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Mr. Deputy Speaker: Order. We cannot have prolonged conversations in the House while someone is addressing hon. Members. The House must come to order.
Mr. McCartney: I do not expect to receive respect from Opposition Members, but I expect them to respect the low paid.
The minimum wage is vital to ending the scandal of poverty pay; it is not only social justice, but it makes good economic sense. My right hon. Friend the President of the Board of Trade set out eloquently the economic case for the introduction of a national minimum wage.
It has been said that setting up the Low Pay Commission without consultation was arrogant. The policy was in our manifesto and was overwhelmingly endorsed by the British people. The commission's members were selected by the Nolan public appointments procedure; advertisements were placed in the national press. They have been appointed for their knowledge, skills, business backgrounds and understanding of labour market activity. I strongly object to Opposition Members impugning the character of many of those people who have given their time to the Low Pay Commission for the public good, at the expense of their own time and companies to ensure the successful launch of a national minimum wage.
The commission is an independent organisation which will report on the initial rate for the minimum wage; it will consider exemptions for young people who are in training, the methods of calculation, the economic circumstances at the time and the impact on small and medium-sized businesses.
We have been consulting nationwide and have received more than 500 responses, which are overwhelmingly in favour of the principle of a national minimum wage. When the commission has concluded its report, we shall report back to the House, which will debate the regulations. This Government are happy not only to consult, but to carry out their election promises at the earliest opportunity.
Mr. Redwood:
Will the hon. Gentleman give way?
Mr. McCartney:
No, I shall not give way.
After 18 years of Tory control in this country, low pay is everywhere--in rural areas, in urban areas, in the north, south, east and west. That is the Tories' legacy. In London, 87,000 people earn less than £2.50 an hour. In the south-west, 87,000 people earn less than £2.50 an hour. In London, 55,000 families require in-work benefits at the end of the week. The figure is the same for the south-west. It is not regional rates that we need, but the quick introduction of a national minimum wage to help end poverty in the workplace.
The hon. Member for Sevenoaks said that there was no support among business for the minimum wage--[Interruption.]
Mr. McCartney:
It is okay--I am standing.
The hon. Member for Sevenoaks kept trying to say that the Federation of Small Businesses did not vote in support of the minimum wage, but I am pleased to give him the result of the ballot. There were 23,757 in favour of the motion; there were 18,473 against--a majority of 57 per cent. over 43 per cent. The problem is that Opposition Members are not good at democracy and cannot accept the decision.
Yesterday, I received a letter from the head of Bass, which stated:
The Rank organisation wrote to me yesterday and said:
There is one company that has not written: Asda, the company of the hon. Member for Tunbridge Wells (Mr. Norman). It is no wonder, as he is the man who says that the minimum wage will cost 350,000 jobs. As chairman of Asda, last year he received £2.2 million, made up of a £551,000 salary, plus performance-related bonuses. The Asda group's pre-tax profit was just over £400 million. There is hypocrisy and double standards. Business survey after business survey supports the minimum wage.
The right hon. Member for Wokingham is isolated. Few businesses support him; they have all deserted the Tories. Businesses want to get on and succeed, and to produce quality goods and services. They are sick and tired of being undercut by the cowboys. I ask my hon. Friends to go into the Lobby tonight on behalf on low-paid workers and to make sure that the Tories do not get away for even another hour with the concept that employers should pay people £1 an hour. My hon. Friends should support the Bill.
Question put, That the Bill be now read a Second time:--
The House divided: Ayes 387, Noes 145.
"Bass supports the principle of a minimum wage".
It is interesting to note why it says that. It has admitted that in certain parts of its business it has a staff turnover of 100 per cent. a year. That means that 50,000 people a year leave the company's employment. The purpose of the national minimum wage is to ensure quality investment in training and education and the ability for people to earn a good wage so that they can remain in employment.
"Rank are responsible employers and, in principle, are not opposed to a national minimum wage".
Tesco wrote to me this morning and said:
"Tesco has stated for several years that it does not see any problems with a National Minimum Wage."
As an example of good employment, employers and trade unions can work together in a modern, progressive and evolving way to further the interests of staff and shareholders.
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