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Chamber

Meeting of the Parliament 01 March 2012

01 Mar 2012 · S4 · Meeting of the Parliament
Item of business
Living Wage
Park, John Lab Mid Scotland and Fife Watch on SPTV

I welcome the committee report and the general level of debate that we have had so far. I am pleased that, under our new arrangements, we will look at the issue and the report and then give the Government an opportunity to respond. With that in mind, I hope that I can make some constructive suggestions about the practical things that I believe we need to do to try to deliver a living wage across Scotland.

I believe that we face two key issues just now, which previous speakers have highlighted. One is procurement, which I will deal with initially. The second is a negotiation framework for collective bargaining in local government to ensure that local government employees are covered by the living wage.

I met Alex Neil last October and spoke to him about my proposed member’s bill on procurement, in preparing which I have had a great deal of help from the non-Executive bills unit. The bill focuses on how we would change legislation and the law in Scotland to ensure that procurement can be used to deliver the living wage. Following that meeting, Alex Neil wrote to the European Commission, as other speakers have indicated. He told me earlier today in response to a question that I asked that he has not yet had a response from the Commission. I have some doubt over whether the clarity of the response that we will get from the Commission will help to move the argument on.

I strongly believe that the key issue in a matter such as this is, as Sarah Boyack said, political will. There have been issues in the Parliament, such as the smoking ban and, at the moment, minimum unit pricing for alcoholic drinks, on which there have been different legal opinions on both sides of the argument. In such cases, we as politicians need to step up to the plate and make decisions that we know will improve the lives of people in Scotland. That is exactly what the living wage is about and it is exactly what we need to do on procurement. I hope that, after I introduce my member’s bill, it will be supported across the chamber when it is debated. Obviously, a sustainable procurement bill will be coming at some point as well. If my proposed bill has to be part of the discussion on that, I am more than happy for it to go forward in that way.

The second area that I want to speak about is how we ensure that the living wage is paid to those who are directly employed in local government just now. I am pleased to hear that a majority of councils are paying the living wage to those who are directly employed by them. I was also pleased to hear in a ministerial answer to a question that I asked last week that a number of councils are considering how they would implement the living wage.

My previous experience includes being a union convener in a shipyard in Rosyth—I am not sure whether I have mentioned that in the chamber before—when a particular situation arose about 20 years ago. In 1992, during the previous recession, there was a move by the Confederation of Shipbuilding and Engineering Unions to reduce the working week from 39 hours to 35 hours. That enabled workforces and unions to enter into sensible discussions about efficiencies and how, by reducing sick levels and becoming more efficient in the workplace, we could move from a 39-hour week to a 37-hour week and perhaps to a 35-hour week. If I am right, that framework has been used in Glasgow with the living wage as a practical way of self-financing such decisions.

I hope that, following the debate, the Scottish Government will think about a collective bargaining framework in local government that will enable and encourage discussions on the living wage, in much the same way as negotiations are held on the concordat, the council tax freeze and everything else that the Scottish Government wants local government to deliver on its behalf. I hope that the debate will lead to the Scottish Government committing to doing that.

The one area of the report that I do not agree with, if we are to move things forward, is the part of it that deals with a living wage unit. Perhaps that is not something that we can establish at the moment, but I think that a living wage unit of some description is essential if we are to deliver the living wage not just in local government but across the private sector through procurement. It is necessary to have in place a structure that enables employers, people who are entitled to a living wage and the Scottish Government to understand what is happening in the workplace. I hope that that is something that we will be able to agree on in the future. It is already in my proposed bill. To make a policy commitment happen, it is necessary to have in place the structure, the resources and the people to ensure that it is delivered.

My final point is about in-work poverty, which John Wilson mentioned. “In-work poverty” is the term that politicians use; outside the Parliament, people talk about trying to make ends meet. It is about the reality of people paying their council tax with their credit card—if they have a credit card, that is—and the issues that they face to do with family budgets. It is a massive problem at the moment. We in the Parliament are in the extremely privileged position of being able to do something about it, and I firmly believe that taking forward the living wage through procurement and directly in local government will make a difference to people’s lives. If we make that happen, it will be something that we can all be proud of.

