done more to advance training in Britain than any other Government this century--and an Opposition who have attacked and tried to undermine every step forward for training made in the past 12 years. The choice will be between a Government bringing forward radical and necessary reforms to widen opportunity still further and to build upon the successes of the 1980s, and an Opposition determined to narrow choice, undermine excellence and lower quality, taking us back to the failed policies of the 1960s and 1970s. The British people will make that choice decisively, and this Government will remain to carry their mandate into the 1990s and beyond.
8.32 pm
Mr. Huw Edwards (Monmouth) : I thank you, Mr. Deputy Speaker, for calling me so early in this crucial debate.
Like many hon. Members, I enter the House following the death of a Member, in my case Sir John Stradling Thomas. He represented the constituency for 21 years and, as hon. Members know, he was a popular and charming man and his death saddened many people. Before I took my seat, I had the honour to attend his memorial service in the Crypt where the Speaker, in a moving tribute, said that Sir John was proud to be a Welshman and proud to be the Member for Monmouth. I am also proud to be a Welshman and the Member for Monmouth.
I was born and brought up in a fine Welsh community, the Welsh community in London. One of the great advantages of being brought up in that community was that one developed an affection for all parts of Wales--the north, the south and the rural and urban areas. I also developed an affection for people in Welsh-speaking areas as well as for those in non-Welsh-speaking areas. Monmouth has such a mix of people. It has a small number of Welsh speakers and many who do not speak Welsh.
Monmouth is a beautiful constituency, as anyone who visits it will see. I do not need to tell hon. Members about
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the beauty of the Usk, Wye and Llantony valleys because most of them visited the area during the by-election campaign. Monmouth has beautiful towns, villages and hamlets, one of which isLlanfihangel-Tor-Y-Mynnedd which I invite hon. Members to visit. Monmouth is a rich farming area with a fine tradition in agriculture. Regrettably, many farmers have faced great difficulties in recent years. They have seen farm prices go down and their interest rates go up. The costs of farming have risen, and many people have left the land. Many farmers in Monmouth are worried that their children will not be able to inherit the farms, and they fear the consequences of losing the family tradition of farming. I hope that I can represent both the farming and the urban communities. Like many beautiful constituencies, the beauty of Monmouth often masks some of its serious and growing problems. The recession is hitting people throughout the constituency and it affects people in the towns and villages as well as those who work in the private sector and farmers. They have seen the effects of high interest rates and ever growing unemployment. Unemployment in the constituency has risen by 43 per cent. since last June and it is affecting people throughout the constituency. What could be more insulting to the people of Monmouth who only a few years ago were constantly told about Wales's economic miracle than to be told now that those who are out of work are paying a price that is well worth paying to reduce inflation?
I wonder how the people who work in the American Express shop in Abergavenny felt when they were told that, after more than 20 years' service, they were to lose their jobs in six weeks. They did not receive an apology from the company or even much real warning. How did they feel with they were told that they were paying a price that is well worth paying even though their productivity and business increased this year? Such redundancies affect American Express in Neath and Swansea and other areas in south Wales.
Anyone who visits the constituency is welcome to go to the jobcentres in Monmouth and Abergavenny where they will see the jobs and the wage levels on offer. The rates are £2 or £2.50 an hour for vital jobs such as looking after sick people or working in private nursing homes. In such occupations, low pay is a massive problem. People despair when they look at the jobcentre advertisements offering £2.50 an hour. That is less than £100 a week, which is £80 to £90 net take-home pay. For years in the 1980s Ministers said that there was no problem of low pay. Amazingly, they now tell us that a minimum wage policy of only £130 a week, which is all that we are suggesting, would create massive unemployment. They cannot have it both ways.
Unemployment and low pay are inextricably linked, and we often hear the argument that low pay is better than no pay. Such an argument can be used to justify anything. How much below £130 a week do wages have to go? Pay of £6,500 a year when multiplied by three would buy nothing in the property market. People on such pay are totally excluded from that market, yet £130 a week is hardly generous ; it is £3.40 an hour.
Figures from the Department of Employment show that in Gwent last year one in four men and six in 10 women earned less than the Council of Europe decency
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threshold. I worked for the Low Pay Unit on those statistics, and that has had a great influence on me. I shall continue to advance such arguments in the House.Last year in Gwent, 23 per cent. of women worked full time for less than £120 a week. There is no work ethic like the work ethic of the low- paid. Many of them are working for little more than they would receive on benefit. In effect, they are virtually volunteers, and that is a remarkable work ethic.
That evidence is proof, if proof were needed, that Britain must have a minimum wage policy. Britain is the only country in the EC without one. We have already lost minimum wage protection for people under 21 resulting in ridiculously low levels of pay, low levels of benefit and disqualification from benefit, and we have seen the effect of that on what is supposed to be a civilised society. Young people sleep in doorways in the Strand, destitute, a phenomenon which has arisen only in the past three or four years as the result of the Government's social security, employment and housing policies. That is an insult to a civilised society.
The fear of redundancy, in particular in the national health service, proved an important issue in the recent by-election. At the beginning of the campaign, Guy's hospital announced a possible 600 job losses and the same occurred in hospitals in Bradford. That raised considerable fears among people working in the health service in Monmouth, such as the Nevill Hall hospital and the Mount Pleasant hospital. People feared for the future of the health service and for their employment as a result of the Government's pressure to encourage all hospitals with more than 300 beds and all units to consider opt-out status.
I do not apologise for anything that was said in that campaign. I stand by what I said throughout. The Government's restructuring of the health service amounts to its fragmentation, a way of abrogating responsibility and of ensuring, if not immediately, in years to come, the hiving off of the less profitable areas of the health service, the chronic sector and long-term care, and the possibility--more than a possibility, I think--that the profitable areas could be ripe for takeover by some of the private health organisations such as American Medical International, Humana and BUPA. What guarantee is there that that will not happen should we have another Conservative Government? It was perfectly right to raise those fears and anxieties. I spoke to many people in the campaign who work in the health service--good administrators, consultants, nurses, paramedical staff and ancillary staff. People at virtually all levels agreed with me that nearly all the principles of the NHS are now being violated as the result of the changes which are now going through. If hospitals want to ditch care of the chronically ill or the mentally ill, they may well do so. The principles of equality and comprehensive care is disappearing. We are having a two-tier system. General practitioners are saying that all the time. Unless general practitioners are budget holders, they will lose when it comes to getting people into local hospitals.
The principle of professional autonomy is disappearing. The medical profession is seeing a cultural revolution in the health service whereby power has gone from those with clinical expertise to those with managerial expertise--the supermarket philosophy. During the campaign, nothing could be said about the health service without
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some of my opponents, and one in particular, using the analogy of the supermarket. When it comes to the NHS, people in my constituency and throughout Britain find supermarket analogies abhorrent. The hospital that was the focus of the campaign is an ideal district general hospital. It sits under the hills in Abergavenny. Many of its patients come from Blaenau Gwent, Tredegar and Ebbw Vale, as do many of its staff. Tredegar and Ebbw Vale formed the spiritual birthplace of the NHS which established the principles of health care in Britain in the post- war period and those principles and values are widely shared throughout Monmouth and the country as a whole. The by-election showed the country that those principles of equality, comprehensive provision, universality and collective responsibility are the values of the health service that the British people want to maintain, and I will use every opportunity in the House to advance those principles and to convey people's anxiety about the current restructuring of the health service. I shall continue to serve the constituents of Monmouth in the rural and urban areas to the very best of my ability.8.45 pm
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