Meeting of the Parliament (Hybrid) 03 March 2021
I do not know whether that was Rachael Hamilton’s final speech, but I wish her well in her future career, whatever that might be.
There is certainly a lot that I would agree with in the motion. We face a lot of challenges as we move forward out of Covid, but I also think that we can do so with hope and optimism. One of the themes in the motion is clearly low wages, fair work, poorer work outcomes, and precarious and low paid work, and I would like to focus on that area to start with.
There are a number of ways in which we need to tackle those things, and I might as well start with the statutory minimum wage. I believe that that is a key—if not the key—driver in all of this. Ultimately, only when all employers are forced to pay a wage that all their staff can live on will we really make progress. Many employers are decent and want to pay a decent wage, but there will always be some that do not, so a legal requirement is needed.
As we know, the statutory minimum wage is set at Westminster. Ideally, it would raise the wage by a considerable amount, but one option is for the power to do that to be devolved, and I hope that Labour would support that. Of course, some in the business community would complain that they were having to compete with a lower-wage economy in England, but surely that would be better than being dragged down by the system south of the border.
We already know that we do not want to—and, in fact, cannot—compete with low-wage economies around the world. Scotland should be focusing on high-value products, be they in food and drink, engineering or tourism, such that customers pay a higher price and staff get proper pay.
It is true that, even without statutory powers in the area, we can influence pay levels in Scotland to some extent. We are yet to see whether we have more flexibility now that we are out of the EU. However, I note as an example that, when local authorities and the public sector in general procure goods and services, it must be done on the basis not of lowest cost, but of best value. Most of us know that, often, buying the cheapest food or the cheapest car does not represent a saving in the long run.
We also need to accept that there may be a political price to pay for that approach and that it may not always be popular. For example, if we have £1 million to spend on new housing, should we go for 10 homes at £100,000, with some of the workers being paid badly and treated poorly, or should we go for nine homes at £110,000 with all the workers being paid and treated well? We need to be honest about those trade-offs and balances. In the long run, the economy and all of us will benefit from higher wages and fairer conditions, but in the short run we may need to choose between more housing and better-paid workers.
There is also a place for the individual consumer in all of this. Of course, someone who is on a low wage and is struggling with finances is going to have to buy the cheapest food and clothes. That point was made at yesterday’s time for reflection by Mia Fallon and Nathaniel Sweeney from St Aidan’s high school in Wishaw, who had sought to live on £2 a day for food. However, if people’s pay increases, more people can start to have a choice. Many of us already have a choice, and we should be thinking about the choices that we make.
We have seen that with the success of the fair trade movement—I note that it is fair trade fortnight. Do we buy Fairtrade coffee and wine, to mention but two products that I like? They might be a bit more expensive because they are fairly traded, but we know that the terms and conditions of the workers will be fairer.
As a slight aside, I understand that the UK consumes something like £4 billion-worth of chocolate per annum and that 60 per cent of the cocoa used for it comes from West Africa, where some of the workers earn only 74p a day. I got my researcher to check that, and it is 74p a day. Even £2 per day would allow them to afford enough food, children’s education and healthcare. I therefore hope that the recovery will not stop at Scotland’s shores but that we will all learn to think about it more globally. My point is that some people are prepared to pay a bit more and that it is even better when an organisation or a town does that. The Parliament, for example, uses only Fairtrade coffee nowadays, which is certainly a step in the right direction.
Our responsibilities to choose should not stop with fair trade. Closer to home, do we deliberately buy Scottish meat, potatoes and beer whenever we can? Yes, it might be a bit more expensive, but we know that it is creating jobs in this country and boosting our economy. Further, what about holidays, if and when they are allowed again? Will we all spend at least one break each year in Scotland, again creating jobs and boosting the economy? My point here is that we all have a bit of responsibility in this recovery: Westminster does, Holyrood does and individuals do as well.
As I said at the beginning, we clearly face challenges, but we can have hope as we move forward. The Scottish National Investment Bank is just finding its feet, but we need to keep it focused on equality and fairness, making sure that businesses led by women or disabled people get their fair share of investment. It was broadly accepted that Scottish Enterprise and Highlands and Islands Enterprise had not always concentrated enough on those equality aspects of investments in past years. We therefore need to be sure, going forward, that limited public money is used to the best effect. Inclusion Scotland made the point in its briefing for today’s debate that Covid has had a disproportionate effect on disabled people, so that needs to be different going forward.
Training and skills will be important, too. School pupils and college and university students have all missed out on parts of their courses. Again, we need to focus on upskilling and lifelong learning in the years ahead. As the Open University points out in its briefing, 75 per cent of OU students are working full time or part time, so there are good models there and I hope that we can do things better. Yes, there are challenges ahead and, yes, it will not all be plain sailing, but I believe that we can be positive and that Scotland can achieve a great deal.