A CABINET Minister was under fire last night after urging workers to abandon tomorrow’s huge public-sector strikes – because they may tip the region back into recession.
Francis Maude sparked anger by saying the one-day strike – the largest since the 1979 Winter of Discontent – would result in a dangerous loss of “spending power” in the North-East economy.
The comments came after growing criticism of ministers for blaming a succession of outside factors, such as last winter’s Arctic temperatures, the Royal wedding and the Eurozone crisis, for Britain’s economic woes.
Yesterday, the West’s leading economic think-tank, the Organisation for Economic Co-operation and Development (OECD), predicted Britain would suffer another recession this winter, but blamed the lack of growth measures, not strikes.
Asked if tomorrow’s strikes – to protest pension cuts – could plunge the North-East back into recession, Mr Maude said: “There is a danger of that.”
He added: “The North-East is heavily dependent on the public sector and the loss of a day’s pay means less spending power in the North-East economy. That will impact on the economy for sure.”
Mr Maude added that, nationwide, the Treasury had estimated the loss of output could be as high as £500m, and said: “Some of it may be regained later, but much of it will not.”
Easington MP Grahame Morris said: “This is an extraordinary own goal by Francis Maude, who seems to agree with the view of Labour MPs that cuts in the public sector are hurting the North-East economy.
“However, he should be honest that the main reason the North-East economy is being plunged back into recession is the lack of an economic stimulus, thousands of job losses across the public sector and the failure to support growth and jobs in the private sector.”
The criticism was echoed by Middlesbrough South and East Cleveland MP Tom Blenkinsop, who said: “The North-East has been plunged into recession by Mr Cameron’s actions already.
“In fact, I agree with Mr Maude that public sector pay has helped maintain spending on our high streets.
“It is just unfortunate that he has come to this judgment after sacking thousands of police, nurses and council workers in recent months, which has severely damaged our high streets.”
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