15:42

In the same item of business

The Deputy Presiding Officer (Elaine Smith) Lab
The next item of business is a debate on the living wage in Scotland. I call on Joe FitzPatrick to open the debate on behalf of the Local Government and Rege...
Joe FitzPatrick (Dundee City West) (SNP) SNP
I start by thanking the committee clerks for their diligent work during the inquiry, which resulted in the important report—“Report on the Living Wage in Sco...
John Mason (Glasgow Shettleston) (SNP) SNP
Does the member agree that there was also a lot of scaremongering before the national minimum wage was introduced, which has been shown to be largely false?
Joe FitzPatrick SNP
That is exactly the point that I was going to make. At the time of the introduction of the minimum wage, the CBI stated that “even a low minimum wage would ...
Neil Findlay (Lothian) (Lab) Lab
I am sure that the member is old enough to recall the CBI making similar comments when we stopped sending children up chimneys to sweep them.
Joe FitzPatrick SNP
I cannot remember that far back. I defer to the member. In fact, in the five years following the introduction of the minimum wage, the unemployment level in...
Mark McDonald (North East Scotland) (SNP) SNP
A number of councils have established arm’s-length organisations. Those organisations deliver council services but the staff are not directly employed by the...
Joe FitzPatrick SNP
We questioned local authorities that have introduced the living wage, the most notable of which is Glasgow, about that issue. We received confirmation from t...
The Minister for Local Government and Planning (Derek Mackay) SNP
I am pleased to open the debate on behalf of the Government. The bad news is that I will also close on behalf of the Government. I am pleased to see that th...
Kezia Dugdale (Lothian) (Lab) Lab
Has the minister just given a commitment to a living wage for all employees in an independent Scotland?
Derek Mackay SNP
I am sure that that could be part of our considerations for an independent Scotland. Access to this country’s full resources would give us many choices about...
Gavin Brown (Lothian) (Con) Con
Further to Kezia Dugdale’s point, the powers for the national minimum wage may rest with Westminster, but it would be in the gift of the Scottish Government ...
Derek Mackay SNP
Such decision making is a matter for local government discretion. We do not have to create funds to achieve a policy objective, and I announced last week tha...
Gavin Brown Con
The report states that seven local authorities have implemented the living wage. The minister has said that a majority have implemented it, so, for the sake ...
Derek Mackay SNP
Six councils have agreed to implement the living wage for the financial year 2012-13: Clackmannanshire, Falkirk, Moray, North Lanarkshire, Perth and Kinross,...
Sarah Boyack (Lothian) (Lab) Lab
I, too, welcome the debate. I read the committee’s report with interest and would like to congratulate the committee, the clerks and all those who gave evide...
John Wilson (Central Scotland) (SNP) SNP
I remind Ms Boyack that, when the Labour Party was in government in the UK, it had control over the national minimum wage but that, despite the campaign to i...
Sarah Boyack Lab
The Labour Government increased the national minimum wage repeatedly to ensure that it kept up. The fact that we are discussing the living wage now is testam...
The Deputy Presiding Officer (John Scott) Con
You should close now, please.
Sarah Boyack Lab
That is why we would support the implementation of the living wage. I hope that the Scottish Government will listen to us today, as we need that political wi...
The Deputy Presiding Officer Con
I call Margaret Mitchell. You have six minutes. 15:23
Margaret Mitchell (Central Scotland) (Con) Con
The committee took evidence from a variety of witnesses, whom I thank for their valuable contribution to the inquiry. I pay tribute to the committee clerks f...
Kezia Dugdale Lab
I was at the committee when the member argued that that money would be better spent on potholes. Does she regret her comments on the living wage somehow repr...
Margaret Mitchell Con
I regret anything that takes away from service provision. The raison d’être for any local authority is service provision, and that must come first. The hars...
John Mason SNP
Will the member give way?
Margaret Mitchell Con
I am sorry, but I have only six minutes, and I have a particular view to put over. It is more worrying that, in its written submission, CBI Scotland stated ...
Stewart Maxwell (West Scotland) (SNP) SNP
Will the member take an intervention?
Margaret Mitchell Con
I have already explained that I have only six minutes. I am sorry that I cannot take an intervention; normally, I would do so. In essence, the Scottish Cham...
John Wilson (Central Scotland) (SNP) SNP
I declare an interest. Prior to coming into the Parliament in May 2007, I was the director of the Scottish Low Pay Unit. I also served on the Trades Union Co...
John Park (Mid Scotland and Fife) (Lab) Lab
I welcome the committee report and the general level of debate that we have had so far. I am pleased that, under our new arrangements, we will look at the is...